Ocean Yield announced results for the first quarter 2017.
· Declared a dividend of USD 0.1850 per share for Q1 2017. This is an increase of 0.25 cents per share compared with the previous quarter and is the 14th consecutive quarterly increase.
· Net profit before tax was USD 40.5 million and Net profit after tax was USD 36.8 million. Adjusted net profit was USD 33.4 million.
· The charter backlog was USD 2.8 billion on an adjusted EBITDA basis with remaining average duration of 11.4 years.
· Successful delivery of two newbuilding container vessels during Q1 2017 with fifteen-year charters.
· Ocean Yield owned unsecured bonds issued by American Shipping Company ASA with a nominal value of USD 200.6 million. These bonds were refinanced during the quarter, where Ocean Yield participated with USD 50 million in a new five-year unsecured bond and received net cash proceeds of USD 156 million.
· Agreement with Farstad Supply AS to restructure the terms of the bareboat charters.
· Termination of the bareboat charter for the vessel Lewek Connector and agreement of a new four-month charter.
· Strong Book equity ratio of 35.2% and USD 213.4 million in available liquidity in cash and undrawn credit lines.
Commenting on the first quarter results, Lars Solbakken, CEO of Ocean Yield ASA, said:
‘We are pleased to present the results from Q1 2017, with the 14th consecutive quarterly increase in dividends and a strong net profit, despite lower earnings from the Lewek Connector. After a period with soft market conditions in both shipping and offshore, we are of the opinion that we have passed the bottom of this cycle in several shipping and offshore segments. We are therefore actively pursuing new investment opportunities in order to further expand our portfolio of vessels on long-term charter.’