Vessel Sale, Leaseback Nets $9m Profit

Thursday, July 12, 2007
Hallin Marine entered into an agreement to sell its vessel, SOV Ullswater, for $45million. The agreement will generate a profit to Hallin of approximately $9 million in the financial year 2008 and will enable the company to operate the vessel for 10 years under a bare-boat charter.

Oslo based marine group RS Platou has set up a company to buy the Ullswater and to charter it to Hallin Marine at a competitive fixed rate for the duration of the charter.

Hallin will receive an immediate initial payment of $5m, with the balance on completion, which is currently scheduled for October 2008, when the construction of the Ullswater is completed and the vessel has passed sea trials. Funds received at completion will be used in part to pay off the outstanding balance due under the existing vessel financing arrangements.

Ullswater, a 78-m DP2 Subsea Operations vessel, is currently being built by Pan-United Marine Limited at its yard in Singapore.

The charter will commence immediately upon the completion of the sale of the Ullswater and, together with Hallin’s existing long-term charter of the vessel the Sanko Angel, gives the Company a firm basis on which to deliver its strategic plans for the future.

Hallin intends to use the surplus funds from the sale of the Ullswater to accelerate the Group’s capital expenditure plans. The Company is considering the commissioning of a further vessel, subject to receiving suitable delivery and cost quotations. Under the terms of the sale agreement Hallin could draw down a further $5m of the balance of the purchase price in advance should it place an order for a further vessel.

“Our foresight and flexible approach to the ownership and operation of assets has enabled us to grasp the opportunity currently presented by the significant uplift in the price of vessels such as the Ullswater, despite the significant cost increases in materials and major components experienced during the construction period,” said John Giddens, Chief Executive of Hallin. “We will use the resulting benefit to acquire and operate other capital assets and to accelerate the rate of profitable growth for the whole of the Group.

Maritime Reporter March 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Offshore

Hess Selects BMT for Stampede Marine Monitoring System

BMT Scientific Marine Services (BMT), an international maritime design, engineering and risk management consultancy, has been selected by Hess Corporation to

FSL Trust Signs Charter Agreement with US Oil Company

FSL Trust Management Pte. Ltd. (FSLTM), as trustee-manager of First Ship Lease Trust, has entered into a two-year time charter agreement with a prominent US

U.S. DoI Upholds 2008 Shell Arctic Lease

The U.S. Interior Department on Tuesday upheld a 2008 lease sale in the Chukchi Sea off Alaska, moving Royal Dutch Shell a step closer to returning to oil and gas

Ship Sales

GasLog Acquires 2 BG Carriers

GasLog Ltd. completed the acquisition of two LNG carriers from Methane Services Limited, a subsidiary of BG Group plc, which was previously announced on December 22, 2014.

OOCL Orders Six Ultra-Large Container Ships

Orient Overseas (International) Ltd. has placed a new order for six mega 20,000 teu container ships from South Korean shipbuilder Samsung Heavy Industries Co. for US$951.

DryShips to Sell its Suezmax Tanker Fleet

DryShips Inc. (NASDAQ: DRYS), has announced  that it has entered into firm sales agreements with entities controlled by the Company's Chairman and Chief Executive Officer,

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Naval Architecture Pipelines Salvage Ship Repair Ship Simulators Sonar
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1549 sec (6 req/sec)