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 Today

The Maritime Industry's original and most viewed E-News Service

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


Raytheon Anschütz Succeeds in SYNTACS SAT

Raytheon Anschütz, a leading integrator of naval integrated bridge systems, has successfully completed the Sea Acceptance Test (SAT) for the Synapsis Tactical Command

Wärtsilä's' Digital Services for Performance Enhancement

Wärtsilä, a global leader in complete lifecycle solutions for the marine and energy markets, launches a new service portfolio, Wärtsilä Genius services to help

Ship Conversion: Offshore Survey Vessel to Become a Flotel

Dutch shipowner C-Bed has contracted Wärtsilä Ship Design to supply the design for rebuilding its Seismic Survey Vessel, the Viking II, for use as a hotel vessel

Ship Sales

Evergreen Line Orders Ten 2,800 teu Ships

Taiwanese shipping company Evergreen is ordering ten 2,800 TEU container ships from Japanese shipbuilder Imabari Shipbuilding Co.,Ltd and compatriot CSBC Corporation.

Scripps Sells Oceanographic Research Vessel

Purpose-built oceanographic research and survey vessel New Horizon has been sold from the Scripps Institute of Oceanography to private interests, announced ship broker Marcon International, Inc.

Pioneer Marine Plunges into Red Again, Cancels Ship Orders

Singapore-based Pioneer Marine reported a $5.4m loss for the third quarter of 2015, about even with a $5m loss in the same quarter last year.  It canceled orders

Maritime Contracts Maritime Security Naval Architecture Pipelines Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | 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: 0.1942 sec (5 req/sec)