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 May 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Offshore

Subsea 7 Awarded $1bn Wind Farm Offshore UK Deal

Subsea 7 S.A. informed today the details of the major(1) contract award that was first announced on 20 May 2016 . The contract was awarded by Beatrice Offshore Windfarm Limited (BOWL)(2),

BW LPG Registers 10% Growth in VLGC Fleet

Less domestic petrochemical consumption of LPG would be positive for VLGC shipping as it would result in a greater surplus of LPG available for export.    However,

Subsea 7 Secures EPCI Contract

Subsea 7 S.A. announced it has been awarded an engineering, procurement, construction and installation (EPCI) contract for offshore execution in 2017 and 2018.   The

Ship Sales

China Shipbuilding Plans Major Restructuring

State-owned China Shipbuilding Industry Corp (CSIC) is undertaking a major restructuring as it grapples with an industry downturn, and it will be the largest restructuring

DSME, Sovcomflot Delay Delivery of First Arctic LNG carrier

South Korea's Daewoo Shipbuilding & Marine Engineering (DSME) and Sovcomflot have agreed to delay a liquefied natural gas carrier being built for the Yamal LNG project in Russia.

DSME Reveals Additional Self-Restructuring Plan

South Korean shipbuilder Daewoo Shipbuilding and Marine Engineering (DSME) has  revealed an additional self-restructuring plan amid the falling shipbuilding orders.

 
 
Maritime Contracts Maritime Security Maritime Standards Pipelines Pod Propulsion Port Authority Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction
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: 0.0816 sec (12 req/sec)