Norwegian Group Sells Two Projects to Speed Shipbuilding Pull Out

MarineLink.com
Tuesday, March 11, 2014
Photo courtesy of Bergen Group

Bergen Group says it has decided to accelerate the process of reducing its involvement in the shipbuilding business in favor of a more dedicated focus on offshore related activities.  

As a part of this process, Bergen explains it has entered into an agreement to sell two of the remaining shipbuilding projects to the shipyard group Kleven located in Sunnmøre, Norway. The sale will release approximately NOK 80-90 million in already invested working capital in these two projects. At the same time, the need for additional working capital contribution from Bergen Group's hand in these projects has been eliminated.

The sale from Bergen Group to Kleven comprises contracts on construction of two offshore construction vessel (OCV) with a ST 259 CD-design. The contracts were signed between Bergen Group Fosen and Volstad Maritime AS in first half of 2012. Both hulls are currently under construction at Daewoo shipyard in Romania, and arrives Norway in respectively Q2 and Q4 2014 for outfitting and completion.

CEO Asle Solheim points out that the sale of these two projects to Kleven has no implications on the ongoing establishment of NorYards AS were the international company Calexco S.a.r.l will become the main shareholder.

The contract responsibility for the two projects now being sold to Kleven will be transferred to Kleven as a part of the sale. Bergen Group will remain with a limited guarantee commitment until these vessels are delivered in first half of 2015.

The CEO added that sales of these two projects is a result of the strategic choices made last summer when the board made a decision to reduce its exposure in the shipbuilding industry and in the long run to exit from the newbuilding activity.

“These two projects have not been optimal contracts for the Group in terms of funding requirements and the need for temporary working capital. This has put constraints on our flexibility in future initiatives towards offshore - related activities. Now we have released a significant proportion of equity in these projects. This gives us an improved latitude which can be used to reinforce the various processes related to our strategy of growth within the maritime and offshore service - related business”, said CEO Solheim.

 

Maritime Reporter July 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

RS to Exhibit at SMM 2014

Russian Maritime Register of Shipping (RS) announced it will exhibit at Shipbuilding, Machinery and Marine Technology (SMM) International Trade Fair September 9-12, 2014 in Hamburg, Germany.

Green Marine, ACPA Partner to Reduce Environmental Footprint

Green Marine and the Association of Canadian Port Authorities (ACPA) have entered into a Memorandum of Understanding with the goal of jointly expanding efforts

SC Ports’ Earnings, Volumes Surpass Plans

July cargo volumes deliver strong start to new fiscal year SC Ports Authority reported 2014 fiscal year-end operating earnings of $14.3 million, 20.7 percent over the organization's financial plan.

Contracts

Port of New Orleans Awards Terminal Build Contract

The Board of Commissioners of the Port of New Orleans awarded a $13.3 million construction contract to Metairie, La.-based Hard Rock Construction LLC today for

Two MacGregor Subsea Cranes Ordered for Chinese PSVs

MacGregor, part of Cargotec, has secured a new contract from Chinese shipbuilder, Fujian Mawei Shipbuilding Ltd., for two 100-metric-ton active heave-compensated subsea MacGregor cranes.

Topaz Secures $75m Investment from SCPE

Topaz Energy and Marine, an offshore support vessel company with primary operations in the Caspian, Middle East, West Africa and Subsea operations in the North Sea and Gulf of Mexico,

Shipbuilding

Two MacGregor Subsea Cranes Ordered for Chinese PSVs

MacGregor, part of Cargotec, has secured a new contract from Chinese shipbuilder, Fujian Mawei Shipbuilding Ltd., for two 100-metric-ton active heave-compensated subsea MacGregor cranes.

First Two Mooring Boats Launched for Port of Ras Laffan

Nakilat has celebrated the delivery of two 16-meter mooring boats built by shipbuilder Nakilat Damen Shipyards Qatar for towage operator Nakilat Svitzer Wijsmuller.

Doosan Delivers a ‘World’s First’ to NASSCO

Doosan Engine has confirmed delivery of the world’s first dual-fuel, low-speed ME-GI engine to the American National Steel and Shipbuilding Company (NASSCO) shipyard in San Diego, USA.

Vessels

Update to Fire Damage to Australian Patrol Boat

Armidale Class Patrol Boat HMAS Bundaberg suffered significant damage due to a fire which occurred on Monday, August 11, 2014 in Brisbane. The boat was undergoing

Containership Cleared of Ebola Risk

Containership Hammonia Pacificum has been cleared of Ebola risk at the Port of Ricahrd Bay after being stopped previously at several West African ports, according

Tanker Carrying Kurdish Oil Reappears Unladen off Israel

A tanker carrying crude oil from Iraqi Kurdistan reappeared unladen on Aug. 19 about 30 kilometres off the coast of Israel, ship tracking data on Reuters showed.

 
 
Maritime Contracts Maritime Security Naval Architecture Navigation Offshore Oil Salvage Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction
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: 0.2523 sec (4 req/sec)