DOF Sells Five Ships in Brazil

DOF’s subsidiary Norskan Offshore in Rio de Janeiro, Brazil, has entered an agreement to sell five ships operating in Brazil. The ships included in the agreement are Skandi Copacabana, UT 722 L, built 2005; Skandi Leblon, UT 755 L, built  2004; Skandi Flamengo, UT 755 L, built  2003; Skandi Yare, UT 755, built 2001 and Skandi Stolmen, UT 755, built 1997.

The buyers are companies owned by a Brazilian Private Equity Fund managed by Mantiq Investimentos and Mare Investimentos, based in Sao Paulo and Rio de Janeiro, Brazil. Norskan Offshore Ltda. will for now and latest until the current charter contracts are terminated, be responsible for the operation of the ships. Two of the vessels, Skandi Leblon and Skandi Flamengo, have firm contracts up for renewal in 2015. DOF has still a market risk related to renewal of these two charter contracts.

The sale will release approx. NOK 500 million of free liquidity to the shipowning companies on redemption of loans. Delivery of the ships is planned to take place in the period ultimo February to April.

CEO Mons S. Aase said, “The sale is adapted to DOF’s long term strategy to prioritize ownership and operations of more advanced ships in Brazilian waters.”