Acquisition of two modern Ultramax dry bulk vessels with long-term charters


08 Apr 2019

Ocean Yield ASA ("Ocean Yield" or the "Company") is pleased to announce that the Company has agreed to acquire two modern Ultramax dry bulk vessels for a total consideration of USD 42 million net of a seller's credit, with 11-year bareboat charters to Scorpio Bulkers Inc. ("Scorpio Bulkers"). In addition, Ocean Yield has committed to part finance the scrubber installation on both vessels, with an additional USD 3 million, which is expected in early 2020.

The vessels are built in 2017 and are expected to be delivered to the Company during Q2 2019. Scorpio Bulkers will have certain options to either sell or acquire the vessels during the charter period.

Scorpio Bulkers is a leading international provider of marine transportation of dry bulk commodities that currently owns and operates a fleet of 57 modern dry bulk vessels, specifically Ultramax and Kamsarmax vessels. Scorpio Bulkers is a publicly listed company and trades on the New York Stock Exchange under the ticker "SALT".

Ocean Yield's Chief Executive Officer Lars Solbakken said in a comment: "We are delighted to expand and further diversify our portfolio with the investment in two modern Ultramax dry bulk carriers with long-term charters to Scorpio Bulkers. Including these two vessels, Ocean Yield will have a fleet of 60 vessels."

Company contact:

Eirik Eide (CFO), Tel +47 24 13 01 91

Investor Relations contact:

Marius Magelie (SVP Finance & IR), Tel +47 24 13 01 82

Company information:

Ocean Yield ASA is a ship owning company with investments in vessels on long -term charters. The company has a significant contract backlog that offers visibility with respect to future earnings and dividend capacity.