Reference is made to the press release of 8th May 2014 where Ocean Yield ASA announced it had entered into newbuilding contracts for three LEG (Liquefied Ethylene Gas) carriers of 36,000 cbm capacity, that will after delivery be chartered on 15-year "hell and high water" bareboat charters to the Hartmann Group ("Hartmann"), Germany, where the first ten years have a fixed charter rate and the last five years a floating charter rate. Hartmann has secured a long-term agreement for sub-chartering of the vessels.
We are now pleased to be able to announce that the sub-charter will be to SABIC Petrochemicals BV, a subsidiary of Saudi Arabian petrochemical company SABIC. SABIC has recently announced that they will upgrade their cracker at Teeside, United Kingdom, to using ethane from the U.S. as feedstock. The cracker upgrade is scheduled to be completed during 2016. The three gas carriers will be used for the shipments of ethane from the US to the UK post the conversion of the cracker and Hartmann will conduct full vessel operations.
The eco-friendly LEG carriers are of ECO STAR 36K design, developed by Hartmann Reederei of Leer. The vessels will be equipped with the latest generation MAN B&W dual fuel 2-stroke engine and will be able to operate on HFO, MDO and gas oil, as well as LNG and ethane. A new "Star-Trilobe" tank allows for an increase in capacity by nearly 30% compared to the traditional "bilobe" tanks with the same ship dimensions.
Ocean Yield ASA's Chief Executive Officer Lars Solbakken said in a comment: "We are pleased to announce the sub-charter for the gas carriers to SABIC, one of the world's largest petrochemicals manufacturers. The design of the gas carriers is very innovative and together with the Hartmann Group we are able to offer SABIC a very cost efficient shipping service."
About Ocean Yield:
Ocean Yield is a ship owning company with investments within oil-service and industrial shipping. The company focuses on modern assets with long-term charters to solid counterparties. The company has a significant contract backlog that offers visibility with respect to future earnings and dividend capacity. Ocean Yield has an ambition to pay attractive and growing dividends to its shareholders. The company's asset base consists of six offshore vessels, six Pure Car Truck Carriers (PCTC) of which three newbuildings, and three newbuilding Liquefied Ethylene Gas carriers (LEG), all with long term charters. In addition the company owns bonds in American Shipping Company. Ocean Yield was established in March 2012 and was listed on the Oslo Stock Exchange in July 2013.