Thursday, June 23, 2016

Investment Group Backs Container Vessels in Move Away from Tankers and Car Carriers

Norwegian Company Expands Diversified Portfolio of Ship Types
Shipping News Feature
NORWAY – SOUTH KOREA – EUROPE – Ocean Yield, a Norwegian shipowner with investments in numerous vessels on long-term charters, has agreed to acquire a 49.5% equity interest in six newbuilding container vessels owned by Quantum Pacific Shipping, that are currently set to be on 15-year bareboat charters to an unnamed major European container line. This seems to be a significant diversion for Ocean Yield which normally concentrates on tankers and truck and car carriers.

The vessels, with capacity of about 19,500 TEU, are under construction at Samsung Heavy Industries, South Korea and are scheduled for delivery between June 2016 and February 2017. Ocean Yield will invest approximately $162 million, which will be funded partially through cash and a drawing facility from its parent company Aker ASA of NOK 1,000 million (around $121 million) maturing in February 2018.

Quantum Pacific Shipping, a private shipowner with a diversified fleet of more than 115 vessels and a successful track-record spanning over 60 years. It is part of the global Quantum Pacific Group whose interests span a variety of industries including energy, natural resources, oilfield services, automotive as well as shipping. In announcing the new collaboration, Ocean Yield's Chief Executive Officer Lars Solbakken said:

"We are pleased to announce our largest investment so far and the entry into the container segment. We are excited about the collaboration with Quantum Pacific Shipping, a group with extensive experience in the container segment and an excellent reputation. This transaction will contribute to further diversification of our charter portfolio into a new segment. Following this transaction, the charter backlog as of Q2 2016 stands at approximately $3.3 billion."