Ocean Yield announces extension of option for long-term charter with Aker Energy for the FPSO Dhirubhai-1
On the 12th of February 2019 Ocean Yield ASA entered into an option agreement with Aker Energy AS ("Aker Energy") for a long -term bareboat charter of the FPSO Dhirubhai-1. The option period expired on the 1st of May but was extended until the 30th of May 2019. Ocean Yield has agreed with Aker Energy to further extend the option period until 1st September 2019 against an additional compensation.
Aker Energy is currently evaluating different opportunities for the FPSO at the Deepwater Tano Cape Three Points (DWT/CTP) block offshore Ghana. As there is uncertainty related to a contract for Dhirubhai-1 with Aker Energy, Ocean Yield is in parallel pursuing other employment opportunities for the FPSO. In that respect, Ocean Yield has entered into an agreement to perform a fully paid Engineering Study for the potential use of the unit on behalf of a non-related independent oil company.
When reviewing future dividends of Ocean Yield, the prospects for long-term employment of the FPSO will be taken into consideration. If no satisfactory employment can be firmed up within the end of Q1 2020, an adjustment of the current dividend level of USD 0.191 per share per quarter will be considered. Based on the expected earnings from the existing portfolio of vessels with long term charters and the company's continued growth ambitions, a quarterly dividend of about USD 0.15 per share as from Q1 2020 is currently considered to be an appropriate dividend level until a new employment contract is secured for the FPSO.
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.
