Newbuildings Drive Ocean Yields Earnings Up

Ocean Yield The delivery of another five newbuilding vessels during the third quarter of 2016 has pushed up the revenues of Norwegian ship-owner Ocean Yield ASA to USD 76.2 million for the period from USD 65.3 million reported in the third quarter of 2015. During the quarter the company expanded its fleet with the container vessels MSC Diane, MSC Ingy and MSC Eloane, the chemical tanker Navig8 Topaz, and the LR2 product tanker Navig8 Supreme, all of which are chartered out long-term. In addition, the car carrier Höegh Trapper and the product tanker Navig8 Steadfast contributed with full quarter earnings, as these two vessels were delivered during the second quarter of 2016. The companys net profit after tax for the three months increased to USD 32.7 million from USD 22.7 million seen in the corresponding quarter of 2015. Total revenues for the nine-month period from January to September 2016 increased to USD 212.4 million from USD 191.1 million reported in the same period of 2016, while the net profit also grew to USD 190.8 million from USD 167.6 million for the respective periods. In September, Ocean Yield agreed to acquire two 45,000 dwt IMO II chemical carriers, built in 2013, for a consideration of USD 35 million per vessel in combination with 12-year hell and high water bareboat charters to Navig8 Ltd. Navig8 Group has certain options to acquire the vessels during the charter period, with the first option exercisable after five years.