Norwegian vessel proprietor Ocean Yield expects to ebook impairments of $130 million in complete in its 3Q 2020 monetary statements for an FPSO and offshore development and cable-lay vessel.

According to Ocean Yield, the COVID-19 pandemic and a decrease oil value have led to an anticipated delay within the restoration inside the oil-service section.

For the FPSO Dhirubhai-1, employment alternatives are at present underneath analysis, however there’s a danger each with respect to the timeline of those initiatives and the gross sales value that may be achieved.

The firm mentioned in July 2020 that three initiatives had been being evaluated and the work on these initiatives was persevering with, regardless of the low oil value and the pandemic.

However, there’s uncertainty with respect to venture timelines.

Therefore, Ocean Yield mentioned on Monday that it expects to file impairments in its 3Q 2020 consolidated monetary statements, estimated to $95 million for the FPSO and $35 million for the offshore development and cable-lay vessel Connector.

The impairments will scale back depreciation bills in 2021 by about $12.7 million, the corporate acknowledged.

Ocean Yield emphasised it has a robust money place, headroom to financial institution covenants and a big portfolio of recent vessels on long-term charters producing a steady money stream.

The present dividend degree allows additional investments with out requiring new fairness.

It is the board of administrators’ intention to pay steady and, over time, rising dividends, Ocean Yield concluded.

It can be price reminding that the FPSO Dhirubhai-1 had beforehand been thought of to be used on an Aker Energy-operated venture in Ghana.

However, Aker Energy in February 2020 entered right into a Letter of Intent (LOI) with Yinson to award a bareboat constitution and an operations and upkeep contract for an FPSO vessel on the Pecan area, offshore Ghana.

But the take care of Yinson didn’t prove as deliberate both. Namely, Aker Energy in April postponed the event of its Pecan area. As a consequence, Aker Energy terminated its settlement with Yinson for the availability of an FPSO for the venture.

The publish Ocean Yield to ebook $130 million in impairments for 2 vessels appeared first on Offshore Energy.

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