Ocean Yield’s charter backlog jumped at the end of the second quarter after the investment into France LNG Shipping SAS, a company which will own a fleet of 12 LNG carriers with long-term charters.
The Ebitda charter backlog at the end of the second quarter was $3.9bn with an average remaining contract duration of 10.1 years.
However, the Ebitda charter backlog was $4.7bn after the announced LNG transaction.
“The highlight of the quarter was the announced investment into France LNG Shipping SAS, a company which will own a fleet of 12 LNG carriers with long-term charters.
“We are pleased to partner with NYK, Geogas LNG and Access Capital Partners in a transaction which provides further diversification of our fleet and charter backlog, with a low carbon footprint,” said Andreas Røde, chief executive officer of Ocean Yield in the company’s second quarter and first half year financial results.
Specifically, the shipowner reported that it had agreed to purchase the infrastructure fund CVC DIF’s share in the French company Geogas LNG.
“The investment will provide an indirect economic interest of 34% in France LNG Shipping SAS (FLS),” Ocean Yield says.
FLS owns a portfolio of LNG carriers on long-term charters and is 50/50 owned by NYK and Geogas LNG. Six vessels are currently on the water, with an average age of three years, with further two being delivered in 2024 and 2025, respectively.
Four additional newbuildings are expected to be novated to FLS at or around closing of the transaction and will be delivered in 2027.
All vessels are employed on long-term charters to tier-one investment grade-rated European energy companies, the shipowner Ocean Yield reports.
Average contract duration is 10 years, or 14 years including extension options.
“The transaction will add approximately USD 840 million to Ocean Yield’s EBITDA backlog. Closing of the transaction is expected to occur during the second half 2024, subject to certain customary conditions,” the company added.
