Ocean Yield has agreed to sell 2011-built offshore construction and cable-laying vessel Connector to an undisclosed third party for delivery in Q4 2020
Based on an STX OSCV 06L design, Connector is an advanced subsea construction and cable-lay vessel that is dynamic positioning class 3 capable, with an overall length of 156.9 m, beam of 32 m, with a deck area of 2,100 m2 and accommodation for 140. For construction and cable laying activities, Connector has two subsea cranes, with capacities of 400 tonnes and 100 tonnes, and two carousels.
According to Ocean Yield, Connector had operated on a long-term bareboat charter from October 2012 to February 2017. In anticipation of a market recovery, the vessel operated in the short-term market over the past few years, most recently with Ocean Installer. However, as a result of the continuing challenging market, Connector contributed negatively to both net profit and cash flow.
“Considering the current weak outlook for the oil service segment and that an industrial setup is required to operate the vessel efficiently in the cable-lay market, Ocean Yield believes it is in the best interest of the company to dispose of the vessel as this will reduce the portfolio risk and improve net profit and cash flow. The sale will therefore strengthen the company’s dividend capacity going forward,” said the company in a statement.
The deal to shed Connector follows Ocean Yield’s agreement in August to sell its 75% interest in diving support and construction vessel SBM Installer to SBM Holding Inc for US$ 33.7M, including working capital.
Riviera is producing a range of technical and operational webinars and virtual events with the industry’s foremost experts. Sign up to attend on our events page