Presentation

Ocean Yield is a ship sale and leaseback company with investments within industrial shipping and oil services. The company focuses on marine assets with long term contracts, low operational risk (bareboat contracts) and minimized residual value, chartered out to solid counterparties. Ocean Yield was founded in 2012 as a part of Røkke’s Aker system (current stake is 62%) and subsequently listed on the Oslo Stock Exchange in 2013. The market capitalization is about USD ~440m and net debt was USD 1.9bn as of Q2’20.

The fleet consists of 71 assets, whereof 67 of these are on long term contract (two Solstad vessels on stand-still, one OCV and one FPSO undisclosed). Ocean Yield focuses primarily on liquid shipping assets, such as tankers and drybulk vessels, but also owns a few offshore assets (OSV and FPSO). The company’s largest clients are MSC (18% of contracted backlog) and Okeanis Eco Tankers (16% of contracted backlog). The EBITDA backlog stands at USD 3.2bn with an average remaining charter tenor of ~10 years.

Ocean Yield is all about distributing dividends and paid out USD 0.05/share in Q2’20. Offshore headaches have put a damper on the company’s growth ambitions and dividend payments, and the recent focus has been on balance sheet preservation. Once these issues are resolved, Ocean Yield can get back to growth and increased capital distributions. Recent initiatives (Aker Capital) and the strong backing from Aker puts the company in a good position to get through a period of softness in the underlying markets without risking covenant breaches or further dividend reductions.