Ocean Yield: FPSO Dhirubhai-1 Update

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(Image Courtesy: Ocean Yield)

The COVID-19 pandemic and a lower oil price has led to an expected delay in the recovery within the oil-service segment.

For the FPSO Dhirubhai-1, employment opportunities are currently under evaluation, but there is risk both with respect to the timeline of these projects and the sales price that can be achieved, Ocean Yield informed.

Therefore, Ocean Yield ASA (“Ocean Yield”) expects to record impairments in its Q3 2020 consolidated financial statements, estimated to USD 95 million for the FPSO and USD 35 million for the offshore construction and cable-lay vessel Connector.

The impairments will reduce depreciation expenses in 2021 by about USD 12.7 million.

“Ocean Yield has a strong cash position, headroom to bank covenants and a large portfolio of modern vessels on long-term charters generating a stable cash flow. The current dividend level enables further investments without requiring new equity. It is the Board of Directors intention to pay stable and, over time, increasing dividends,” the company stated.

Sea News, September 15

Baibhav Mishra
Author: Baibhav Mishra