Ocean Yield AS has announced its decision to acquire the share of infrastructure fund CVC DIF in Geogas LNG, thereby gaining an indirect economic interest of up to 34% in France LNG Shipping SAS (FLS). FLS, which operates a fleet of LNG carriers under long-term charters, is co-owned by NYK and Geogas LNG. Currently, six vessels from FLS are operational, featuring an average age of three years, with two more slated for delivery in 2024 and 2025. Additionally, four newbuilds are anticipated to be integrated into FLS around the time the transaction closes, scheduled for delivery in 2027.
The vessels in this fleet are secured under long-term charters with tier-one, investment-grade-rated European energy companies. The average duration of these contracts is 10 years, extending to 14 years when considering options for renewal. The transaction is projected to increase Ocean Yield’s EBITDA backlog by approximately USD 840 million based on the 34% interest. Finalization of the deal is expected in the latter half of 2024, pending standard conditions.
Andreas Røde, the Chief Executive Officer of Ocean Yield, expressed enthusiasm about engaging with NYK, Geogas Maritime, and Access Capital Partners in this inaugural venture within the LNG market. He highlighted that FLS manages a modern fleet of LNG carriers that emphasize low carbon emissions and hold long-term commitments with financially stable counterparts. In connection with this acquisition, legal advice was provided to Ocean Yield by BAHR and Stephenson Harwood. This strategic move represents a significant step for Ocean Yield in expanding its portfolio in the LNG transportation sector.