Norwegian shipping company Ocean Yield has agreed to purchase infrastructure fund CVC DIF’s share in the French company Geogas LNG, providing an indirect economic interest of up to 34 per cent in France LNG Shipping (FLS). FLS owns a portfolio of LNG carriers on long-term charters and is 50/50 owned by Nippon Yusen Kabushiki Kaisha (NYK) and Geogas LNG.
Six vessels are currently on the water with an average age of three years, with an additional two to be delivered in 2024 and 2025. Four additional newbuildings are scheduled 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 undisclosed European energy companies, with an average contract duration of 10 years, or 14 years including extension options. Based on an indirect economic interest of 34 per cent, the transaction will add approximately US$840 million to Ocean Yield’s EBITDA backlog. The company expects closing of the transaction to occur during the second half of 2024, subject to certain customary conditions.