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    Neptune confirms sale of the Neptune Trident

    Vessel & ROV News // April 26, 2011

    Neptune Marine Services Limited has announced that its wholly owned Singapore subsidiary, Neptune Marine Pacific Pte Ltd (Neptune Pacific), has signed a Memorandum of Agreement with PT Wintermar, of the Indonesian listed PT Wintermar Offshore Marine group, for the sale of Neptune Trident.

    Under the terms of the agreement Neptune Pacific will sell the vessel for a total consideration of US$14,025,000. The proceeds will allow Neptune to eliminate outstanding term debt.

    Neptune’s Acting CEO, Robin King, said the sale of Neptune Trident was an important component of the company’s ongoing restructuring initiatives that are focused on returning the business to profitability.

    “Two primary elements of our restructuring plan are a reduction in debt levels and a move away from the capital burden associated with vessel ownership. The Trident sale is a significant step forward in both regards and is in line with our evaluation that ownership of the vessel is no longer a strategic fit for the company moving forward,” he said.

    “The emerging potential for ongoing operational losses against the vessel following the cancellation of anticipated work scopes resulted in the decision to sell being brought forward.

    “Concurrently, we are investigating the establishment of an operational agreement with Wintermar that would provide for collaboration and the potential for Neptune to utilise the vessel on future projects,” he added.

    The sale value achieved for Neptune Trident falls within the US$12-$15 million valuation range that is indicative of current market rates. Neptune Trident has a written down value of US$21.5 million giving rise to a loss on sale of approximately $7.5 million that will be recorded in the current half year report.

    Completion of the sale is scheduled for May.

    The Neptune restructuring program remains ongoing with further asset and business sales, reductions in overheads and additional strengthening/renewal of the Board expected.

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