rss icon Subscribe
desktop mobile

Eimskip Sells Three Reefer Vessels

Pic: Eimskip

Shailaja A. Lakshmi

Icelandic container line and a logistics company Eimskip has made an agreement to sell three of its reefer vessels in Norway for USD 12 million (EUR 10.9 million).

The vessels, Langfoss, Stigfoss and Vidfoss, are 30 years old and have been operated by Eimskip in Norway for 20 years and owned by the Company for the last 8 years. Eimskip has parallel to the sale agreed to charter one of the divested vessels for the next two years.

Eimskip is currently operating six reefer vessels but following the sale it will operate four, of which three are owned by Eimskip. This decrease in number of vessels will not affect the liner services in Norway, but capacity will be reduced in the spot services.

The operation of these vessels has been challenging in recent years and the operating results of the spot services has been unacceptable and negative taking into account depreciation and CAPEX.

The sale of these vessels is a part of continued streamlining and integration measures in Norway and is in line with the Company's aim of improving operation and profitability, as has been announced in investor presentations this year.

Eimskip recently published a three-year target CAPEX plan and presented that maintenance CAPEX would amount to EUR 21 million in 2020.

As a result of the sale of the vessels the plan has been adjusted downwards by EUR 4 million and revised target is therefore EUR 17 million which will result in improved cash-flow. Estimated impact on next year's EBITDA is a decrease of EUR 1-2 million, but on the other hand it is estimated that net earnings will increase by up to EUR 0,5 million.

The vessels are to be delivered to the buyer at the beginning of next year. Eimskip will provide a seller's loan equaling 50% of the vessels purchase price with term of six years and quarterly installments and interest payments.

As the book value of the vessels exceeds the purchase price, Eimskip will realize EUR 2 million impairment loss through amortization in the fourth quarter of 2019.

The sale is subject to customary reservations in vessels sale and purchase.

Nov 29, 2019

 

Ship Sales

DMA Sells an Inspection Ship

Image: Danish Maritime Authority

The Danish Maritime Authority, a government agency of Denmark that regulates maritime affairs

Safe Bulkers Sells, Leasebacks 8 Vessels

Image: Safe Bulkers

The Monaco-headquartered provider of marine drybulk transportation services Safe Bulkers Safe

Pyxis Tankers Sells MR2 Ship Pyxis Delta

Image: Pyxis Tankers

Greek pure play product tanker company announced that it has completed the sale of the Pyxis Delta

Container Ships

Oakland Container Volumes Down 1.8% in 2019

Image: Port of Oakland

The container ship facility located in the San Francisco Bay, Port of Oakland 2019 container

Port NOLA Sets New Box Record

Image: Port NOLA

Louisiana’s only international container port Port of New Orleans (Port NOLA) moved more

HMM to Launch Mega-Ships in April

Image: Hyundai Merchant Marine

South Korean logistics major Hyundai Merchant Marine (HMM) will introduce the largest container

Maritime Apps