Construction of two new wellboats

05.07.2017 10:08

DESS Aquaculture Shipping AS (DESS Aquaculture) and Marine Harvest Norge AS (Marine Harvest) have entered into agreements for long term charter of two new wellboats. Both vessels will be delivered as newbuildings in 2019 and will immediately upon delivery commence 5 year charter contracts with Marine Harvest.

DESS Aquaculture have awarded the yard Sefine Denizcilik Tersanecilik Turizm San. Ve Tic. A.S contracts for the construction of the two wellboats. The vessels will have 3.500 m3 capacity and are based on design from SALT Ship Design. DESS Aquaculture has options for two additional wellboats under the contract with Sefine.

DESS Aquaculture specializes in the ownership and operations of vessels used in the aquaculture industry. The company is owned 50% by a wholly owned subsidiary of Solstad Farstad ASA and 50% by Marine Harvest. Following the conclusion of the two new construction contracts the Company has 4 wellboats and 1 harvest vessel under construction. All newbuildings are secured long term contracts with Marine Harvest from delivery from yard.

The investments will be financed through external financing and equity. The SolstadFarstad 50% share of the equity in DESS Aquaculture is secured through a recently signed agreement for a subordinated loan with a company associated with Hemen Holding Ltd of up to MNOK 226. This is considered to be sufficient equity for taking delivery of the five vessels under construction. The company has initiated the work on external financing and plan to have this in place well before delivery of the vessels.

For SolstadFarstad the investments in DESS Aquaculture are of high strategic importance and the company plans for further growth in the segment over the coming years.

 

Contacts:

Lars Peder Solstad, CEO at +47 913 18 585 or
Anders Hall Jomaas, CFO at +47 40 04 29 18.

Skudeneshavn, 5 July 2017
Solstad Farstad ASA

www.solstadfarstad.com

This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)