Update – Normand Maximus

Reference is made to Solstad Offshore ASA’s (“SOFF”) stock exchange notice dated 17 September 2020 in which it was advised that Saipem (Portugal) Comercio Maritimo (“Saipem”) had early terminated the time charter for “Normand Maximus”.

The time charter for “Normand Maximus” entitled Saipem to terminate the charterparty for convenience against payment of an early termination fee to SOFF’s wholly owned subsidiary Normand Maximus Operations Limited (the “SOFF Subsidiary“) as disponent owner of “Normand Maximus”.

The notice period for the termination under the time charter is 45 days meaning that the termination of the time charter will be effective and the vessel redelivered on or around 2 November 2020. The termination fee is in the amount of approximately USD 44 million.

Normand Maximus is financed under a financial lease entered into between Maximus Limited as owner of “Normand Maximus” and the SOFF Subsidiary as bareboat charterer.

SOFF holds a 25% ownership share in the leasing company Maximus Limited.

The financial lease is guaranteed by SOFF and includes customary prepayment events and default provisions. These may i.a require the SOFF Subsidiary to purchase the vessel if the SOFF Subsidiary is not able to secure new employment for the vessel. The vessel is one of the largest and most sophisticated vessels within its segment and SOFF expects that the vessel will be engaged on new projects within reasonable time. SOFF and the SOFF Subsidiary are exploring the market opportunities and is now engaging in dialogue with the leasing company Maximus Limited with a view to agree on a solution for the financial lease taking into account the early termination by Saipem.

It is not expected that the completion of the restructuring of the SOFF group to be considered by the general meeting of the Company on 20 October 2020 will be affected by the termination of the time charter contract.     

Skudeneshavn, 1 October 2020

Lars Peder Solstad CEO, at +47 91 31 85 85
Kjetil Ramstad CFO, at +47 907 59 489

Solstad Offshore ASA

This information is subject of the disclosure requirements according to the Norwegian Securities Trading Act section § 5-12.