Solstad Offshore is in a position to start offering dividends after resolving a long-running dispute involving its largest ship.
The Norwegian offshore vessel owner said on Friday that it had settled a $197m residual claim related to the financing of the 178-loa Normand Maximus (built 2016), resulting in two payments totalling $102m.
Chief executive Lars Peder Solstad said: “This uncertainty related to the residual claim is now brought to an end.
“The solution is made possible by the liabilities released and values unlocked in the 2023 refinancing of the group. Improved markets during 2024 also opened for the financing of the solution at manageable terms.
“We look forward to taking full advantage of this new flexibility in a strong offshore market.”
The claim arose following the Normand Maximus’ 2022 sale to AMSC, which released Solstad Offshore from having to buy the ship for $122m.
The company had been having a difficult time finding regular work for the vessel after Italian oilfield services company Saipem ripped up an eight-year charter four years early in 2020.
Then, according to company reports, Solstad Offshore entered into an agreement with the registered owner Maximus Ltd — in which Solstad Offshore had a 25% stake and UK-based AGC Maritime Yield Fund a controlling position — related to outstanding liabilities.
AGC Maritime Yield Fund was not named in Friday’s announcement but a company called MYF Maximus Ltd was. That company filed lawsuits in Norway and the Cayman Islands to reclaim their previous shareholding.
As part of the agreement, Solstad Offshore will pay MYF 91.5m and discharge the claim in full, while the remaining $10.5m will be paid to the lenders similarly discharging their claims.
The funds will be paid for using cash and funds from Solstad Offshore’s revolving credit facility with DNB.
The claims were originally set to mature in March but were pushed back until January 2027 so the company could refinance with the help of Kjell Inge Rokke’s Aker Capital.
The Solstad CEO said refinancing was impossible without pushing the maturity back and that it still cast a pall over the company even after completing the deal.
If the claim was allowed to mature, it would have been worth $241m, taking into account incurred interest.
“Considering the risks involved with the litigation and the uncertainty that the residual claim placed upon the group, we are pleased to have reached a solution with the involved parties at satisfactory terms,” he said.
New fixtures announced
The news follows Thursday’s announcement that the Normand Maximus had received a one-year fixture with an unnamed charterer, keeping the ship working until December 2026.
Earlier on Friday, it announced four other charters worth $60m total.
The 78-loa construction support vessel Normand Valiant (built 2008) and the 21,457-bhp anchor-handling tug supply vessel Normand Sagaris (built 2009) will both go on charter to Petrobras.
The Normand Valiant is on a 1.5-year contract that will start in February 2025, while the Normand Sagaris had its contract extended by 120 days until March 2025, at which point it will start a previously announced three-year charter with the same company.
The 21,457-bhp Normand Sirius (built 2014) and the Normand Saracen (built 2010) will both work on drilling projects offshore Western Australia.
The Normand Sirius had its deal extended until August 2025, with a further extension option for 247 days, while the Normand Saracen has been contracted for 60 days.
All four vessels are owned by Solstad Maritime, in which Solstad Offshore has a 27.3% stake.
