Norwegian sale-and-leaseback specialist is enjoying more flexibility under its private equity ownership, according to chief executive Andreas Rode.
US giant Kohlberg Kravis Roberts (KKR) bought 100% of the shipowner’s shares in 2021.
Ocean Yield’s first-quarter report revealed no dividend is being paid, despite net profit coming in at $23m.
Chief executive Andreas Rode told a conference call with analysts that the capital allocation policy is always determined by the strength of the balance sheet and upcoming and potential growth opportunities.
“We can adjust the dividends up and down depending on available and tangible growth opportunities,” he said.
“And I think this is probably one of the greater advantages of being owned by an owner like KKR that has a very great degree of flexibility when it comes to potentially returning capital to them as a shareholder,” Rode said.
Rode said the company remains “segment agnostic” when evaluating new investments
“We are actively looking at new transactions with modern and future-proof assets,” he said.
But Rose explained that Ocean Yield will never grow just for the sake of it.
“We’re only going to grow and invest when we find the risk reward as attractive,” he told the call.
Ocean Yield now has an Ebitda charter backlog of $3.7bn.
Strong foundation
The average contract duration of the portfolio is more than nine years. All the ships are now employed on long-term deals.
Rode describes the 68-ship fleet as diversified and modern, with an average age of five years.
A total of 18 different operators charter the vessels, in eight different sectors.
“This provides the foundation for stable and predictable earnings in the years to come and serves as a strong platform for further profitable growth,” Rode said.
