volstad shipping ST-259 construction vessel

Bergen Group Sells Off Remaining Shipbuilding Projects

Rob Almeida
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March 7, 2014

Volstad Shipping ST-259 construction vessel

Bergen Group continues their company’s divestment from the shipbuilding sector today with the sale of their two remaining projects to Kleven Shipyard in Sunnmøre, Norway.  The contracts include the construction of two offshore construction vessels (OCVs) of the ST 259 CD-design. The contracts were signed between Bergen Group Fosen and Volstad Maritime AS in first half of 2012 and are currently under construction at Daewoo shipyard in Romania.  Kleven will accept the vessels for final outfitting and completion in Q2 and Q4 2014, respectively.

Bergen Group notes the sale will generate approximately NOK 80-90 million in already invested working capital in these two projects. At the same time, the need for additional working capital contribution from Bergen Group’s hand in these projects has been eliminated.

CEO Asle Solheim points out that the sale of these two projects to Kleven has no implications on the ongoing establishment of NorYards AS where the international company Calexco S.a.r.l will become the main shareholder.

 

“The transaction with Calexco is expected to be completed by the end of the 1st quarter this year as previously announced. The new company NorYards AS is already well underway to build a highly competent management team that is ready to continue with Bergen Group Fosen and Bergen Group BMV under the new name and with a new majority shareholder”, says Solheim.

NorYards AS will, when the transaction is closed, enter into a service agreement with Bergen Group about taking over the commissioning of the two ongoing outfitting projects to be completed during the spring and summer of 2014. These two projects are an anchor handling vessel at Fosen and an offshore construction vessel at BMV.

The contract responsibility for the two projects now being sold to Kleven will be transferred to Kleven as a part of the sale. Bergen Group will remain with a limited guarantee commitment until these vessels are delivered in first half of 2015.

CEO Asle Solheim points out that sales of these two projects is a result of the strategic choices made last summer when the board made a decision to reduce its exposure in the shipbuilding industry and in the long run to exit from the newbuilding activity in favor of a more dedicated focus on offshore-related activities.

“These two projects have not been optimal contracts for the Group in terms of funding requirements and the need for temporary working capital. This has put constraints on our flexibility in future initiatives towards offshore – related activities. Now we have released a significant proportion of equity in these projects. This gives us an improved latitude which can be used to reinforce the various processes related to our strategy of growth within the maritime and offshore service – related business,” added Solheim

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