Standard Drilling agrees to sell Standard Supporter for $15mn
LIMASSOL: Through its wholly owned subsidiary Standard Supporter AS, S.D. Standard Drilling Plc, has agreed to sell UT 776 CD PSV vessel namely Standard Supporter for USD 15 million.
The Vessel is a large PSV, built at STX Brevik, Norway, in 2009, with 1,000m2 deck space. Standard Supporter AS has received 10% deposit of the purchase price. The Transaction is subject to inspection and expected to be completed within expiring of December 2019.
Following the sale, the Company will control, directly and indirectly, a fleet of 13 PSVs; four large PSVs 100% owned and nine medium-sized PSVs with approximately 26% ownership interest, including one vessel on a bare boat contract. The sale will further strengthen the Company's cash balance.
“We are pleased with the sale of the Standard Supporter. The transaction will strengthen our strong balance sheet even further, increasing our cash balance significantly. During 2019 we have purchased one large PSV (Standard Olympus, 2014 built) and sold two large vessels (including Standard Supporter) showing that we continue to follow our strategy. Standard Supporter was acquired in 2017 for USD 11.1 million. The profit, excluding fair value adjustments, will be approximately USD 4 million including the result of the operation of the Vessel. By selling Standard Supporter we have also reduced forward capital expenditures commitment in relation to the Vessel due in 2020. ” says Martin Nes, Chairman of the Company.
Pro forma cash holding of the Company is approximately USD 58 million, as if the Transaction was completed today. This includes pro-rata cash held by S.D Standard Drilling Plc, subsidiaries and investments.
No agreements have been entered into that are for the benefit of members of the management or board of directors of neither the Company nor Standard Supporter AS in connection with the sale of the Vessel.