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Ocean Yield has announced a good start in 2017. The dividends have increased again and the net profit was strong.

Total revenues and other income for Q1 2017 were 78.6 mill. $ compared with 66.1 mill. $ for Q1 2016. Of the Total revenues, 57.2 mill. $ is classified as Operating r[ds_preview]evenue, 16.1 mill. $ classified as Finance lease revenue and 5.3 mill. $ as Income from investments in associates. Due to several of the Company’s long term charters being classified as finance leases, the charter hire received is higher than what is reported as revenues according to IFRS, as only the interest income under a finance lease is recognized in the Profit & Loss the company stated. Total revenues and other income were positively affected by delivery of another two container vessels during the quarter, through Ocean Yield’s investment in 49.5 % of Box Holdings Inc. This is reflected under Income from investments in associates, which were 5.3 mill. $ in Q1 2017 compared to zero in Q1 2016.

The Financial income of the company was 9.2 mill. $ in Q1 2017 compared with 4.6 mill. $ in Q1 2016. The increase from Q1 2016 to Q1 2017 is mainly related to a 5.7 mill. $ profit recognized on the bonds issued by AMSC, which were refinanced in February 2017 Ocean Yield informs. The company held bonds with a book value of 197.5 mill. $ at the time of the refinancing, which was about 98.5 % of par value, equivalent to 200.6 mill. $.

The EBITDA was 71.2 mill. $ in Q1 2017 compared with 58.7 mill. $ in Q1 2016. Adjusted for finance lease effects, the EBITDA was 79.1 mill. $ in Q1 2017 compared with 63.6 mill. $ in Q1 2016. The increase in EBITDA is related to delivery of further vessels to the fleet, the company said.

Ocean Yield expects future earnings

At the end of Q1 2017, Ocean Yield had 33 vessels delivered and one newbuilding gas vessel for delivery in June/July 2017. The company’s policy of investing in vessels on long-term charters offers stability and visibility with respect to future earnings and dividend capacity Ocean Yield expects. According to the company it has a policy of paying attractive and increasing dividends to its shareholders and Q1 2017 was the 14th consecutive quarter that the Company increased its dividend to the shareholders.

»After a period with soft market conditions in both shipping and offshore, we are of the opinion that we have passed the bottom of this cycle in several shipping and offshore segments. We are therefore actively pursuing new investment opportunities in order to further expand our portfolio of vessels on long-term charter«, announced Lars Solbakken, CEO of Ocean Yield.