Golden Energy takes delivery of second offshore support vessel from Chinese shipbuilder

Oslo-listed vessel owner Golden Energy Offshore Services (GEOS) has taken delivery of the second offshore support vessel of PX121H design from China’s Nantong Rainbow Offshore & Engineering Equipment (ROC), concluding its two-vessel arrangement with the Chinese shipbuilder.

GEOS’ new offshore support vessel design. Source: Ulstein

The vessel owner announced the delivery of the Energy Empress on May 13, 2019, and the delivery of Energy Duchess took place on Monday, May 27.

CEO, Per Ivar Fagervoll, commented: “We are very excited that we have now taken delivery of both vessels. We are seeing a tight summer market ahead and these two energy efficient new vessels will meet the high market requirements very well.”

He added: “I thank our team for all their efforts and we look forward to present the vessels in the market upon their arrival in Europe.”

GEOS entered into an agreement with ROC acquiring a right to purchase two newbuild offshore support vessels, Energy Empress and Energy Duchess, of PX121H design in June 2018. The company has agreed a purchase price for each vessel of $17.9 million and the company got an option to acquire the MPSVs with a seller’s credit of 40% of the purchase price with no amortization before bullet payment two years after delivery.

The vessels were completed and ready for delivery by April 2019. According to the purchase agreement, GEOS was meant to pay the balance purchase price for the vessels at delivery (less the seller credit of 40%). By then, the company made down payments in the amount of $1.1 million for each vessel and invested in building supervision to ensure the quality of the vessels.

However, it did not have adequate funds available to pay the purchase price payable at delivery. As a result, GEOS and ROC in April renegotiated the terms of the sale agreement.

GEOS also announced its intention to carry out a private placement of new shares with the objective of raising gross proceeds of minimum NOK 30,600,000 with an upper limit of the capital increase will of NOK 46,750,000 at subscription price per new share of NOK 3.50 directed towards eligible existing shareholders and certain other qualified investors.

By the end of April, GEOS signed an addendum with ROC regarding the purchase of the two vessels and confirmed it would take delivery of the vessels with support from its existing shareholders.

The application period for the private placement ended on April 30 and a total of 10,489,356 new shares were ordered, resulting in gross proceeds to the company of NOK 36,712,746.

Following the private placement, both vessels were delivered in May.

Offshore Energy Today Staff


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