Nimrod Sea Assets Limited has completed its fifth purchase for USD 9.6m by way of a 51% stake in Altus Subsea DIS which will purchase the Remote Operated Vehicle Support Vessel (ROV SV) Altus Invictus from Hallin Marine.
The vessel is currently under bareboat charter to Marine Engineering and Diving Services (“MEDS”) for a further 4.5 years. Nimrod Sea Assets says that a charter extension, that could further extend this, is being discusses as part of the sale process.
MEDS is an inspection, repair and maintenance focused contractor based in Dubai with a regional focus in the Middle East and Asia and has recently opened a regional office in Singapore. MEDS owns and operates two other vessels, both of which are dive support vessels.
The Altus Invictus is a multipurpose Asian focused offshore support vessel that can be used for Remote Operated Vehicle work and has a small portable saturation diving system currently fitted and a 20t crane. Nimrod Sea Assets notes that the vessel currently works mainly in Malaysia and is expected to work as a field support vessel for the foreseeable future, which will have a positive impact on the residual value of the vessel.
ROV SVs support the inspection, repair and maintenance of offshore oil and gas infrastructure and are therefore important, Nimrod Sea Assets says, in the continued efficiency of offshore energy production. In the view of the Executive Directors, and independent market analysts, demand for these vessels is likely to rise substantially within the period of the charter, Nimrod Sea Assets further explains.
The vessel was purchased 100% with equity while a senior financing facility is arranged. Following the completion of this an accelerated capital reduction will take place via dividends with bi-annual distributions forecast six months following completion.
According to the company, the Executive Directors believe this investment will provide stable dividend returns for the duration of the investment with a respected counterparty in the region.
Jeremy Punnett, an executive director of Nimrod Sea, will join the Board of Altus Subsea DIS.