Nimrod Sea Assets has published its first set of results covering the period from 1 March 2014 to 31 March 2015.
The fund has 54% of its capital invested in seven companies holding nine vessels. The falling oil price has led to problems of varying degrees across six of the seven investments. The two most serious of these are DSV Alliance DIS where the Charter Party recently went into administration and Aberdeen Offshore DIS where they have entered restructuring discussions. For Bukit Timah Offshore DIS and Norseman Offshore IS, where despite the fact the charterers continue to fulfil all their obligations (including timely payment of the charter payments) they are unable to make distributions from the Marine Asset Companies that hold these two vessels. The reasons for the suspension of distributions are that the loan-to-value covenant of Norseman DIS has been breached – though they think this covenant breach will be waived and distributions will resume (Norseman DIS) – and, in Bukit’s case, the mortgagee bank has refused requests for distributions despite the charterer being fully in compliance with its obligations. They are in discussions with the bank to resolve the situation. They say the situation highlights the unease that the steep fall in the price of oil generated throughout banks to the offshore service providers.
The Board anticipates declaring a quarterly dividend of 2 cents per Ordinary Share from June 2015 until March 2016. They say this will be funded by income received net of expenditure, and where necessary, added to from the Company’s capital resources.
NSA : Nimrod Sea Assets struggling in face of falling oil price