Höegh Autoliners exercises option to purchase Höegh Tracer

23 August 2022
Press Release

Today, Höegh Autoliners through its subsidiary Höegh Autoliners Shipping AS, declared an option pursuant to a certain bareboat charter party to purchase the vessel Höegh Tracer for a purchase price of USD 53,200,000 from Ocean Yield. The average market value of the vessel estimated by three different brokers was USD 82 million by the end of Q2 and different financing options for the vessel are being evaluated.

Höegh Tracer was built in 2016 with a capacity of 8,500 CEU. The vessel has been on bareboat charter to Höegh Autoliners upon delivery from yard.

The ownership of the vessel will be transferred to the Company during Q1 2023, and the vessel will continue to serve in Höegh Autoliners’ deep sea network.

The transaction will reduce the cash capacity cost for the vessel, allowing the Company to realise the additional value gains from lease options and to have better capacity cost control in an overheated charter market.

One of the sister vessels to Höegh Tracer, Höegh Trapper, is on a similar lease from Ocean Yield. Höegh Autoliners has the option to purchase also this vessel with exercise date in December this year for delivery in June 2023. A decision on whether to exercise also this option will be taken closer to the exercise date.

Andreas Enger, CEO of Hoegh Autoliners, says:

"The Höegh Tracer has served us well and sailed the Oceans transporting our customers' important cargo since she was built in 2016. As one of six Horizon class vessels in our fleet, she is one of the largest and most environmentally friendly PCTC out there and therefore very important for our ambitious path to a zero emissions future by 2040. Exercising the option for Höegh Tracer reinforces our commitment to a sustainable future for deep sea shipping and demonstrates our commitment to continue to manage our capacity cost."

 

For further information, please contact:

Andreas Enger, CEO 

andreas.enger@hoegh.com

+47 901 31 228

Per Øivind Rosmo, CFO

per.oivind.rosmo@hoegh.com

+47 400 39 938

Investor Relations

ir@hoegh.com

Media contact:

Jakob Stig Dyvik, Head of Communications

jakob.dyvik@hoegh.com

+47 919 28 321

 

Important notice:

This statement contains certain forward-looking statements concerning future events. Forward-looking statements are statements that are not historical facts and may be identified by words such as "anticipate", "believe", "continue", "estimate", "expect", "intends", "may", "should", "will" and similar expressions. The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although the Company believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies and other important factors which are difficult or impossible to predict and are beyond its control. Actual events may differ significantly from any anticipated development due to a number of factors, including without limitation, changes in investment levels and need for the Company's services, changes in the general economic, political and market conditions in the markets in which the Company operates, the Company's ability to attract, retain and motivate qualified personnel, changes in the Company's ability to engage in commercially acceptable acquisitions and strategic investments, and changes in laws and regulation and the potential impact of legal proceedings and actions. Such risks, uncertainties, contingencies and other important factors include, but are not limited to, the possibility that we will determine not to, or be unable to, issue any equity securities, and could cause actual events to differ materially from the expectations expressed or implied in this release by such forward-looking statements.

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.