(Greece, 26 February 2020)
On 9 October 2019, four single-purpose companies (the “Charter Guarantors”) wholly owned by Okeanis Eco Tankers Corp. (“OET” or the “Company”) that each operate one VLCC on long-term bareboat charter from Ocean Yield ASA (“Ocean Yield”) gave notice to Ocean Yield requiring the sale of those four VLCCs (the “Vessels”) back to the Charter Guarantors for 103% of the Vessels’ cumulative outstanding lease amount, plus certain breakage fees. Ocean Yield disputed the Charter Guarantors’ right to require such sales under the bareboat charters. The matter was subsequently referred to four arbitrations that were heard on a concurrent and expedited basis.
The Company today announces that the arbitration Tribunal (the “Tribunal”) has decided against OET and its right to require Ocean Yield to sell the Vessels to the Charter Guarantors. The arbitration awards are subject to very limited grounds of appeal under English law and OET is considering its options in this regard with its legal advisors. An update will be provided in due course should OET decide to take steps to appeal the awards.
The Tribunal dealt only with issues of liability (i.e. questions relevant to determining the Charter Guarantors’ right to require such sales and the terms) and did not decide issues relating to legal costs. Those issues are to be decided in a later quantum stage (for which a timetable has not yet been agreed/determined). In the meantime, the effect of the awards is that the Vessels remain on their existing long-term bareboat charters from Ocean Yield.
The financial impact of the arbitrations will be limited to the legal costs incurred by OET (the majority of which were settled in Q4 2019) and to any legal costs that it must pay to Ocean Yield arising from the adverse arbitration decisions. Ocean Yield has not yet indicated what their legal costs of the arbitration are but we expect them to do so shortly. The Company expects the portion of legal costs it must reimburse Ocean Yield not to be material in terms of financial reporting. We will provide an update on legal costs as and when appropriate at that time.
OET will release its fourth quarter 2019 results before market open 15:00 CET on 28 February 2020.
John Papaioannou, CFO
+30 210 4804099
This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act.
Okeanis Eco Tankers Corp. is a pure play eco and scrubber-fitted tanker company that owns and operates a fleet of seventeen modern, high-specification crude oil and products tankers in the VLCC, Suezmax and Aframax/LR2 segments.
Forward Looking Statements
Matters discussed in this release may contain certain forward-looking statements relating to the business, financial performance and results of the Company and/or the industry in which it operates, sometimes identified by the words “believes”, “expects”, “intends”, “plans”, “estimates”, “anticipates” and similar expressions. The forward-looking statements contained in this release, including assumptions, opinions and views of the Company or cited from third-party sources, are solely opinions and forecasts that are subject to risks, uncertainties and
other factors that may cause actual events to differ materially from any anticipated development. The Company does not provide any assurance that that the assumptions underlying such forward-looking statements are free from errors, nor does the Company accept any responsibility for the future accuracy of the opinions expressed in the presentation or the actual occurrence of the forecasted developments. No obligations are assumed to update any forward-looking statements or to conform to these forward-looking statements to actual results.