Australian livestock carrier operator Wellard has struck a deal to sell one of its two ships.
The ASX-listed firm is offloading the Ocean Ute to Marshall Islands-registered Bassem Dabbah Shipping for $12m.
The vessel, converted from a containership into a livestock carrier in 2010 and purchased by Wellard in 2015, is expected to change hands in September this year.
Wellard said it intends to return the majority of the net sales proceeds to shareholders.
“The Ocean Ute has been a good vessel for Wellard, and helped us meet a price point in the market. But it is about to reach a tipping point with respect to market value, maintenance costs, future cash generation and profitability, so the sale is a good outcome for Wellard and its shareholders,” noted executive chairman John Klepec.
The company has one more ship left in its fleet, the Ocean Drover, shuttling between South America and Turkey, and has charters committed right through until the end of the year.
Wellard said in a filing that it continues to engage with KPMG Singapore as the liquidators of Ruchira Ships, the registered owner of the Ocean Drover, to seek a resolution that will enable the company to regain full legal title to the vessel.
