10-year-old LNG carrier sold at close to newbuild value

The unnamed buyer will assume all costs associated with the forthcoming docking of the 155,000 cu m vessel, the company said in a statement, taking the effective economic benefit to CoolCo to about $190m. This is approximately equivalent to the 2021 newbuild price of the more popular 174,000 cu m ships which dominate the orderbook, and only about $10m less than a ship of this size might cost today.

CoolCo CEO, Richard Tyrrell, said: “Through the sale of the Golar Seal, the earliest vessel in our fleet to be built, we are demonstrating our disciplined approach to locking in shareholder value. The valuation highlights the re-pricing of the LNG carrier market and strategic value of such LNG infrastructure assets. A 2.5x cash-on-cash return in little more than 12 months since CoolCo’s formation shows the considerable upside in our fleet.”

Tyrrell revealed that the transaction will release about $94m in cash which the company could use if it decides to exercise options on two new Hyundai Samho vessels, scheduled for delivery ahead of contract in the second half of 2024.

Sale of the Golar Seal will coincide with redelivery from her present charter in late March, the company said. The Oslo-managed shipowner also said that it “intends to leverage its industry relationships to make further accretive acquisitions of in-service LNGCs, and to selectively pursue newbuild opportunities”.

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