Dockwise sales mv Explorer

Dockwise Ltd. announces the sale of type IV vessel MV Explorer to optimize the composition of the company's fleet with an increasing focus on value add cargoes. MV Explorer has been sold to an undisclosed buyer, who previously bought MV Enterprise as well. MV Explorer will be delivered to the buyer end of July 2010 following its assignment to the Mediterranean.

The divestment of this type IV vessel followed from a cost-revenue analysis of the vessels' operation in market segments with a relatively low contribution to Dockwise Ltd’s result. For that same reason type IV vessels Enterprise, Dock Express 10 and 12 were sold by Dockwise in 2010 and 2009 respectively. Furthermore with MV Explorer having completed almost 30 years of service, maintenance to meet Dockwise's offshore equipment standards would require disproportionate investment in Life Time Extension. The sale of the vessel is in line with plans previously outlined to enhance the focus of the organization on value adding projects requiring the differentiated service potential of type I, II and III vessels. Like MV Enterprise, MV Explorer will upon delivery to the buyer be transformed into a floating power plant.

The Q1 2011 figures, to be announced on 13 May 2011, will include a (non-cash) loss of USD 4.2 million in order to set back the carrying amount of the MV Explorer as at 31 March 2011. Upon completion of the transaction in Q3 2011, the sales price of USD 2.6mln will be used for repayment of debt.

André Goedée, Chief Executive Officer of Dockwise Ltd, said: "With the sale of Explorer, Dockwise no longer operates type IV vessels. The focus areas of work for Dockwise require types 0, I, II and III vessels which create the highest value for our customers and shareholders. This divestment further optimizes the composition of the Dockwise fleet and increases focus on the premium end of the business, where we are best positioned."
Source: Dockwise