Ocean Yield increases stake in French LNG player
Ocean Yield Expands Stake in Geogas LNG
In a strategic move to enhance its portfolio, Ocean Yield, a Norwegian owner and player in the sale and leaseback market, has boosted its investment in France’s Geogas LNG. The company has acquired shares from Access Capital Partners, raising its indirect economic interest in France LNG Shipping (FLS) from 34% to 45%. This acquisition follows Ocean Yield’s earlier purchase of a 31% stake from CVC DIF in July 2024, marking a significant expansion in its LNG shipping interests.
Growing LNG Shipping Portfolio
Ocean Yield’s investment in Geogas LNG underscores its commitment to the liquefied natural gas sector. The company now holds a substantial 45% indirect economic interest in FLS, which is a joint venture between Japan’s NYK and Geogas LNG. FLS boasts a robust fleet of 12 LNG carriers, all of which are secured under long-term charters with top-tier, investment-grade European energy firms. This strong backing from reputable companies enhances the stability and profitability of Ocean Yield’s investment.
The fleet comprises seven operational vessels and five newbuildings, with an impressive average contract duration of nine years. When including extension options, this duration extends to 13 years, providing Ocean Yield with a reliable revenue stream. The recent acquisition is expected to contribute approximately $250 million to the company’s EBITDA backlog, further solidifying its financial outlook.
The closing of this transaction is anticipated to take place during the second or third quarter of 2025, marking an essential step in Ocean Yield’s growth strategy within the LNG market. This expansion reflects the company’s ongoing efforts to capitalize on the increasing demand for natural gas in Europe and globally, positioning it well for future opportunities in the energy sector.
