Uncategorized

Reducing the exposure in Ocean Yield

Ocean Yield have been my largest holding in my portfolio of public stocks. I have been an owner since 2013, and I have received a steady increase in dividends. Now I have reduced my holdings to 3/7 of the original investment. A large part of the cash flow comes from the FPSO. This contract is over next year. Normally it is not easy to replace this kind of unit, so if the oil is flowing at an acceptable level, it is likely that this contract will get renewed.

But, if this contract is not renewed, and perhaps in combination with a lay up of the Lewek Connector, then the dividend yield is not sustainable. Ocean Yield is a great company, with great management, but I choose to be on the safe side, and reduce the exposure.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s