Portfolio

Sold all shares in Ocean Yield

After 5 years I have sold all my ocy shares. The main reason for this is the expiration of the FPSO contract. Yes, Reliance has an option to buy it, but I believe the field is coming to a shutdown. The contract may be extended for a year, but in the end this cash flow will stop. There are a lot of other FPSOs with better standards available, and there is no reason for Realiance to not choose another ship for their next field.

If Reliance chooses to close the field, ocy are obligated to pay for decommission, and the books will take a huge hit. The ceo claims there will be no dividend cut if she goes off contract, but considering she delivered about 30% of the result last year, I have my doubts.

If the shareprice takes a hit, I might buy again.

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