Purge continues

IM Skaugen has agreed to sell another gas-carrier to one of its joint ventures under a broader bid to free up cash.

In the Oslo-listed company’s second-quarter earnings report it identified the vessel as the 8,556-cbm Norgas Petaluma (built 2003).

Skaugen said the unit will be delivered to the buyer, Skaugen Gulf Petchem Carriers (SGPC) of Bahrain, in September of this year.

The company noted the $24m price tag reflects the book value of the unit and said the shareholders behind the venture have pledged to inject an additional $8m worth of equity into the alliance so the deal can be sealed.

Skaugen told investors that net proceeds from the transaction will amount to roughly $20m, which will be used to cut debt related to the ship and applied toward what it described as “other corporate purposes”.

“SGPC will now have two ships that both will be financed by shariah-compliant loan facilities from Bahraini based banks in the Gulf region,” it added.

While the Norgas Petaluma is changing hands Skaugen was quick to point out that the unit will continue to trade in the Norgas pool.

The commentary came as the company turned in a loss of $13.4m for the first-half of 2014, versus a gain of $20.7m in the comparable period 12 months prior.

You can access the company’s latest earnings report in full by clicking on the link located under the Related Media section to the right of this article.