Ziton has entered into new charter agreements with Siemens Gamesa for an existing vessel as well as an additional one to work on offshore wind sites in Europe.
The parties have signed a charter agreement for Ziton’s Wind Enterprise vessel that will extend its charter by four-and-a-half years.
The parties have also entered into a new six-year time charter agreement for a new vessel to be purchased by Ziton.
The total value of the remaining part of the Wind Enterprise time charter and the six-years’ time charter agreement for the sister vessel is around €373m for the duration of the agreements.
The current time charter agreement for Wind Enterprise expires on 31 October 2024 with Siemens Gamesa having various extension options to extend this until 20 June 2025.
It will make use of all options to extend the agreement on terms similar to the current agreement.
In addition, the parties have reached an agreement for extension of the time charter from 21 June 2025 to 31 December 2029 at terms reflecting the changes in the market environment since the original time charter was entered into in December 2020, including a higher day-rate.
As variable OpEx is generally paid by Siemens Gamesa, profitability on Wind Enterprise is expected to increase materially.
After 1 January 2027, Siemens Gamesa will retain an option for early termination of the contract against payment of a one-off compensation.
The time charter agreement between Siemens Gamesa and Ziton for a new vessel is on terms similar to the extension agreement for Wind Enterprise.
The time charter is expected to be initiated when the vessel is operational, sometime in early 2024 and will end on 31 December 2029.
Ziton has signed an agreement to purchase the sister vessel to Wind Enterprise, subject to securing financing.
The vessel has the same specifications as Wind Enterprise and was built a few months later than Wind Enterprise in 2011 at the same yard and is operating in China, installing offshore wind turbines.
Upon satisfactory inspection, the living area will be prepared in China for complete upgrade at yard stay in Europe.
Thereafter, the vessel will be transported back to Europe to complete a yard stay to be upgraded according to dock specifications prepared from the findings in inspection reports.
This sister vessel has 78-metre legs that will be extended.
In the last 12 months, ending March 2023, Ziton’s unaudited revenue and EBITDA amounted to €61.9m and €29.5m, respectively.
Based on the first three months’ strong performance and a healthy outlook, Ziton has increased its guidance for 2023 EBITDA to €30m–€34m from €28m-€32m.