- Wellard (WLD) has sold its MV Ocean Shearer for almost $90 million to help reduce debts to a manageable level
- Of the money received, Wellard used just over $69 million for to reduce its debt to $28.7 million
- The remaining $20 million will be kept as cash for operations
- Executive Chairman John Klepec said the company will now focus on maximising earnings and profits from its MV Ocean Driver, MV Ocean Ute and MV Ocean Swagman
- Wellard shares have skyrocketed 41.7 per cent and are currently trading for 5.1 cents
Wellard (WLD) has sold its MV Ocean Shearer for US$53 million (AUD$89.9 million), to help reduce debts to a manageable level.
While it may seem bad for some, the recent decline in the Australian dollar increased the amount that Wellard received by AUD$12 million.
When the term sheet was signed the company was going to receive AUD$77.8 million but has now received AUD$89.9 million.
Of the money received Wellard paid approximately US$40.8 million (AUD$69.1 million) to reduce debt to US$16.9 million (AUD$28.7 million).
The remaining US$12.2 million (AUD$20.7 million) will be kept as cash for operations.
Executive Chairman John Klepec said the company will now focus exclusively on maximising earnings and profits from its MV Ocean Driver, MV Ocean Ute and MV Ocean Swagman.
“The sale of the MV Ocean Shearer reduces Wellard’s debt to very manageable levels, crystallises value from an under-utilised vessel in our fleet, and significantly de-risks the business providing working capital for the company,” John said.
“While COVID-19 travel restrictions are creating some logistics issues with respect to stockmen/women, crew and veterinarians, we have been able to manage these to date. At present, all of our fleet are in demand by Australian exporters,” he added.
Wellard shares have skyrocketed 41.7 per cent and are trading for 5.1 cents at 3:26 pm AEDT.