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Wellard’s MV Ocean Drover listed for sale by shipping brokers

by Beef Central, 27 July 2018
4

Shipping brokers have listed Wellard’s livestock export vessel the MV Ocean Drover for sale.

The 24,000 square metre vessel was launched in 2002 and was the first large purpose-built livestock vessel ever built, with an overall length of 176.6m and a capacity of up to 75,000 sheep or 18,000 cattle.

Asked about the sale by Beef Central this week, a Wellard spokesperson said emerging demand for large, modern livestock vessels created by tighter shipping regulations in Australia has prompted Wellard to consider offers for the potential sale of the MV Ocean Drover.

“If those offers provide a superior return on equity for shareholders on a long-term basis compared to operating the vessel ourselves, we will consider selling. If not, we won’t,” said Wellard Executive Director – Operations Fred Troncone.

“Wellard is ultimately a trading company, and the changes to the regulatory landscape for livestock vessels has created a market opportunity that we maybe able to sell into to generate a superior return.”

He said Wellard will assess the cashflow, balance sheet and capital management benefits that an opportunistic sale of the MV Ocean Drover could achieve against the returns the Company generates from operating the vessel for charter or for export.

Wellard also owns/operates the MV Ocean Shearer, the MV Ocean Swagman and the MV Ocean Ute.

 



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  • David Heath July 27, 2018

    It is still my opinion, that these larger vessels have had more negative impact on the Indonesian market, than actual cost of product and government interventions both in AU and RI.
    All to do with funds employed, importers could handle up to around 2,000 head on a fortnight rotation.
    Easier on producers, road and yard infrastructure in Australia as well. I know old school, but here enlighes the problems with super vessels.

  • Steve Ellison July 28, 2018

    Great David.
    Never lose sight of history.

  • Rob July 29, 2018

    2000 head boats just aren’t economical. Secondly, just like cruise ships, the smaller they are, the more they bob like a cork in high seas.

    Full names require for future comments please Rob – as per our long-standing comment policy, accessible via the About us section. Editor

  • Peter Vincent July 29, 2018

    You may find that Wellards don’t own the vessels outright and have little say in whether they are to be sold or not.

    Hi Peter, our understanding from Wellard is that the vessel is financed through a sale and leaseback facility. The Company also has both the obligation to buy back the vessel at the end of the lease term and the option to buy it back in the interim. It is effectively a vessel finance by another name (it’s treated as debt on the balance sheet and through the P&L)- Editor

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