Published March 26, 2009

Swiber to cut debt after selling stake in new vessel

By VINCENT WEE

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SWIBER Holdings has struck a partnership with US-based Icon Capital Corp, with the latter taking a 51 per cent stake in its newly delivered construction vessel Swiber Victorious. The listed offshore support services company said yesterday that Icon Capital, a privately held equipment leasing and specialty finance company, has subscribed for a 51 per cent stake in Victorious LLC, the owner of Swiber Victorious.

Swiber, which owns the remaining 49 per cent stake, said funds totalling US$19.13 million from the subscription will be used to repay the group's loans. It said this is another step to reduce its debt and boost its balance sheet to position Swiber for fleet expansion. Swiber has chartered the vessel, which was delivered to it recently, for use on its own offshore projects. The vessel is a 300-man capacity dive support accommodation work barge.

'We chose to undertake this mode of partnership as it significantly reduces our borrowings. Also, we intend to fully utilise the vessel ourselves to carry out our offshore projects as part of our strategy to reduce our reliance on third party vessels,' said Swiber CEO Raymond Goh.

Swiber has 36 vessels, comprising 28 offshore vessels and eight construction vessels. It expects to own and operate 52 vessels by the end of 2010. Swiber shares closed 1.5 cents higher at 39 cents yesterday.