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

by Sheep Central, 27 July 2018
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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.

 

Reader's Comments


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  • Jennifer Macdougall July 27, 2018

    Wellards posted a loss of 77 million in the year to June 2017, sold one of its vessels and its shares had plummeted to 13 cents, according to an ABC report at the time. It seems it now wants to sell another vessel. Not a company one would want to invest in, in my opinion. It places hope on the live trade to China. But a recent disaster to that destination with a high death rate does not augur well for long-haul cattle shipments.
    The animal welfare movement will put this trade under constant focus from now on, as long-haul cattle shipments are not sustainable on animal welfare grounds. For exporters to sustain losses of over 100 head of cattle on a long-haul voyage be it to Russia, Turkey, Japan, Korea, China or Mexico, reflects a level of suffering that is totally unacceptable.

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