Hilong Holding to sell pipe-laying crane vessel for $100m

Chinese offshore service provider Hilong Holding announced on August 11 that its indirect wholly-owned subsidiary, Hilong Shipping Holding, has entered into a conditional agreement to sell the 2012-built pipe-laying crane vessel Hai Long 106 for a consideration of $100 million. The purchaser is the Indonesian sea transportation company Cakra Buana Resources Energi.

The transaction is structured with a downpayment of 55 per cent of the consideration, which includes $30 million in cash and a $25 million promissory note. The remaining $45 million is to be paid in full on or before December 31, 2025.

Hilong stated the sale is part of its strategic transformation from a vessel-centric contractor into an engineering, procurement, construction and installation (EPCI) integrator, which has led to a gradual reduction in reliance on the vessel.

The company expects to generate net cash proceeds of approximately $74 million from the sale. These funds will be used to reduce outstanding debt and for general working capital, including settling payments to suppliers. Due to the vessel's net book value of approximately $150.2 million, the group estimates it will realise a loss on the disposal of approximately $50 million.