Polarcus Ltd. refers to its announcement dated March 25, 2019 describing the exercise of an option to redeliver Vyacheslav Tikhonov by Sovcomflot under the bareboat charter and to its announcement dated June 3, 2019 confirming an award of a wide-azimuth project in the Americas.

A subsidiary of Polarcus has chartered Vyacheslav Tikhonov on commercial terms with the intention that the vessel works as a source vessel on the referenced wide-azimuth program expected to continue into fourth-quarter 2019.  

Accordingly, Sovcomflot has withdrawn its notice of redelivery and exercised an option to extend the bareboat charter period of hire for two years (until October 2021, with further options). Both parties have redelivery options during the extended hire period with Sovcomflot’s first redelivery option being exercisable with effect from completion of the ‘charter-back’ for the wide-azimuth program. Unless the vessel is redelivered at that time, the bareboat charter revenue generated by the vessel is then expected to contribute to the company’s positive financial performance.