EXMAR has received written notification of force majeure from YPF S.A. (the “Notice”) under the Charter Agreement and Services Agreement for the TANGO FLNG between YPF S.A. and EXMAR (the “Agreements”).
YPF claims that effects of the coronavirus (COVID-19) pandemic both worldwide and in Argentina have hindered YPF’s ability to perform its obligations under the Agreements, including but not limited to its ability to pay the invoices due for services performed for the period starting the second half of March 2020. It results from EXMARS’ first quarter results 2020, EBITDA from the TANGO FLNG contributes 36% to total EBITDA for such period.
EXMAR considers the Notice to be unlawful, has reserved its rights and is considering its best option to defend its interests. Irrespective of the outcome of the dispute with YPF S.A. in respect of the Notice, EXMAR is contemplating several measures to safeguard its liquidity position, which is on the basis of our current forecast, not at risk till the end of 2020.