(Aug 28 2009)
Nordic Tankers blamed its negative result for first half of this year on the negative developments in the global economy and the consequent decline in freight rates.
The result was a loss of $2.8 mill, before the reversal of $0.7 mill concerning transactions made by the previous board.
In 1H09, the market value of the company's ships fell sharply and the board has therefore considered it appropriate to write down the value of its fleet by $25.8 mill. Thus the bottom line for 1H09 came in at minus $27.9 mill after tax.
The board said that it had lowered its expectations for the whole year to between minus $32 and $36 mill, of which operations were expected to contribute negatively by between minus $6 and $10 mill.
The company's ceo Jens Pontoppidan said that after a brief rebound early this year, Nordic Tankers was seriously hit by falling rates in the product tanker market.
"Unfortunately, the rates remain very low and with the uncertainty still plaguing the global economy, we have found it necessary to lower expectations for 2009 as a whole," he said.
He also said that the board would continue to work actively to implement the strategic plan, which was presented at the Annual General Meeting in April 2009.
Nordic Tankers owns all or part of 10 ships with an average age of only 2.6 years. The company has currently no vessels on order and has no plans to order any in the near future. All the ships operate in pools with established partners.
Saturday 29 August 2009
Nordic Tankers not out of the woods
(Aug 28 2009)
Nordic Tankers blamed its negative result for first half of this year on the negative developments in the global economy and the consequent decline in freight rates.
The result was a loss of $2.8 mill, before the reversal of $0.7 mill concerning transactions made by the previous board.
In 1H09, the market value of the company's ships fell sharply and the board has therefore considered it appropriate to write down the value of its fleet by $25.8 mill. Thus the bottom line for 1H09 came in at minus $27.9 mill after tax.
The board said that it had lowered its expectations for the whole year to between minus $32 and $36 mill, of which operations were expected to contribute negatively by between minus $6 and $10 mill.
The company's ceo Jens Pontoppidan said that after a brief rebound early this year, Nordic Tankers was seriously hit by falling rates in the product tanker market.
"Unfortunately, the rates remain very low and with the uncertainty still plaguing the global economy, we have found it necessary to lower expectations for 2009 as a whole," he said.
He also said that the board would continue to work actively to implement the strategic plan, which was presented at the Annual General Meeting in April 2009.
Nordic Tankers owns all or part of 10 ships with an average age of only 2.6 years. The company has currently no vessels on order and has no plans to order any in the near future. All the ships operate in pools with established partners.
Nordic Tankers blamed its negative result for first half of this year on the negative developments in the global economy and the consequent decline in freight rates.
The result was a loss of $2.8 mill, before the reversal of $0.7 mill concerning transactions made by the previous board.
In 1H09, the market value of the company's ships fell sharply and the board has therefore considered it appropriate to write down the value of its fleet by $25.8 mill. Thus the bottom line for 1H09 came in at minus $27.9 mill after tax.
The board said that it had lowered its expectations for the whole year to between minus $32 and $36 mill, of which operations were expected to contribute negatively by between minus $6 and $10 mill.
The company's ceo Jens Pontoppidan said that after a brief rebound early this year, Nordic Tankers was seriously hit by falling rates in the product tanker market.
"Unfortunately, the rates remain very low and with the uncertainty still plaguing the global economy, we have found it necessary to lower expectations for 2009 as a whole," he said.
He also said that the board would continue to work actively to implement the strategic plan, which was presented at the Annual General Meeting in April 2009.
Nordic Tankers owns all or part of 10 ships with an average age of only 2.6 years. The company has currently no vessels on order and has no plans to order any in the near future. All the ships operate in pools with established partners.
Eitzen Chemical to concentrate on shoring up finances
(Aug 28 2009)
Eitzen Chemical reported EBITDA, excluding profit/loss sale of assets, of $16.4 mill for 2Q09, compared to $20.6 mill in previous quarter.
Eitzen said that full focus would be given on the delivery of a long term financial plan and to the strengthening of the company's financial position.
The 2Q09 TCE rates for the company's fleet below 30,000 dwt were down by 0.9 % compared to the previous quarter, while the vessels above 30,000 dwt reported average rate decreases of 1.2% compared to 1Q09.
Eitzen said that it continued to expect challenging market conditions in the short to medium term with an improvement dependent on a more broad based recovery in industrial production.
The company said that it was in the process of developing its long term financial plan, which will be presented to its lenders in the coming weeks. The plan will include a proposal for a new debt repayment schedule and covenant structure as well as a strengthening of the company's balance sheet and cash position through an issue of new equity.
During the quarter, several contracts of affreightment were renewed securing critical volumes and six additional vessels have come under the company's management through the City Class pool.
Terje Askvig, Eitzen Chemical ceo, said: "Following the successful execution of our strategy to eliminate our newbuilding commitments earlier in the year, we have been working on the development of a long term financial plan together with our advisors. The objective of the financial plan is to create a financially robust platform for the company. The plan will include, inter alia, a proposal for a new debt repayment schedule and an amended covenant structure to better fit the current market environment and outlook.
“Furthermore, an integral part of the financial plan is assumed to be the strengthening of the company's balance sheet through an issue of new equity. We believe that a robust financial structure coupled with the company's modern fleet and strong market position should form a solid basis for creating shareholder value and safeguarding our various stakeholders going forward. It is envisaged that the financial plan will be concluded in the fourth quarter, subject to relevant approvals," he concluded.
Eitzen Chemical reported EBITDA, excluding profit/loss sale of assets, of $16.4 mill for 2Q09, compared to $20.6 mill in previous quarter.
Eitzen said that full focus would be given on the delivery of a long term financial plan and to the strengthening of the company's financial position.
The 2Q09 TCE rates for the company's fleet below 30,000 dwt were down by 0.9 % compared to the previous quarter, while the vessels above 30,000 dwt reported average rate decreases of 1.2% compared to 1Q09.
Eitzen said that it continued to expect challenging market conditions in the short to medium term with an improvement dependent on a more broad based recovery in industrial production.
The company said that it was in the process of developing its long term financial plan, which will be presented to its lenders in the coming weeks. The plan will include a proposal for a new debt repayment schedule and covenant structure as well as a strengthening of the company's balance sheet and cash position through an issue of new equity.
During the quarter, several contracts of affreightment were renewed securing critical volumes and six additional vessels have come under the company's management through the City Class pool.
Terje Askvig, Eitzen Chemical ceo, said: "Following the successful execution of our strategy to eliminate our newbuilding commitments earlier in the year, we have been working on the development of a long term financial plan together with our advisors. The objective of the financial plan is to create a financially robust platform for the company. The plan will include, inter alia, a proposal for a new debt repayment schedule and an amended covenant structure to better fit the current market environment and outlook.
“Furthermore, an integral part of the financial plan is assumed to be the strengthening of the company's balance sheet through an issue of new equity. We believe that a robust financial structure coupled with the company's modern fleet and strong market position should form a solid basis for creating shareholder value and safeguarding our various stakeholders going forward. It is envisaged that the financial plan will be concluded in the fourth quarter, subject to relevant approvals," he concluded.
Jo Tankers to lay off Dutch officers and reflag vessels
(Aug 28 2009) According to Lloyd’s List, Jo Tankers, is to make around 50 Dutch officers redundant.
At the same time, the parcel tanker operator is likely to reflag four of its vessels from the Dutch register to Singapore, Lloyd’s List said.
According to its website, Jo Tankers has four vessels flying the Dutch flag with the remaining 13 under the NIS flag.
At the same time, the parcel tanker operator is likely to reflag four of its vessels from the Dutch register to Singapore, Lloyd’s List said.
According to its website, Jo Tankers has four vessels flying the Dutch flag with the remaining 13 under the NIS flag.
Fleet expansion - Offen Tankers
(Aug 28 2009)
The first of the eight Offen Tankers’ newbuilding 52,000 dwt product carriers – ‘CPO Korea’ - is currently on her maiden voyage to Rotterdam with a cargo of palm oil.
‘CPO Korea’ is commercially operated by Glencore’s ST Shipping pool. Three more sisters are due to be delivered from Hyundai Mipo next year with the next four scheduled for 2011.
This vessel represents the first in the second batch of newbuildings for CP Offen's tanker arm.
The first tranche of eight 36,000 dwt ice class vessels already in service was chartered to Brostrom for operation in the Handytankers pool, managed by Maersk Tankers.
The first of the eight Offen Tankers’ newbuilding 52,000 dwt product carriers – ‘CPO Korea’ - is currently on her maiden voyage to Rotterdam with a cargo of palm oil.
‘CPO Korea’ is commercially operated by Glencore’s ST Shipping pool. Three more sisters are due to be delivered from Hyundai Mipo next year with the next four scheduled for 2011.
This vessel represents the first in the second batch of newbuildings for CP Offen's tanker arm.
The first tranche of eight 36,000 dwt ice class vessels already in service was chartered to Brostrom for operation in the Handytankers pool, managed by Maersk Tankers.
Concordia Maritime Sells Shareholding in US Shipping Company General Maritime
Saturday, 29 August 2009
Concordia Maritime has sold its holding of 1.5 million shares in the US shipping company General Maritime. As the shares had already been written down to their market value, the sale only marginally affects the company’s equity and total comprehensive income. However, in accordance with IFRS’ accounting rules, the effect on the result will be reported in the Income statement and not, as was previously the case, under Other total comprehensive income.
The sale has generated a cash infusion of approx. USD 11.5 million corresponding to approx. SEK 80 million. The realized loss of approx. SEK 145 million results in a transfer from Other total comprehensive income to the Income statement. Thus the forecasted Result before tax for the full year of SEK 45 million (SEK 0.94 per share) has changed to SEK -100 million (SEK -2.10 per share). “The decision to sell the holding in General Maritime was made in view of the weak prospects for tanker shipping.
There is a growing structural problem on the supply side due to large-scale deliveries of new tonnage and a too large order book. Our assessment is that tanker shipping companies, which are active solely or partly in the so-called open market, have a difficult time ahead of them generally speaking. We had previously written down the value of the shares so that the loss now realised does not affect the company’s position and we get cash infusion of more than USD 11 million.
As regards the trend of the market, we are not at all affected to the same extent since our whole fleet is signed to long-term charters”, says Hans Norén, President of Concordia Maritime. “It is important to emphasise that the sale does not affect the company’s financial position and that its investment capacity remains intact. On 30 June, our shareholding in General Maritime accounted for about 3.5% of the company’s total assets. Since 2004, we have classed the holding as an asset that can be sold, as a result of which write-ups and write-downs have been made against equity on an ongoing basis based on the market value of the shares.
This means that, in conjunction with the sale, the change in equity is relatively small since it mainly involves a transfer to the “normal” Income statement of an item previously accounted for in the report on the total comprehensive result.”, says Göran Hermansson, Financial Manager.
Concordia Maritime AB (publ) is an international tanker shipping company listed on the Nasdaq OMX Nordic Exchange in Stockholm. The company has ordered ten tankers, which are being built in accordance with the MAX concept. Six P-MAX-vessels have been delivered and four will be delivered during 2009/2010. These vessels, P-MAX, are product tankers of about 65,200 dwt. The MAX concept means that the vessels are designed for maximum loading capacity in shallow waters. They have been designed according to a new concept for safer oil transportation with double main engines in two completely separate engine rooms, double rudders and steering gear, two propellers and double control systems.
Source: Concordia Maritime
Concordia Maritime has sold its holding of 1.5 million shares in the US shipping company General Maritime. As the shares had already been written down to their market value, the sale only marginally affects the company’s equity and total comprehensive income. However, in accordance with IFRS’ accounting rules, the effect on the result will be reported in the Income statement and not, as was previously the case, under Other total comprehensive income.
The sale has generated a cash infusion of approx. USD 11.5 million corresponding to approx. SEK 80 million. The realized loss of approx. SEK 145 million results in a transfer from Other total comprehensive income to the Income statement. Thus the forecasted Result before tax for the full year of SEK 45 million (SEK 0.94 per share) has changed to SEK -100 million (SEK -2.10 per share). “The decision to sell the holding in General Maritime was made in view of the weak prospects for tanker shipping.
There is a growing structural problem on the supply side due to large-scale deliveries of new tonnage and a too large order book. Our assessment is that tanker shipping companies, which are active solely or partly in the so-called open market, have a difficult time ahead of them generally speaking. We had previously written down the value of the shares so that the loss now realised does not affect the company’s position and we get cash infusion of more than USD 11 million.
As regards the trend of the market, we are not at all affected to the same extent since our whole fleet is signed to long-term charters”, says Hans Norén, President of Concordia Maritime. “It is important to emphasise that the sale does not affect the company’s financial position and that its investment capacity remains intact. On 30 June, our shareholding in General Maritime accounted for about 3.5% of the company’s total assets. Since 2004, we have classed the holding as an asset that can be sold, as a result of which write-ups and write-downs have been made against equity on an ongoing basis based on the market value of the shares.
This means that, in conjunction with the sale, the change in equity is relatively small since it mainly involves a transfer to the “normal” Income statement of an item previously accounted for in the report on the total comprehensive result.”, says Göran Hermansson, Financial Manager.
Concordia Maritime AB (publ) is an international tanker shipping company listed on the Nasdaq OMX Nordic Exchange in Stockholm. The company has ordered ten tankers, which are being built in accordance with the MAX concept. Six P-MAX-vessels have been delivered and four will be delivered during 2009/2010. These vessels, P-MAX, are product tankers of about 65,200 dwt. The MAX concept means that the vessels are designed for maximum loading capacity in shallow waters. They have been designed according to a new concept for safer oil transportation with double main engines in two completely separate engine rooms, double rudders and steering gear, two propellers and double control systems.
Source: Concordia Maritime
Buyers gear up for ship fire sales
Wednesday, 26 August 2009
Ship acquisitions are set to gather pace in the coming months as buyers with war chests hunt for bargains while the sea freight sector grapples with weak demand, fleet oversupply and tougher credit conditions. Around 90 percent of the world's traded goods by volume are transported by sea and the international economic downturn has hit the shipping industry hard since October 2008.
It has also meant that both new and second hand ship values have fallen, opening up opportunities for investors."Broadly speaking, all these prices reached an all-time high last year and they have very quickly crashed by as much as 50 percent or more from their peak last year," said John Luke, global head of shipping with advisory firm KPMG."The bubble has burst and it must be intuitively a good time to buy into the asset."Container shipping, which transports finished goods from electronics to toys, has been the worst affected sector due to poor demand, especially on key routes from Asia to consumers in the West.
Analysts estimate the value of a second hand five-year old container ship, able to carry the theoretical equivalent of up to 2,000 twenty-foot containers, has plunged 65 percent from 2008 to around $15 million.In the dry bulk sector shipping commodities, the value of a five-year old Capesize vessel, the largest size of dry bulk ship typically hauling iron ore or coal, has plummeted to around $55 million from as much as $180 million last year.Some analysts predict the price could drop to $40 million to $45 million in the coming months.
A new Capesize vessel is estimated to be valued with a slightly higher price tag."There is potentially more (activity) in the second hand market, but obviously there may well be opportunities also on the resale market for newbuildings (new ships)," said Nigel Gardiner, managing director of maritime consultancy Drewry.
BUYER'S MARKET
Greek dry bulk carrier Diana Shipping said this month it aimed to start buying ships within the next couple of quarters with a focus on Capesize and smaller Panamax vessels."If we plan our acquisitions carefully and with some elements of good luck, we will succeed in coming out of the downturn with a strong balance sheet and a larger fleet," its president Anastassis Margaronis told analysts in August.
Some buyers hope to replace or shore up existing fleets at falling prices. Others seek to lease purchased ships to an operator for a long period, guaranteeing an income stream.While others such as distressed investment and vulture funds would aim to sell when the upturn in shipping returns. There has also talk private equity groups will also step in.
TIGHTER CREDIT
Analysts and industry officials say timing will be crucial."Prices are still too high compared with what they will be in 3 to 6 months. It's a waiting game," a shipping analyst said.The shipping unit of German financial services company HCI Capital has set up a new fund with global shipping group Peter Doehle.HCI Capital plans to inject 20 million euros ($28.61 million) in investor capital into the fund with a co-investment of at least 1 million euros by Peter Doehle planned.
It will be targeting bulk and container ships and oil tankers hoping to look at its first project by the end of 2009."If the fund is well received we are more than happy to increase it," said Malte Schulte-Trux, managing director of HCI Capital's shipping unit.The boom period before the 2008 crash in freight rates spurred demand for new ships, leading to an expected glut of vessels coming on stream. But falling cash reserves, due to weaker earnings, has pressured some with vessel orders creating forced sale circumstances.
"We will see the opportunities directly from the shipyards because a potential buyer cannot take delivery of the vessel, or a buyer who has taken delivery of the vessel cannot fulfil his further commitments, and we will see distressed sales from ships which are already in operation," said Schulte-Trux.Analysts said traditional German, UK and north American bank lenders to the industry sought to reduce their exposure."Good operators who have not overextended themselves on credit will still be making money in this market. But some won't have the option because they won't have access to credit," said KPMG's Luke.
Source: Reuters
Ship acquisitions are set to gather pace in the coming months as buyers with war chests hunt for bargains while the sea freight sector grapples with weak demand, fleet oversupply and tougher credit conditions. Around 90 percent of the world's traded goods by volume are transported by sea and the international economic downturn has hit the shipping industry hard since October 2008.
It has also meant that both new and second hand ship values have fallen, opening up opportunities for investors."Broadly speaking, all these prices reached an all-time high last year and they have very quickly crashed by as much as 50 percent or more from their peak last year," said John Luke, global head of shipping with advisory firm KPMG."The bubble has burst and it must be intuitively a good time to buy into the asset."Container shipping, which transports finished goods from electronics to toys, has been the worst affected sector due to poor demand, especially on key routes from Asia to consumers in the West.
Analysts estimate the value of a second hand five-year old container ship, able to carry the theoretical equivalent of up to 2,000 twenty-foot containers, has plunged 65 percent from 2008 to around $15 million.In the dry bulk sector shipping commodities, the value of a five-year old Capesize vessel, the largest size of dry bulk ship typically hauling iron ore or coal, has plummeted to around $55 million from as much as $180 million last year.Some analysts predict the price could drop to $40 million to $45 million in the coming months.
A new Capesize vessel is estimated to be valued with a slightly higher price tag."There is potentially more (activity) in the second hand market, but obviously there may well be opportunities also on the resale market for newbuildings (new ships)," said Nigel Gardiner, managing director of maritime consultancy Drewry.
BUYER'S MARKET
Greek dry bulk carrier Diana Shipping said this month it aimed to start buying ships within the next couple of quarters with a focus on Capesize and smaller Panamax vessels."If we plan our acquisitions carefully and with some elements of good luck, we will succeed in coming out of the downturn with a strong balance sheet and a larger fleet," its president Anastassis Margaronis told analysts in August.
Some buyers hope to replace or shore up existing fleets at falling prices. Others seek to lease purchased ships to an operator for a long period, guaranteeing an income stream.While others such as distressed investment and vulture funds would aim to sell when the upturn in shipping returns. There has also talk private equity groups will also step in.
TIGHTER CREDIT
Analysts and industry officials say timing will be crucial."Prices are still too high compared with what they will be in 3 to 6 months. It's a waiting game," a shipping analyst said.The shipping unit of German financial services company HCI Capital has set up a new fund with global shipping group Peter Doehle.HCI Capital plans to inject 20 million euros ($28.61 million) in investor capital into the fund with a co-investment of at least 1 million euros by Peter Doehle planned.
It will be targeting bulk and container ships and oil tankers hoping to look at its first project by the end of 2009."If the fund is well received we are more than happy to increase it," said Malte Schulte-Trux, managing director of HCI Capital's shipping unit.The boom period before the 2008 crash in freight rates spurred demand for new ships, leading to an expected glut of vessels coming on stream. But falling cash reserves, due to weaker earnings, has pressured some with vessel orders creating forced sale circumstances.
"We will see the opportunities directly from the shipyards because a potential buyer cannot take delivery of the vessel, or a buyer who has taken delivery of the vessel cannot fulfil his further commitments, and we will see distressed sales from ships which are already in operation," said Schulte-Trux.Analysts said traditional German, UK and north American bank lenders to the industry sought to reduce their exposure."Good operators who have not overextended themselves on credit will still be making money in this market. But some won't have the option because they won't have access to credit," said KPMG's Luke.
Source: Reuters
Thursday 20 August 2009
Pertamina Import of Fuel will Increase
State oil and gas company PT Pertamina will increase its Premium gasoline imports by a total of 1.2 million barrels in August and September to anticipate the usually higher demand in the upcoming fasting month. Hanung Budya, Pertamina’s deputy director for marketing, said that the demand for Premium gasoline might increase by 3.5 percent during the Ramadan fasting month which will start at the end of this week.
“Therefore, there will be more Premium gasoline imports in August and September. The imports will be done by Petral [Pertamina Energy Trading Limited]” Hanung told reporters Wednesday. Pertamina’s spokesperson Basuki Trikora Putra said that in normal conditions Pertamina imported 5.6 million barrels of Premium gasoline a month. But, these imports will be increased by one million barrels in August and 200,000 barrels in September, he added. “Thus, Pertamina will import about 6.6 million barrels in August and 5.8 million barrels in September,” Trikora said.
Premium gasoline is one of subsidized fuels in Indonesia for which Pertamina acts as the sole distributor. Demand for the fuel reaches 55,000 kiloliters, or about 345,939 barrels per day. Hanung said that as of today the national stock for Premium gasoline reached 1,042,720 kiloliters which is enough for 18.4 days. “We have a very safe stock,” he said. The average security level for fuel stock is at 22 days.Hanung added that Pertamina would again operate round-the-clock fuel stations along the traditional route across the northern part of Java which is usually busy during holidays, to anticipate possible fuel shortages.“We are also preparing fuel deposits in strategic locations,” he said.
Hanung pointed out that weather conditions, especially El Nino, might become a factor that could disrupt fuel distribution. “In several areas, our tankers must wait between two and three days to dock due the El Nino. To anticipate this, we will fill our main depots earlier. We will accumulate fuel as much as possible in the [target]areas,” he said.
Source: The Jakarta Post
“Therefore, there will be more Premium gasoline imports in August and September. The imports will be done by Petral [Pertamina Energy Trading Limited]” Hanung told reporters Wednesday. Pertamina’s spokesperson Basuki Trikora Putra said that in normal conditions Pertamina imported 5.6 million barrels of Premium gasoline a month. But, these imports will be increased by one million barrels in August and 200,000 barrels in September, he added. “Thus, Pertamina will import about 6.6 million barrels in August and 5.8 million barrels in September,” Trikora said.
Premium gasoline is one of subsidized fuels in Indonesia for which Pertamina acts as the sole distributor. Demand for the fuel reaches 55,000 kiloliters, or about 345,939 barrels per day. Hanung said that as of today the national stock for Premium gasoline reached 1,042,720 kiloliters which is enough for 18.4 days. “We have a very safe stock,” he said. The average security level for fuel stock is at 22 days.Hanung added that Pertamina would again operate round-the-clock fuel stations along the traditional route across the northern part of Java which is usually busy during holidays, to anticipate possible fuel shortages.“We are also preparing fuel deposits in strategic locations,” he said.
Hanung pointed out that weather conditions, especially El Nino, might become a factor that could disrupt fuel distribution. “In several areas, our tankers must wait between two and three days to dock due the El Nino. To anticipate this, we will fill our main depots earlier. We will accumulate fuel as much as possible in the [target]areas,” he said.
Source: The Jakarta Post
Torm reports first half results
“The result for the first half of 2009 reflects that freight rates were at a historic low due to lower than expected global oil consumption. Our strategic view of the product tanker market is unchanged, and although the number of newbuildings is a challenge short-term, we are positive on the future prospects of the segment,” says CEO Mikael Skov.
The second quarter of 2009 showed a gross profit of USD 39 million, against USD 146 million for the corresponding quarter of 2008. Profit before depreciation (EBITDA) for the period was USD 31 million, against USD 189 million for the second quarter of 2008. The decline in gross profit and EBITDA was primarily due to substantially lower freight rates in both the Tanker Division and the Bulk Division. In the second quarter of 2009, depreciation amounted to USD 34 million.
An operating loss of USD 3 million was posted in the second quarter of 2009, against an operating profit of USD 158 million in the same quarter of 2008. The Tanker and Bulk Divisions contributed a loss of USD 12 million and a profit of USD 10 million respectively, whereas a loss of USD 1 million is unallocated. There was a total negative effect from mark-to-market non-cash adjustments of USD 25 million in the second quarter with USD 20 million on financial instruments and USD 5 million on FFA/bunker derivatives.
The mark-to-market adjustments on financial instruments were primarily due to a writedown of USD 23 million on options related to vessel values taken over in connection with the acquisition of OMI. In the second quarter of 2009, financials amounted to an expense of USD 30 million, against an expense of USD 12 million in the same quarter of 2008. The difference was primarily due to the above-mentioned mark-to-market non-cash adjustments.
A loss after tax of USD 34 million was posted in the second quarter of 2009, including a profit of USD 13 million on the sale of vessels, against a profit of USD 145 million in the second quarter of 2008, where a profit of USD 52 million was recognised on the sale of vessels. Assets Total assets fell from USD 3,287 million to USD 3,256 million in the second quarter of 2009. TORM receives quarterly valuations on its fleet value from three internationally acknowledged shipbrokers and calculates a value in use derived from discounted cash flow valuations.
Based on the broker valuations, the market value of TORM’s fleet was below book value at 30 June 2009. However, as the market for product tanker vessels is currently illiquid, broker valuations are uncertain. Liabilities During the second quarter of 2009, the Company’s net interest bearing debt rose from USD 1,615 million to USD 1,670 million. The item mainly comprises net borrowing in connection with the delivery of vessels, the cash effect of the distribution of dividend and positive cash.
Source: TORM
The second quarter of 2009 showed a gross profit of USD 39 million, against USD 146 million for the corresponding quarter of 2008. Profit before depreciation (EBITDA) for the period was USD 31 million, against USD 189 million for the second quarter of 2008. The decline in gross profit and EBITDA was primarily due to substantially lower freight rates in both the Tanker Division and the Bulk Division. In the second quarter of 2009, depreciation amounted to USD 34 million.
An operating loss of USD 3 million was posted in the second quarter of 2009, against an operating profit of USD 158 million in the same quarter of 2008. The Tanker and Bulk Divisions contributed a loss of USD 12 million and a profit of USD 10 million respectively, whereas a loss of USD 1 million is unallocated. There was a total negative effect from mark-to-market non-cash adjustments of USD 25 million in the second quarter with USD 20 million on financial instruments and USD 5 million on FFA/bunker derivatives.
The mark-to-market adjustments on financial instruments were primarily due to a writedown of USD 23 million on options related to vessel values taken over in connection with the acquisition of OMI. In the second quarter of 2009, financials amounted to an expense of USD 30 million, against an expense of USD 12 million in the same quarter of 2008. The difference was primarily due to the above-mentioned mark-to-market non-cash adjustments.
A loss after tax of USD 34 million was posted in the second quarter of 2009, including a profit of USD 13 million on the sale of vessels, against a profit of USD 145 million in the second quarter of 2008, where a profit of USD 52 million was recognised on the sale of vessels. Assets Total assets fell from USD 3,287 million to USD 3,256 million in the second quarter of 2009. TORM receives quarterly valuations on its fleet value from three internationally acknowledged shipbrokers and calculates a value in use derived from discounted cash flow valuations.
Based on the broker valuations, the market value of TORM’s fleet was below book value at 30 June 2009. However, as the market for product tanker vessels is currently illiquid, broker valuations are uncertain. Liabilities During the second quarter of 2009, the Company’s net interest bearing debt rose from USD 1,615 million to USD 1,670 million. The item mainly comprises net borrowing in connection with the delivery of vessels, the cash effect of the distribution of dividend and positive cash.
Source: TORM
MISC Sees Higher Bunker Rates Increasing Operating Cost
MISC Bhd, the largest single owner operator of liquefied natural gas (LNG) tankers, expects higher bunker rates to increase it operating cost for the financial year ending March 31, 2010.
"We now see bunker prices, which are a major portion of our cost, moving up," MISC chairman Tan Sri Mohd Hassan Marican said on Thursday.
Last year, the bunker price breached almost US$700 per tonne, easing in the middle of 2008 to US$200 per tonne and is now close to US$400 per tonne.
However, the impact is cushioned by the nature of MISC's business, which is 70 percent on long-term contracts with major energy companies, Mohd Hassan said at a press conference after the company's 40th annual general meeting here.
"As far as being exposed to volatility of freight rates in the present downturn, only 30 percent of our business is affected," he said. Mohd Hassan said that MISC would continue to expand and grow organically, and consider merger and acquisition (M&A) opportunities when these arose. "These are not off the radar screen but there is none at the moment," he said, adding that any M&A would need to fit with MISC strategies.
On the latest joint venture to construct an oil terminal in Tanjung Bin, Johor, Mohd Hassan said the oil terminal is expected to come into operations in 2012.
MISC's unit MISC International (L) Ltd yesterday entered into a joint venture agreement with VTTI Tanjung Bin SA to set up Asia Tank Terminal Ltd (ATTL) with the purpose of constructing, commissioning and operating an oil terminal with a base capacity of 741,200 cubic metres in Tanjung Bin. MISC International and VTTI Tanjung Bin will take up a 50 percent stake each in ATTL, to be incorporated in Bermuda. On its liner business, Mohd Hassan said MISC will exit from the Grand Alliance by end of 2009 and will focus on the intra-Asia and Oceania sectors and built on its halal routes.
As part of the reengineering of the liner business, a total of 11 vessels were laid off, he said. "It cost us less to lay off than to keep them going," he added. On other developments, Mohd Hassan said MISC was in discussions with China LNG Shipping (Holdings) Co on a joint venture but declined to disclose further details.
A recent news report stated that MISC Bhd is to partner China LNG Co to build and supply a tanker to transport LNG from Bintulu in Sarawak to Shanghai in China.
It said that both parties will hold equal stake in the joint venture to build the LNG vessel estimated at US$150 million to US$200 million in Shanghai.
For the financial year ended March 31, 2009, MISC's revenue rose 21.9 percent to RM15.78 billion from RM12.95 billion previously while net profit declined by 39.5 percent to RM1.53 billion. This was attributed to earnings from petroleum, offshore and LNG businesses being weighted down by the highly adverse performance of the container shipping division amid lower volume, depressed rates and high costs.
At 3.20pm today, the MISC share price dropped half sen to RM8.75.
Source: Bernama
"We now see bunker prices, which are a major portion of our cost, moving up," MISC chairman Tan Sri Mohd Hassan Marican said on Thursday.
Last year, the bunker price breached almost US$700 per tonne, easing in the middle of 2008 to US$200 per tonne and is now close to US$400 per tonne.
However, the impact is cushioned by the nature of MISC's business, which is 70 percent on long-term contracts with major energy companies, Mohd Hassan said at a press conference after the company's 40th annual general meeting here.
"As far as being exposed to volatility of freight rates in the present downturn, only 30 percent of our business is affected," he said. Mohd Hassan said that MISC would continue to expand and grow organically, and consider merger and acquisition (M&A) opportunities when these arose. "These are not off the radar screen but there is none at the moment," he said, adding that any M&A would need to fit with MISC strategies.
On the latest joint venture to construct an oil terminal in Tanjung Bin, Johor, Mohd Hassan said the oil terminal is expected to come into operations in 2012.
MISC's unit MISC International (L) Ltd yesterday entered into a joint venture agreement with VTTI Tanjung Bin SA to set up Asia Tank Terminal Ltd (ATTL) with the purpose of constructing, commissioning and operating an oil terminal with a base capacity of 741,200 cubic metres in Tanjung Bin. MISC International and VTTI Tanjung Bin will take up a 50 percent stake each in ATTL, to be incorporated in Bermuda. On its liner business, Mohd Hassan said MISC will exit from the Grand Alliance by end of 2009 and will focus on the intra-Asia and Oceania sectors and built on its halal routes.
As part of the reengineering of the liner business, a total of 11 vessels were laid off, he said. "It cost us less to lay off than to keep them going," he added. On other developments, Mohd Hassan said MISC was in discussions with China LNG Shipping (Holdings) Co on a joint venture but declined to disclose further details.
A recent news report stated that MISC Bhd is to partner China LNG Co to build and supply a tanker to transport LNG from Bintulu in Sarawak to Shanghai in China.
It said that both parties will hold equal stake in the joint venture to build the LNG vessel estimated at US$150 million to US$200 million in Shanghai.
For the financial year ended March 31, 2009, MISC's revenue rose 21.9 percent to RM15.78 billion from RM12.95 billion previously while net profit declined by 39.5 percent to RM1.53 billion. This was attributed to earnings from petroleum, offshore and LNG businesses being weighted down by the highly adverse performance of the container shipping division amid lower volume, depressed rates and high costs.
At 3.20pm today, the MISC share price dropped half sen to RM8.75.
Source: Bernama
Wednesday 19 August 2009
Product Tanker Players have shown Distress signals
Specialist ships that carry oil products are increasingly facing seizure by banks or being laid up as the sector becomes the latest to be hit by the crisis in the shipping industry. The problems these specialist tankers are facing are the same as those confronting all kinds of tankers , including large crude oil carriers. But there had been hopes that changes in the oil-refining market would protect this segment from the worst of the downturn.
Short-term spot-market charter rates for medium-range product tankers were $6,240 a day on Europe-North America routes on August 12, according to Dahlman Rose, a New York shipbroker. A year ago, rates were close to $30,000 a day. Stolt-Nielsen Conditions in the product tanker market prompted Denmark's Torm, one of the sector's leaders, to warn on August 12 that it would only break even for 2009, instead of making the expected $100m-$140m profit.
Difficult market conditions are also likely to affect AP Moller-Maersk, another Danish company, which is announcing half-year results on August 21.Maersk, the world's biggest container ship operator, became the world's biggest product tanker operator when it completed its takeover of Sweden's Broström earlier this year."We are experiencing historically low freight rates for product tankers at the moment," said Mikael Skov, Torm's chief executive, as he announced the profit warning last Wednesday.
At the heart of the sector's problems is a simple fall-off in demand for oil and oil products, according to Greg McGrath, an oil industry veteran and finance director of New York-listed Omega Navigation."Demand is down 2.7 per cent year-on-year when it had been increasing 2.3 per cent," he said. However, companies with significant exposure to the short-term spot market are the worst affected. Many operators run their ships on long-term contracts with refiners or traders and are still benefiting from deals struck at the height of the sector's boom.
Marco Fiori, chief executive of New York-listed d'Amico International Shipping, which operates nearly 40 product tankers, said spot-market rates compared poorly with those for longer-term time charters."It's below operating costs," he said of the spot market. "But time charter rates are not really down." Tanker Pacific, a Singapore-based shipowner, has laid up some vessels rather than accept current rates, according to Lloyd's List, the shipping newspaper. Tanker is the first product tanker operator to admit such a step, now common in the container ship and car carrier markets .
Harry Theochari, head of the shipping practice at Norton Rose, a London-based law firm, said the sector's poor performance had led to the impounding of increasing numbers of ships belonging to financially weaker operators. Banks are particularly concerned about sudden falls in product tanker sale prices, which are eroding their value as collateral. "The product tankers are really struggling right now," Mr Theochari said. "It's only going to be the very good, well-run companies that are going to get through this."
There remains some optimism that the construction of new oil refineries in the Middle East and Asia, away from the main consuming countries in Europe and North America, will eventually drive new demand for both product tankers and some chemical segments. Many new tankers have been ordered to serve that market.However, for the moment, as a broker at London-based ACM Shipping pointed out, there is too little demand even to keep the existing oil refineries working at full stretch."It's entirely and fully dependent on demand for energy consumption and therefore oil consumption," he said."If that demand picks up again, then the market will grow again as well."
Source: Financial Times
Short-term spot-market charter rates for medium-range product tankers were $6,240 a day on Europe-North America routes on August 12, according to Dahlman Rose, a New York shipbroker. A year ago, rates were close to $30,000 a day. Stolt-Nielsen Conditions in the product tanker market prompted Denmark's Torm, one of the sector's leaders, to warn on August 12 that it would only break even for 2009, instead of making the expected $100m-$140m profit.
Difficult market conditions are also likely to affect AP Moller-Maersk, another Danish company, which is announcing half-year results on August 21.Maersk, the world's biggest container ship operator, became the world's biggest product tanker operator when it completed its takeover of Sweden's Broström earlier this year."We are experiencing historically low freight rates for product tankers at the moment," said Mikael Skov, Torm's chief executive, as he announced the profit warning last Wednesday.
At the heart of the sector's problems is a simple fall-off in demand for oil and oil products, according to Greg McGrath, an oil industry veteran and finance director of New York-listed Omega Navigation."Demand is down 2.7 per cent year-on-year when it had been increasing 2.3 per cent," he said. However, companies with significant exposure to the short-term spot market are the worst affected. Many operators run their ships on long-term contracts with refiners or traders and are still benefiting from deals struck at the height of the sector's boom.
Marco Fiori, chief executive of New York-listed d'Amico International Shipping, which operates nearly 40 product tankers, said spot-market rates compared poorly with those for longer-term time charters."It's below operating costs," he said of the spot market. "But time charter rates are not really down." Tanker Pacific, a Singapore-based shipowner, has laid up some vessels rather than accept current rates, according to Lloyd's List, the shipping newspaper. Tanker is the first product tanker operator to admit such a step, now common in the container ship and car carrier markets .
Harry Theochari, head of the shipping practice at Norton Rose, a London-based law firm, said the sector's poor performance had led to the impounding of increasing numbers of ships belonging to financially weaker operators. Banks are particularly concerned about sudden falls in product tanker sale prices, which are eroding their value as collateral. "The product tankers are really struggling right now," Mr Theochari said. "It's only going to be the very good, well-run companies that are going to get through this."
There remains some optimism that the construction of new oil refineries in the Middle East and Asia, away from the main consuming countries in Europe and North America, will eventually drive new demand for both product tankers and some chemical segments. Many new tankers have been ordered to serve that market.However, for the moment, as a broker at London-based ACM Shipping pointed out, there is too little demand even to keep the existing oil refineries working at full stretch."It's entirely and fully dependent on demand for energy consumption and therefore oil consumption," he said."If that demand picks up again, then the market will grow again as well."
Source: Financial Times
Fewer cargo ships sailing on Suez Canal
The world-famous Suez Canal, whose construction was completed in 1869, has all along been one of Egypt’s largest foreign exchange earners. The imposing canal has always had a curious, subtle fascination. Its dazzling brilliance, nevertheless, has somewhat dimmed because of an impact brought to Egypt by the global finance crisis.My job on the canal is the easiest and most relaxed this year, but it is no happy thing at all, said Sayyid, a manager to supervise the operation of ferries at the canal’s Ismailyah section for eight full years.
Standing on the bank of the Suez Canal, I seemed to see a vivid, magnificent show of ships coming from all nations around the world, said Halim, a canal water level surveyor for nearly six years. But there has been no scene of “a thousand sails passing by” as a popular classic Chinese saying vividly depicts since the later half of 2008.According to Abd El Fatah Ahmed Aly, an administration sector director of the Suez Canal, the revenue of the canal merely came to 4.74 billion U.S. dollars, down by 7.2 percent over the preceding fiscal year.
In March 2009, only 1,439 cargo ships used the canal, a decrease of 260 ships year-on-year; and the navigation tolls in the month amounted only to 328 million dollars, a drop of 21 percent over the same period a year ago.Fatah attributed the sluggish shipping industry chiefly to the sliding world trade amid global financial crisis. The Egyptian economic mix, he acknowledged, is composed mainly of the export-oriented economy and, as the back-end part of the “trade-ships-canal-ports” industry chain amid the current financial crisis, it shows symptoms of certain delays from the onslaught of the crisis.Another “chief culprit” is the Somali piracy that has negatively affected the revenue for the Suez Canal. Pirates attacked more than 100 ships off the Somali coast over the last year, reaping an estimated 1 million US dollars in ransom for each hijacking, and about 40 ships carrying 600 crew members were hijacked in the first 11 months of 2008, according to analysts and country experts.
Noting that every captain very much hopes to make shipping safe and sound, Fatah said that many cargo vessels are most likely to sail to Europe and elsewhere around the Cape of Good Hope, so as to avert possible encounters with pirates. A large number of shipping companies opt to follow this route despite a much longer distance and much higher costs involved, he added.The Suez Canal offers a splendid view of the sea, and it is as elegant as the nearby pyramid, and its beautiful scene is as legendary as the enchanting, magnificent view of the Ancient Nile River.
The Suez Canal is often alive with a glittering, sun-shading awning scene at its Ismailyah section. Today, tourism has negatively affected or decreased drastically nevertheless with a growing impact from the “frigid” financial crisis.In the second quarter of 2009, Egypt’s pub sector income was only 2.46 billion dollars, down 10 percent year-on-year, as the Egyptian hotel business quarterly statistics have indicated. Some luxurious restaurants and hotels in the city of Ismailyah have even reduced their employment.
Upon the eruption of financial crisis, the Egyptian government approved a stimulus package of 15 billion Egyptian ponds (2.7 billion US dollars) for the current fiscal year. Egypt dedicated additional 30 billion Egyptian pounds (5.4 billion dollars) to further stimulate economy in the first half of 2009. Moreover, the Egyptian government has taken viable measures to help the tourism industry to recover by reducing tourism costs and attracting more tourists.
Source: People’s Daily Online
Standing on the bank of the Suez Canal, I seemed to see a vivid, magnificent show of ships coming from all nations around the world, said Halim, a canal water level surveyor for nearly six years. But there has been no scene of “a thousand sails passing by” as a popular classic Chinese saying vividly depicts since the later half of 2008.According to Abd El Fatah Ahmed Aly, an administration sector director of the Suez Canal, the revenue of the canal merely came to 4.74 billion U.S. dollars, down by 7.2 percent over the preceding fiscal year.
In March 2009, only 1,439 cargo ships used the canal, a decrease of 260 ships year-on-year; and the navigation tolls in the month amounted only to 328 million dollars, a drop of 21 percent over the same period a year ago.Fatah attributed the sluggish shipping industry chiefly to the sliding world trade amid global financial crisis. The Egyptian economic mix, he acknowledged, is composed mainly of the export-oriented economy and, as the back-end part of the “trade-ships-canal-ports” industry chain amid the current financial crisis, it shows symptoms of certain delays from the onslaught of the crisis.Another “chief culprit” is the Somali piracy that has negatively affected the revenue for the Suez Canal. Pirates attacked more than 100 ships off the Somali coast over the last year, reaping an estimated 1 million US dollars in ransom for each hijacking, and about 40 ships carrying 600 crew members were hijacked in the first 11 months of 2008, according to analysts and country experts.
Noting that every captain very much hopes to make shipping safe and sound, Fatah said that many cargo vessels are most likely to sail to Europe and elsewhere around the Cape of Good Hope, so as to avert possible encounters with pirates. A large number of shipping companies opt to follow this route despite a much longer distance and much higher costs involved, he added.The Suez Canal offers a splendid view of the sea, and it is as elegant as the nearby pyramid, and its beautiful scene is as legendary as the enchanting, magnificent view of the Ancient Nile River.
The Suez Canal is often alive with a glittering, sun-shading awning scene at its Ismailyah section. Today, tourism has negatively affected or decreased drastically nevertheless with a growing impact from the “frigid” financial crisis.In the second quarter of 2009, Egypt’s pub sector income was only 2.46 billion dollars, down 10 percent year-on-year, as the Egyptian hotel business quarterly statistics have indicated. Some luxurious restaurants and hotels in the city of Ismailyah have even reduced their employment.
Upon the eruption of financial crisis, the Egyptian government approved a stimulus package of 15 billion Egyptian ponds (2.7 billion US dollars) for the current fiscal year. Egypt dedicated additional 30 billion Egyptian pounds (5.4 billion dollars) to further stimulate economy in the first half of 2009. Moreover, the Egyptian government has taken viable measures to help the tourism industry to recover by reducing tourism costs and attracting more tourists.
Source: People’s Daily Online
Tuesday 18 August 2009
Long term charters buoy Concordia
Swedish tanker giant Concordia Maritime has reported what it called 'good earnings in a weak market'. In the second quarter of this year, the Gothenburg-based company said that total turnover amounted to SEK162.5 mill with an EBITDA of SEK44 mill.
President Hans Noren said that despite the weak tanker markets, all of the vessels were on timecharter contracts, resulting in higher revenues that if the vessels had been trading on the spot market.
First half EBITDA was reported as $11.4 mill and Concordia posted an operating profit of SEK46.5 mill. The 2Q09 financial net was SEK6.2 mill, which reflected the lower loan costs due to lower interest rates. Investments generated income according to plan and the company reported a positive effect of the US dollar/SEK currency exchange of SEK8.2 mill.
Total financial net for 1H09 was minus SEK21.1 mill. However, this figure included the complete write down of the value of the comlany's fund share in the UK hedge fund Weavering Capital, which amounted to $3.6 mill.
Last Month, Concordia decided not to exercise charter options on the VLCCs 'Stena Victory' and 'Stena Vision'. They will therefore handed back to owner General Maritime at the end of this year. Noren said that following many years of record high tanker rates, his assessment was that for the next few years, the market would remain weak.
"The trend of the market is a reminder of the importance of a long term approach and of having a stable economy and a strong financial position," he said.
"At Concordia Maritime, we have been planning for the current market situation for several years. The whole fleet is signed to long term charters, which means that we have secured our cash flow for some years. This will enable us to act swiftly when opportunities for new business deals arise in a weak market," Noren explained in the first half review.
The company also forecast that for this financial year, the result before tax was expected to reach SEK45 mill, wich would be the equivalent of SEK0.94 per share.
President Hans Noren said that despite the weak tanker markets, all of the vessels were on timecharter contracts, resulting in higher revenues that if the vessels had been trading on the spot market.
First half EBITDA was reported as $11.4 mill and Concordia posted an operating profit of SEK46.5 mill. The 2Q09 financial net was SEK6.2 mill, which reflected the lower loan costs due to lower interest rates. Investments generated income according to plan and the company reported a positive effect of the US dollar/SEK currency exchange of SEK8.2 mill.
Total financial net for 1H09 was minus SEK21.1 mill. However, this figure included the complete write down of the value of the comlany's fund share in the UK hedge fund Weavering Capital, which amounted to $3.6 mill.
Last Month, Concordia decided not to exercise charter options on the VLCCs 'Stena Victory' and 'Stena Vision'. They will therefore handed back to owner General Maritime at the end of this year. Noren said that following many years of record high tanker rates, his assessment was that for the next few years, the market would remain weak.
"The trend of the market is a reminder of the importance of a long term approach and of having a stable economy and a strong financial position," he said.
"At Concordia Maritime, we have been planning for the current market situation for several years. The whole fleet is signed to long term charters, which means that we have secured our cash flow for some years. This will enable us to act swiftly when opportunities for new business deals arise in a weak market," Noren explained in the first half review.
The company also forecast that for this financial year, the result before tax was expected to reach SEK45 mill, wich would be the equivalent of SEK0.94 per share.
Broström appoints new managing director
Robert Uggla will take on the position as managing director of Broström, a division in Maersk Tankers, effective 21st September this year.
Maersk Tankers acquired Broström in January 2009 for SEK7.3 bill forming the world’s leading product tanker company with a combined fleet of around 275 product tankers.
Gothenburg-based Broström remains an individual brand responsible for the combined fleet of product tankers below 25,000 dwt, currently totalling 85 vessels.
“Our key priority is to ensure that Broström continues as the leading brand in the small product tanker markets and that we further build on the strong Broström heritage. Robert has proven management skills, and a strong international experience in shipping which is required for this job”, said Kristian Mørch, Maersk Tankers ceo.
Uggla has been with the AP Moller - Maersk Group since 2004 and was previously head of Maersk Line in UAE, Oman and Qatar based in Dubai.
Maersk Tankers acquired Broström in January 2009 for SEK7.3 bill forming the world’s leading product tanker company with a combined fleet of around 275 product tankers.
Gothenburg-based Broström remains an individual brand responsible for the combined fleet of product tankers below 25,000 dwt, currently totalling 85 vessels.
“Our key priority is to ensure that Broström continues as the leading brand in the small product tanker markets and that we further build on the strong Broström heritage. Robert has proven management skills, and a strong international experience in shipping which is required for this job”, said Kristian Mørch, Maersk Tankers ceo.
Uggla has been with the AP Moller - Maersk Group since 2004 and was previously head of Maersk Line in UAE, Oman and Qatar based in Dubai.
Berg wins chemical tanker orders
(Aug 14 2009)
Berg Propulsion is to deliver the first examples of the new Berg Controllable Pitch Propeller (BCP) with feathering capability to two 100 m chemical tankers, plus a ferry.
The company said that the inherent flexibility, redundancy and better manoeuvrability claimed by twin screw operations when compared to single screw solutions have increasingly been accepted across the shipping industry.
A single engine driving a single propeller achieves maximum efficiency at a fixed level in the design condition. At lower power, whether working in combination with fixed pitch or controllable pitch propellers, engine working pressure decreases and engine efficiency is lost.
Greater flexibility can be achieved by operating two smaller engines driving two propellers because, at lower speeds, the ship’s master has the option to operate on one engine alone, working at its optimum efficiency.
Furthermore, the greater propulsion area covered by two smaller propellers is calculated to equate to about a 10% efficiency gain when compared to a single screw solution.
The concept of feathering one of two propellers at lower speeds, so that the other can run at higher output, closer to optimum efficiency, is by no means new.
Developed as a more efficient alternative to locking or clutching out an unneeded shaft line, ‘feathering’ sees the propeller blades rotated through 90 deg so that they are in parallel to flow.
Putting a propeller in the feathered position during an emergency, or at low speed, minimises drag, with consequent fuel savings, Berg said.
However, feathering techniques to date have featured a complex and often cumbersome mechanical solution, or hubs that cannot offer astern pitch due to their internal mechanical limits. Thus the attractions of feathered hubs have been limited to ships operating within complicated mission profiles.
Berg claimed that its new BCP design offers the capability to feather propeller blades within its standard hydraulic hub. The result is an expansion in the propeller’s operating pitch range. A patent application on this aspect of the design is currently pending.
The tankers, under construction at the Dingheng (Jiangsu) Shipbuilding in China, will be constructed to Germanischer Lloyd Ice Class E3 and will each feature two 3,600 mm diameter, BCP950 propellers, driven by 1,600kW engines at 136.1 rev/min.
Berg Propulsion said that the feathering option is now available across its complete range of BCP hubs.
Berg Propulsion is to deliver the first examples of the new Berg Controllable Pitch Propeller (BCP) with feathering capability to two 100 m chemical tankers, plus a ferry.
The company said that the inherent flexibility, redundancy and better manoeuvrability claimed by twin screw operations when compared to single screw solutions have increasingly been accepted across the shipping industry.
A single engine driving a single propeller achieves maximum efficiency at a fixed level in the design condition. At lower power, whether working in combination with fixed pitch or controllable pitch propellers, engine working pressure decreases and engine efficiency is lost.
Greater flexibility can be achieved by operating two smaller engines driving two propellers because, at lower speeds, the ship’s master has the option to operate on one engine alone, working at its optimum efficiency.
Furthermore, the greater propulsion area covered by two smaller propellers is calculated to equate to about a 10% efficiency gain when compared to a single screw solution.
The concept of feathering one of two propellers at lower speeds, so that the other can run at higher output, closer to optimum efficiency, is by no means new.
Developed as a more efficient alternative to locking or clutching out an unneeded shaft line, ‘feathering’ sees the propeller blades rotated through 90 deg so that they are in parallel to flow.
Putting a propeller in the feathered position during an emergency, or at low speed, minimises drag, with consequent fuel savings, Berg said.
However, feathering techniques to date have featured a complex and often cumbersome mechanical solution, or hubs that cannot offer astern pitch due to their internal mechanical limits. Thus the attractions of feathered hubs have been limited to ships operating within complicated mission profiles.
Berg claimed that its new BCP design offers the capability to feather propeller blades within its standard hydraulic hub. The result is an expansion in the propeller’s operating pitch range. A patent application on this aspect of the design is currently pending.
The tankers, under construction at the Dingheng (Jiangsu) Shipbuilding in China, will be constructed to Germanischer Lloyd Ice Class E3 and will each feature two 3,600 mm diameter, BCP950 propellers, driven by 1,600kW engines at 136.1 rev/min.
Berg Propulsion said that the feathering option is now available across its complete range of BCP hubs.
Chemical tanker aground
(Aug 14 2009) The German chemical tanker ‘W-O Budmo’ grounded off Kaohsiung, during last week’s typhoon ‘Morakot’.
Reports suggested that a Lloyd’s Open Form (LOF) salvage contract had been signed with US salvage experts Titan.
The Marshall Islands-flagged 2006-built 7,654 dwt ‘W-O Budmo’ is a double-hulled chemical/products tanker, owned by Germany's FAFA Capital and managed by OMCI, the shipmanagement arm of the W-O group.
A statement released on behalf of OMCI said the ship grounded off the Taiwanese southeastern coast early last Saturday morning.
The ship's master and chief officer were reported to be slightly injured, but were released from a local hospital. All 17 crew members were reported to have been safely evacuated.
The ‘W-O Budmo’, which is classed by Lloyd's Register and has P&I cover with the North of England, was reportedly en-route from Haikou in China to Taiwan on a ballast leg when she grounded.
Reports suggested that a Lloyd’s Open Form (LOF) salvage contract had been signed with US salvage experts Titan.
The Marshall Islands-flagged 2006-built 7,654 dwt ‘W-O Budmo’ is a double-hulled chemical/products tanker, owned by Germany's FAFA Capital and managed by OMCI, the shipmanagement arm of the W-O group.
A statement released on behalf of OMCI said the ship grounded off the Taiwanese southeastern coast early last Saturday morning.
The ship's master and chief officer were reported to be slightly injured, but were released from a local hospital. All 17 crew members were reported to have been safely evacuated.
The ‘W-O Budmo’, which is classed by Lloyd's Register and has P&I cover with the North of England, was reportedly en-route from Haikou in China to Taiwan on a ballast leg when she grounded.
Newbuilding chemical tanker joins Hellespont fleet
(Aug 14 2009)
Hamburg-based Hellespont Tankers has taken delivery of the ‘Hellespont Centurion’, the first of a series of eight 17,000 dwt IMO II type chemical tankers.
Hellespont Tankers commercially manages the vessel, which has been entered into the Hamburg-based Seatramp Intermediate Tanker Pool. Technical management is carried out by Hellespont Hammonia.
Built at South Korea's Sekwang Shipbuilding yard, the vessel is able to load 15 different grades in epoxy coated tanks.
‘Hellespont Centurion’ is currently on her maiden voyage to load her first cargo in southeast Asia for Europe.
The Marshall Islands flag vessel is of 11,551 gt, loa - 144 m, beam - 22.6 m and a summer draft of 9 m.
The Seatramp Intermediate Tanker Pool commercially manages three 13,000 dwt and one 17,000 dwt chemical tankers. Hellespont has committed a further seven 17,000 dwt newbuildings due to be delivered between 2009 and 2011 to the pool.
Hellespont Hammonia manages 18 modern crude, product and chemical tankers plus a series of platform supply vessels.
Hamburg-based Hellespont Tankers has taken delivery of the ‘Hellespont Centurion’, the first of a series of eight 17,000 dwt IMO II type chemical tankers.
Hellespont Tankers commercially manages the vessel, which has been entered into the Hamburg-based Seatramp Intermediate Tanker Pool. Technical management is carried out by Hellespont Hammonia.
Built at South Korea's Sekwang Shipbuilding yard, the vessel is able to load 15 different grades in epoxy coated tanks.
‘Hellespont Centurion’ is currently on her maiden voyage to load her first cargo in southeast Asia for Europe.
The Marshall Islands flag vessel is of 11,551 gt, loa - 144 m, beam - 22.6 m and a summer draft of 9 m.
The Seatramp Intermediate Tanker Pool commercially manages three 13,000 dwt and one 17,000 dwt chemical tankers. Hellespont has committed a further seven 17,000 dwt newbuildings due to be delivered between 2009 and 2011 to the pool.
Hellespont Hammonia manages 18 modern crude, product and chemical tankers plus a series of platform supply vessels.
Odfjell absorbs losses
(Aug 14 2009)
Parcel tanker and terminal specialist Odfjell reported a second quarter 2009 consolidated net result of $11 mill and a first six months’ net result of $3 mill.
EBITDA for 1H09 was $103 mill against $149 mill in 1H08. EBIT was $31 mill against $82 mill in the first six months of last year.
Operating and general administrative costs were lower this year compared with 2008, partly due to cost reductions and a stronger US dollar. The net financial expenses were $18 mill for 1H09, compared with $43 mill in 1H08.
In the parcel tanker sector, 1H09 EBITDA came in at $49 mill, compared with $101 mill in 1H08. However, 1H09 EBIT amounted to a loss of $9 mill, compared to again of $47 mill in 1H08.
Per day timecharter results declined by 6% in 1H09 and by the same amount from the first quarter of this year to the second.
The volume was only marginally lower during the second quarter of this year, while the coa business recovered to previous levels. Odfjell said that coas were crucial during the current market conditions and the company would be concentrating on increasing its coa coverage further.
The outlook for parcel tankers is uncertain, Odfjell said. The net supply of vessels will increase this year as newbuildings continue to be delivered, although contracting has stopped and many newbuildings are being delayed.
Activity remains good in certain sectors and volumes under coas are recovering. “We expect that the typical parcel trades where we have good coa coverage will continue to deliver acceptable results,” Odfjell said.
Coated vessels are more vulnerable as they depend heavily on CPP, vegoil and ethanol. The same applies to the smaller deepsea stainless steel vessels, where competition is described as extremely tough. Rising bunker prices are an additional concern, the company said.
Parcel tanker and terminal specialist Odfjell reported a second quarter 2009 consolidated net result of $11 mill and a first six months’ net result of $3 mill.
EBITDA for 1H09 was $103 mill against $149 mill in 1H08. EBIT was $31 mill against $82 mill in the first six months of last year.
Operating and general administrative costs were lower this year compared with 2008, partly due to cost reductions and a stronger US dollar. The net financial expenses were $18 mill for 1H09, compared with $43 mill in 1H08.
In the parcel tanker sector, 1H09 EBITDA came in at $49 mill, compared with $101 mill in 1H08. However, 1H09 EBIT amounted to a loss of $9 mill, compared to again of $47 mill in 1H08.
Per day timecharter results declined by 6% in 1H09 and by the same amount from the first quarter of this year to the second.
The volume was only marginally lower during the second quarter of this year, while the coa business recovered to previous levels. Odfjell said that coas were crucial during the current market conditions and the company would be concentrating on increasing its coa coverage further.
The outlook for parcel tankers is uncertain, Odfjell said. The net supply of vessels will increase this year as newbuildings continue to be delivered, although contracting has stopped and many newbuildings are being delayed.
Activity remains good in certain sectors and volumes under coas are recovering. “We expect that the typical parcel trades where we have good coa coverage will continue to deliver acceptable results,” Odfjell said.
Coated vessels are more vulnerable as they depend heavily on CPP, vegoil and ethanol. The same applies to the smaller deepsea stainless steel vessels, where competition is described as extremely tough. Rising bunker prices are an additional concern, the company said.
Monday 17 August 2009
BLT - 2Q09 IndoGAAP Financial Statements
Dear All,
Please find below the link to BLT IndoGAAP 2Q09 Financials
http://rapidshare.com/files/268424290/BLTA_INDOGAAP_2Q09.pdf
Regards
Please find below the link to BLT IndoGAAP 2Q09 Financials
http://rapidshare.com/files/268424290/BLTA_INDOGAAP_2Q09.pdf
Regards
BLT - 2Q09 IFRS Financial Statements
Dear All,
Please find below the link for the BLT IFRS 2Q09 financial statements.
http://rapidshare.com/files/268422763/BLTA_IFRS_2Q09.pdf
Regards
Peter
Please find below the link for the BLT IFRS 2Q09 financial statements.
http://rapidshare.com/files/268422763/BLTA_IFRS_2Q09.pdf
Regards
Peter
Global Confidence Increases on Signs Recession Is Nearing End
Friday, 14 August 2009
Confidence in the world economy surged to a 22-month high in August on signs the worst global recession since World War II is approaching an end, a Bloomberg survey of users on six continents showed. The Bloomberg Professional Global Confidence Index jumped to 58.12 this month from 39.13 in July. It is the first time the reading exceeded 50, which means optimists outnumber pessimists. A measure of U.S. participants’ confidence in the world’s largest economy rose to 47.3 from 29.5, the survey showed. “It’s clear the recession is over and some kind of recovery is underway,” said Nick Kounis, chief European economist at Fortis Bank Nederland Holding NV in Amsterdam, and a regular survey participant.
“We have the biggest monetary and fiscal stimulus policy in history, globally, and we’re starting to see it work. Probably the next debate will be about how strong and sustainable the recovery is.” The MSCI World Index has increased 12 percent in the past month and President Barack Obama said last week’s unexpected drop in the U.S. unemployment rate indicates the worst may be over. Nobel Prize-winner Paul Krugman said Aug. 10 that the world, now in a “rough stabilization” mode, has averted another Great Depression. The survey of more than 2,300 Bloomberg users was conducted between Aug. 3 and Aug. 7. Since the previous survey, the U.S. jobless rate declined, second-quarter growth in the U.S. and China was better than expected, and the European Central Bank held interest rates at a record low. Jobless Rate U.S. payrolls fell by 247,000 in July, after a 443,000 loss in June.
The jobless rate unexpectedly dropped to 9.4 percent from 9.5 percent. The Standard & Poor’s 500 Index closed above 1,000 for the first time since November last week. The U.S. economy will expand 2 percent or more in four straight quarters through June, the first such streak in more than four years, according to the median forecast in the monthly Bloomberg News survey. Analysts lifted their estimate for the third quarter by 1.2 percentage points compared with July, the biggest such boost in surveys dating from May 2003. In Europe, a recession is also showing signs of bottoming out. ECB President Jean-Claude Trichet said on Aug. 6 that the euro-region economy will show a “gradual recovery” followed by a return to growth in 2010. The gauge for Western Europe rose to 41.1 from 31. Slowing Contraction Manufacturing and service industries in Europe contracted at a slower pace in July and business confidence in Germany, its largest economy, rose for a fourth month.
Linde AG, the world’s second-largest maker of industrial gases, forecast business to pick up in the second half of 2009 from the previous six months, it said Aug. 3. “Government and central bank measures are starting to show an impact,” said Peter Leonhardt, an analyst at Dekabank in Frankfurt, and a regular survey participant. “Sentiment is improving much faster than expected. There’s a need to catch up after a deep slump.” In Asia, respondents were more optimistic, with the index reaching 74.2 from 59.4. Goldman Sachs Group Inc. this week raised its forecast for China’s 2009 economic growth to 9.4 percent, and said Asian nations excluding Japan will expand faster than earlier expected as well. The CLSA China Purchasing Managers’ Index reached the highest level in a year last month. Samsung Electronics Co., Hyundai Motor Co. and LG Electronics Inc. are among South Korean exporters that reported increased profits last quarter.
Asia’s Recovery
“A lot of the recovery we see in Asia is driven by government spending and restocking,” said Tai Hui, head of Southeast Asian economic research at Standard Chartered Plc in Singapore. “We need a genuine recovery or stabilization in consumer spending and private investment to ensure the slack will be picked up when the fiscal policy fades away and the restocking phenomenon disappears.” Confidence also rose in Japan, where the economy is forecast to have expanded for the first time in more than a year last quarter. Elections in the world’s second-largest economy at the end of the month may result in a victory for the opposition Democratic Party of Japan, which has never held power. The index for Japan climbed to 50 from 34.1. Bloomberg users became more optimistic on the outlook for their equity markets in the next six months. Respondents in Japan, the U.K. and Italy predict stocks will extend gains, while those in the U.S. and Germany are mixed about the direction of their markets. The global equity rally has added more than $15 trillion to the value of global stocks since this year’s low on March 9. ‘Risk Appetite’ “Risk appetite is returning to a much more normal level,” Standard Chartered’s Hui said. The U.S. dollar may weaken in the next six months against the world’s most active currencies, with the index falling to 38.8 from 43.8 in July, the survey showed. Users in Japan are divided on the direction of the yen against the dollar, with the index dropping to 50.3 from 59.6. Most respondents in Western Europe are more optimistic the euro will strengthen against its U.S. counterpart. Survey participants in the U.S., Japan and Western Europe are also more confident short- and long-term interest rates will rise in the next six months, the survey showed.
The Federal Reserve will forego raising its benchmark rate until the third quarter of 2010, according to the monthly Bloomberg survey. Bank of England Governor Mervyn King yesterday said inflation may miss the central bank’s target over the next three years, signaling investors may have to rein in expectations for interest rate increases. Globally, “it’s too early to start tightening policy,” Kounis of Fortis Bank said. “In general, it’s not something that should be considered this year.”
Source: Bloomberg
Confidence in the world economy surged to a 22-month high in August on signs the worst global recession since World War II is approaching an end, a Bloomberg survey of users on six continents showed. The Bloomberg Professional Global Confidence Index jumped to 58.12 this month from 39.13 in July. It is the first time the reading exceeded 50, which means optimists outnumber pessimists. A measure of U.S. participants’ confidence in the world’s largest economy rose to 47.3 from 29.5, the survey showed. “It’s clear the recession is over and some kind of recovery is underway,” said Nick Kounis, chief European economist at Fortis Bank Nederland Holding NV in Amsterdam, and a regular survey participant.
“We have the biggest monetary and fiscal stimulus policy in history, globally, and we’re starting to see it work. Probably the next debate will be about how strong and sustainable the recovery is.” The MSCI World Index has increased 12 percent in the past month and President Barack Obama said last week’s unexpected drop in the U.S. unemployment rate indicates the worst may be over. Nobel Prize-winner Paul Krugman said Aug. 10 that the world, now in a “rough stabilization” mode, has averted another Great Depression. The survey of more than 2,300 Bloomberg users was conducted between Aug. 3 and Aug. 7. Since the previous survey, the U.S. jobless rate declined, second-quarter growth in the U.S. and China was better than expected, and the European Central Bank held interest rates at a record low. Jobless Rate U.S. payrolls fell by 247,000 in July, after a 443,000 loss in June.
The jobless rate unexpectedly dropped to 9.4 percent from 9.5 percent. The Standard & Poor’s 500 Index closed above 1,000 for the first time since November last week. The U.S. economy will expand 2 percent or more in four straight quarters through June, the first such streak in more than four years, according to the median forecast in the monthly Bloomberg News survey. Analysts lifted their estimate for the third quarter by 1.2 percentage points compared with July, the biggest such boost in surveys dating from May 2003. In Europe, a recession is also showing signs of bottoming out. ECB President Jean-Claude Trichet said on Aug. 6 that the euro-region economy will show a “gradual recovery” followed by a return to growth in 2010. The gauge for Western Europe rose to 41.1 from 31. Slowing Contraction Manufacturing and service industries in Europe contracted at a slower pace in July and business confidence in Germany, its largest economy, rose for a fourth month.
Linde AG, the world’s second-largest maker of industrial gases, forecast business to pick up in the second half of 2009 from the previous six months, it said Aug. 3. “Government and central bank measures are starting to show an impact,” said Peter Leonhardt, an analyst at Dekabank in Frankfurt, and a regular survey participant. “Sentiment is improving much faster than expected. There’s a need to catch up after a deep slump.” In Asia, respondents were more optimistic, with the index reaching 74.2 from 59.4. Goldman Sachs Group Inc. this week raised its forecast for China’s 2009 economic growth to 9.4 percent, and said Asian nations excluding Japan will expand faster than earlier expected as well. The CLSA China Purchasing Managers’ Index reached the highest level in a year last month. Samsung Electronics Co., Hyundai Motor Co. and LG Electronics Inc. are among South Korean exporters that reported increased profits last quarter.
Asia’s Recovery
“A lot of the recovery we see in Asia is driven by government spending and restocking,” said Tai Hui, head of Southeast Asian economic research at Standard Chartered Plc in Singapore. “We need a genuine recovery or stabilization in consumer spending and private investment to ensure the slack will be picked up when the fiscal policy fades away and the restocking phenomenon disappears.” Confidence also rose in Japan, where the economy is forecast to have expanded for the first time in more than a year last quarter. Elections in the world’s second-largest economy at the end of the month may result in a victory for the opposition Democratic Party of Japan, which has never held power. The index for Japan climbed to 50 from 34.1. Bloomberg users became more optimistic on the outlook for their equity markets in the next six months. Respondents in Japan, the U.K. and Italy predict stocks will extend gains, while those in the U.S. and Germany are mixed about the direction of their markets. The global equity rally has added more than $15 trillion to the value of global stocks since this year’s low on March 9. ‘Risk Appetite’ “Risk appetite is returning to a much more normal level,” Standard Chartered’s Hui said. The U.S. dollar may weaken in the next six months against the world’s most active currencies, with the index falling to 38.8 from 43.8 in July, the survey showed. Users in Japan are divided on the direction of the yen against the dollar, with the index dropping to 50.3 from 59.6. Most respondents in Western Europe are more optimistic the euro will strengthen against its U.S. counterpart. Survey participants in the U.S., Japan and Western Europe are also more confident short- and long-term interest rates will rise in the next six months, the survey showed.
The Federal Reserve will forego raising its benchmark rate until the third quarter of 2010, according to the monthly Bloomberg survey. Bank of England Governor Mervyn King yesterday said inflation may miss the central bank’s target over the next three years, signaling investors may have to rein in expectations for interest rate increases. Globally, “it’s too early to start tightening policy,” Kounis of Fortis Bank said. “In general, it’s not something that should be considered this year.”
Source: Bloomberg
Thursday 13 August 2009
BLT - Short Form 2Q09 Financials
Dear All,
Please find below the advertisement of the 2Q09 financials that we publish in newspapers for your information.
Regards
Please find below the advertisement of the 2Q09 financials that we publish in newspapers for your information.
Regards
Tuesday 11 August 2009
D'Amico Delayed Vessels Creates Standoff
COMMODITIES giant Glencore and South Korea’s SLS Shipbuilding are locked in a dispute over the return of $58m in instalments for two delayed product carriers.
Glencore’s Glenda joint venture with d’Amico International Shipping has already cancelled one product tanker and wants to cancel a second.
Glencore’s Glenda joint venture with d’Amico International Shipping has already cancelled one product tanker and wants to cancel a second.
Nordic American warns of delivery delays
SUEZMAX specialist Nordic American Tanker Shipping has disclosed that the company’s two Chinese newbuildings will be delivered several months later than initially expected.
New York-listed Nordic American, which saw profits wiped out in the second quarter, said it had been advised that delivery of the newbuildings would be delayed by six months.
New York-listed Nordic American, which saw profits wiped out in the second quarter, said it had been advised that delivery of the newbuildings would be delayed by six months.
Like it's still 2008 - one owner reports 147% rise in interim profit
Tuesday, 11 August 2009
Qatar Gas Transport Company (Nakilat) posted a 147% rise in net profit of for the half of the year to US$64 million compared with US$26 million in the same period a year earlier. Nakilat's share of profit from its JV rose by over 99% to reach US$22 million in the first 6 months of 2009 against US$11.04 million in the H1 of 2008.
The LNG shipper attributed the increase in profit to the its wholly owned vessels however, income from marine and agency services dropped by 8% to US$ 3.9 million in the first 6 months of 2009 from a year earlier due to lower activities at Ras Laffan Port during the H1 of 2009.The company said that profit from Islamic banks dropped by nearly 9% to US$10.59 million in the H1 of the year from US$11.67 million in the same period a year ago.
Source: SeaTradeAsia-Online
Qatar Gas Transport Company (Nakilat) posted a 147% rise in net profit of for the half of the year to US$64 million compared with US$26 million in the same period a year earlier. Nakilat's share of profit from its JV rose by over 99% to reach US$22 million in the first 6 months of 2009 against US$11.04 million in the H1 of 2008.
The LNG shipper attributed the increase in profit to the its wholly owned vessels however, income from marine and agency services dropped by 8% to US$ 3.9 million in the first 6 months of 2009 from a year earlier due to lower activities at Ras Laffan Port during the H1 of 2009.The company said that profit from Islamic banks dropped by nearly 9% to US$10.59 million in the H1 of the year from US$11.67 million in the same period a year ago.
Source: SeaTradeAsia-Online
BLT - Adjustment on Conversion Price of CB
Dear All,
Please find below the announcement of BLT's adjustment of conversion price of Convertible Bonds.
Thank you for your attention.
Regards
Please find below the announcement of BLT's adjustment of conversion price of Convertible Bonds.
Thank you for your attention.
Regards
BLT - Results of Rights Issue (SGX Announcement)
Dear All,
Please find attached the results of USD57million Rights Issue by BLT for your information.
Thank you for your attention.
Regards
Please find attached the results of USD57million Rights Issue by BLT for your information.
Thank you for your attention.
Regards
BLT - Results of Rights Issue (IDX Announcement)
Dear All,
Please find attached the results of the USD57million Rights Issue of the Company for your information. The same announcement has been lodged with IDX and posted on IDXNET.
Please find attached the results of the USD57million Rights Issue of the Company for your information. The same announcement has been lodged with IDX and posted on IDXNET.
Thank you for your attention.
Regards
Monday 10 August 2009
d'Amico International Shipping S.A. announces the starting of an arbitration proceeding
Monday, 10 August 2009
d’Amico International Shipping S.A. (Borsa Italiana: DIS), an international marine transportation company operating in the product tanker market, today announced that Glenda International Shipping Ltd (“GLENDA”), a joint venture company owned equally by d’Amico International Shipping S.A. and the Glencore Group, has commenced arbitration proceedings today against SLS Shipbuilding Co. Ltd of Tongyeong Korea shipyard (“SLS Shipyard”), in connection with the shipbuilding contract for construction of the 51,000 DWT product /chemical tanker newbuilding with hull n° S511.
GLENDA is seeking clarification in the arbitration of its rights of cancellation under the shipbuilding contract, in anticipation of further delays in the readiness for delivery of Hull n° S511, in order to avoid any unnecessary delay in the repayment of instalments and interest by SLS shipyard or (in the absence of such payment) by the refund guarantor, in the event that GLENDA is entitled to cancel the contract in due course for excessive delay, and decides to do so. GLENDA has deemed it necessary to take the step of commencing arbitration following the recent challenge by SLS Shipyard to GLENDA's cancellation of another contract for a previous product / chemical tanker also under construction at SLS Shipyard, Hull n° S510.
Source: d’Amico International Shipping
d’Amico International Shipping S.A. (Borsa Italiana: DIS), an international marine transportation company operating in the product tanker market, today announced that Glenda International Shipping Ltd (“GLENDA”), a joint venture company owned equally by d’Amico International Shipping S.A. and the Glencore Group, has commenced arbitration proceedings today against SLS Shipbuilding Co. Ltd of Tongyeong Korea shipyard (“SLS Shipyard”), in connection with the shipbuilding contract for construction of the 51,000 DWT product /chemical tanker newbuilding with hull n° S511.
GLENDA is seeking clarification in the arbitration of its rights of cancellation under the shipbuilding contract, in anticipation of further delays in the readiness for delivery of Hull n° S511, in order to avoid any unnecessary delay in the repayment of instalments and interest by SLS shipyard or (in the absence of such payment) by the refund guarantor, in the event that GLENDA is entitled to cancel the contract in due course for excessive delay, and decides to do so. GLENDA has deemed it necessary to take the step of commencing arbitration following the recent challenge by SLS Shipyard to GLENDA's cancellation of another contract for a previous product / chemical tanker also under construction at SLS Shipyard, Hull n° S510.
Source: d’Amico International Shipping
Thursday 6 August 2009
BLT - Announcement on the Adjustment of the Conversion Price of CB
Dear All,
Please find below the announcement made by BLT on the adjustment of the conversion price of the Convertible Bond issued by the company in 2007.
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Wednesday 5 August 2009
BLT 2Q 09 Results Announcement
Dear All,
Please be informed that BLT will issue its 2Q 2009 Financial Results Announcement on 15 August 2009.
Thank you for your attention.
Regards
Please be informed that BLT will issue its 2Q 2009 Financial Results Announcement on 15 August 2009.
Thank you for your attention.
Regards
Ships keep on being scrapped, but pace of demolition may not be enough
Thursday, 06 August 2009
A total of 591 ships with a capacity of 18.5 million tons have been scrapped during the period from January to July this year, according to shipbrokers N.Cotzias, numbers which are 300% higher than the relative period of last year, when a total of 140 ships with a capacity of 4.8 million tons had been scrapped. Still, analysts have been indicating that these figures may just not be enough, in order for the market to regain its balance between tonnage supply and demand.
In its latest weekly report, Gibson, a London-based broker said that while ships sold for demolition this year have increased dramatically, tankers have been absent. Since last July tanker scrap prices have plummeted from a record $765/ldt to around $325/ldt (Bangladesh) today, and this will continue to come under downwards pressure with the abundant supply of tonnage available from other sectors.
Gibson said that “With earnings across most tankers sectors often below operating costs, sustained negative returns should hurry a significant number of tankers for scrap – but how quickly? So far this year just 1.9 million dwt has been sold compared with 2.6 million dwt over the corresponding period last year. This equates to just 32 tankers (10,000+ dwt), which is the same number required to be demolished on a monthly basis if we are to eradicate most single hull tankers by the end 2010. Only 2 tankers were sold for demolition in July, both MR’s.GMS, the largest cash buyer of scrap tonnage, has warned that the prices on offer could drop below $200/ldt as more tonnage is offered for scrap.
The IMO adoption in May of the convention regulating the recycling of ships is unlikely to come into force in time to have any effect on the phase-out. However, already the authorities in the subcontinent are implementing restrictions which could place further barriers, particularly applicable to tanker sales.Hellenic ship owners have been the most active thus far through the year, selling for scrap a total of 102 ships of various types. Second place is occupied by the Chinese with 66 ships leaving the global fleet, with the Japanese taking third place with 51 ships, followed by Indian ship owners who sold 31 ships for demolition said Cotzias. From the total of 591 ships, 200 were dry bulk carriers, 216 containerships, 71 were tankers, 19 were reefers, while the remaining 84 were passenger carriers and RO/ROs. Among the latest Hellas-based owners to scrap part of their older fleet was Mr. Antonis Komninos, head of Target Marine, selling an 1981-built containership. Also, Costamare of Cpt. Vassilis Konstantakopoulos, scrapped an 1980-built containership, while Laskaridis Shipping sold a 1981-built reefer.
A total of 591 ships with a capacity of 18.5 million tons have been scrapped during the period from January to July this year, according to shipbrokers N.Cotzias, numbers which are 300% higher than the relative period of last year, when a total of 140 ships with a capacity of 4.8 million tons had been scrapped. Still, analysts have been indicating that these figures may just not be enough, in order for the market to regain its balance between tonnage supply and demand.
In its latest weekly report, Gibson, a London-based broker said that while ships sold for demolition this year have increased dramatically, tankers have been absent. Since last July tanker scrap prices have plummeted from a record $765/ldt to around $325/ldt (Bangladesh) today, and this will continue to come under downwards pressure with the abundant supply of tonnage available from other sectors.
Gibson said that “With earnings across most tankers sectors often below operating costs, sustained negative returns should hurry a significant number of tankers for scrap – but how quickly? So far this year just 1.9 million dwt has been sold compared with 2.6 million dwt over the corresponding period last year. This equates to just 32 tankers (10,000+ dwt), which is the same number required to be demolished on a monthly basis if we are to eradicate most single hull tankers by the end 2010. Only 2 tankers were sold for demolition in July, both MR’s.GMS, the largest cash buyer of scrap tonnage, has warned that the prices on offer could drop below $200/ldt as more tonnage is offered for scrap.
The IMO adoption in May of the convention regulating the recycling of ships is unlikely to come into force in time to have any effect on the phase-out. However, already the authorities in the subcontinent are implementing restrictions which could place further barriers, particularly applicable to tanker sales.Hellenic ship owners have been the most active thus far through the year, selling for scrap a total of 102 ships of various types. Second place is occupied by the Chinese with 66 ships leaving the global fleet, with the Japanese taking third place with 51 ships, followed by Indian ship owners who sold 31 ships for demolition said Cotzias. From the total of 591 ships, 200 were dry bulk carriers, 216 containerships, 71 were tankers, 19 were reefers, while the remaining 84 were passenger carriers and RO/ROs. Among the latest Hellas-based owners to scrap part of their older fleet was Mr. Antonis Komninos, head of Target Marine, selling an 1981-built containership. Also, Costamare of Cpt. Vassilis Konstantakopoulos, scrapped an 1980-built containership, while Laskaridis Shipping sold a 1981-built reefer.
Eitzen Partner with Solvang in Gas Venture
Ethylene - 8,300 to 17,000 cbm Eitzen gas A/S and Solvang ASA have entered into an agreement for joint commercial operation of ethylene carriers in the jointly operated ESE cooperation. Eitzen Gas contributes with 11 carriers ranging in size from 8,300-11,700 and Solvang with 5 carriers ranging in size from 12,600-17,000.
Commodities Jump to 6-Week High as Economic Growth Spurs Demand
Tuesday, 04 August 2009
Commodities jumped to a six-week high, led by grains and metals, as signs the global recession is easing and a drop in the dollar bolstered expectations for demand. The Standard & Poor’s GSCI Index of 24 commodities rose as much as 3.3 percent, extending six straight monthly gains in the measure. Copper climbed to the highest in 10 months, soybeans advanced to more than $10 a bushel for the first time in a month and nickel rose to its most expensive since September.
China’s manufacturing expanded in July, while a contraction in European factory output slowed for a fifth month, reports today showed. Spending on U.S. construction projects unexpectedly rose in June, a Commerce Department report today showed. In 2008, the GSCI fell 43 percent, the most since at least 1971, as recessions hit the U.S., Europe and Japan.“Our economists expect a moderate acceleration in economic growth going forward in the next few quarters and this should be supportive for demand for commodities,” said Eliane Tanner, an analyst at Credit Suisse Group AG in Zurich.
China’s manufacturing growth may be shifting to housing “and this is of course positive for base metals” such as copper.The GSCI index gained 3.3 percent to 472.413 by 3:17 p.m. London time. Earlier it rose to 472.541, the highest since June 16. The measure advanced 1.6 percent in July. Assets managed against the GSCI were about $55 billion by the end of July, according to an e-mail today from Michael McGlone, director of commodity indexing at Standard & Poor’s in New York.Copper AdvancesCopper for delivery in three months on the London Metal Exchange rose as much as 5.1 percent to $6,008.75 a metric ton.
The price is up 96 percent this year. Nickel climbed as much as 4.7 percent to $18,800 a ton, the highest since Sept. 15. Nickel is up 61 percent this year.“Chinese industrialization is coming back again,” said Brock Salier, an analyst at Ambrian Partners Ltd. in London. “Underlying fundamentals are still strong.”Gold for immediate delivery increased as much as 0.7 percent to $961.08 an ounce as the dollar’s decline spurred demand for the metal as an alternative investment.
The dollar fell for a third day against the euro.“Where the U.S. dollar might well have been the haven currency to which capital fled during times of duress, it is now instead the currency from which capital flees,” economist Dennis Gartman wrote in his daily Gartman Letter today. “Clearly the weak dollar is a benefit” to grains, he wrote.Soybeans GainSoybeans for November delivery advanced to $10.33 a bushel on the Chicago Board of Trade, the highest since June 19. Corn for December delivery climbed as much as 3.9 percent to $3.63 a bushel.
Both grains may rise this week on speculation the coldest July in more than 100 years in parts of the U.S. Midwest delayed crop development, the latest Bloomberg survey showed.Copper and gold will rise the most among commodities by the end of the third quarter of 2010, as construction buoys copper demand and a drop in the dollar supports gold, Tanner said.
Copper for delivery in three months will rise to $6,500 or $6,700 a ton by then and gold for immediate delivery will be at $1,100 to $1,200 an ounce, she said.“As long as markets bet on a rebound in global economies, the dollar should remain on a weak tone,” said Jerry Yoshikoshi, a senior economist with Sumitomo Mitsui Banking Corp. in Singapore. “This environment, which is positive for commodities, will last at least for the coming weeks.”Commodities OutlookCommodity prices may rise further in 2010 as the global recession abates, Nouriel Roubini, the New York University economist who predicted the financial crisis, said today.
Crude oil advanced to $71.82 a barrel in New York, its highest since July 1. Oil may gain more than other commodities on a rebound in demand, and will average $70 to $75 a barrel next year, Roubini said. In 2009, the average so far is $53.71.“Optimistic” signs in the oil market may help lift prices to $80 a barrel by the end of this year, Iran’s OPEC Governor Mohammad Ali Khatibi said yesterday, the Shana news agency reported.White, or refined, sugar for October delivery climbed as much as 2.9 percent to $505.90 a ton, the highest since at least January 1989. “Fundamentally, the market is in short supply and prices will be supported,” said Eugen Weinberg, an analyst at Commerzbank AG in Frankfurt.
Source: Bloomberg
Commodities jumped to a six-week high, led by grains and metals, as signs the global recession is easing and a drop in the dollar bolstered expectations for demand. The Standard & Poor’s GSCI Index of 24 commodities rose as much as 3.3 percent, extending six straight monthly gains in the measure. Copper climbed to the highest in 10 months, soybeans advanced to more than $10 a bushel for the first time in a month and nickel rose to its most expensive since September.
China’s manufacturing expanded in July, while a contraction in European factory output slowed for a fifth month, reports today showed. Spending on U.S. construction projects unexpectedly rose in June, a Commerce Department report today showed. In 2008, the GSCI fell 43 percent, the most since at least 1971, as recessions hit the U.S., Europe and Japan.“Our economists expect a moderate acceleration in economic growth going forward in the next few quarters and this should be supportive for demand for commodities,” said Eliane Tanner, an analyst at Credit Suisse Group AG in Zurich.
China’s manufacturing growth may be shifting to housing “and this is of course positive for base metals” such as copper.The GSCI index gained 3.3 percent to 472.413 by 3:17 p.m. London time. Earlier it rose to 472.541, the highest since June 16. The measure advanced 1.6 percent in July. Assets managed against the GSCI were about $55 billion by the end of July, according to an e-mail today from Michael McGlone, director of commodity indexing at Standard & Poor’s in New York.Copper AdvancesCopper for delivery in three months on the London Metal Exchange rose as much as 5.1 percent to $6,008.75 a metric ton.
The price is up 96 percent this year. Nickel climbed as much as 4.7 percent to $18,800 a ton, the highest since Sept. 15. Nickel is up 61 percent this year.“Chinese industrialization is coming back again,” said Brock Salier, an analyst at Ambrian Partners Ltd. in London. “Underlying fundamentals are still strong.”Gold for immediate delivery increased as much as 0.7 percent to $961.08 an ounce as the dollar’s decline spurred demand for the metal as an alternative investment.
The dollar fell for a third day against the euro.“Where the U.S. dollar might well have been the haven currency to which capital fled during times of duress, it is now instead the currency from which capital flees,” economist Dennis Gartman wrote in his daily Gartman Letter today. “Clearly the weak dollar is a benefit” to grains, he wrote.Soybeans GainSoybeans for November delivery advanced to $10.33 a bushel on the Chicago Board of Trade, the highest since June 19. Corn for December delivery climbed as much as 3.9 percent to $3.63 a bushel.
Both grains may rise this week on speculation the coldest July in more than 100 years in parts of the U.S. Midwest delayed crop development, the latest Bloomberg survey showed.Copper and gold will rise the most among commodities by the end of the third quarter of 2010, as construction buoys copper demand and a drop in the dollar supports gold, Tanner said.
Copper for delivery in three months will rise to $6,500 or $6,700 a ton by then and gold for immediate delivery will be at $1,100 to $1,200 an ounce, she said.“As long as markets bet on a rebound in global economies, the dollar should remain on a weak tone,” said Jerry Yoshikoshi, a senior economist with Sumitomo Mitsui Banking Corp. in Singapore. “This environment, which is positive for commodities, will last at least for the coming weeks.”Commodities OutlookCommodity prices may rise further in 2010 as the global recession abates, Nouriel Roubini, the New York University economist who predicted the financial crisis, said today.
Crude oil advanced to $71.82 a barrel in New York, its highest since July 1. Oil may gain more than other commodities on a rebound in demand, and will average $70 to $75 a barrel next year, Roubini said. In 2009, the average so far is $53.71.“Optimistic” signs in the oil market may help lift prices to $80 a barrel by the end of this year, Iran’s OPEC Governor Mohammad Ali Khatibi said yesterday, the Shana news agency reported.White, or refined, sugar for October delivery climbed as much as 2.9 percent to $505.90 a ton, the highest since at least January 1989. “Fundamentally, the market is in short supply and prices will be supported,” said Eugen Weinberg, an analyst at Commerzbank AG in Frankfurt.
Source: Bloomberg
GulfNav PJSC Announces 1 Half 2009 Results
Tuesday, 04 August 2009
Gulf Navigation Holding PJSC the leading ship owning and maritime services company in the region has announced its consolidated financial results for the first half of 2009. The Company's recorded a net profit of AED 10.18 million a drop of 89% compared to AED 92.96 million during the same period of 2008. Revenues for the two quarters declined to AED 170.10 million versus AED 200.88 million for the first half of 2008. Operating profit of AED 67.55 million, a drop of 46% versus H1 08.
The Company's total assets stood at AED 2.996 billion, up 4.6% compared to AED 2.865 billion for the same period last year. However, On the whole this reflects a prudent step forward during a period of exceptional global financial instability, nevertheless showcases sustained focus on cost control and better adaptation of the current situations.Commenting on the results, Engineer Abdullah Al Shuraim, the Chairman of Gulf Navigation Holding said "Despite the worldwide decline in demand for transportation of energy, we at Gulf Navigation have been maintaining good rates for our long term chartered tankers. As for our six PROBO vessels which used to be chartered out, but now operated in the spot market, earnings have been in line with the market. As a cash-rich company with strong cash flows, and constant initiatives to reduce costs, optimize operational efficiencies, and maintain best long and short terms chartering contracts this will together with the new fleet expansionary negotiation have a positive impact on our performance and results in the coming quarters.
Per Wistoft, the company's chief executive officer, said "the first half of 2009 proved to be just as challenging as expected as none of our markets have shown any sign of recovery. In such difficult times, flexibility of the company's PROBO fleet showed its worth with a shift of several vessels from wet to dry whereby a further decline was avoided. In addition 5 vessels are still covered at respectable rate for the best of the year and beyond".He went on to say "operating a fleet to international standards is costly but necessary. We shall continue our work in optimizing technical and administrative processes".
In other business highlights during the second quarter of the year, the company has marked the official opening of the Joint Venture GULF STOLT SHIP MANAGEMENT Company "GSSM" which is set to continue technical management of the Gulf Navigation's vessels, some of Stolt Nielsen vessels, as well as additionally jointly owned tonnage. In addition, Gulf Navigation Holding and Stolt-Nielsen S.A through another jointly owned subsidiary "GULF STOLT TANKERS" holds an order of 6 chemical tankers from a Korean shipyard. Production difficulties at the yard have however delayed the vessels and the first two contracts have subsequently been cancelled by Stolt-Nielsen. Replacement tonnage is presently being sought and is expected found at levels considerably lower than the original contract price.
Gulf Navigation also highlighted a slower pace of progression of its announced acquisition project than what was projected. All milestones in the negotiations will be announced in due course when reached.
Source: Gulf Navigation Holding
Gulf Navigation Holding PJSC the leading ship owning and maritime services company in the region has announced its consolidated financial results for the first half of 2009. The Company's recorded a net profit of AED 10.18 million a drop of 89% compared to AED 92.96 million during the same period of 2008. Revenues for the two quarters declined to AED 170.10 million versus AED 200.88 million for the first half of 2008. Operating profit of AED 67.55 million, a drop of 46% versus H1 08.
The Company's total assets stood at AED 2.996 billion, up 4.6% compared to AED 2.865 billion for the same period last year. However, On the whole this reflects a prudent step forward during a period of exceptional global financial instability, nevertheless showcases sustained focus on cost control and better adaptation of the current situations.Commenting on the results, Engineer Abdullah Al Shuraim, the Chairman of Gulf Navigation Holding said "Despite the worldwide decline in demand for transportation of energy, we at Gulf Navigation have been maintaining good rates for our long term chartered tankers. As for our six PROBO vessels which used to be chartered out, but now operated in the spot market, earnings have been in line with the market. As a cash-rich company with strong cash flows, and constant initiatives to reduce costs, optimize operational efficiencies, and maintain best long and short terms chartering contracts this will together with the new fleet expansionary negotiation have a positive impact on our performance and results in the coming quarters.
Per Wistoft, the company's chief executive officer, said "the first half of 2009 proved to be just as challenging as expected as none of our markets have shown any sign of recovery. In such difficult times, flexibility of the company's PROBO fleet showed its worth with a shift of several vessels from wet to dry whereby a further decline was avoided. In addition 5 vessels are still covered at respectable rate for the best of the year and beyond".He went on to say "operating a fleet to international standards is costly but necessary. We shall continue our work in optimizing technical and administrative processes".
In other business highlights during the second quarter of the year, the company has marked the official opening of the Joint Venture GULF STOLT SHIP MANAGEMENT Company "GSSM" which is set to continue technical management of the Gulf Navigation's vessels, some of Stolt Nielsen vessels, as well as additionally jointly owned tonnage. In addition, Gulf Navigation Holding and Stolt-Nielsen S.A through another jointly owned subsidiary "GULF STOLT TANKERS" holds an order of 6 chemical tankers from a Korean shipyard. Production difficulties at the yard have however delayed the vessels and the first two contracts have subsequently been cancelled by Stolt-Nielsen. Replacement tonnage is presently being sought and is expected found at levels considerably lower than the original contract price.
Gulf Navigation also highlighted a slower pace of progression of its announced acquisition project than what was projected. All milestones in the negotiations will be announced in due course when reached.
Source: Gulf Navigation Holding
Chinese yard jumps into the scrapping fray
Tuesday, 04 August 2009
The downturn in global shipbuilding has begin a shift in industry focus towards the demolition side of shipping, with China-based Jiangsu Yangzijiang Shipbuilding becoming the latest yard to target this buoyant sector. The yard intends to set up a $88m ship demolition joint venture with Chongqing Iron and Steel, which would begin operations by the end of next year.This news comes on the heels of plans to bring mothballed Scottish yard Nigg in Easter Ros into commission to cash in on the growing international ship demolition business.
Source: SeatradeAsia Online
The downturn in global shipbuilding has begin a shift in industry focus towards the demolition side of shipping, with China-based Jiangsu Yangzijiang Shipbuilding becoming the latest yard to target this buoyant sector. The yard intends to set up a $88m ship demolition joint venture with Chongqing Iron and Steel, which would begin operations by the end of next year.This news comes on the heels of plans to bring mothballed Scottish yard Nigg in Easter Ros into commission to cash in on the growing international ship demolition business.
Source: SeatradeAsia Online
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