Monday 30 November 2009
BLT - Response to Questions from IDX
BLT has posted reply on questions from IDX with regard to the recent proposed acquisition of Camillo Eitzen & Co. Please refer such reply on IDXNet and company's website.
Thursday 26 November 2009
Handysize Sector to Fare Better than Other Bulkers
Thursday, 26 November 2009
Handysizes would give good margins as they have been the segment with the biggest short fall and the highest scrapping rates so this year there has been no overall growth.
Handies will be slightly more isolated to other sectors going forward as the larger ship types have such huge orderbooks still to deliver.
Aside from that Indonesia needs to have significantly more powerplant as currently they are suffering from rolling black outs. The target for the next few years is very aggressive in which the government has set a 10,000 megawatts and most of them will be coal fired. Given Indonesian geography, the most suitable size for bulker will be the handysize and therefore the demand for this type of ship will increase.
Handysizes would give good margins as they have been the segment with the biggest short fall and the highest scrapping rates so this year there has been no overall growth.
Handies will be slightly more isolated to other sectors going forward as the larger ship types have such huge orderbooks still to deliver.
Aside from that Indonesia needs to have significantly more powerplant as currently they are suffering from rolling black outs. The target for the next few years is very aggressive in which the government has set a 10,000 megawatts and most of them will be coal fired. Given Indonesian geography, the most suitable size for bulker will be the handysize and therefore the demand for this type of ship will increase.
ECHEM - Press Release on Bank Restructuring
Eitzen Chemical ASA (OSE: ECHEM) is pleased to announce that the
company has signed amended agreements with its banks that secure
additional improvements to its loan agreements relative to the
agreement which was announced on 1 October 2009. Further reference is
made to previous announcements regarding the financial restructuring
of Eitzen Chemical.
Under the revised terms, all main debt maturities have now been
extended to July 2014. As earlier, all fixed instalments will be
suspended until November 2012, with a potential for variable debt
amortisation depending on Eitzen Chemical's financial performance.
From November 2012 to maturity, fixed quarterly instalments will
apply.
As per the earlier agreement, all existing financial covenants, with
the exception of a new minimum cash covenant to be introduced from
the first quarter of 2010 and a new minimum value-to-loan covenant to
be introduced from the first quarter of 2011, have been suspended,
and this suspension will now apply until the new maturity dates.
The company has called for an extraordinary general meeting (EGM) to
be held on 26 November 2009 at 12:00 CET to resolve the equity issue.
As a result of the new agreements with the banks, there are now no
other conditions for completion of the equity issue than approval by
shareholders in the EGM.
"This concludes the financial restructuring of Eitzen Chemical, only
conditional upon approval of the equity issue at the up-coming EGM.
The restructuring started with the cancellation of the newbuilding
program earlier this year. This facilitated the agreement with the
bondholders in September and the USD 115 mill. equity issue completed
earlier this month, and was finalized with the agreement with our
banks today. We are confident the robust financial platform following
the restructuring, coupled with the company's modern fleet and strong
market position will be a solid basis for creating shareholder value
and safeguarding our various stakeholders going forward", said Terje
Askvig, CEO of Eitzen Chemical.
Eitzen Chemical is an industrial carrier of petrochemical and related
cargos with a total fleet of 84 vessels. 62 vessels are owned and
leased, and a further 22 vessels are operated for partners.
For further information, please contact:
Terje Askvig
Chief Executive Officer
0047 2400 6170
Per-Hermod Rasmussen
Chief Financial Officer
0047 2400 6175
This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)
This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.
company has signed amended agreements with its banks that secure
additional improvements to its loan agreements relative to the
agreement which was announced on 1 October 2009. Further reference is
made to previous announcements regarding the financial restructuring
of Eitzen Chemical.
Under the revised terms, all main debt maturities have now been
extended to July 2014. As earlier, all fixed instalments will be
suspended until November 2012, with a potential for variable debt
amortisation depending on Eitzen Chemical's financial performance.
From November 2012 to maturity, fixed quarterly instalments will
apply.
As per the earlier agreement, all existing financial covenants, with
the exception of a new minimum cash covenant to be introduced from
the first quarter of 2010 and a new minimum value-to-loan covenant to
be introduced from the first quarter of 2011, have been suspended,
and this suspension will now apply until the new maturity dates.
The company has called for an extraordinary general meeting (EGM) to
be held on 26 November 2009 at 12:00 CET to resolve the equity issue.
As a result of the new agreements with the banks, there are now no
other conditions for completion of the equity issue than approval by
shareholders in the EGM.
"This concludes the financial restructuring of Eitzen Chemical, only
conditional upon approval of the equity issue at the up-coming EGM.
The restructuring started with the cancellation of the newbuilding
program earlier this year. This facilitated the agreement with the
bondholders in September and the USD 115 mill. equity issue completed
earlier this month, and was finalized with the agreement with our
banks today. We are confident the robust financial platform following
the restructuring, coupled with the company's modern fleet and strong
market position will be a solid basis for creating shareholder value
and safeguarding our various stakeholders going forward", said Terje
Askvig, CEO of Eitzen Chemical.
Eitzen Chemical is an industrial carrier of petrochemical and related
cargos with a total fleet of 84 vessels. 62 vessels are owned and
leased, and a further 22 vessels are operated for partners.
For further information, please contact:
Terje Askvig
Chief Executive Officer
0047 2400 6170
Per-Hermod Rasmussen
Chief Financial Officer
0047 2400 6175
This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)
This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.
Tuesday 24 November 2009
BLT - Analysis of BLT Performance by RS Platou
Strong chemical tanker performance
Berlian Laju Tankers (BLT) reported Q3’09 EBITDA just slightly below our estimates. While peers have reported double digit declines in chemical tanker earnings q/q, BLT’s rates were only down 3% likely due to its robust operation and limited dependence on the product tanker market.
Net revenues were USD 99m just as we had estimated in our Shipping Quarterly. EBITDA came in at USD 48m vs. our USD 51m. Deviation due to USD 3m higher costs evenly distributed on charter hire and G&A. Vessel opex remained unchanged at a low $4,100/day on average.
We calculate that time-charter equivalent earnings were down only 3% on average compared to Q2. This is much better performance than peers which have reported declines of 19% (Odfjell) and 15% (Eitzen Chemical) due to their exposure to the weak product tanker market. BLT has 63 chemical tankers in operations mainly in the regional, stainless steel segment.
No news about the ongoing take-over of Camillo Eitzen.
We make marginal changes to our operating estimates while increase our interest expense assumption somewhat.
Based on our estimates, BLT trades attractively at 80% of NAV and 7.6x 2010e EBITDA (based on 5% higher chemical rates y/y).
A recovery in the world economic outlook should be positive for chemical tanker earnings and asset values. 10% increase in values would increase NAV by over 40%.
For further detailed information, please refer to RS Platou report on BLT's website
Berlian Laju Tankers (BLT) reported Q3’09 EBITDA just slightly below our estimates. While peers have reported double digit declines in chemical tanker earnings q/q, BLT’s rates were only down 3% likely due to its robust operation and limited dependence on the product tanker market.
Net revenues were USD 99m just as we had estimated in our Shipping Quarterly. EBITDA came in at USD 48m vs. our USD 51m. Deviation due to USD 3m higher costs evenly distributed on charter hire and G&A. Vessel opex remained unchanged at a low $4,100/day on average.
We calculate that time-charter equivalent earnings were down only 3% on average compared to Q2. This is much better performance than peers which have reported declines of 19% (Odfjell) and 15% (Eitzen Chemical) due to their exposure to the weak product tanker market. BLT has 63 chemical tankers in operations mainly in the regional, stainless steel segment.
No news about the ongoing take-over of Camillo Eitzen.
We make marginal changes to our operating estimates while increase our interest expense assumption somewhat.
Based on our estimates, BLT trades attractively at 80% of NAV and 7.6x 2010e EBITDA (based on 5% higher chemical rates y/y).
A recovery in the world economic outlook should be positive for chemical tanker earnings and asset values. 10% increase in values would increase NAV by over 40%.
For further detailed information, please refer to RS Platou report on BLT's website
Stolt buys VLGC
Stolt buys VLGC
Stolt-Nielsen has purchased its first VLGC less than a month after making its debut in the sector with the long-term charter of a Yuyo Steamship vessel.
CEO Niels Stolt-Nielsen.
It has bought the 82,557-cbm Althea Gas (built 2003) from Iino Kaiun Kaisha of Japan, Stolt tells investors Thursday.
Oslo-listed Stolt has not put a price on the deal, believed to the first sale of a VLGC for a couple of years.
As TradeWinds weekly newspaper will report tomorrow Iino flatly rejected an offer of $45m for the vessel earlier this week.
A Stolt spokesperson refuses to discuss the price further, due to confidentiality clauses in the deal and the fear of banks seizing on the figure as a new benchmark for such tonnage.
A price of between $50m and $55m is considered realistic by observers, but the spokesman remains tight-lipped when this is put to him.
The vessel, which will be handed over early next year, will trade on the spot market.
“Locking into a long-term deal now is probably not something you want to do,” the spokesperson said.
Earlier this month we broke news of Stolt’s first foray into the VLGC sector with the three year charter of the 78,000-cbm Yuhsho (built 1999).
At the same time we reported the Althea Gas was being touted for sale, with sources suggesting the ship would fetch less than the $60m Iino paid for it as a newbuilding.
Stolt-Nielsen decided in 2007 to set up a gas-tanker company in anticipation of lower ship prices and rates.
Headed by Christian Andersen, the company has since been waiting for the right opportunity to take on ships.
Following its recent burst of activity in the sector, Stolt is guarded about further purchases.
“Hopefully we will be able to get one or two more on the table, but there is nothing else on the table as yet,” the spokesperson said.
By Andy Pierce in London
Stolt-Nielsen has purchased its first VLGC less than a month after making its debut in the sector with the long-term charter of a Yuyo Steamship vessel.
CEO Niels Stolt-Nielsen.
It has bought the 82,557-cbm Althea Gas (built 2003) from Iino Kaiun Kaisha of Japan, Stolt tells investors Thursday.
Oslo-listed Stolt has not put a price on the deal, believed to the first sale of a VLGC for a couple of years.
As TradeWinds weekly newspaper will report tomorrow Iino flatly rejected an offer of $45m for the vessel earlier this week.
A Stolt spokesperson refuses to discuss the price further, due to confidentiality clauses in the deal and the fear of banks seizing on the figure as a new benchmark for such tonnage.
A price of between $50m and $55m is considered realistic by observers, but the spokesman remains tight-lipped when this is put to him.
The vessel, which will be handed over early next year, will trade on the spot market.
“Locking into a long-term deal now is probably not something you want to do,” the spokesperson said.
Earlier this month we broke news of Stolt’s first foray into the VLGC sector with the three year charter of the 78,000-cbm Yuhsho (built 1999).
At the same time we reported the Althea Gas was being touted for sale, with sources suggesting the ship would fetch less than the $60m Iino paid for it as a newbuilding.
Stolt-Nielsen decided in 2007 to set up a gas-tanker company in anticipation of lower ship prices and rates.
Headed by Christian Andersen, the company has since been waiting for the right opportunity to take on ships.
Following its recent burst of activity in the sector, Stolt is guarded about further purchases.
“Hopefully we will be able to get one or two more on the table, but there is nothing else on the table as yet,” the spokesperson said.
By Andy Pierce in London
Eitzen - To merge and list Bulk Division
Wait for the sales
Eitzen Bulk opted to merge with sibling Orion to become a listed company rather than enjoy the fresh capital an IPO would provide as it has no need for the money, its managing director says.
Per Lange.
Per Lange explains the firm is looking to buy but he does not believe now is the right time.
In an interview with TradeWinds after the merger of the two Camillo Eitzen subsidiaries was announced, Lange said: “The present situation is that we have no need for fresh capital.
“This market will have opportunities for investment in the future. Getting fresh capital now would put pressure on us to buy in the wrong market.”
He explains the company will be open to buying vessels, possibly in partnership with others, when and banks and yards have become “reluctant shipowners”. Takeovers will also be an option in the future, Lange adds.
Eitzen Bulk management and key staff have paid around $10m to buy a 14.6% stake in the company.
CECO retains an 85% holding, but is willing to sell shares to boost the liquidity of the stock, Lange says.
Shares in Orion, which is to be renamed Eitzen Bulk Shipping when the merger is complete, climbed 18.81% to DKK 36 ($7.18) each in Copenhagen at the time of writing Friday.
Orion, in which CECO previously held a 93% stake, has not owned vessels since January 2007 following the sale of the -lane-metre ro-ro Lisbeth C (built 1993) to Arrow Seismic. However, it does have around $8m in cash.
Eitzen Bulk does not own any vessels but has over 50 ships on charter, some with purchase options. It also has a single newbuilding on order in Japan for delivery in 2011, Knudsen says.
The idea of floating Eitzen Bulk first emerged back in June with the Nasdaq OMX exchange in Copenhagen the likely destination.
By Andy Pierce in London
Eitzen Bulk opted to merge with sibling Orion to become a listed company rather than enjoy the fresh capital an IPO would provide as it has no need for the money, its managing director says.
Per Lange.
Per Lange explains the firm is looking to buy but he does not believe now is the right time.
In an interview with TradeWinds after the merger of the two Camillo Eitzen subsidiaries was announced, Lange said: “The present situation is that we have no need for fresh capital.
“This market will have opportunities for investment in the future. Getting fresh capital now would put pressure on us to buy in the wrong market.”
He explains the company will be open to buying vessels, possibly in partnership with others, when and banks and yards have become “reluctant shipowners”. Takeovers will also be an option in the future, Lange adds.
Eitzen Bulk management and key staff have paid around $10m to buy a 14.6% stake in the company.
CECO retains an 85% holding, but is willing to sell shares to boost the liquidity of the stock, Lange says.
Shares in Orion, which is to be renamed Eitzen Bulk Shipping when the merger is complete, climbed 18.81% to DKK 36 ($7.18) each in Copenhagen at the time of writing Friday.
Orion, in which CECO previously held a 93% stake, has not owned vessels since January 2007 following the sale of the -lane-metre ro-ro Lisbeth C (built 1993) to Arrow Seismic. However, it does have around $8m in cash.
Eitzen Bulk does not own any vessels but has over 50 ships on charter, some with purchase options. It also has a single newbuilding on order in Japan for delivery in 2011, Knudsen says.
The idea of floating Eitzen Bulk first emerged back in June with the Nasdaq OMX exchange in Copenhagen the likely destination.
By Andy Pierce in London
ECHEM - News on Private Placement
Successful completion of Private Placement
Reference is made to the stock exchange notice dated 5 November 2009 and 10 November 2009 regarding the contemplated private placement of shares (the "Private Placement") in Eitzen Chemical ASA ("Eitzen Chemical" or the "Company") and the notice of an extraordinary general meeting (the "EGM") dated 5 November 2009.
The Board of Directors of Eitzen Chemical has today resolved to propose to the Company's EGM, to be held on 26 November 2009, to issue a total of 515,200,000 new shares in Eitzen Chemical at a price of NOK 1.25 per share representing gross proceeds of NOK 644 million (equivalent to approximately USD 115 million). The subscription price was determined through a book-building process conducted by ABG Sundal Collier Norge ASA and Carnegie ASA, acting as Joint Lead Managers of the Private Placement.
"We are very pleased to see that we have been successful in raising new equity to Eitzen Chemical, based on the continued support from existing shareholders as well as new interest from prime domestic and international institutional investors. The equity issue is a key milestone in the process of re-establishing a robust financial platform for the company. We are confident that the actions that we have been taking through our restructuring will be to the long term advantage of all of our stakeholders, and are optimistic that we will get the support that is needed to now conclude this process and build a stronger Eitzen Chemical ", said Terje Askvig CEO of Eitzen Chemical.
Completion of the Private Placement is subject to; (i) the approval of the Private Placement by the EGM to be held on 26 November 2009; and (ii) agreements with Eitzen Chemical's banks regarding certain proposed amendments to the Company's main bank loan agreements.
The new shares to be issued in the Private Placement will not be tradable until the share capital increase has been resolved by the EGM, the share capital increase has been registered in the Norwegian Register of Business Enterprises, and a listing prospectus has been approved by the Oslo Stock Exchange, expected to take place on or about 30 November 2009.
Payment for the new shares to be issued in the Private Placement shall be made on 27 November 2009 following a resolution by the Company's EGM.
Camillo Eitzen & Co ASA, the main shareholder of Eitzen Chemical, was allocated 223,800,000 shares in the Private Placement and will own 45.53% of the shares of the Company following the completion of the Private Placement, but prior to completion of the Subsequent Offering described below.
Subject to final completion of the Private Placement, the Board of Directors of the Company has today resolved to propose to the Company's EGM that the contemplated subsequent offering shall comprise up to 67,200,000 new shares at NOK 1.25 per share and be directed towards those of the Company's existing shareholders registered in the Norwegian Central Securities Depository (the "VPS") on 10 November 2009 (i.e. the date of completion of the book-building process in the Private Placement) who were not offered to participate in the Private Placement (the "Subsequent Offering"). As a consequence, the shares in Eitzen Chemical will be traded without the right to participate in the Subsequent Offering from and including 11 November 2009. The timing and conditions for the proposed Subsequent Offering will be announced at a later stage.
Reference is made to the stock exchange notice dated 5 November 2009 and 10 November 2009 regarding the contemplated private placement of shares (the "Private Placement") in Eitzen Chemical ASA ("Eitzen Chemical" or the "Company") and the notice of an extraordinary general meeting (the "EGM") dated 5 November 2009.
The Board of Directors of Eitzen Chemical has today resolved to propose to the Company's EGM, to be held on 26 November 2009, to issue a total of 515,200,000 new shares in Eitzen Chemical at a price of NOK 1.25 per share representing gross proceeds of NOK 644 million (equivalent to approximately USD 115 million). The subscription price was determined through a book-building process conducted by ABG Sundal Collier Norge ASA and Carnegie ASA, acting as Joint Lead Managers of the Private Placement.
"We are very pleased to see that we have been successful in raising new equity to Eitzen Chemical, based on the continued support from existing shareholders as well as new interest from prime domestic and international institutional investors. The equity issue is a key milestone in the process of re-establishing a robust financial platform for the company. We are confident that the actions that we have been taking through our restructuring will be to the long term advantage of all of our stakeholders, and are optimistic that we will get the support that is needed to now conclude this process and build a stronger Eitzen Chemical ", said Terje Askvig CEO of Eitzen Chemical.
Completion of the Private Placement is subject to; (i) the approval of the Private Placement by the EGM to be held on 26 November 2009; and (ii) agreements with Eitzen Chemical's banks regarding certain proposed amendments to the Company's main bank loan agreements.
The new shares to be issued in the Private Placement will not be tradable until the share capital increase has been resolved by the EGM, the share capital increase has been registered in the Norwegian Register of Business Enterprises, and a listing prospectus has been approved by the Oslo Stock Exchange, expected to take place on or about 30 November 2009.
Payment for the new shares to be issued in the Private Placement shall be made on 27 November 2009 following a resolution by the Company's EGM.
Camillo Eitzen & Co ASA, the main shareholder of Eitzen Chemical, was allocated 223,800,000 shares in the Private Placement and will own 45.53% of the shares of the Company following the completion of the Private Placement, but prior to completion of the Subsequent Offering described below.
Subject to final completion of the Private Placement, the Board of Directors of the Company has today resolved to propose to the Company's EGM that the contemplated subsequent offering shall comprise up to 67,200,000 new shares at NOK 1.25 per share and be directed towards those of the Company's existing shareholders registered in the Norwegian Central Securities Depository (the "VPS") on 10 November 2009 (i.e. the date of completion of the book-building process in the Private Placement) who were not offered to participate in the Private Placement (the "Subsequent Offering"). As a consequence, the shares in Eitzen Chemical will be traded without the right to participate in the Subsequent Offering from and including 11 November 2009. The timing and conditions for the proposed Subsequent Offering will be announced at a later stage.
BLT - CB Exchange Offer
BLT is looking at the plan to do an exchange offer for the CB considering the slight delay on the fund raising activity in relation to the CECO transaction while at the same time, the opportunity from Pertamina on cabotage can no longer wait. BLT therefore needs to free up its funds to be able to finance the purchase of second hand ships for such lucrative cabotage opportunity
BLT - Goldman Sachs has a buy recommendation
Goldman Sachs in its Pan Asian Transporation Analysis has a buy call for BLT with the target price of Rp.1,040 on IDX market. For the details of the report, please refer to BLT's website.
Monday 23 November 2009
BLT 3Q09 Financials
Dear All,
BLT's financials for 3Q09 both for IFRS and the IndoGAAP are already out.
Regards
Peter
BLT's financials for 3Q09 both for IFRS and the IndoGAAP are already out.
Regards
Peter
Monday 2 November 2009
BLT - DNB NOR MARKETS CONFERENCE
BLT will join the above conference with the following details:
Day, Date: Wednesday 4 Nov 2009
Time: Full Day Conference
Location: Goodwood Park Hotel, Scotts Road, S'pore
Theme: First Asian Investor Conference
Day, Date: Wednesday 4 Nov 2009
Time: Full Day Conference
Location: Goodwood Park Hotel, Scotts Road, S'pore
Theme: First Asian Investor Conference
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