Monjasa suffered massive deficit, while broker Lightship lost a dramatic court case to a former partner. And Dong found a buyer for the company's oil and gas business. Here are this week's top stories on ShippingWatch.
The gas carrier finished the first three months of the year with improvements across the board, a development attributed in particular to a new project in Colombia. The carrier also beat market expectations. "Balance sheet remains rock solid," notes Fearnleys.
Navigare Capital Partners, a new investment company targeting the shipping industry, has made its first investment in two product tankers. "We will invest in different segments," CEO Henrik Ramskov tells ShippingWatch.
The idea that bigger companies enjoy increased interest from major investors will now be put to the test in the wake of the merger between Navig8 and Scorpio Tankers, says Mikael Skov, CEO of Hafnia Tankers, who has IPO plans of his own.
The consolidation wave in product tanker is now reality. Robert Bugbee's Scorpio Tankers will merge with Navig8 and issue new shares for USD 200 million. The new behemoth will have a fleet of 105 vessels and will compete directly with carriers such as Torm, Ardmore, and Hafnia Tankers.
There will be more mergers, acquisitions, and general consolidation in the product tanker market within the next 12-24 months, Hafnia Tankers and Jyske Bank tell ShippingWatch. Torm Executive Director Jacob Meldgaard is also open to the idea.
The tanker carrier anticipated higher earnings in the first quarter of the year. But a large number of newbuildings and a lack of fluctuations in the oil price resulted in a lower profit for Hafnia Tankers.
Tanker carrier Torm is positive when it comes to a consolidation of the product tanker market. Bigger carriers will be more interesting to banks and investors, Executive Director Jacob Meldgaard tells ShippingWatch.
What at first looked like an ordinary oil trade in West Africa has developed into a court dispute in London, Dubai, and Lagos. ShippingWatch has reconstructed the events which involve Danish businessman Jesper Øhlenschlæger, tax shelter company Nordic Oil & Gas, bunker company Endofa, and tanker carrier d'Amico International Shipping.
The tone between the two tanker carriers with Norwegian roots, Frontline and DHT Holdings, has become increasingly irreconcilable and hostile – not least from Frontline's CEO, who now describes DHT's double CEO capacity as a waste of shareholder money.
A massive orderbook packed with new crude oil tankers set for delivery in 2017 means that overcapacity will continue to strain the sector. The large vessel influx will be replaced next year by weak demand, and the scrapping of vessels is thus crucial to the prospects of a tanker market recovery, writes Drewry.
Lower volumes in chemical tanker pulled Team Tankers into the red in the first quarter. But the operating profit was a positive surprise, notes Fearnley in an update. The firm cites high coverage in the second quarter and reiterates 'buy' for the share.
Teekay CEO Kenneth Hvid has a plan for Teekay Corporation which entails taking the major Canadian group back to the spirit of its founder Torben Karlshøj. Hvid lays out his plan to ShippingWatch during his first interview as CEO.
DHT Holdings performed above analyst expectations with the operating result in the first quarter this year. The carrier, which is subject to continuous acquisition offers from competitor Frontline, has also settled a new bank agreement.
DHT Holdings' board of directors rejects the Frontline bid announced on April 25. The board adds that it is about time that the parties move on. Instead, Frontline replies that the bid should be presented to the shareholders, according to a comment to ShippingWatch.
Analyst firm Clarksons believes that "unabated optimism" in the dry bulk market earlier in 2017 has been replaced by more uncertainty and falling dry cargo values. Nevertheless, the analyst firm does not see cause for concern.
Things are now headed in the right direction in the product tanker market after a rough end to 2016. CEO of Italian tanker carrier d'Amico International Shipping has a positive outlook for the future in the wake of a first quarter profit, he tells ShippingWatch.
Norden off to a weak start in dry bulk in 2017, a record-large deficit for DSV, strong results from oil majors, and increased political focus on shipping by US and EU authorities were among this week's key stories on ShippingWatch.
After several years of lower expenses in the fight against piracy, costs have once again increased according to the latest report from Oceans Beyond Piracy. "Piracy still poses a significant threat to shipping," says the Danish Shipowners' Association. Read the entire report here.
US legislators are reviewing regulation which allows container carriers to enter into confidential partnerships and fix price guidelines. Critics believe that the law disadvantages players such as towage companies.
Significantly more supertankers will join the fleet this year – and likely, in the years to come – than there are vessels leaving the fleet, shows a survey by McQuilling. As many as 30 new VLCCs are expected delivered this year while ten will leave the fleet, and that is cause for concern, notes the firm.
The LPG market is facing a period of slower growth ahead of 2019, a period in which China will replace Japan and South Korea as the main driving force in the market, notes DVB Research in a new analysis.
The Marshall Islands court has, like the court in New York, determined that the deal between BW Group and DHT Holdings does not pose a problem. Frontline has at both courts attempted to have the transaction voided in an attempt to get a bigger share in DHT Holdings' VLCC fleet.
Several EU member states, including Denmark, are currently having their state subsidies to carriers and maritime businesses scrutinized, while John Fredriksen's efforts to take over DHT continue. And ShippingWatch was present at the major shipping conference in Singapore this week.
US shale oil is now being produced at such a rate that it could threaten the stability currently enjoyed by the sector, projects Rystad Energy. One of the major suppliers of offshore rigs, shipbuilder Keppel, does not see a recovery anytime soon.
Gas carrier Exmar went red in the first quarter in the weak LPG market where too many vessels are undermining an otherwise historically strong US gas export. The carrier has also called off negotiations to acquire a Dutch FSRU fleet.
Shipping magnate John Fredriksen continues the battle to take over DHT as the move could give his tanker carrier Frontline a superior position in the VLCC market. "Size does matter," one analyst tells ShippingWatch. "Very insufficient offer," says DHT.
New York-listed Scorpio Tankers booked a first quarter result this year, which shrank since last year, while revenue landed in line with expectations. Second quarter looks much better, says one analyst.
John Fredriksen's Frontline has sent a new offer to DHT in which the company proposes a merger of Frontline and DHT. "We are convinced that the proposed new combination of Frontline and DHT will maximize value for both sets of shareholders," writes Frontline. DHT Holdings describes the new bid as "unimproved."
Shipping banks have impaired loans for USD 3.4 billion and DHT stopped an attempt by Fredriksen's Frontline to block the transaction with BW Group. These stories and more were featured this week on ShippingWatch.
John Fredriksen's Frontline tried for more than a year to partner with DHT Holdings before the tanker carrier instead took off with Carsten Mortensen's BW Group. Track the development from the first approach to the final rejection here.
Frontline's attempt to stop DHT Holdings' purchase of BW Group's 11 super tankers does not bother DHT and BW Group. "We'll carry on as planned," both parties tell ShippingWatch. Access the New York Supreme Court decision here.
Since Thorco Cloud's dramatic shipwreck over one year ago, the accident report has still not been completed, meaning that the question of liability and compensation cannot be addressed. The Danish carrier has criticized delays in the process, which falls under the responsibility of the flag states and the Indonesian authorities.
Investment company LF Investment, which Lauritzen Fonden has utilized on several occasions to help its suffering dry bulk carrier, has now paid approximately USD 28.1 million to a company in the group for two gas vessels.
Many carriers in chemical tanker are too small to optimally utilize their fleets, says CEO of Nordic Tankers, Per Sylvester Jensen in an interview with ShippingWatch. He plans to pursue a controlled growth strategy after booking the company's first actual profit in years.
J. Lauritzen's bondholder dispute was resolved, the carrier relying on money from its owner. More details emerged about the EU approval of Maersk's takeover of Hamburg Süd. And Rickmers Maritime had to throw in the towel. Keep up with this week's top stories on ShippingWatch.
After resistance from J. Lauritzen's bondholders, sole owner Lauritzen Fonden must inject the carrier with extra capital. "This is a very important agreement for the carrier," says CEO Mads Peter Zacho to ShippingWatch. Repayment of bank loans will now be halved for four years.
Tanker carrier Frontline has submitted paperwork to the US Securities and Exchange Commission (SEC) paving the way for a share sale of USD 300 million. However, the company is not obligated to go through with the sale.
With huge subsidies behind them, Hyundai Merchant Marine (HMM) and shipyard Daewoo have cashed in on the government's new rescue package with an agreement for ten new super tankers, VLCCs. More orders are on the way.
Shell will supply LNG fuel to a fleet of crude oil tankers to be operated by Sovcomflot in the Baltic Sea and North Europe. "This is an important next step for gas as part of the energy mix," says Maarten Wetselaar, Integrated Gas and New Energies Director at Shell.
Significant resignations at J. Lauritzen, large deficits from Hapag-Lloyd and the rest of the container sector, the Maersk Group General Assembly, and massive volumes of oil left on two sunken Maersk vessels featured among this week's top stories.
Tanker carrier Exmar saw its revenue slide in 2016, though the bottom line grew following a series of one-off incomes, including payment for a canceled contract. A weak product tanker market combined with many new vessels will make 2017 challenging.
John Fredriksen and his tanker carrier Frontline are offloading shares in DHT Holdings. The sale comes after Frontline's attempts to buy the competitor failed last week, as DHT made a deal with BW Group instead.
Danish pension funds will invest big-time in shipping, a new COO at French container carrier, and a new deal between Denmark and oil majors for the North Sea are some of this week's top stories on ShippingWatch.
Several critical observers question US Secretary of Commerce Wilbur Ross' continued ownership of product tanker carrier Diamond S Shipping. The carrier's ties to China in particular are being criticized by ethics experts who point to possible conflicts of interest.
Clarksons Platou and Fearnley Securities are both praising tanker carrier DHT Holdings for its purchase of BW Group's VLCC fleet. With the transaction, the company goes from being on the defense to an active player in the consolidation in the tanker market, say the analysts.
DHT Holdings is set to buy BW Group's fleet of 11 VLCCs including two newbuildings set for delivery next year, inform the parties Thursday. The transaction will make BW Group a major shareholder in DHT Holdings.
Last year's fluctuations in the tanker market were severely testing for the sector, says state-owned Russian tanker carrier Sovcomflot after publishing an annual report showing a setback in profits compared to 2015.
Shipowner Johan Wedell-Wedellsborg opened up about the sale of Stena Weco to Stena Bulk, Maersk Group CEO Søren Skou is building a new CEO Office, and the dry bulk shares have skyrocketed in 2017 so far. Here are this week's top picks on ShippingWatch.
2017 could be a challenge to the tanker vessels transporting crude oil. But on the short and medium term, Euronav's CEO projects that a steadily increasing oil consumption across the globe combined with the new environmental requirements will make supertankers a sound business.
Maersk plans to sue a Spanish billionaire, Torm CEO Jacob Meldgaard talks to ShippingWatch after the release of the carrier's annual report for 2016, and dry bulk may be closer to recovery. All this and more on ShippingWatch this past week.
Consolidation continues among German shipowners with Hamburg-based Claus-Peter Offen and Offen Group's takeover of Munich's Conto Group. Following the transaction, Offen Group owns a fleet of 169 vessels.
Torm CEO Jacob Meldgaard has not shelved the IPO plans even though the carrier suffered a big deficit of USD 142 million for the year after a fleet impairment of USD 185 million. But the tanker rates will need to improve and oil stockpiles go down before a listing becomes relevant, he tells ShippingWatch.
A large impairment of USD 185 million dragged Torm into a USD 142 million deficit in 2016. Like the rest of the tanker market, the carrier came under pressure from the sliding demand for tanker vessels in the second half of the year. The carrier will no longer publish its expectations.
A group of investors has bought up shares in Norwegian gas carrier Solvang, which owns a fleet of very large gas carriers, VLGCs. The latest share purchase means that the investors are now required to make an offer on the remaining shares.
The new CEO of US oil company ExxonMobil, who took over the position from the current US Secretary of State, Rex Tillerson, will continue to invest billions in the Gulf of Mexico in both new and existing refineries.
A large group of displeased bondholders plan to vote no to the proposal to postpone debt for NOK 500 million as requested by J. Lauritzen on Friday last week, capital manager Alfred Berg tells ShippingWatch. The carrier's new bank package hinges on the bondholders' acceptance.
The low product tanker rates in late 2016 pulled down d'Amico International Shipping. The Italian tanker carrier suffered a deficit of USD 12.8 million last year, and the fourth quarter was especially challenging.
The tanker carriers strained, but unlike previous times, the fluctuations between ups and downs will happen faster, Concordia Maritime CEO Kim Ullman tells ShippingWatch. He expects an improved market already a year from now.
While Norden anticipates that a "gradual improvement" of the dry bulk market will continue in 2017, the average rate level in tanker will be lower than in 2016. Yet various initiatives create a basis for profit, CEO Jan Rindbo tells ShippingWatch.
Chemical tanker carrier Team Tankers went from a profit of close to half a billion dollars in 2015 to a deficit in 2016, and the carrier thus tumbled along with the generally deteriorated tanker market. "We are not pleased with the results," says CEO Hans Feringa.
There will be no need to inject more money from Lauritzen Fonden into J. Lauritzen, agree the managing director of owner Lauritzen Fonden and the carrier's CEO in comments to ShippingWatch. J. Lauritzen has received a little over USD 194 million from the owner in 2016 and 2017.
The downturn in the offshore market means that Maersk Supply Service is attempting to delay the delivery of the nine vessels ordered by the carrier. But several ships will hit the water this year, says CEO Steen S. Karstensen to ShippingWatch.
The market for the transport of LPG will be held down by overcapacity across the majority of segments over the next two years, writes Drewry. The analyst firm only sees opportunities for better rates for the small gas vessels, where fleet growth will be minimal.