The meetings to discuss product tanker mergers are intensifying, and many signs indicate that there will be fewer independent carriers in the segment by 2019. "Something will happen in 2018," stakeholders tell ShippingWatch.
Lars Dencker Nielsen will start his new job this Monday as commercial director for Scorpio Tankers. Making the decision to change jobs was a long process as he had to step down as partner of Jellicoe, he tells ShippingWatch.
The demand for oil could peak before many stakeholders expect, say several analysts. They advise tanker carriers to take it seriously when setting out future strategy, while there is some indication that at least one carrier is already in the midst of a transition.
Three listed dry bulk carriers will break the negative cycle and be the first to present positive earnings in the dry bulk market, according to Morgan Stanley, as rates on this market continue to rise.
Robert Bugbee, CEO of Maersk Tankers' top competitor Scorpio Tankers, has great expectations for the Maersk family after its acquisition of Maersk Tankers. "I expect to see the Maersk family as a driving and consolidating force," he tells ShippingWatch.
Following the announced merger with Navig8, Scorpio Tankers delayed its interim report, published instead today, Monday, and which shows a deficit for the first six months. The numbers further underline the strain on the product tanker sector.
Navig8's shareholders have voted in favor of a merger with Scorpio Tankers which will create a new giant within product tanker. The merger is now expected to be finalized Sept. 1, according to Scorpio Tankers.
The New York-listed dry bulk carrier booked a net deficit of USD 13.4 million in the second quarter, almost a 50 percent reduction compared to last year. Rates stabilized in the quarter due to increased Chinese iron ore and coal output, notes the carrier.
A series of private equity companies are approaching the perfect timing for selling their stakes in product tanker carriers, and this could be the beginning of an upheaval in the industry. Torm's CEO is ready to explore merger opportunities.
Not long ago, observers had little interest in Robert Bugbee as the Scorpio project looked set to fail. Now he is the man who has done what everyone is talking about in product tanker, and in an interview with ShippingWatch he calls on competitors to follow his lead.
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.
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.
Bulk carrier Scorpio Bulkers' earnings more than tripled in the first quarter, but the carrier is still sailing with losses on the bottom line. The carrier has made a USD 17 million impairment on ship values.
The first full-year results of the product tanker segment spell good news for the industry going forward, Deutsche Bank shipping analyst Amit Mehrotra tells ShippingWatch. He sees daily MR-rates improving over the next two years.