The program for next week includes interim reports from several oil companies, from bunker supplier OW Bunker to John Fredriksen’s drilling company Seadrill and Danish energy company Dong Energy, plus the results from Norwegian EMS Seven Seas and Frontline 2012. The latter two are also controlled by Norwegian shipowner John Fredriksen.
August 26th – EMS Seven Seas presents its 2nd quarter interim report
Norwegian ship supply company EMS Seven Seas, listed on the Oslo Stock Exchange, has been through a comprehensive restructuring process in recent years following a long period of disappointing results. And after the fiscal year 2013, the company looked like it might finally be back on track.
EMS Seven Seas managed to reduce its deficit before taxes in 2013, to USD 4.2 million, compared to a deficit of USD 13.5 million in 2012 and a USD 38.1 million deficit in 2011. The company’s operating profit (EBITDA) came to USD 3.5 million in the first quarter 2014, an improvement from USD 2.2 million in the previous quarter.
Even though the restructuring seemed to be moving in the right direction, EMS Seven Seas’ five biggest shareholders decided to sell their shares – around 80 percent in total – to US-based Supreme Group. The move caused much surprise and concern among EMS Seven Seas’ employees. Partly because EMS Seven Seas was in the midst of a bond issue process worth around USD 35.4 million, and because of Supreme Group’s history as a company that has prospered from the wars in Afghanistan and Iraq.
August 27th – Dong Energy presents its 2nd quarter interim report
Dong Energy is forging ahead. The Danish state-owned energy company achieved a profit of USD 284.6 million in the first quarter of the year, and operating result of USD 1.12 billion. This was a significant improvement over the same period 2013, where the same figures came to USD 84.3 million and USD 818.2 million, respectively.
Dong Energy also managed to reduce its debt, from USD 4.4 billion in late 2013 to USD 1.1 billion after the first quarter this year.
At the time, the energy company maintained its full-year expectations for 2014, with an expected operating profit (EBITDA) of USD 2.6 – 3.0 billion.
August 27th – Seadrill presents its 2nd quarter interim report
Drilling rig company Seadrill, owned by Norwegian shipping and oil king John Fredriksen, delivered an operating profit (EBITDA) of USD 624 million in the first three months of the year, compared to USD 768 million in the fourth quarter 2013.
Seadrill’s combined orderbook grew to USD 20 billion in early June this year when the drilling company secured a new giant contract from French Total Upstream in Nigeria. The contract was worth USD 1.1 billion.
State-owned Russian energy company Rosneft has seized a significant ownership stake in Seadrill subsidiary North Atlantic Drilling. The deal, which was speedily signed two days before the new EU sanctions against Russia came into effect on August 1., has led to concerns among employees at the Norwegian company. According to union Safe, the employees fear that jobs could be moved to Russia.
Seadrill expects an improved result in the 2nd quarter of the year and continuously growing operating profit throughout 2014. However, the company stresses that the market remains challenged by the oil companies’ investment stop and cost reduction efforts.
August 27th – BW LPG presents its 2nd quarter interim report
BW LPG is the world’s biggest owner and operator of the major VLGC gas vessels, and the gas carrier achieved an operating profit (EBITDA) of USD 51.5 million in the 1st quarter 2014, compared to USD 20.4 million in the same period 2013. The net result also represented a significant improvement over last year, with a profit of USD 30.8 million, compared to a deficit of USD 13.7 million in the 1st quarter 2013.
The carrier stated in the interim report that the improved result reflected a continuing firm market, which was especially strong late in the quarter.
BW LPG pointed to strong developments going forward, with a solid belief in the market for LPG transport – especially for VLGCs and especially in 2014 and 2015.
The gas carrier can look forward to fierce LPG competition from, among others, John “Big Wolf” Fredriksen in Avanca Gas, as well as Dorian LPG, where Danish Tim Truels Hansen as the carrier’s new Chartering Manager is working to strengthen the expansive VLGC carrier to fight for the LPG market.
August 29th – OW Bunker presents its 2nd quarter interim report
Danish OW Bunker – the world’s largest supplier of bunker fuel for ships – completed an IPO back in March of this year. There was a lot of interest in the share, from Danish as well as international investors, but the listing and related expenses had a significant impact on the company’s result for the first quarter.
Source: OW Bunker
OW Bunker delivered a gross profit of USD 56.7 million, compared to USD 58.4 million in the first quarter 2013. However, special items accounted for USD 10.1 million in expenses related to the IPO, where the company’s expenses in the same period 2013 came to USD 1.7 million. Revenue grew to USD 4.47 billion in the first quarter of the year, compared to USD 4.16 in the first quarter 2013.
The bunker giant maintained expectations of growing its volume by 10 percent in 2014, and that the result would increase by at least as much as the volume – not including special items.
August 29th – Frontline 2012 presents its 2nd quarter interim report
John Fredriksen's Bermuda-registered tanker carrier Frontline 2012 surpassed analysts' expectations in the first three months of the year.
The carrier achieved an operating result (EBITDA) of USD 25 million and an adjusted net result of USD 16.6 million, compared to analyst Fearnley's expected USD 8 million.
The result was attributed to an improved average TC rate for Frontline 2012's VLCC fleet in the spot market, at USD 39,500, and for the Suezmax vessels, at an average USD 29,500.
Frontline 2012 is working on a comprehensive streamlining process, an effort that was boosted in the first quarter. Among other initiatives, this meant that Frontline 2012 decided to join the large-scale gas collaboration Avance Gas along with Stolt-Nielsen and Sungas Holdings. Frontline 2012 divested eight VLGC newbuildings to the major joint venture.
In spit of the strong developments in the first quarter, the tanker carrier pointed to challenges going forward:
"The negative development in the markets for crude oil and product tanker in the second quarter is expected to produce a lower operating result (not including one-off items and losses) in the second quarter," said management in the first quarter interim report.