A part of Watch Media

ShippingWatchMonday30 January 2023

  • Search
  • Log in
  • Carriers
  • Logistics
  • Regulation
  • Suppliers
  • Search
  • Log in
  • Latest
  • Search
  • Log in
  • Carriers
  • Logistics
  • Regulation
  • Suppliers
  • Offshore
  • Ports
17/10/2014at 13:50

SEB: OW Bunker leaning toward new downgrade

The underlying earnings are under so much pressure that OW Bunker might have to perform another downgrade, portfolio manager Carsten Dehn, SEB Invest, tells ShippingWatch.
Photo: OW Bunker
BY OLE ANDERSEN

OW Bunker, which on Tuesday, October 7th shocked investors and analysts by performing a massive full-year forecast downgrade of 20 percent for 2014, is leaning toward a new downgrade before the end of the year, says Carsten Dehn, chief portfolio manager at SEB Invest, who has along with several other Danish analysts been critical toward OW Bunker and the company's significant downgrade after only having been listed for a few months.

Do you want to stay up to date on the latest developments in International shipping? Subscribe to our newsletter – the first 40 days are free

Since OW Bunker's downgrade, which was attributed to the significant decline in the oil price, the price of oil has gone down even further. Meanwhile, the so-called yield predictions, gross profits per ton - on which OW Bunker bases its full-year forecast - are under massive pressure, says Carsten Dehn of SEB, one of the largest institutional investors in the Danish stock market.

OW Bunker downgrades 2014 result forecast

"We believe that there is a high probability of a new downgrade before the end of the year. The basic problem is that only a few things need to change in order to cause a dramatic impact on earnings. I believe that the underlying profits are under so much pressure that the company needs to make another adjustment. And that's worrying," Carsten Dehn tells ShippingWatch:

"If the yield generated by OW Bunker in September continues during the next three months, OW Bunker's guidance will not be met."

Significant uncertainty on the short term

OW Bunker CEO Jim Pedersen explained at a teleconference the day after the downgrade last week that there is a significant degree of uncertainty regarding short-term developments, and that the company has performed initiatives to minimize risks against further declines in the oil price.

Do you want to stay up to date on the latest developments in International shipping? Subscribe to our newsletter – the first 40 days are free

"There's the question of whether this coverage is a bit short-term. The most interesting thing is whether their underlying earnings are under pressure. And they are," says Carsten Dehn, who - following the OW Bunker downgrade - has hinted that the company today looks completely different than the impression he got at the IPO.

Major shareholder: Unfortunate OW Bunker downgrade

After the downgrade, numerous stock analysts have called for more information from OW Bunker's executive management, and senior analyst at Jyske Bank, Frank Høyer, among others, have asked OW Bunker CEO Jim Pedersen about whether the development has caused changes in the company's business model or whether it remains business as usual.

Photo: OW Bunker

"It does.  But every time we've been through situations like this we've of course tried to see what we can do differently and smarter. One of the conclusions is that we probably need to work on insuring ourselves earlier. But we're generally pleased with our business model. We're not worried about our company, but I do understand the concern among our investors," said Jim Pedersen (photo).

The oil price

A barrel of the European reference oil, Brent, cost USD 86.35 on Friday morning, compared to USD 83.80 on Thursday afternoon, according to Ritzau Finans. The US reference oil, West Texas Intermediate, cost USD 83.20, compared to USD 80.80 on Thursday afternoon.

Several major financial institutions have recently stated that the price has dropped too much and that the market is declining too fast. Bank of America and BNP Baripas are among the analysts who have predicted that the prices will remain above USD 80 per barrel.

OW Bunker grows 7 percent on volumes

OW Bunker in new Colombian partnership

OW Bunker starts listed life with costly launch expenses 

Related articles:

  • Photo: OW Bunker

    OW Bunker grows 7 percent on volumes

    For subscribers

  • Photo: OW Bunker

    OW Bunker in new Colombian partnership

    For subscribers

  • OW Bunker starts listed life with costly launch expenses

    For subscribers

Sign up for our newsletter

Stay ahead of development by receiving our newsletter on the latest sector knowledge.

!
Newsletter terms

Front page now

Foto: Höegh Autoliners
Carriers

Car carriers have rarely seen such profits: "We are probably at an all-time high"

After a difficult time during the pandemic, 2022 has exceeded all expectations for car carriers, says chief exec of Höegh Autoliners. Low capacity and electric cars out of China are main factors in elevating prices.
  • Norwegian carrier lands another large gas deal with Germany
  • Höegh Autoliners joins climate coalition

For subscribers

Foto: Markus Scholz/AP/Ritzau Scanpix
Container

Maersk rebrands Hamburg Süd and several other well-known subsidiaries

For subscribers

Foto: Ints Kalnins/Reuters/Ritzau Scanpix/REUTERS / X02120
Tanker

Fredriksen now owns nearly as many Euronav shares as the Saverys family

For subscribers

”Blue Water wants to grow – but it will be with a focus on profitable growth, and we will hold on to our strong values, unique customer focus and high level of satisfaction among both customers and personnel,” states Kurt Skov, founder and departing chair at Blue Water Shipping. | Foto: Carsten Andreasen/Ritzau Scanpix
Logistics

Blue Water founder promises future "focus on profitable growth"

For subscribers

Foto: Tatiana Meel/Reuters/Ritzau Scanpix
Regulation

EU considers capping Russian fuel prices at USD 100 a barrel

For subscribers

Foto: Statoil/AP/Ritzau Scanpix
Offshore

Borr Drilling raises USD 400m to pay off debt

For subscribers

Further reading

Foto: Höegh Lng
Tanker

Norwegian carrier lands another large gas deal with Germany

Höegh LNG has secured another long-term contract with the German state about delivering LNG to the country, which has turned its back on Russia.

For subscribers

Photo: Handout/Reuters/Ritzau Scanpix
Suppliers

Singaporean competition authorities to probe DSME sale

The competition authority in Singapore will now scrutinize the sale of shipyard group DSME to domestic industry group Hanwha. 

For subscribers

Foto: Hapag-Lloyd
Container

Hapag-Lloyd to examine options for ammonia bunkering

In collaboration with supplier Mabanaft, the German container major will evaluate the options for supply of ammonia for its ships in Hamburg and Houston.

For subscribers

Latest news

  • Blue Water founder promises future "focus on profitable growth" – 27 Jan
  • Borr Drilling raises USD 400m to pay off debt – 27 Jan
  • Income for ice class tankers has surged by 1,644 percent following sanctions – 27 Jan
  • Floating power station to provide energy for one million Ukrainians – 27 Jan
  • Maersk rebrands Hamburg Süd and several other well-known subsidiaries – 27 Jan
  • Car carriers have rarely seen such profits: "We are probably at an all-time high" – 27 Jan
  • Fredriksen now owns nearly as many Euronav shares as the Saverys family – 27 Jan
  • EU considers capping Russian fuel prices at USD 100 a barrel – 27 Jan
  • New partnership to investigate potential human rights abuse at sea – 27 Jan
  • Singaporean competition authorities to probe DSME sale – 27 Jan
See all

Jobs

  • Chartering Manager for Lauritzen Bulkers A/S

  • Copenhagen Shipping Company is hiring a skilled cargo broker

  • Foundation Package Manager - Offshore wind industry

  • Junior Finance Business Partner - offshore wind industry

  • Senior Lead, Human Sustainability at Sea

  • Financial Controller for International Shipping Company

Jobs

  • Chartering Manager for Lauritzen Bulkers A/S

  • Copenhagen Shipping Company is hiring a skilled cargo broker

  • Foundation Package Manager - Offshore wind industry

  • Junior Finance Business Partner - offshore wind industry

  • Senior Lead, Human Sustainability at Sea

  • Financial Controller for International Shipping Company

See all jobs

Colophon

ShippingWatch
Search

Sections

  • Carriers
  • Logistics
  • Regulation
  • Suppliers
  • Offshore
  • Ports
  • Sitemap
  • RSS feeds

Editor

Tomas Kristiansen

tk@shippingwatch.dk

Tel.: +45 3330 8360

Editor-in-chief

Anders Heering

Publisher

JP/Politiken Media Group Ltd

Advertising

annoncering@infowatch.dk

Tel.: +45 7077 7445

Advertising

Job Advertising

job@infowatch.dk

Tel.: +45 7077 7445

Jobs

Subscription

Try ShippingWatch or get an offer for a subscription meeting the exact needs of you or your company.

shippingwatch@infowatch.dk

Tel.: +45 7077 7445

Learn more about subscriptions here

Address

ShippingWatch

Rådhuspladsen 37

1785 Copenhagen K, Denmark

Tel.: +45 3330 8360

Guidelines

  • Privacy Policy

Copyright © ShippingWatch — All rights reserved

Microsoft is in the process of discontinuing Internet Explorer – and so are we.
For a better experience, we recommend using one of the following browsers.

Kind regards,
ShippingWatch

Google ChromeMozilla FirefoxMicrosoft Edge