Three More Ships Join the Frontline

Dazed officials at Hyundai and Daewoo sacrificed some of their beauty sleep recently to launch three ships in the middle of the night. The unusual ceremony was conducted by spotlight to coincide with an evening jamboree organized by the Swedish company Frontline, the owners of the 167,000 dwt OBO carriers. Guests at the party in Stockholm were invited to view the launching by satellite – an innovative spectacle according to those present. The Frontline party viewed the ceremony at 8pm Swedish time, while the Koreans were launching the ships at around 2am. Frontline director Bo Pernemar told Marine Money, “The ships will probably enter service in April or early May, but no firm employment plans have yet been decided. An interesting feature of the ships is that they all have double hulls and double skins to take account of the environmental considerations.”   Continue Reading

Three More Ships Join the Frontline

Dazed officials at Hyundai and Daewoo sacrificed some of their beauty sleep recently to launch three ships in the middle of the night. The unusual ceremony was conducted by spotlight to coincide with an evening jamboree organized by the Swedish company Frontline, the owners of the 167,000 dwt OBO carriers. Guests at the party in Stockholm were invited to view the launching by satellite – an innovative spectacle according to those present. The Frontline party viewed the ceremony at 8pm Swedish time, while the Koreans were launching the ships at around 2am. Frontline director Bo Pernemar told Marine Money, “The ships will probably enter service in April or early May, but no firm employment plans have yet been decided. An interesting feature of the ships is that they all have double hulls and double skins to take account of the environmental considerations.”   Continue Reading

Who Will Get The Spoils of War ?

As the fighting ends and the rebuilding of Kuwait and Iraq begins, it seems everyone in the shipping industry is trying to figure out the “angles”.

Call a big U.S. engineering company with a query, as we did several days ago, and the overworked operator might snap “Is this about Kuwait? Are you a vendor or supplier?”

Transportation managers and shipping executives expect there to be demand for many of the same types of ships that were used to carry war materiel.  At the same time, the Military Sealift Command and the logistical arms of the other nations will continue to employ a numbers of ships to bring their gear home.

The war was a boon for U.S.-flag carriers, but some observers believe U.S. carriers will have a better shot at transporting liner cargo moving to post-war Kuwait than full ships of equipment.   Continue Reading

Productivity Key to Progress in European Shipbuilding

Nordstrom and Thulin Declare Jubilee Dividend

Swedish bulk shipping group Nordstrom and Thulin (N&T) closed its 140th year with more than doubled profits, and is making a similar payout for shareholders, by way of a jubilee dividend. Profits after financial items jumped from Kr54m to Kr140m ($22.8m) and earnings per share advanced from Kr1.86 to Kr3.86. The directors are therefore recommending that the dividend payout should increase from Kr1 to Kr2. Group liquidity at the year end slipped back from Kr938m to Kr783m, and available liquid funds, including unutilized bank overdraft facilities amounted to Kr696m, compared with Kr762m in the previous year. The decline can partly be attributed to increased investment during the year, including a third vessel for the Gotland ferry service.

At the end of 1990, an appraisal of the fleet was carried out by two independent brokers. Based on their appraisal,  the net asset value before tax was calculated to be Kr35 per share on a fully diluted basis, against Kr40 in 1989. The core deep sea fleet comprises a 150,000 dwt combination carrier, and five cape sized bulk carriers ranging from 100,000 to 150,000 dwt. Two of the ships are operated on charter, and the company also has three Cape sized tankers on charter. N&T has two 160,000 dwt bulk carriers on order in Poland, and three smaller product tankers under construction. During the year, the company acquired an additional 25% in the two bulk carrier newbuildings, which have been chartered from 1992 with purchase options.    Commenting on the results, Nordstrom President Ronald Bergmann told Marine Money “Our results were not greatly affected by the Gulf crisis, and the improvement reflected a general increase in the freight markets. There has also been a further improvement in the market during the first quarter.” Continue Reading

New Shareholders for Oceanic Finance

The Swedish investment group Sparbakernas Utvecklings AB and International Shipping Investment Co (ISIC) of the Isle of Man have joined forces to buy a 50% stake in Oceanic Finance Corp of Bermuda and its London based subsidiary Oceanic Financial Services. The main shareholder in ISIC is the Tufton Group. Prior to the recent change of ownership the main shareholders in Oceanic were Imasco Enterprises with a 33% shareholding, Fednav Ltd and Great-West Life Assurance Co with 28% each and CSL with 11%.

Oceanic chief executive Simon Leatham told Marine Money “The activities of the new shareholders and those of Oceanic are complementary. We have been mainly involved in providing mezzanine finance in the form of debt, while the Tufton group have mainly been equity investors, and specialists in the provision of rapid response bridging finance.” It is expected that Oceanic will be able to provide interlinking finance with projects financed by the new shareholders, as well as continuing with its own shipping portfolio.   Continue Reading

Niche Market: A Windy City Company’s Tropical Connection

Tropical Shipping & Construction Co. Ltd., an operator of  containerships between Florida and 14 Caribbean ports, is  planning to spend $35 million on capital improvements during  the next year.

Much of that money will be spent on containers and shoreside  facilities. The company is also reviewing plans to add two  additional containerships – either newbuildings or existing  ships – to its 12-ship fleet that range in capacity from 62 TEUs  to 440 TEUs. All are registered in St. Vincents.

A subsidiary of NICOR Inc., a natural gas utility holding  company based in Naperville, Il., Tropical had a good year in  1990. Revenue was $119.5 million, 19% more than in 1989,  and operating income was $17.8 million, up 15%. The  company carried the equivalent of 82,300 twenty-foot boxes,  10,700 more than in 1989.   Continue Reading

MTL Looking to Expand

Richard du Moulin, the chief executive and chairman of Marine  Transport Lines Inc., says his company has sharply reduced debt  since “going private” in 1989 and is “looking for ways to grow  the business.”

“I believe the opportunities in shipping, particularly  tankers have never been better, unfortunately, the risks are  enormous,” he says.

Speaking to members of the Connecticut Maritime Association, du Moulin said the tanker business is “probably not the business  for a conglomerate due to the risk to the entire enterprise and it’s not a business for partially committed companies and  individuals. It’s only an appropriate business for serious, long term dedicated players who recognize the opportunities and  risk and have the commitment to do it right.”   Continue Reading

Kosmos Goes Private

A new twist has emerged in the tortuous saga of the Kosmos Holdings, following complex maneuvers over the past two years. The company will soon be de-listed from the Oslo Stock Exchange, and revert to private status, following a decision by the management of A/S Eikland to buy out the minority shareholders. Eikland, which currently owns 84.6% of the equity, will buy the remaining shares for Kr60. In a process of corporate mytosis during 1989/90, the main constituent parts of the group were either sold off or merged with other companies. For example, Kosmos Shipping joined forces with Laboremus to form IM Skaugen, now a quoted company, while the pulp and paper business, operating as Norskeskog, was sold off.

The de-coupling and subsequent mergers left Kosmos primarily as an investment company, with a 10% shareholding in Aker and a 9% holding in Norskeskog. As a private concern, Kosmos will continue to act mainly in an investment capacity. Eikland is also now an investment company, and controls a 46% stake in the recently constituted IM Skaugen.  Continue Reading

Jebsens Consolidates Position in Gearbulk Deal

In a further realignment of the Gearbulk pool, Kristian Gerhard Jebsen Skipsrederi (KGJS) has consolidated its dominant position, following the purchase of Mowinckel interests. The Bergen based company has bought a 25% interest held by J. Ludwig Mowinckel, which is now concentrating its activities on the tanker sector. The deal includes the purchase of four bulk carriers owned by Mowinckel, the 43,000 dwt Heina and Lista, built 1984 and the 38,800 dwt Horda and Folga, built in 1981, and the company’s interests in six bulk carriers operated in the Gearbulk pool.

The transaction continues a process started last year, which saw Jebsen dramatically increase its investment with the purchase of 15 ships from the French partner Louis Dreyfus, in a deal worth around $300m. The acquisition was financed by eight year term loan facilities, arranged and structured by Manufacturers Hanover Trust. Jebsens also raised $108m last year through a ten year loan to finance three newbuildings, and $43m to finance three other vessels. Both facilities were arranged by Manufacturers Hanover.

Dreyfus retains a 50% interest in the management company Gearbulk Ltd, but has considerably reduced its involvement in the operation of the pool. The French company has leased the vessels back from Jebsens, but they are not committed to the pool. Continue Reading

Hav Goes to Market to Fund Expansion

A sure sign that confidence is returning to the stockmarkets is the renewal of IPOs after a lengthy break. Among the latest applicants for fresh funding is the Norwegian shipping and offshore venture A/S Hav, which is tapping investors for more expansion capital. In fact the move is the third tranche of a program launched last fall. Following a successful IPO and convertible bond issue last September, which raised a total of Kr180m, the company is launching a public offering of B shares worth an additional Kr90m ($15.5m). The issue, which is being managed by Finanshuset, invites investors to subscribe for 1.655m B shares with warrants at a price of Kr55. Payments are due in mid-April. Commenting on the issue, Hav managing director Tore Staubo told Marine Money “We are a diversified company with 65% of our assets in third generation semi-submersibles, 31% in product tankers and the remaining 4-5% in handy sized bulkers. The main reason for the issue is to generate more working capital and further funds for expansion in the offshore market. However, we do not want to be totally dependent on one sector, and we shall continue our policy of growth through diversification.”   Continue Reading