Last Dance for the Old Ladies

It is astonishing to see to what extent investors have regained their appetite for tanker equity offerings. While the investor profiles may differ, the reality is that today there is enough room in the equity markets to support both a Knightsbridge Tankers, with its five brand new VLCCs, and Mosvold Shipping Ltd.’s four vintage VLCCs. Restated, there is both investor interest in reasonably certain high current yields coupled with highly uncertain residual values (Knightsbridge) as well as interest in reasonably certain residual values coupled with highly uncertain current yields (Mosvold).

A Brief History
Mosvold is a long standing name in shipping. “For several decades the company was involved in a broad range of shipping activities (tankers, dry cargo, reefers and ferries) as well as offshore and extensive activities in trade, industry and insurance.” Of recent, the Group is best known for its acquisition of Dual Drilling Company in 1990 and its subsequent sale of Dual to Ensco International Ltd. in 1996. Mosvold Shipping Ltd. (hereafter “MSLtd”) was set up as a separate listing on the Oslo Stock Exchange as from November 30, 1995 to carry on the Company’s remaining ship owning and operating business.

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