Ospreys Too Deliver

By Geoff Uttmark

If you thought only storks bring little bundles of joy, you are mistaken; add Ospreys to the list. In “Searching for Solid Investments in LNG” (MM Vol 15, No. 11) the article ended with “… we look for a strong recovery in Osprey common.” That was one year ago and Osprey was trading at $S 0.58 (USD $0.37). It was also long before the Singapore-traded Company gained broader coverage on the back of a takeover bid from Fredriksen controlled World Shipholding, Ltd. of Norway.

Our recommendation stemmed from forecasts of increasing growth in the use of natural gas – particularly in Asia which was then showing early signs of recovery, and the fact that Osprey Maritime represents one of the very few public plays in seaborne transport of LNG. While neither an absolutely pure LNG play, since Osprey also operates product tankers and VLCCs, nor possessing of a mighty balance sheet, Osprey did represent in December 1999 a reasonable speculation that it’s future loomed brighter than its recent past. Ship owners know something about “reasonable speculation” and John Fredriksen in particular saw it our way.

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