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RIG $134.09 Transocean Gets Shell Contract Extension
Thursday March 27, 4:50 pm ET
Transocean Gets Extension From Royal Dutch Shell for Ultra-Deepwater Rig Worth Up to $759M
HOUSTON (AP) -- Transocean Inc., the world's largest offshore drilling contractor, said Thursday it won a contract extension worth as much as $759 million for one of its ultra-deepwater semisubmersible rigs.
The deal with a division of Royal Dutch Shell PLC will keep the Deepwater Nautilus under contract for at least three more years. The extension, which includes an option to add a fourth year, begins in December.
Transocean estimates the contract will generate revenue of $586 million over the three-year term, or $759 million if it is extended for a fourth year.
The Nautilus began service in 2000 and is able to operate in 8,000 feet of water or more in some cases. Transocean operates 138 mobile offshore rigs, including 18 ultra-deepwater vessels.
Transocean shares fell $1.12 to close at $134.09.
DOCK is a young company and they use their revenues to their growth now, but certainly DOCK will be a dividend paying company - as all companies in John Fredriksen's empire :). Buy a small amount now, and keep adding while you follow how DOCK is doing in the coming quarters.
There are very few companies in this heavylift business, and DOCK is one of the biggest - if not already the biggest.
Hello Milner. AkerYards is a different company, they have nothing to do with Dockwise - or AkerYards can be a customer of Dockwise. AkerYards has been under various corporal changes - it has been a n overtake target - but now it seems it will remain a Norwegian shipyard.
You can buy Dockwise, if you wish, directly from Oslo (DOCK, closed today NOK12.95 = USD2.54) or from the grey pinksheet DOCKF.PK. On pinksheets it is VERY thinly traded (last trade was on March 18!).
I posted the information about Dockwise mainly to inform about what kind of sectors the marine industry can have. I am interested in Dockwise, because moving the oil rigs around the seas has increased and will increase remarkably. Moving the rigs with a heavylift boat is much faster than towing them with a tug.
DOCKF.PK $2.62 Jack-up rig Gorilla VII loaded in Rotterdam
Bermuda, Hamilton, March 27, 2008
The Rowan Gorilla VII Jack-up rig that was built by the Marathon LeTourneau Super Gorilla has been loaded yesterday in the harbor of Rotterdam, The Netherlands, on board Mighty Servant 1. The operation started at 7.00 A.M. and the Rowan Gorilla VII was in position and lifted out of the water by 2 P.M. The Mighty Servant 1 will depart for Angola today around noon. After its voyage the Gorilla VII Jack-up rig will be discharged in Luanda, Angola. The Jack-up rig is operated by Rowan Companies Inc.
Please find here the complete story (including pictures)
http://hugin.info/137711/R/1203780/246907.pdf
Not an easy task (IMO).
DPDW.ob $0.70 Deep Down Ships $1.5 Million of Innovative Subsea Hardware
Tuesday March 25, 1:39 pm ET
HOUSTON, March 25 /PRNewswire-FirstCall/ -- Deep Down, Inc. (OTC Bulletin Board: DPDW - News) announced today, in a continuing effort to create installation-friendly, solution-oriented products for its clients, that it has custom-engineered, produced, and shipped BS Latcher receivers and Messenger Wire Kits to mitigate the problem of marine growth in shallow subsea environments for umbilical systems in the Shell Perdido project. The entire project included more than $1.5 million in ROV-installable subsea hardware consisting of four BS Latchers with fluid-compensated subsea protective debris covers, nine subsea blind flanges, and 13 Messenger Wire Kits, including chain jacks and drifts.
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The Messenger Wire Kit includes our standard fluid-compensated debris cover, which completely surrounds the BS Latcher Receiver. This unit is connected to a new, unique, high-strength, pre-tensioned messenger wire chain that is attached to a surface hang-off device, with an upper blind flange sealing off the I-tube and holding the chain under tension with a chain stop. The chain tension and extra slack chain is handled via a surface kit. This surface kit consists of a chain locker and a new double-acting chain jacking system which is mounted on the top of the I-tube hang off device. This enables the debris cover or subsea blind flange to be held under tension or lowered to the installation vessel in a continuous and controlled process. The Messenger Wire Kit also includes cylindrical drifts with internal anodes and port holes to provide circulation and optimum corrosion protection within the I-tube.
In order to protect I-tubes not yet equipped with the BS Latcher receivers, Deep Down has provided another new solution consisting of a subsea blind flange that resembles a hatch cover. This subsea blind flange mounts on the bottom of the I-tube flange and is connected to the messenger wire chain and surface kit. This system also has a hinging assembly, making it easy to install and recover the subsea blind flange offshore during the installation. This system will provide long-term protection for the I-tubes until a BS Latcher is installed at a later time and umbilicals are pulled in and hung off.
"Deep Down, Inc. is proud of its ability to innovate solutions for our clients. Continuing demands force us to make our products and services even better to make installations safer and more efficient than ever before. Every dollar spent onshore in engineering design can save two or more dollars offshore in installation procedures, and the safety benefits are immeasurable. This was an exciting project for us, and we look forward to continuing our support of the project with our core services during the installation and commissioning phases," says President and CEO, Ronald E. Smith.
GM Stuffit. BW: Why Exxon Won't Produce More
Even with prices at the pump near all-time highs, ExxonMobil isn't projecting increased oil production. Here's why
Energy March 20, 2008, 12:01AM EST
by Christopher Palmeri
Oil fell nearly $5, to $104 per barrel, Mar. 19, on news of a government report showing slackening demand. Not long ago, a $5 drop would have been an astonishing plunge that shook the trading establishment. These days? Nah, that's just the ho-hum daily volatility in the oil market. But how is it that crude can still trade above $100 a barrel, three times what it sold for at the start of the decade, despite a very wobbly economy?
If you want to understand that, it helps to listen in to ExxonMobil's (XOM) presentation to analysts in New York City in early March. Halfway through the three-hour meeting, Exxon management flashed a chart that showed the company's worldwide oil production staying flat through 2012.
The Calculus of "Acceptable Investment Return"
Ponder that for a minute. Texas-based Exxon is the largest publicly traded company in the energy business. In fact, it's the most profitable company in the history of capitalism, earning a record $40.6 billion on sales of $404 billion last year. Yet even with prices at the pump near all-time highs, Exxon isn't planning on producing any more oil four years from now than it did last year. That means the company's oil output won't even keep pace with its own projections of worldwide oil demand growth of 1.2% a year.
Imagine a chief executive of another growth company making a similar announcement to Wall Street as Exxon Chairman Rex Tillerson. What if Steve Jobs said Apple (AAPL) wasn't going to sell any more iPhones than it did in 2007? What if Howard Schultz said Starbucks' (SBUX) latte production would stagnate, at least until the next U.S. president embarked on his or her reelection campaign? Shares of both companies would plummet.
After the management presentations, Tillerson took questions from the audience. The first hand that shot up was that of Deutsche Bank (DB) oil analyst Paul Sankey, who wanted to know why the company wasn't showing any volume growth. "We don't start with a volume target and then work backwards," Tillerson explained. Instead, he said, his team examines the available investment opportunities, figures out what prices they'll likely get for that output down the road, and places their bets accordingly. "It really goes back to what is an acceptable investment return for us," Tillerson said. In other words, producing incremental barrels just to ease prices for consumers is not part of the company's calculations. Last year, ExxonMobil led the industry with a return on capital of 32%.
Big Declines in Europe and the U.S.
Exxon's flat oil forecast was even more surprising because it came during a meeting when the company was trumpeting a big increase in capital expenditures—to at least $25 billion a year going forward, up from $21 billion last year. The company also outlined a slew of big projects, 12 of which are starting up this year. These include the 600 million barrel Kizomba C development off the coast of Angola that began producing on New Year's Day and another in a string of giant liquefied natural gas facilities in Qatar. Unlike oil, Exxon's production of natural gas—much of it liquefied and shipped in tankers to Asia and Europe—is projected to climb over the next four years.
But how could oil production be flat? Peer into Exxon's historical numbers and you see the problem Tillerson faces. Since 2000, Exxon's oil output from two of its largest regions, the U.S. and Europe, declined a startling 37%. That's 500,000 fewer barrels a day in just seven years. Exxon reported 100,000 fewer barrels per day last year alone due to the nature of the contracts big oil companies sign with countries such as Angola and Nigeria. In such contracts, foreign companies put up the capital to fund new projects, and they are paid back in barrels. If oil prices rise above certain levels, Exxon gets to keep fewer of those barrels as profit for itself.
Exxon plans on bringing new fields online in Russia, the Middle East, and Africa over the next four years but they won't be enough to generate growth beyond what the company is losing due to the maturation of its fields in the North Sea and Alaska, the nationalization of its fields in Venezuela, and volumes lost due to those production sharing agreements with other countries. "It has always been a challenge to grow volumes when you are working off of a base as large as ours," Tillerson told the analysts. Indeed, Tillerson got more bad news on Mar. 18 when a British judge freed up the foreign assets that Exxon had sought to freeze in its ongoing dispute with the government of Venezuela.
A Gusher for Share Prices
Exxon's flat forecast was, in a way, an admission of what's been an open secret for the industry. Big oil companies almost always forecast production growth but they rarely make their own targets. In 2002, shortly after its big merger with Texaco, Chevron (CVX) was producing nearly 2.7 million barrels per day of oil and natural gas worldwide, and Chairman David O'Reilly said the company would increase its volumes by as much as 3% a year by 2006. Last year the company produced an average of just 2.6 million barrels per day. A spokesman for the company says it, too, lost barrels to production-sharing agreements and changes in contract terms in Venezuela. The company is maintaining a 3% annual growth target through 2010, however.
Could Exxon spend more and generate more growth? Probably. Even with its increased capital spending, the company still spent 70% more on dividends and stock buybacks last year ($36 billion) than it did reinvesting in its business. Tillerson noted that share buybacks over the past have boosted the average stockholder's share of the company's oil production by 20% over the past five years.
In other words. even though the company's volumes haven't grown, fewer shares outstanding mean more barrels per share for each remaining shareholder. Lysle Brinker, who follows Exxon for the research firm John S. Herold, figures that given the company's current capital outlays, Tillerson can keep replacing the oil and natural gas he sells. That way the company won't shrink, even if it doesn't grow.
Big oil companies can continually miss their targets or even target no growth and still shine on Wall Street due to the peculiar nature of commodity businesses. Less supply of a commodity means higher prices. Higher oil prices mean more profits for the oil companies. Exxon shares have risen 21% in the past year—and even closed a bit higher on Mar. 5, the day of its analysts meeting.
Palmeri is a senior correspondent in BusinessWeek's Los Angeles bureau .
DOCKF.PK $2.62 Dockwise Ltd. (heavylift sea carrier):
Woodside Angel Project on board Black Marlin
Departure for installation in Angel Field planned for March 23, 2008.
In December 2005 Clough Aker Joint Venture contracted Dockwise for the transport and installation (float-over) of the Woodside Angel Topside. Since February of this year the project is in the execution phase. After the outfitting of the vessel Black Marlin in Batam the vessel arrived at the load-out yard in Pasir Gudang, Malaysia on February 14, 2008.
Please find here the complete story including pictures
http://hugin.info/137711/R/1202814/246449.pdf
Published: 17:40 20.03.2008 GMT+1 /HUGIN /Source: Dockwise Ltd /OSE: DOCK /ISIN: BMG2786A1062
Difficult to say. I own a small portion of GLNG and have not followed TGP so closely. GLNG's EPS is $2.10 and TGP's $-0.26, but TGP is still in its infancy, AND Golar is managed by JF!. Both have good fixed future incomes, and both pay already good dividends.
Take a look at their latest quarterly reports (read the CEO's report or their future plans), and you get a good picture of the companies.
Yes, I am quite positive all those companies will continue their dividend paying policy. The dividends will of course vary in bad times, but the future of the shipping industry seems quite positive now. After I have seen the difficult times JF guided both Frontline and Golden Ocean throuhg, I trust him.
As long as John Fredriksen is on the driver's seat I remain confident in my investments.
Now close the computer, throw the stock market out of your mind and have a nice Easter Weekend!
TK $40.50 is the mother company Teekay, primarily an oil tanker company, and TGP $27.38 is a spin-off Teekay LNG Partners, the liquid natural gas carrier.
TGP just acquired two more LNG carriers via mother company Teekay from Conoco and Marathon Oil.
"Teekay LNG Partners L.P. is a publicly-traded master limited partnership formed by Teekay Corporation (NYSE:TK - News) as part of its strategy to expand its operations in the LNG and LPG shipping sectors. Teekay LNG Partners L.P. provides LNG, LPG and crude oil marine transportation services under long-term, fixed-rate time charter contracts with major energy and utility companies through its fleet of thirteen LNG carriers, four LPG carriers and eight Suezmax class crude oil tankers. Six of the thirteen LNG carriers are newbuildings scheduled for delivery between the second quarter of 2008 and early 2009. Three of the four LPG carriers are newbuildings scheduled for delivery between mid-2008 and mid-2009."
Oslo bourse is very little and VERY volatile on base of its majority of oil, shipping and drilling stocks. So the best way of bearing it is to acquire decent amount of those good dividend paying stocks, and then only follow the rollercoaster rides sitting safely on sidelines.
Of course if you are a skilled trader you can take advantage of those ups and downs, but when you have collected a good number of those stocks, you need not worry so much about the volatility of the stock market.
I have found that the best way of owning stocks, and sleep good the nights :)
OK. I don't think ITCL will roar so much up before it will be listed in Oslo main bourse.
Just keep buying small portions now and then (monthly?) and putting the stocks on a shelf. This needs patience, but in a couple of years you have a nice bunch of shares, and will start to get nice quarterly dividends.
It's John Fredriksens policy to take care of his small shareholders - of course in addition to his really big ones. I think it comes from his original surroundings - he is a son of a fisherman, and has literally self made all his billions.
His dividend-friendly policy has not prevented him to create really flourishing companies, has it? :)
As you have certainly noted the shipping industry is seasonal and very volatile, so you need to be a "real sailor" to stay calm in the waves. Best help to that is to get in a stock in its infancy, when you need not later to care so much about the seasonal rollercoaster rides - only to keep an eye on the quarterly dividends.
Have you taken a look at the deepsea driller Seadrill (SDRLF.PK $24.10). I think it is a very strong stock, too. Offshore drillers are desperately needed by the oil industry to explore new oil resources (see e.g. Transocean RIG #130.49)
Off restriction? Do you mean the US FRO owners cannot buy ITCL stocks from Oslo before April 17? I have nor read all the documents so carefully.
Tor Olav Trøim says the best indicator of world economy is the containership index.
Container outlook cheery as charter rates flatline
Thursday 20 March 2008
Katrin Berkenkopf, Cologne
WITH the Easter holidays coming up, the container vessel charter market seems to have taken a break, writes Katrin Berkenkopf in Cologne.
Brokers noted little activity or, as Braemar Seascope put it: “a week of consolidation passes”.
Indices remained almost unchanged. Braemar’s BOXi was flat at 161.55 points, down 0.01 points. The Hamburg ConTex index reached 1,006 points, up from 1,005. The CV1100 type showed a slight downward tendency, while the B170 and 2,500 types were slightly up.
Brokers suggested that ER Schiffahrt has found a new charterer for three, 2000-built 5,700 teu ships when their Maersk charter finishes at the end of this year. They will reportedly be taken up by MSC for four years at $39,000 per day. The fixture is unconfirmed and is yet be signed.
Generally, there are more optimistic forecasts for the bigger sizes than for the smaller ships in the market. “Owners of smaller ships will be keen to see rates increase for their ships, but this seems unlikely in the short-term,” Braemar said.
“At the risk of sounding repetitive, there is no major sentiment in either bullish or bearish direction at the moment,” DnB Nor Markets said in a note on the shipping markets. “Those exposed to the container shipping market are still advised to keep a keen eye on the state of the world economy.”
Despite this week’s stock market turbulence around the world, Michael Frenzel, chief executive of Hapag-Lloyd parent company, Tui, said that he did not expect global trade to take a strong dip.
A leading German shipping banker has also given an optimistic outlook for container market development, even though the orderbook remains enormous.
Jürgen Bentlage, head of Deutsche Schiffsbank, said delivery lead times were much longer than they used to be some years ago. If growth rates on the demand side continued at recent levels, this additional tonnage can be absorbed, he said.
Slow steaming to cut rising fuel costs is becoming a persistent phenomenon with liner companies, providing additional impetus for demand.
Although there is concern about the US economic slowdown, Mr Bentlage said that the container trades nowadays are far less dependent on developments there, while Europe-Asia trades are more important.
“But it might be good if trees don’t grow sky-high for a while, so that new orders will slow down a bit,” he added, with regard to future rates. That would help the market in absorbing the new tonnage.
According to data from AXS-Alphaliner, the global container fleet has reached the capacity milestone of 12m teu this week, made up of 5,823 vessels.
The analysts expect the 13m teu mark to be passed in November this year.
The data also shows the extent to which the growth has accelerated: while it took 21 months to get from 8m teu to 9m teu, the anticipated period between 12m and 13m teu is only eight months.
ITCL closed at NOK9.50 yesterday - the Oslo bourse is closed today. Keep an eye on the stock price - will it go lower next week before you buy. Can you see the Oslo/OTC list?
I think it is worth its IPO price, but you know the market how it prices the stocks - randomly depending on the market sentiment. If you get it lower - good.
Me too. I own almost all "Den Store Ulven's" stocks. I trust the management - that's the most important thing in stock owning.
"Fredriksen named Connecticut Maritime Association Commodore 2008
(1/7/2008)
(STAMFORD, CT -- January 7, 2008) Mr. John Fredriksen, president and CEO of Frontline Ltd., has been named as the Connecticut Maritime Association (CMA) Commodore for the year 2008. The Award is given each year to a person in the international maritime industry who has contributed to the growth and development of the industry.
Mr. Fredriksen follows a long succession of influential maritime industry leaders as Commodore. The Award will be presented to Mr. Fredriksen on March 19, 2008 at the Gala Dinner in Stamford, marking the conclusion of the annual Connecticut Maritime Association conference and trade exposition.
"We are extremely fortunate to have had the industry's most distinguished and accomplished shipowners accept our annual Award, beginning with our first Commodore Ole Skaarup,” said Peter Drakos, president of the CMA “With the Board's choice this year of John Fredriksen, we continue the tradition of recognizing excellence. It will be an honor to have one of the most successful shipping men of our time accept the CMA Award."
This sector in shipping is also interesting. Not too many participants: TGP 27.30, LNG 22.62 and GLNG 17.47.
Teekay LNG Partners Acquires Two LNG Carriers
Wednesday March 19, 5:36 pm ET
HAMILTON, BERMUDA--(MARKET WIRE)--Mar 19, 2008 -- Teekay GP LLC, the general partner of Teekay LNG Partners L.P. (Teekay LNG or the Partnership) (NYSE:TGP - News), today announced that Teekay LNG has agreed to acquire two 1993-built, 88,000 cubic meter specialized LNG vessels, the Arctic Spirit and the Polar Spirit, from Teekay Corporation (Teekay) for a total cost of $230 million. Teekay LNG expects to acquire these vessels on April 1, 2008, and immediately charter the vessels back to Teekay for a period of ten years (plus options exercisable by Teekay to extend up to an additional fifteen years). These charters are expected to generate approximately $27 million per annum in operating cash flow to the Partnership. Teekay LNG intends to finance the acquisition initially with its existing cash balances and undrawn revolving credit facilities.
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In December 2007, Teekay purchased the two vessels from a joint venture between ConocoPhillips and Marathon Oil Corporation for $230 million and chartered back the vessels to the sellers until April 2009 (with options exercisable by the charterers to extend up to an additional seven years). Teekay was obligated to offer these vessels to Teekay LNG in accordance with the Omnibus agreement between the parties.
"We are pleased that Teekay LNG has been able to make this accretive acquisition," commented Peter Evensen, Teekay GP LLC's Chief Executive Officer. "Given the uncertain length of the charters to the ConocoPhillips and Marathon Oil joint venture company, we believe that the long-term charters to Teekay are a better alternative for Teekay LNG since they will provide long-term stable cash flows for the Partnership. These two vessels, together with our nine scheduled newbuilding deliveries, should allow us to meaningfully increase Teekay LNG's cash distributions in both 2008 and 2009. Teekay LNG's current annualized distribution of $2.12 per unit already represents an attractive yield of over 7.7% based on our March 18, 2008 closing price of $27.45."
About Teekay LNG Partners L.P.
Teekay LNG Partners L.P. is a publicly-traded master limited partnership formed by Teekay Corporation (NYSE:TK - News) as part of its strategy to expand its operations in the LNG and LPG shipping sectors. Teekay LNG Partners L.P. provides LNG, LPG and crude oil marine transportation services under long-term, fixed-rate time charter contracts with major energy and utility companies through its fleet of thirteen LNG carriers, four LPG carriers and eight Suezmax class crude oil tankers. Six of the thirteen LNG carriers are newbuildings scheduled for delivery between the second quarter of 2008 and early 2009. Three of the four LPG carriers are newbuildings scheduled for delivery between mid-2008 and mid-2009.
Teekay LNG Partners' common units trade on the New York Stock Exchange under the symbol "TGP".
FORWARD LOOKING STATEMENTS
This release contains forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended) which reflect management's current views with respect to certain future events and performance, including statements regarding: the Partnership's future growth prospects; the expected delivery dates of the vessels to Teekay LNG; the annual operating cash flow expected from the vessels and their respective charter contracts; and the expectation of increasing Teekay LNG's cash distributions meaningfully in 2008 and 2009. The following factors are among those that could cause actual results to differ materially from the forward-looking statements, which involve risks and uncertainties, and that should be considered in evaluating any such statement: early termination or breach of one or more of the charter contracts; delays in deliveries of the Arctic Spirit, Polar Spirit or the nine other scheduled newbuildings; the Partnership's ability to raise financing to purchase additional vessels; and other factors discussed in Teekay LNG's filings from time to time with the SEC, including its Report on Form 20-F for the fiscal year ended December 31, 2006. The Partnership expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Partnership's expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.
Contact:
Contacts:
Teekay LNG Partners L.P.
Dave Drummond
Investor Relations Enquiries
(604) 609-6442
Teekay LNG Partners L.P.
Alana Duffy
Media Enquiries
(604) 844-6605
Website: http://www.teekaylng.com
Source: Teekay LNG Partners L.P.
I guess so too. Alibaba has gained a substantial market share and income in the East and in Europe, but with a 8 BILLION shares IPO it is not easy to gain in the share price (learned from YOU!)
GM Folks. Alibaba Rubbing Lamps To Buy Back Yahoo! Stake
Vivian Wai-yin Kwok, 03.19.08, 7:51 AM ET
HONG KONG -
Like the legendary Arabian character Ali Baba, Jack Ma, founder of ’s biggest business portal, Alibaba.com, treasures freedom over gold bars. To avoid Microsoft's capture of Yahoo!'s minority stake in Alibaba.com, Ma is reportedly seeking investors to back him to regain control of those shares.
The share acquisition plan, together with its forecast-beating 2007 results, sent the shares of Alibaba.com up 13.6%, or 1.66 Hong Kong dollars (21 cents), to close at 13.86 Hong Kong dollars ($1.78), on Wednesday. The stock had risen as much as 19.3%, to 14.56 Hong Kong dollars ($1.87), during the day.
Ma and his management team are reportedly in advanced talks with investors to finance their plan to purchase the 39% of Alibaba.com owned by Yahoo!, which is facing a $44.6 billion hostile takeover bid by Microsoft, announced Feb. 1. Alibaba was reportedly given a "right of first offer" to buy Yahoo!'s stake, according to its agreement with Yahoo! inked in 2005.
Although Yahoo! has been Alibaba.com's largest shareholder since purchasing its stake in the fall of 2005 for about $1 billion, Ma, an English teacher turned entrepreneur, has been careful to keep a free hand to manage and expand the Hangzhou-based e-commerce portal, a venture he founded in 1999.
Ma and other Alibaba executives are said to be concerned that Microsoft, which has history of hands-on management, would intervene in Alibaba's day-to-day operations. To ensure management independence, Alibaba has hired Deutsche Bank as financial adviser and Wachtell, Lipton, Rosen & Katz as legal adviser to work on the purchase, The Wall Street Journal reported Wednesday, citing unnamed sources with knowledge of the situation.
All parties involved declined to comment on the news.
Alibaba said Tuesday that its net profit in 2007 had ballooned 3.4 times, to 967.8 million yuan ($136.3 million), as a result of growing paid-up membership, as well as higher average spending per member.
Alibaba, which is currently worth about 70 billion Hong Kong dollars ($9 billion) in market capitalization, tapped $1.5 billion in cash from its listing last November in Hong Kong, making it the largest tech stock IPO after the debut of Google in 2004. The business-to-business portal, which surged 192% on the first day of trading, failed to sustain its magic, though. The stock slid to 16.34 Hong Kong dollars ($2.09) last week, from its peak of 40.50 Hong Kong dollars ($5.19), and declined still further prior to Wednesday's news.
FRO courting OSG...
Published: 12:28 20.03.2008 GMT+1 /HUGIN /Source: Frontline Ltd /OSE: FRO /ISIN: BMG3682E1277
FRO - Filing of Schedule 13D
Frontline Ltd. (the "Company" or "Frontline") (NYSE:FRO) announces that it has today filed a Schedule 13 D with the United States Securities and Exchange Commission reporting that the Company and companies indirectly controlled by Mr. John Fredriksen as of March 10, 2008 together held an aggregate of 1,628,300 shares in Overseas Shipholding Group, Inc. ("OSG"), corresponding to 5.2% ownership.
In addition to the above mentioned holding, Frontline has entered into a forward contract for 1,366,600 shares in OSG, corresponding to an additional 4.4% of the total outstanding shares in OSG. If Frontline should decide to take delivery of the shares under the forward contract, the Company and the group companies will control 9.6% ownership in OSG.
Frontline sees the investment in OSG as a good value. Frontline is making this investment together with its largest shareholder in order not to significantly reduce Frontline's short and medium term dividend capacity. The joint investment also reflects the fact that only approximately 41% of OSG's total fleet in terms of number of vessels is exposed to the market for crude oil transportation, which is Frontline's core market.
Frontline and group companies view both these holdings as good financial value investments, but reserve the right to be in contact with management and other shareholders of OSG regarding alternatives that OSG could employ to enhance shareholder value.
March 20, 2008
The Board of Directors
Frontline Ltd.
Hamilton, Bermuda
GM Stock Lobster. Do you know what are the commodity indexes (indices?)?? Where can you find them?
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GM SL. "Buy commodity indices, not companies" says Jim Rogers in ABN Amro's interview.
http://www.abnamrozertifikate.de/muz/default.aspx?test=true&utm_source=Onwirtschaft&utm_content=Rotation&utm_medium=Textlinkbox&utm_campaign=Muz_Rogers
ITCL up 7% in Oslo/OTC today: NOK 11.00 (=USD 2.15), volume 107k (7,1 million on Friday!)
It's very difficult to say how long this volatility will last. There is much fear in the market due to the uncertainty of the finance industry: the whole economy runs very much on borrowed money, and it's very difficult to get a loan now.
If the (possible) recession in USA is strong enough to slow down the growth in BRIC (Brazil, Russia, India, China) countries, it will certainly have an impact on shipping industry for some time, but I do not believe that time will be a very long. Those emerging countries seem to be quite strong in their growth already.
Here's the weekly report of the Norwegian shipbroker Bassøe. Their tanker report is quite optimistic: (click Weekly Reports)
http://www.pfbassoe.no/EpsPareto/Templates/WebRequestPage.aspx?Main=Y&
VLCCF 24.15 Knightsbridge Tankers Limited (VLCCF) - Announces Long Term Charter Contract
Monday March 17, 9:54 am ET
HAMILTON, NORWAY--(MARKET WIRE)--Mar 17, 2008 --
Knightsbridge Tankers Limited ("Knightsbridge" or the "Company") announces that it has agreed to fix out on time charter one of its two Capesize bulk carriers currently under construction at Daehan Shipbuilding Co. Ltd in the Republic of Korea. The charter is for a period of five years from the delivery scheduled for July 2009 and is at a net rate of $53,000 per day.
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Chairman of Knightsbridge Tankers, Ola Lorentzon, says "The Board is pleased to have secured charters for both of its new Capesize vessels, which is in line with its previously stated strategy to safeguard the Company's long term earnings, reduce financial exposure and enhance dividend capacity".
Hamilton, Bermuda March 17, 2008
AMR.v 0.55 Atlas Minerals just made a considerable molybdenum discovery in Ecuador.
You are right, unfortunately. There will be a fierce fight about commodities and natural resources, and the prices will before long stop the growth of the emerging markets and slow down the industrialized world.
GM Stock Lobster. Excellent article. It tells clearly what is going on - not that everybody understands why.
Hej Kujo. TORM (TRMD 27.83, oil product carrier, dry bulk) came out with excellent numbers, too, and announced more newbuilds. Shipping sector is doing really well.
TRMD $27.83 TORM Annual Report 2007 Announcement
Friday March 14, 5:15 am ET
Announcement NO. 5 - 2008
COPENHAGEN, March 14 /PRNewswire-FirstCall/ -- At the end of 2007, TORM's Board of Directors and Management developed a new strategy, "Greater Earning Power 2.0", which was approved in January 2008. The strategy focuses on continued growth over the next three years, which means that the number of vessels in the fleet has to grow to 225-250 incl. pool vessels. The organization's resources should reflect these ambitions, and therefore the next three years will focus on the development of competences and growth as well as to operate the Company in a socially responsible manner.
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- The profit before restructuring costs and tax was USD 819 million, which is in line with the latest forecast of USD 810-820 million excluding restructuring costs of USD 15 million in connection with the acquisition of OMI. No vessels have been sold in 2007. The Board of Directors considers the profit to be highly satisfactory.
- EBITDA was USD 304 million (DKK 1,654 million).
- Cash flow from operating activities was USD 205 million (DKK 1,115 million). Cash flow before financing activities was USD -159 million (DKK -865 million), while cash flow from investing activities was USD -364 million (DKK -1,980 million).
- At 31 December 2007, equity amounted to USD 1,081 million (DKK 5,491 million), corresponding to USD 15.6 per share (DKK 79.3) excluding treasury shares.
- The market value of the Company's fleet as of 31 December 2007 exceeded the book value by USD 1,578 million (2006: USD 1,061 million), equalling USD 22.8 per share (DKK 115.8) excluding treasury shares. To this should be added 44 chartered vessels. The company has purchase options on 19 of these.
- Return on Invested Capital (RoIC) was 10.5% (2006: 19.6%), and Return on Equity (RoE) was 67.1% (2006: 21.5%).
- In March 2007, TORM sold its stake in Norden at a price of DKK 3,987 million (USD 713 million), and in September half of the proceeds were distributed as an extraordinary dividend, corresponding to DKK 27.5 per share (USD 5.1 per share).
- In June 2007, TORM took over the US shipping company OMI in collaboration with the Canadian shipping company Teekay. In connection with the acquisition of OMI, TORM took over 26 product tankers incl. one new building for delivery in 2009. Four of these were chartered vessels.
- At the end of 2007, the Company owned 62 vessels, 56 of which were product tankers and six bulk carriers. In addition to the vessels taken over from OMI, the Company took delivery of five vessels during the year and contracted seven new buildings not yet delivered.
- By the end of 2007, TORM had 21 vessels on order and had exercised one purchase option. Consequently, the Company's fleet of owned and chartered vessels will by 2011 consist of 143 vessels incl. pool vessels based on existing contracts.
- The forecast profit before tax for 2008 excl. sale of vessels is USD 210-230 million. The profit before tax in 2007 was USD 161 million, excluding a profit of USD 643 million from the sale of the Norden shares.
- The Board of Directors recommends, subject to approval by the Annual General Meeting, that a dividend of DKK 4.50 (USD 0.89) per share be paid, corresponding to a total dividend payment of DKK 327.6 million (USD 64.5 million) and equivalent to a return of 2.5% in relation to the closing price of the Company's shares on the last business day of 2007. Including the extraordinary dividend of DKK 27.5 (USD 5.1) per share paid out in September 2007, the accumulated dividend for 2007 was 55% of the net profit equivalent to DKK 2,330 million (USD 434 million).
Telephone conference A telephone conference and webcast ( http://www.torm.com) reviewing the Annual Report 2007 will take place today, 14 March 2008, at 16:00 Copenhagen time. To participate, please call 10 minutes before the call on tel.: +45-3271-4607 (from Europe) or +1-334-323-6201 (from the USA). A replay of the conference will be available from TORM's website. Contact A/S Dampskibsselskabet TORM Telephone +45-39-17-92-00 Klaus Kjaerulff, CEO Tuborg Havnevej 18 DK-2900 Hellerup Denmark
About TORM
TORM is one of the world's leading carriers of refined oil products as well as being a significant participant in the dry bulk market. The Company operates a combined fleet of 128 modern vessels, principally through a pooling cooperation with other respected shipping companies who share TORM's commitment to safety, environmental responsibility and customer service.
TORM was founded in 1889. The Company conducts business worldwide and is headquartered in Copenhagen, Denmark. TORM's shares are listed on the Copenhagen Stock Exchange (ticker TORM) as well as on the NASDAQ (ticker TRMD). For further information, please visit http://www.torm.com.
GM Stuffit. Lotto board's gossip columnist here:
Re.: TUI
TUI's subsidiary is a container shipper Hapag-Lloyd. "Den *Store Ulven" (John Fredriksen) has his hands on it, and it MAY mean big things to GDOCF or FRO to come.... Stay tuned.
NOTE: TOPS A 3:1 reverse split!
TOP Ships (TOPS.n $2.42)
From the 4Q report:
Today, our shareholders approved a 3:1 reverse stock split. We expect the effective date of the reverse split to be on March 20, 2008. We believe that the decrease in the number of our common shares outstanding as a consequence of the reverse split and the anticipated increase in the price per share will encourage greater interest in our shares by the financial community and the investor and possibly promote greater liquidity for our shareholders with respect of their holdings.
NOTE: TOPS A 3:1 reverse split!
From the 4Q report:
Today, our shareholders approved a 3:1 reverse stock split. We expect the effective date of the reverse split to be on March 20, 2008. We believe that the decrease in the number of our common shares outstanding as a consequence of the reverse split and the anticipated increase in the price per share will encourage greater interest in our shares by the financial community and the investor and possibly promote greater liquidity for our shareholders with respect of their holdings.
TOPS $2.42 TOP Ships Reports Fourth Quarter and Fiscal Year 2007 Financial Results
Thursday March 13, 7:35 am ET
ATHENS, Greece, March 13 /PRNewswire-FirstCall/ -- TOP Ships Inc. (Nasdaq: TOPS - News) today announced its operating results for the fourth quarter and the fiscal year ended December 31, 2007.
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For the three months ended December 31, 2007, the Company reported net loss of $37,439,000, or $0.89 per share, compared with net loss of $348,000, or $0.01 per share, for the fourth quarter of 2006. The weighted average numbers of basic shares used in the computations were 42,248,226 and 32,288,205 for the fourth quarter of 2007 and 2006, respectively. The results for the fourth quarter of 2007 and 2006 include net charges of $15,742,000, or $0.38 per share and $3,841,000, or $0.12 per share, respectively, of special items(1) that affected the Company's net loss for the fourth quarter of 2007 and 2006 that are typically excluded by securities analysts in their published estimates of the Company's financial results, which are described in Appendix A of this release. For the three months ended December 31, 2007, operating loss was $25,982,000, compared with operating income of $3,956,000 for the fourth quarter of 2006. Revenues for the fourth quarter of 2007 were $51,789,000, compared to $67,794,000 recorded in the fourth quarter of 2006.
For the year ended December 31, 2007, the Company reported net loss of $49,076,000, or $1.36 per share, compared with net loss of $11,005,000, or $0.39 per share, for the year ended December 31, 2006. The weighted average numbers of basic shares used in the computations were 35,960,571 and 30,550,274 for the years ended December 31, 2007 and 2006, respectively. The results for 2007 and 2006 include net charges of $16,107,000, or $0.45 per share and $34,373,000, or $1.13 per share, respectively, of special items that affected the Company's net income for 2007 and 2006 that are typically excluded by securities analysts in their published estimates of the Company's financial results, which are described in Appendix A of this release. For the year ended December 31, 2007, operating loss was $29,118,000, compared with operating income of $15,215,000 for the year ended December 31, 2006. Revenues for the year ended December 31, 2007 were $252,259,000, compared to $310,043,000 recorded in the year ended December 31, 2006.
FREE $5.57 FreeSeas to Acquire Handymax; Increase Fleet to Eight Vessels
Thursday March 13, 6:30 am ET
Handymax Free Lady Expected to Join Fleet in the Third Quarter of 2008
PIRAEUS, Greece, March 13, 2008 (PRIME NEWSWIRE) -- FreeSeas Inc. (NasdaqGM:FREE - News) (NasdaqGM:FREEW - News) (NasdaqGM:FREEZ - News) (``FreeSeas'' or ``the Company''), a provider of seaborne transportation for drybulk cargoes, announced today that it has agreed to purchase one second-hand drybulk carrier from an unaffiliated third party for approximately US$65.2 million.
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The vessel is a 2003-built, 50,300 dwt Handymax vessel built in Japan, and is scheduled for charter-free delivery to FreeSeas in June or July of 2008. The Company intends to finance the acquisition using cash on hand and the Company's existing credit facility. Employment arrangements for the vessel will be announced when finalized.
``Our constant monitoring of the second-hand market has presented us with the opportunity to acquire a modern vessel at a competitive price,'' said Mr. Ion Varouxakis, Chief Executive Officer of FreeSeas. ``We expect to have seven vessels fully employed and earning revenue by the beginning of second quarter, and look forward to the delivery of our latest acquisition at the beginning of the third quarter. We expect this new acquisition to substantially improve our earnings capacity and free cash flow providing us with enhanced financial flexibility. As a result, FreeSeas will have available a wider variety of options for the further expansion of its fleet.''
The following tables detail FreeSeas' current fleet as announced today:
Current fleet:
Vessel Name Dwt Vessel Built Employment
Type
---------------------------------------------------------------------
Free Destiny 25,240 Handysize 1982 30-day time-charter at
$25,500 p/d
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Free Envoy 26,318 Handysize 1984 Time-charter through
April 2008 at $17,000 p/d
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Free Goddess 22,501 Handysize 1995 Time-charter through
November 2009 at
$19,250 p/d
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Free Hero 24,318 Handysize 1995 Time-charter through
February 2009 at $14,500
p/d
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Free Jupiter 47,777 Handymax 2002 Time-charter through
February 2011 at
$32,000/28,000/24,000 p/d
---------------------------------------------------------------------
Vessels to be delivered:
Vessel Dwt Vessel Built Expected Employment
Name Type Delivery
---------------------------------------------------------------------
Free 24,111 Handysize 1997 March 2008 One-year time-charter
Impala at $31,500 p/d,
commencing at delivery
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Free 24,111 Handysize 1998 March 2008 One-year time-charter
Knight at $31,500 p/d,
commencing at delivery
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Free 50,300 Handymax 2003 June-July TBD
Lady 2008
---------------------------------------------------------------------
About FreeSeas Inc.
FreeSeas Inc. is a Marshall Islands corporation with principal offices in Piraeus, Greece. FreeSeas is engaged in the transportation of dry bulk cargoes through the ownership and operation of dry bulk carriers. Currently, it has a fleet of four Handysize vessels and one Handymax vessel. FreeSeas' common stock and warrants trade on the NASDAQ Global Market under the symbols FREE, FREEW and FREEZ, respectively. Risks and uncertainties are described in reports filed by FreeSeas Inc. with the U.S. Securities and Exchange Commission, which can be obtained free of charge on the SEC's website at http://www.sec.gov. For more information about FreeSeas Inc., please go to our corporate website, http://www.freeseas.gr.
FRO - NYSE Dividend information Independent Tankers Corporation Limited
On February 20, 2008, the Board of Frontline Ltd ("Frontline" or the "Company") announced the distribution of a special dividend of 20% of the capital stock of the Company's Bermuda subsidiary Independent Tankers Corporation Limited ("ITCL") to Frontline's shareholders. All non United States ("U.S.") shareholders of Frontline, subject to certain exceptions, received one share in ITCL for every five shares they held in Frontline. Certain U.S. shareholders are also entitled to receive ITCL shares. The terms of the share distribution are set out in detail in the Company's announcement of February 20, 2008. Holders of Frontline shares who will not be entitled to receive ITCL shares ("Cash Recipients") will receive a cash distribution based on the market value of the ITCL shares on the over-the-counter market in Oslo ("Oslo OTC market").
The record date for the share distribution was February 28, 2008. The share distribution to Fronline's non-U.S. shareholders registered on Oslo Stock Exchange took place on March 6, 2008 (the "Distribution Date"). ITCL was registered on the Oslo OTC market on March 7, 2008. On the Distribution Date, a number of shares equal to the estimated Cash Recipients' allotment were transferred to a VPS account at Nordea Bank Norge ASA, a VPS custodian. These shares have been sold on the Oslo OTC market over the first five trading days. The average share price (the "Cash Price") determined as a result of the sales over these five days is NOK 8.78, equivalent to US$1.72 per ITCL share. Accordingly, each Frontline shareholder that is a Cash Recipient will receive US$ 0.34 per Frontline share.
The ex dividend date for Frontline on the New York Stock Exchange will be
March 14, 2008. The Cash Price is expected to be paid on or about March 26, 2008.
March 13, 2008
Frontline Ltd.
Hamilton, Bermuda
That's it. The OPEC countries don't want to add production to lessen the price pressure, and they say there is not demand for more oil. Supply and demand are now in balance. It's imminent that they want to keep the balance as tight as possible and cash more money as long as possible. They know that oil is very difficult to be replaced by alternative fuels - not only the gasoline but all the other oil products: lucratives, plastics, fabrics etc etc. As long as they have oil they can ask whatever for it. Why haven't the governements, research institutes, politicians etc seen this coming, and invested more in research for alternatives?
That's why I believe strongly in oil drilling/service sectors. There will become more competition in oil producing, which could somewhat temper the price.
I believe dollar will stay as the world currency for the basics, for the commodities and for the financial industry. No other currency is big enough to handle these things. Weakening dollar is rising the oil price, but as the OPEC chairman said that the high price is the result of speculators, how could they dare to begin pricing the oil in euros? That would cross the line.
The rumour says it's Middle East selling dollar and buying euro. But who knows. Surely looks like gaming.