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Strong currency = strong economy. Mme Merkel in Germany is very tough to keep euro strong (and she has been very successfull in it).
Mme Merkel is a tough lady also in other sectors - she is cleaning now the banking relations between Germany and tax paradise Principality of Liechstenstein - because of several "recently found" German tax-refugees. Monaco and Luxembourg are trembling...
I'm hoping the table to turn in favour of dollar, or at least that it stabilizes. That would mean a flood of European traders/investors to US markets. Companies listed in main bourses in USA are still most transparent and reliable.
I bought the main part of my BQI's, when the dollar was 1.20 :(
DSX $30.45 Diana Shipping in charter contract with Cosco Bulk Carrier
Fri Feb 22, 2008 9:22am EST
Feb 22 (Reuters) - Greek dry-bulk carrier Diana Shipping Inc (DSX.N: Quote, Profile, Research) said it entered into a long-term time charter contract with Cosco Bulk Carrier Co Ltd, Tianjin, which is expected to generate gross revenue of about $42 million.
The company said the contract is for one of its Panamax dry bulk carriers, the Nirefs, at a gross rate of $60,500 per day for a minimum of 23 months to a maximum of 25 months. (Reporting by Manish Gupta in Bangalore; Editing by Pratish Narayanan)
Good afternoon Lady-baron. Here's what Stock Lobster thinks about the dollar. It would be good for us if the EURO/USD could stabilize:
Posted by: Stock Lobster
In reply to: xanadu90 who wrote msg# 252470
Date:2/22/2008 8:21:15 AM
Post #of 252735
Xanadu, I have long thought that the euro could not sustain over $1.50 for any length of time...although it is holding up better than the dollar or GBP, at this point
However, the credit and banking problems that are plaguing the US aren't contained, and Europe is dealing with it's own assortment of troubles...I don't believe the euro can sustain these levels for months on end, although it probably will remain near these levels through the summer
It does seem, fwiw, that the USD is about bottomed out. Perhaps I am speaking too soon, but it seems that the dollar is not falling on the avalanche of bad news the way it fell in 2006-2007. Perhaps there is not much more downside
However, I think all currencies will underperform gold in coming quaraters
The one change could happen around the time of the US elections..depending on who is elected, and how the global markets react to the prospect of their policies for change
GM Stuffit. FRO - Dividend information
(Edit: FRO down in Oslo NOK246.50 = USD 46.51)
Published: 08:28 22.02.2008 GMT+1 /HUGIN /Source: Frontline Ltd /OSE: FRO /ISIN: BMG3682E1277
We refer to the fourth quarter report released on February 14, 2008. Frontline Ltd. is trading ex-dividend of a cash dividend of $2.00 per share today February 22, 2008. The record date is February 26, 2008, and the dividend will be paid on or about March 10, 2008.
For further information about the company please visit our web-site: www.frontline.bm.
Oslo, February 22, 2008
-
GM Stock Lobster. I was wondering what do you think about if the dollar has reached the bottom. Bad news have not hit it so hard any more, so maybe we are there. Suits me.
There's strong demand in part of Europe for European Central Bank to lower interest rates. For the time being ECB has been more interested in keeping the inflation low. Now as the GDP for Europe was lowered sharply, maybe the bank has to react.
I'll forward your post to Lady-baron (if you don't mind). She was wondering the same thing.
Hello Lady-baron. I know he cannot always read all posts, but he will answer the question when he has time :)
But what do you think about euro? Is it now overstrong?
Stock Lobster. What's your take of EURO/USD? Where is dollar going?
GM Stock Lobster. Oilfield services (CAM, OII, FTK, SLB, DEEP, RDC), after quite a slump in January, are recovering and green today. DeepDown (DPDW $0.56) should get a boost too, when the bigger market finds it.
Offshore drillers are red hot now, and rise their forward predictions (RIG!!). They all need also oilfield services.
Oil Drilling Stocks: 14 Ways to Strike It Rich
posted on: January 17, 2008 | about stocks: ATLS / ATN / DO / ESV / GIFI / HP / MWE / NE / PKD / PTEN / RDC / RIG / STO / WTI
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With the price of oil bouncing around between $90 and $100 per barrel, maybe its time to look at the oil drillers, which can provide substantially more upside than the large integrated oil companies or the oil income trusts. Here are a list of 14 oil drillers, all but two of which have market caps above $1 billion, and all but two of which pay dividends:.
#
Atlas Energy Resources (ATN) is a developer of of natural gas and oil principally in Michigan, New York, Pennsylvania, Ohio, and Tennessee. The stock has a P/E of 23, a PEG of 0.42, and a yield of 7.5.
#
Markwest Energy (MWE) is a Denver, Colorado-based oil and gas company. The stock has a P/E of 28, a PEG of 2.12, and a yield of 6.1.
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Patterson-UTI Energy (PTEN) is a Snyder, Texas-based provider of onshore contract drilling services. The stock has a P/E of 6, a PEG of 1.17, and a yield of 2.5.
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StatoilHydro ASA (STO) is a Norway-based company that explores for, produces and refines petroleum. The stock has a P/E of 8, a PEG of 2.19, and a yield of 2.
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Gulf Island Fabrication (GIFI) manufactures offshore drilling and production platforms. The stock has a P/E of 16, a PEG of 0.57, and a yield of 1.3.
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Rowan Cos Inc. (RDC) is a Houston, Texas-based contract drilling company. The stock has a P/E of 11, a PEG of 0.73, and a yield of 1.1.
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Helmerich Payne (HP) is a Tulsa, Oklahoma-based contract driller of oil and gas. The stock has a P/E of 9, a PEG of 1.02, and a yield of 0.5.
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Diamond Offshore (DO) is a Houston, Texas-based an offshore oil and gas drilling contractor. The stock has a P/E of 20, a PEG of 0.96, and a yield of 0.4.
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W&T Offshore (WTI) is a Houston, Texas-based explorer and producer of oil and natural gas. The stock has a P/E of 19, a PEG of 1.15, and a yield of 0.4.
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Atlas America (ATLS) is a Pennsylvania-based producer and developer of oil and gas. The stock has a P/E of 31, and a yield of 0.4.
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Noble Corp. (NE) is a Texas-based company that provides contract drilling services. The stock has a P/E of 13, a PEG of 0.55, and a yield of 0.3.
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Ensco Intl. Inc. (ESV) is a Dallas, Texas-based provider of contract drilling services. The stock has a P/E of 9, a PEG of 0.47, and a yield of 0.2.
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Transocean Inc (RIG) is a Houston, Texas-based offshore contract drilling company. The stock has a P/E of 16, a PEG of 0.68.
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Parker Drilling (PKD) is a Houston, Texas-based provider of land and offshore contract drilling services. The stock has a P/E of 7.5.
Oil Drilling Stocks: 14 Ways to Strike It Rich
posted on: January 17, 2008 | about stocks: ATLS / ATN / DO / ESV / GIFI / HP / MWE / NE / PKD / PTEN / RDC / RIG / STO / WTI
Print Email
With the price of oil bouncing around between $90 and $100 per barrel, maybe its time to look at the oil drillers, which can provide substantially more upside than the large integrated oil companies or the oil income trusts. Here are a list of 14 oil drillers, all but two of which have market caps above $1 billion, and all but two of which pay dividends:.
#
Atlas Energy Resources (ATN) is a developer of of natural gas and oil principally in Michigan, New York, Pennsylvania, Ohio, and Tennessee. The stock has a P/E of 23, a PEG of 0.42, and a yield of 7.5.
#
Markwest Energy (MWE) is a Denver, Colorado-based oil and gas company. The stock has a P/E of 28, a PEG of 2.12, and a yield of 6.1.
#
Patterson-UTI Energy (PTEN) is a Snyder, Texas-based provider of onshore contract drilling services. The stock has a P/E of 6, a PEG of 1.17, and a yield of 2.5.
#
StatoilHydro ASA (STO) is a Norway-based company that explores for, produces and refines petroleum. The stock has a P/E of 8, a PEG of 2.19, and a yield of 2.
#
Gulf Island Fabrication (GIFI) manufactures offshore drilling and production platforms. The stock has a P/E of 16, a PEG of 0.57, and a yield of 1.3.
#
Rowan Cos Inc. (RDC) is a Houston, Texas-based contract drilling company. The stock has a P/E of 11, a PEG of 0.73, and a yield of 1.1.
#
Helmerich Payne (HP) is a Tulsa, Oklahoma-based contract driller of oil and gas. The stock has a P/E of 9, a PEG of 1.02, and a yield of 0.5.
#
Diamond Offshore (DO) is a Houston, Texas-based an offshore oil and gas drilling contractor. The stock has a P/E of 20, a PEG of 0.96, and a yield of 0.4.
#
W&T Offshore (WTI) is a Houston, Texas-based explorer and producer of oil and natural gas. The stock has a P/E of 19, a PEG of 1.15, and a yield of 0.4.
#
Atlas America (ATLS) is a Pennsylvania-based producer and developer of oil and gas. The stock has a P/E of 31, and a yield of 0.4.
#
Noble Corp. (NE) is a Texas-based company that provides contract drilling services. The stock has a P/E of 13, a PEG of 0.55, and a yield of 0.3.
#
Ensco Intl. Inc. (ESV) is a Dallas, Texas-based provider of contract drilling services. The stock has a P/E of 9, a PEG of 0.47, and a yield of 0.2.
#
Transocean Inc (RIG) is a Houston, Texas-based offshore contract drilling company. The stock has a P/E of 16, a PEG of 0.68.
#
Parker Drilling (PKD) is a Houston, Texas-based provider of land and offshore contract drilling services. The stock has a P/E of 7.5.
TOPS $3.10 TOP Ships Announces Sale of the M/T Stainless
Wednesday February 20, 4:37 pm ET
ATHENS, Greece, Feb. 20 /PRNewswire-FirstCall/ -- TOP Ships (Nasdaq: TOPS - News) announced that it has entered into an agreement for the sale of M/T Stainless, a 149,599 Dwt, double-hull Suezmax tanker built in 1992. Under the agreement, the purchaser will bareboat charter the M/T Stainless until the vessel's final delivery, which is expected to take place by the end of July 31, 2008. The purchaser is paying to the Company a net daily hire of $20,000 beginning January 31, 2008 until final delivery. The total amount of the charter hire received by the Company will be deducted from the sale price.
About TOP Ships Inc.
TOP Ships Inc., formerly known as TOP Tankers Inc., is an international provider of worldwide seaborne crude oil and petroleum products and of drybulk transportation services. After giving effect to the sale of the M/T Stainless, the Company operates a combined tanker and drybulk fleet as follows:
-- a fleet of 18 tankers, consisting of 10 double-hull Suezmax tankers
and 8 double-hull Handymax tankers, with a total carrying capacity of
approximately 1.8 million dwt, of which 85% are sister ships. Eleven
of the Company's 18 tankers are on time charter contracts with an
average initial term of over two years with all but three of the time
charters including profit sharing agreements above their base rates.
In addition, the Company has ordered six newbuilding product tankers,
which are expected to be delivered in the first half of 2009.
-- a fleet of four drybulk vessels with delivery of two additional
drybulk vessels expected during February and March 2008. Including
these two vessels, three of the Company's six drybulk vessels will
have period charter contracts for an average period of 18 months.
PRGN $17.57 4Q EPS $0.29 NET 7.7mil REV 30.4mil DIV 0.4375
Paragon Shipping Inc. Reports Fourth Quarter and Annual 2007 Results
Wednesday February 20, 4:30 pm ET
ATHENS, Greece, Feb. 20, 2008 (PRIME NEWSWIRE) -- Paragon Shipping Inc. (NasdaqGM:PRGN - News), a global shipping transportation company specializing in dry bulk cargoes, announced today its results for the three months and year ended December 31, 2007. The Company's results reflect the impact of its successfully completed public offering of 10,997,539 common shares (including the underwriters' partial exercise of their over allotment option), as previously announced.
ADVERTISEMENT
For the three months ended December 31, 2007, the Company reported net income of $7.7 million and earnings per share basic and diluted were $0.31 and $0.29, compared to net income of $0.5 million and $0.14 earnings per share basic and diluted, for the three months ended December 31, 2006.
For the full year 2007, the Company reported net income of $4.9 million and earnings per share basic and diluted were $0.12 and $0.11, compared to 2006 net income of $0.5 million and $0.14 earnings per share basic and diluted.
The Company's results for the three months and year ended December 31, 2007 include non-cash expenses of $0.3 million, or ($0.01) per basic and diluted share, and $20.2 million, or ($1.23) per basic and ($1.16) per diluted share, respectively. The non-cash expenses were related to the non-cash compensation expense resulting from the conversion of the Company's outstanding Class B common shares into Class A common shares at the time of the Company's public offering and to the amortization up to December 31, 2007, of the compensation cost recognized for the 569,500 options and a total of 105,500 restricted common shares to executive officers, directors and employees.
Other non-cash items include below market time charters attached to vessels acquired which are amortized over the remaining period of the time charter as an increase to time charter revenue, and unrealized loss from interest rate swaps. These other non-cash items contributed an aggregate of $5.1 million to net income, or $0.20 to earnings per share basic and $0.19 to earnings per share diluted for the three months ended December 31, 2007. For the year ended December 31, 2007, these items contributed $7.2 million to net income, or $0.43 and $0.41 per share, to the earnings per share basic and diluted, respectively.
Fourth Quarter 2007 Financial Results:
Time charter revenue for the fourth quarter of 2007 was $30.4 million compared to $4.9 million in the fourth quarter in 2006. The Company reported net income of $7.7 million, or $0.31 and $0.29 per basic and diluted share in the fourth quarter of 2007, calculated on 25,334,026 weighted average number of shares, basic and on 26,330,136 weighted average number of shares, diluted outstanding for the period and reflecting the impact of the non-cash items discussed above. In the fourth quarter of 2006 net income was $0.5 million, or $0.14 per basic and diluted share, calculated on 1,441,887 and 1,442,639 weighted average number of shares basic and diluted, respectively.
EBITDA was $18.0 million for the 2007 fourth quarter compared to $2.1 million for the fourth quarter in 2006. This was calculated by adding to net income of $7.7 million for the three months period ended December 31, 2007, net interest expense and depreciation that in the aggregate amounted to $10.3 million for the three months period ended December 31, 2007. Please see table at the back of this release for a reconciliation of net income to EBITDA.
The Company operated an average of 9.68 vessels during the fourth quarter of 2007, earning an average time charter equivalent rate of $35,284 per day compared to an average of 2.01 vessels during the fourth quarter of 2006, earning an average time charter equivalent rate of $25,460 per day. Total adjusted operating expenses in the fourth quarter of 2007 were $8.6 million, or approximately $9,670 per day, including vessel operating expenses and general and administrative expenses, but excluding $0.3 million of share-based compensation. In the fourth quarter of 2006, total adjusted operating expenses were $0.9 million, or approximately $4,663 per day, including vessel operating expenses and general and administrative expenses, but excluding $1.5 million of share-based compensation.
Dividend Declared
Based on the financial results for the fourth quarter of 2007, on February 12, 2008 the Board of Directors of the Company declared a quarterly dividend of $0.4375 per share, payable on February 28, 2008 to shareholders of record as of February 19, 2008. Dividends declared based on 2007 results amounted to $2.35 per share, which includes a special dividend of $0.60 per share prior to the completion of the Company's initial public offering on August 15, 2007.
Commenting on the results, Michael Bodouroglou, Chairman and Chief Executive Officer of Paragon Shipping, stated, ``We are pleased to announce to our shareholders another quarter of strong operational and financial results. During the quarter, our markets remained robust and we continued to execute on our strategic plan, further expanding our fleet through the delivery of two 2006-built Panamax drybulk carriers, and bringing our fleet total to 11 vessels with an aggregate capacity of 706,358 dwt. We also executed on our strategic chartering program. We have now locked in 93% of our voyage revenue days for 2008 and look forward with confidence to a strong year. In addition we fulfilled our commitment to our shareholders, declaring our fourth consecutive quarterly dividend of $0.4375 per share.'
Mr. Bodouroglou concluded, ``Looking forward, we believe Paragon is well positioned to take advantage of a strong drybulk market, with secular market growth drivers and little exposure to the U.S. economy. The medium-to-longer term drivers of our industry remained unchanged, and during the coming months we will be in a position to take advantage of the high demand levels we've been seeing in the market as we seek to establish new time chartering contracts for some of our assets. Our present liquidity position and strong balance sheet, in addition to our locked-in revenue for 2008, will allow us to expand our fleet further while maintaining our commitment to enhancing shareholder value.'
Time Charter Coverage Update
Pursuant to its time chartering strategy, Paragon Shipping has chartered its vessels for periods ranging from 1 to 3 years. As a result, the Company has currently fixed 93% and 50% of its available fleet days in 2008 and 2009, respectively. This represents expected contracted revenue from these charter agreements of 2007, $127.5 million and $70.0 million for 2008 and 2009, respectively. Although these charter payments are based on contractual charter rates, the contracts are subject to performance, and reflect an estimate of off-hire days for periodic or scheduled maintenance.
Recent Fleet Developments
During the fourth quarter of 2007, the Company took delivery of two vessels it contracted to acquire with borrowings under its credit facilities. With the addition of these vessels, the Company's fleet now consists of seven Panamax drybulk carriers, three Handymax drybulk carriers and one Supramax drybulk carrier, with an aggregate capacity of approximately 706,358 dwt.
The Company took delivery on November 21, 2007 of the Coral Seas, a 74,477 dwt 2006-built Panamax vessel. The Coral Seas has been chartered to Bunge S.A. pursuant to a time charter with a period of approximately 23 to 25 months at the charterer's option, at a rate of $54,000 per day, which commenced immediately upon the delivery of the vessel to the Company.
The Company also took delivery of the Golden Seas, a 74,475 dwt 2006-built Panamax vessel, on December 10, 2007. The Golden Seas has been chartered to Bunge S.A. pursuant to a time charter with a period of approximately 11 to 13 months at the charterer's option, at the rate of $64,000 per day, which commenced immediately upon delivery of the vessel.
Cash Flows
For the year ended December 31, 2007, the Company generated net cash from operating activities of $42.8 million compared to $1.6 million in the period from inception (April 26, 2006) to December 31, 2006. For the year ended December 31, 2007 net cash used in investing activities was $426.5 million and cash from financing activities was $382.7 million. For the period from inception (April 26, 2006) to December 31, 2006 net cash used in investing activities was $155.4 million and cash from financing activities was $186.1 million.
Year ended December 31, 2007 Financial Results:
Time charter revenue for the year ended December 31, 2007 was $76.7 million compared to $4.9 million in the period from inception (April 26, 2006) to December 31, 2006. The Company reported in 2007 net income of $4.9 million, or $0.12 earnings per share, basic and $0.11 earnings per share, diluted calculated on 16,495,980 weighted average number of shares, basic and 17,438,463 weighted average number of shares, diluted outstanding for the year and reflecting the impact of the non-cash expenses and other non-cash items amounting in aggregate to $13.0 million, discussed above. In 2006 net income was $0.5 million, or $0.14 per basic and diluted share, calculated on 1,441,887 and 1,442,639 weighted average number of shares basic and diluted, respectively.
EBITDA was $31.4 million for the year ended December 31, 2007 compared to $2.1 million for the period from inception (April 26, 2006) to December 31, 2006. This was calculated by adding to net income of $4.9 million for the year ended December 31, 2007, net interest expense and depreciation that in aggregate amounted to $26.5 million for the year ended December 31, 2007. Please see table at the back of this release for a reconciliation of net income to EBITDA.
The Company operated an average of 7.18 vessels during 2007, earning an average time charter equivalent rate of $28,563 per day compared to an average of 0.74 vessels during the period from inception (April 26, 2006) to December 31, 2006, earning an average time charter equivalent rate of $25,460 per day. Total adjusted operating expenses for 2007 were $18.3 million, or approximately $6,969 per day, including vessel operating expenses and general and administrative expenses, but excluding $20.2 million of share-based compensation. In 2006, total adjusted operating expenses were $0.9 million, or approximately $4,663 per day, including vessel operating expenses and general and administrative expenses, but excluding $1.5 million of share-based compensation.
GM Stuffit & al. Now it comes; extra dividend from FRO:
Frontline: Special Dividend of Independent Tankers Corporation Limited Shares
Wednesday February 20, 8:46 am ET
HAMILTON, Bermuda, Feb. 20, 2008 (PRIME NEWSWIRE) -- With reference to the Preliminary Fourth Quarter and Financial Year 2007 Report, the Board advises that on February 20, 2008, the Board declared the distribution of a special dividend of 20% of the capital stock of the Company's Bermuda subsidiary, Independent Tankers Corporation Limited (``ITC''), to Frontline's shareholders. ITC will be traded in the over-the-counter market in Oslo (the ``Oslo OTC Market''), and will maintain its share register through the Norwegian VPS (the Norwegian paperless securities depository system) (``VPS'') with all shareholders required to hold VPS accounts.
ADVERTISEMENT
All non-U.S. shareholders of Frontline, subject to certain exceptions as set out in the attached appendix, will receive one share in ITC for every five shares they have in Frontline, rounded down to the nearest whole share. The remaining fractional shares will be payable in cash at a price to be set subsequent to the registration of the spin-off shares on the OTC, expected to be at the end of March 2008. All U.S. shareholders who are Qualified Institutional Buyers (QIBs) in accordance with Rule 144A under the U.S. Securities Act of 1933, as amended, and who hold 15,000 or more Frontline shares, will receive the aforementioned allotment of ITC shares. U.S. shareholders who are not QIBs, and U.S. shareholders who have fewer than 15,000 Frontline shares, whether or not they are QIBs, will not be entitled to ITC shares and, together with all other shareholders exempted from the share distribution (together the ``Cash Recipients''), will receive a cash distribution based on the market value of the ITC shares on the Oslo OTC Market. ITC's shares will not be listed for trading in the United States.
The record date for the distribution of this special dividend will be February 28, 2008 and the share distribution to non-U.S. shareholders will take place on or about March 6, 2008 (the ``Distribution Date''). The ITC shares are expected to be quoted in the Oslo OTC Market, with the first trading date expected to be as soon as practicable after the Distribution Date. On the Distribution Date, a number of shares equal to the estimated Cash Recipients' allotment will be transferred to a Norwegian VPS account under Nordea Bank Norge ASA (``Nordea Bank''), a VPS custodian. These shares will be sold in the open market, during the first five (5) days following commencement of trading in the Oslo OTC Market. The average price per share (the ``Cash Price'') determined as a result of the sales over those five (5) days will be used to calculate the amount of subsequent distributions to the Cash Recipients.
For its fiscal year ended December 31, 2007, ITC had net income (unaudited) of approximately $12 million, a book equity value (unaudited) of approximately $23 million, restricted cash (unaudited) of approximately $423 million, book value of vessels (unaudited) of approximately $377 million and total liabilities (unaudited) of approximately $785 million.
The shares in ITC will be spun off to Frontline's shareholders according to the following schedule.
Declaration Date February 20, 2008
Record Date OSE, LSE & NYSE February 28, 2008
Ex Dividend Date for
share settlement OSE, LSE February 26, 2008
Ex Dividend Date for cash To be set by NYSE
or share settlement NYSE after the Cash Price is
determined and announced
All non-US shareholders
to receive shares On or about March 6, 2008
in VPS accounts
In order for U.S. registered shareholders to receive cash or share settlement, the U.S. registered shareholder must own his or her shares on the Record Date; however, if the U.S. registered shareholder sells his or her shares after the Record Date and before the NYSE Ex Dividend Date, then the right to receive the cash or the share settlement will be passed on to the buyer. The cash or the share settlement is expected to be made in the end of March 2008.
ITC's business is mainly concentrated around the ownership and operation of tankers on long term bareboat contracts to major oil companies, including certain cancellation options. All vessels are financed through bonds and some of the vessels are also subject to financial lease arrangements. ITC purchases all necessary management related services from Frontline. The Company intends to cause ITC to take steps to enhance shareholder value and liquidity by enabling ITC shares to trade on the Oslo OTC Market. Frontline will consider and may, but is under no obligation to, make further distributions of ITC shares.
GM Wildbill. Extra divvy from FRO!
Frontline: Special Dividend of Independent Tankers Corporation Limited Shares
Wednesday February 20, 8:46 am ET
HAMILTON, Bermuda, Feb. 20, 2008 (PRIME NEWSWIRE) -- With reference to the Preliminary Fourth Quarter and Financial Year 2007 Report, the Board advises that on February 20, 2008, the Board declared the distribution of a special dividend of 20% of the capital stock of the Company's Bermuda subsidiary, Independent Tankers Corporation Limited (``ITC''), to Frontline's shareholders. ITC will be traded in the over-the-counter market in Oslo (the ``Oslo OTC Market''), and will maintain its share register through the Norwegian VPS (the Norwegian paperless securities depository system) (``VPS'') with all shareholders required to hold VPS accounts.
ADVERTISEMENT
All non-U.S. shareholders of Frontline, subject to certain exceptions as set out in the attached appendix, will receive one share in ITC for every five shares they have in Frontline, rounded down to the nearest whole share. The remaining fractional shares will be payable in cash at a price to be set subsequent to the registration of the spin-off shares on the OTC, expected to be at the end of March 2008. All U.S. shareholders who are Qualified Institutional Buyers (QIBs) in accordance with Rule 144A under the U.S. Securities Act of 1933, as amended, and who hold 15,000 or more Frontline shares, will receive the aforementioned allotment of ITC shares. U.S. shareholders who are not QIBs, and U.S. shareholders who have fewer than 15,000 Frontline shares, whether or not they are QIBs, will not be entitled to ITC shares and, together with all other shareholders exempted from the share distribution (together the ``Cash Recipients''), will receive a cash distribution based on the market value of the ITC shares on the Oslo OTC Market. ITC's shares will not be listed for trading in the United States.
The record date for the distribution of this special dividend will be February 28, 2008 and the share distribution to non-U.S. shareholders will take place on or about March 6, 2008 (the ``Distribution Date''). The ITC shares are expected to be quoted in the Oslo OTC Market, with the first trading date expected to be as soon as practicable after the Distribution Date. On the Distribution Date, a number of shares equal to the estimated Cash Recipients' allotment will be transferred to a Norwegian VPS account under Nordea Bank Norge ASA (``Nordea Bank''), a VPS custodian. These shares will be sold in the open market, during the first five (5) days following commencement of trading in the Oslo OTC Market. The average price per share (the ``Cash Price'') determined as a result of the sales over those five (5) days will be used to calculate the amount of subsequent distributions to the Cash Recipients.
For its fiscal year ended December 31, 2007, ITC had net income (unaudited) of approximately $12 million, a book equity value (unaudited) of approximately $23 million, restricted cash (unaudited) of approximately $423 million, book value of vessels (unaudited) of approximately $377 million and total liabilities (unaudited) of approximately $785 million.
The shares in ITC will be spun off to Frontline's shareholders according to the following schedule.
Declaration Date February 20, 2008
Record Date OSE, LSE & NYSE February 28, 2008
Ex Dividend Date for
share settlement OSE, LSE February 26, 2008
Ex Dividend Date for cash To be set by NYSE
or share settlement NYSE after the Cash Price is
determined and announced
All non-US shareholders
to receive shares On or about March 6, 2008
in VPS accounts
In order for U.S. registered shareholders to receive cash or share settlement, the U.S. registered shareholder must own his or her shares on the Record Date; however, if the U.S. registered shareholder sells his or her shares after the Record Date and before the NYSE Ex Dividend Date, then the right to receive the cash or the share settlement will be passed on to the buyer. The cash or the share settlement is expected to be made in the end of March 2008.
ITC's business is mainly concentrated around the ownership and operation of tankers on long term bareboat contracts to major oil companies, including certain cancellation options. All vessels are financed through bonds and some of the vessels are also subject to financial lease arrangements. ITC purchases all necessary management related services from Frontline. The Company intends to cause ITC to take steps to enhance shareholder value and liquidity by enabling ITC shares to trade on the Oslo OTC Market. Frontline will consider and may, but is under no obligation to, make further distributions of ITC shares.
RIG $129.65
Transocean 4th-qtr profit up 70 percent
Wed Feb 20, 2008 8:04am EST
HOUSTON, Feb 20 (Reuters) - Transocean Inc (RIG.N: Quote, Profile, Research), the world's largest offshore oil and gas drilling contractor, on Wednesday said fourth-quarter profit rose 70 percent, lifted by demand for its deepwater rigs and revenue from its takeover of GlobalSante Corp.
Profit was $1.06 billion, or $4.17 per share, compared with $621 million, or $2.92 per share, in the same quarter a year earlier.
Revenue for the Houston company rose to $2.08 billion from $1.19 billion. (Reporting by Anna Driver; editing by John Wallace)
More about ANW and bunkering:
http://www.stockboxfinancial.com/stockbox_picks/anw.htm
Aegean Marine Petroleum: Why I Can't Stand Analysts
posted on: January 31, 2008 | about stocks: ANW
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Before I run into trouble let me state a little disclaimer: I do not a problem with any one analyst but rather the system as a whole.
On January 28, Monday, a Jefferies analyst went on CNBC and claimed that StockBox Pick Aegean Marine Petroleum (ANW) as their top pick for 2008. On the news, Aegean rose 6.63 percent on the news. This is third time that a Jefferies analyst has caused wild fluctuations in Aegean’s share price. The first time occurred when a Jefferies analyst placed a price target on Aegean at $42 a share (Jefferies then raised his target $55). This buy rating plus a lot of positive coverage shot Aegean’s share price up as high as $48!
After Aegean made its dramatic run, the company announced a second equity offering in which the founder and one other director sold some of their shares. This equity offering was not actually share dilution since the shares were already outstanding. The additional offering sent Aegean’s share price tumbling 18 percent in one day. And guess who was a part of the underwriting team? That’s right, Jefferies. From the all time high of $48, shares dropped although below $30 and that’s the level that they are hovering at right now.
There have been some fundamental changes at Aegean such as the purchase of Bunkers of Sea (which gave Aegean a station in the English Channel) and set up its station in West Africa. These were important changes at the company, but not nearly significant enough to create the large price fluctuations that resulted.
I know that Jefferies is a profit-maximizing firm and even though there actions with regard to Aegean were dubious, they did help the firm achieve their end goal. Every investor must come to the realization that analysts and firms are not giving buy and sell recommendations out of the goodness of their hearts and they may have various motives, some of which may not coincide with those of investors or shareholders. This notion rarely carries weight in markets as analysts’ buy and sell recommendations drive stock prices in all sorts of directions despite the fact that professionals fail to beat the market 75 percent of the time. There have been various times in the recent history where the analysts’ performance was downright poor.
In the late 1990s analysts failed to place sell recommendations on various technology stocks as their valuations soared to astronomical levels. Analysts failed again as the tech crash unfolded and corporate scandals became commonplace in American markets. The analysts were the closest people to these corrupt firms who were not direct employees of the company. Despite their responsibilities, certain analysts just digested whatever numbers were given them and billions were lost in the Enrons of the world. Most recently, the various bond rating agencies (mostly Standard & Poor’s and Moody’s, but there were others) failed to the markets when they gave top ratings to mortgage backed securities that were anything but stable. In fact these rating agencies even failed (up to this writing) to take responsibility for their missteps citing “information quality” concerns.
Given the recent events, it is clear that analysts are not necessarily more apt to judge the future performance of various investments, even though they are better positioned to do so. Whether this result is due to profit motives or just plain incompetence, I am not sure. I do believe that there are many great analysts out there doing good work for everyday investors, but the performance of the industry as a whole is definitely drowning their results.
Back to Aegean
Despite all the hoopla created by Aegean’s fickle stock price, the company remains fundamentally sound. The company’s competitive advantage remains in tacked with the performance of its service stations and the fact that the order book for new tankers is locked up for the next several years. Since Aegean uses debt to finance its ships, the falling interest rates will definitely have a positive effect in this regard. However, the same goes for Aegean’s smaller regional competitors. Since Aegean is so well capitalized in comparison to these firms, this might slightly reduce Aegean’s strength over these firms. This result will likely be negated by the falling dollar (which makes oil more expensive) and the ensuing environmental regulations that will wipe out much of the Greek company’s competition.
You can check our original argument for Aegean here.
In case you were wondering, I checked the CNBC transcript and the Jefferies analyst never mentioned that his company did work for Aegean. I, on the other hand, will honor the spirit of full disclosure:
Disclosure: Chandler Lutz owns shares of ANW but no other company mentioned.
ANW $35.70. All sectors of shipping industry seem to do really well. Aegean Maritime, a bunker company ("gas station" of ships), files excellent results from its short operation time (IPO in December 2006). Look at the aggressive growth:
Aegean Marine Petroleum Network Inc. Announces Fourth Quarter and Full Year 2007 Financial Results; Increases Annual Sales Volumes by 42% as Company Grows Integrated Marine Fuel Logistics Infrastructure
Tuesday February 19, 4:15 pm ET
PIRAEUS, Greece, Feb. 19 /PRNewswire-FirstCall/ -- Aegean Marine Petroleum Network Inc. (NYSE: ANW - News), an international marine fuel logistics company that markets and physically supplies refined marine fuel and lubricants to ships in port and at sea, announced today financial and operating results for the fourth quarter and the year ended December 31, 2007.
Fourth Quarter and Full Year 2007 Highlights
-- Increased sales volumes to 1,026,395 metric tons in Q4 2007 and
3,437,269 metric tons for the full year
-- Generated gross spread on marine petroleum products of $29.3 million in
Q4 2007 and $89.7 million for the full year
-- Recorded operating income of $8.8 million in Q4 2007 and $30.8 million
for the full year
-- Recorded net income of $6.3 million, or $0.15 basic and diluted
earnings per share, in Q4 2007 and $27.7 million, or $0.65 basic and
diluted earnings per share, for the full year
- Net income includes vessel repositioning costs, startup expenses
and certain nonrecurring items, which totalled approximately
$1.5 million. Proforma net income, as adjusted for these items,
was $7.8 million, or $0.18 basic and diluted earnings per share,
in Q4 2007
-- Further expanded marine fuel logistics infrastructure
- Took delivery of four double-hull newbuilding bunkering tankers
since Company's IPO
- Took delivery of four bunkering tankers acquired in the secondary
market in 2007
- Took delivery of two double-hull storage tankers in 2007
- Successfully integrated the acquisition of Bunkers at Sea, which
now services the Northern European market
- Commenced operations in West Africa in January 2008 with the
opening of a new service center in Ghana
- Acquired Portland Bunkers International in the U.K.; scheduled to
launch operations in the first quarter of 2008
See, the truth begins to unwind...
Frontline's Technical Triumph
By Toby Shute February 19, 2008
In a recent piece, I extolled the simplicity and transparency of Nordic American Tanker (NYSE: NAT). Larger competitor Frontline (NYSE: FRO) has a lot more moving parts, but those parts add up to a very impressive whole. In results announced last week, the tanker operator's per-share earnings from continuing operations rocketed 54% higher sequentially, and 13% higher for the full year.
In the fourth quarter, Frontline sold some investments that turned out fabulously. For example, of the $51 million in proceeds from Frontline's sale of its stake in freight derivative exchange IMAREX to NYMEX Holdings (NYSE: NMX), nearly $42 million of that was recognized as a gain. As a founding shareholder back in 2000, Frontline earned an approximate 28% compound annual return on its investment.
Lest you start thinking Frontline's hefty earnings result was owed simply to extra items, let me assure you that the company's core operating performance was also very strong. The firm's fleet is mainly comprised of Very Large Crude Carriers (a technical term in the industry, believe it or not) and Suezmax tankers, which are small enough to traverse the Suez Canal. For an apples-to-apples comparison, Frontline's double-hulled Suezmax tankers earned an average of $37,500 per day in the spot market, versus Nordic American's $27,000.
How could such a large chasm have formed between these two fleets' freight rates? Well, things were pretty calm until the end of the quarter, at which point rates exploded. Frontline management noted it "somewhat saw" this coming, and employed "strategic waiting" in order to lock in rates near the peak.
This goes to show you that there's more to these tanker companies than just fleet composition and degree of spot market exposure. Commercial savvy and superior technical management of a shipping fleet can make a big difference in operating results, and there are no metrics that neatly capture such abilities. You simply have to monitor the performance of fleet managers like Frontline, Tsakos Energy Navigation (NYSE: TNP), and Teekay (NYSE: TK) over time in order to get a feel for such a foundation.
Some geothermal energy companies:
Calpine Corporation (CPN $17.85) Founded in 1984, this San Jose-based company provides electricity in the United States and Canada through the ownership and operation of its own power generation plants. They own 19 geothermal power plants at The Geysers in California. They were caught in the California energy crunch and went bankrupt, but are coming out now. Earnings have been negative but revenues were up about 27% for the second quarter of 2007.
Constellation Energy Group (CEG $97.38). Founded in 1906, they own and operate generating plants and fuel processing facilities using various types of fuel including nuclear, coal, natural gas, oil, solar, geothermal, hydro and biomass. The P/E is 15.8X and the yield is 2%.
IdaCorp (IDA $31.46) This holding company owns Idaho Power Company, which is involved in the generation, transmission, distribution, and sale of electric energy primarily in southern Idaho and eastern Oregon. Their electrical generation comes from hydroelectric, natural gas, diesel, coal, and geothermal plants. They have a contract with UGTH. The P/E is 12.6X and the yield is 3.8%.
Nevada Geothermal Power (NGLPF.OB $1.04) This company explores for and develops geothermal projects in the U. S. to provide electricity. They own a 100% leasehold interest in the Blue Mountain, Pumpernickel, and Black Warrior projects in Nevada, and the Crump Geyser Project in southern Oregon. Development stage.
Ormat Technologies (ORA $42.44) Founded in 1965, this Nevada-based company trades on the New York Stock Exchange. It owns and operates geothermal electric power plants in the U. S., Guatemala, Kenya, Nicaragua and the Philippines. They also provide products and services to other geothermal power generators, and Ormat Nevada is the contractor on U.S. Geothermal’s Raft River project. The P/E is 70.2X and the yield is 0.5%.
PG&E (PCG $39.85) This California-based electric and gas utility serves five million customers. Their electrical generation comes from natural gas, nuclear, hydro, coal, geothermal, wind and several other types of renewable sources. They also went through bankruptcy after the California energy crunch. The P/E is 15.6X and the stock yields 3.2%.
Polaris Geothermal (PGTHF.PK $1.06) This company develops renewable energy projects in Latin America. They are developing a 66 megawatt geothermal project on their San Jacinto Tizate concession in Nicaragua. Development stage.
Raser Technologies (RZ $9.33) Founded in 2003 to develop high performance electric motors and controllers, this Utah-based company trades on the New York Stock Exchange Arca exchange. They have acquired geothermal rights to thousands of acres of Nevada land, including certain Nevada properties owned by Truckee River Ranches, under a 50-year lease. Development stage.
Sierra Geothermal Power (SRAGF.PK $0.70) This company develops renewable power projects based on geothermal sources. They have investments in 15 geothermal projects located in Nevada and California. Development stage.
Western GeoPower (WGPWF.PK $0.38) They develop geothermal energy projects, and own the Unit 15 Steam Field located in The Geysers in California and a second field in the South Meager Geothermal Project in British Columbia. Development stage.
WFI Industries (WFILF.PK $24.69) This Fort Wayne, Indiana company develops and manufactures geothermal heating and cooling systems for both commercial and residential customers. The P/E is 35.5X, and they may be the supplier of the HVAC system.
New SEC rule 144
Want to hear about something very exciting for microcap investors? No one else seems to recognize the significance of what's happening in the regulatory world. I haven't read anything about the new reg changes in the main stream media. New regs are here, and they should be very favorable for microcap investors.
Let's set the stage. Companies go pubic for two reasons- 1. Access to capital, and 2. an exit strategy for founders and a way to enhance employee compensation.
Small companies need capital to expand, and there are a dearth of hedge funds in the business of financing small companies. Thanks to 10 years of loopholes in the regulations, capital has been too easy to get, and free trading shares too easy to issue.
For many years there has been a big and pervasive problem in the microcap world: Excess supplies of stock from financiers who engage in "no risk" financings depressing stock prices. How can a financing be no risk? Glad you asked: Here's how- by creating securities- i.e. convertible debt and preferred issues, that convert at a discount to the market, no matter how low the market goes.
Until the Reg S loophole closed about five years ago, companies were able to issue unlimited quantities of free trading shares to "foreign entities" who were exempt from registration. This allowed small companies to engage in highly toxic financings and led to many abuses in illegal short selling.
In the last five years "death spiral" financings have become popular. Companies would engage in the issuance of convertible securities with floorless conversion features. The companies would then go ahead and register hundreds of millions of unissued shares on behalf of their financiers. Once registered, many financiers were very aggressive on the sell side with little regard for market value, because it simply didn't matter to them. In this high risk business, repatriating the capital is all that matters. Hedge fund managers live and die by their monthly returns.
One year ago the SEC finally did something about the problem. Rule 415- a loosely defined new regulation started being enforced by the SEC. Under this new rule microcap companies were only allowed to register 30% of the number of shares owned by non affiliates and the public. Another words, if a company had 50 million shares I&O, and 25 million were owned by founders and insiders, the company could only register up to 7.5 million shares (30% of the remaining 25 million).
Rule 415 solved the problem of massive excess supplies, but in doing so created another problem- access to capital. Financiers, formally willing to finance micros on a relatively risk free basis, were now forced to take on very substantial risk. Hence, the supply of capital to small companies became more scarce.
Here's where the SEC stepped up and implemented some new rules that are favorable to micros. They changed a number of the requirements under Rule 144 as a kind of "give back" for what they took away with Rule 415.
Previously, newly issued and unregistered shares were eligible to be resold into the public markets after 1 year under Rule 144 with one major restriction- the number of shares that could be sold every 90 days under Rule 144 was limited to 1% of the I&O every 90 days for any one shareholder.
Under the newly implemented Rule 144 requirements, shareholders are eligible to sell under Rule 144 after six months instead of one whole year, and the 1% collar has been lifted. These new Regs go into effect on February 15th.
Here's the net result of all these reg changes in my view as it relates to open market investors:
Financiers will have to be willing to take more risk in micros under the current regs.
Fewer companies will be able to obtain financings
The ones that do get financed will have a higher probability of success
There will be lower failure rates amongst the good micros that are able to obtain capital
Net Result: Fewer stocks to choose from, more winners, less losers. Eventually, more investors chasing fewer ideas, and better ideas.
In the 20 years I have been involved in the microcap world, this is the first major regulatory change implemented by the SEC that I feel is great for microcap investors.
This is all really good stuff for microcap stocks, and bodes very well for the future of this end of the market. This is not to say there won't still be losers in the microcap world- there will be, and you need to accept the inevitable if you are going to invest in this end of the market.
Barring a rough road in the overall markets, new reg changes from the SEC, for the first time in my experience, should yield better profits for microcap investors.
Now, if we could just get rid of Sarbanes Oxley- I can't blame that one on the SEC- Congress, wanting to appear like it was doing something to protect investors in the post Enron Era, hung that regulatory mess on public companies. Repealing the SarBox mess would be heaven sent for bottom line profits and an oppressive regulatory system. All Sarbox has done is turn the auditing firms into legalized extortionists.
We can only hope. I'll take what we got this year, and be happy for it.
http://www.otcjournal.com/archive/listserv/20080106-1.html
FYI: Motley Fools ratings of shipping companies. Take a look:
http://caps.fool.com/viewtag.aspx?pagenum=0&sortcol=23&sortdir=0&filter=-1&ws=Shipping&tagid=444
The Stocks the Funds Are Buying
(Edit: among them: Horizon Lines, container shipper and
Golar LNG, Liquefied natural gas carrier, both 5star companies)
Tim Beyers
February 15, 2008
We all know which stocks have made Wall Street's Buy List. What I want to know -- and I'm guessing you do, too -- is who's doing the buying. Which funds are buying Wall Street's most popular stocks ... and how does their judgment compare with that of our Motley Fool CAPS community?
Here's our latest group of contenders:
Company Last closing price CAPS rating (out of 5)
Horizon Lines $22.22 *****
First American $37.23 **
Cosi $2.91 **
James River Coal $16.98 **
Rent-A-Center $18.39 **
Sources: Motley Fool CAPS, Yahoo! Finance.
Container shipper Horizon Lines has plenty of fund followers. Two earn the highly-coveted five-star rating from Morningstar. Allow me to introduce you:
* Vanguard Global Equity (VHGEX), whose team has produced five years of better-than-20% average annual returns. Impressive, yes? Yet Vanguard charges investors a measly 0.64 expense ratio annually.
* Sentinel Mid Cap Value Institutional (SYVIX), an institutional fund that demands a $1 million minimum investment. Lead manager Michael Steinberg is worth it. His picks have outperformed category peers by roughly four percentage points a year over the last five years.
Here's a look at what Steinberg's holding now:
Company Last closing price CAPS rating (out of 5)
Golar LNG (Nasdaq: GLNG) $20.69 *****
Delta Petroleum (Nasdaq: DPTR) $21.27 **
Lions Gate Entertainment (NYSE: LGF) $9.18 ****
Arch Capital Group (Nasdaq: ACGL) $69.98 ****
International Flavors (NYSE: IFF) $42.74 **
Sources: Morningstar, Motley Fool CAPS.
This strikes me as an intriguing portfolio. Consider Golar, whose fleet of 12 ships transport liquefied natural gas, or LNG. Talk about an interesting business. LNG, once converted, can be cost-efficient to move to places pipelines can't reach without incurring major expense.
Brazil is a good example. Golar and Brazil's state-run oil firm, Petrobras (NYSE: PBR), signed a 10-year charter deal in April of last year. CAPS investor joe4cun predicted more such arrangements in January: "LNG inventory is nearing normal levels which has been depressing all LNG stocks. Entire category should move up as the winter progresses."
I'll add that Golar has been steadily increasing cash flow and, in the process, strengthening its balance sheet. Both are excellent signs for such a capital-intensive business.
But that's my take. What's yours? Would you own Golar, or any of the stocks in Sentinel Mid Cap Value's portfolio, at today's prices? Log into CAPS today and let us know what you think. It's 100% free to participate.
http://www.fool.com/investing/mutual-funds/2008/02/15/the-stocks-the-funds-are-buying.aspx
IMO a forward split should absolutely come. O/S is 36 mill. and the float is only 22 mill. It would be good time to split now, when the future for bulkers seems pretty good.
Ocean Rig - the drilling company, of which DRYS bought 34%, got a record dayrate $620.000 for a three year contract (plus an option of another 3 years) from Exxon Mobile for its semisubmersible "Eirik Raude".
Not a bad buy from DRYS. Offshore drilling sector is hot.
Utilities add contracts to meet renewable-power goals
Sacramento Business Journal - by Celia Lamb Staff Writer
Friday, February 8, 2008
California's energy policies have generated a boom for renewable-power companies, and could catapult solar-thermal technology into the mainstream.
By 2010, 20 percent of the energy sold by Pacific Gas & Electric Co., Southern California Edison and San Diego Gas & Electric Co. must come from renewable sources. PG&E was at about 12 percent in 2006, according to the most recent data from the Public Utilities Commission. Since 2002 PG&E has signed 33 contracts with renewable-energy businesses.
The contracts total 1,550 megawatts of renewable energy, enough for more than 1 million homes. But about 1,227 megawatts will come from power plants not yet built.
One of the biggest contracts is scheduled to come online in March 2011. Solel Solar Systems Ltd. of Israel plans to build a solar-thermal project over 6,000 acres of the Mojave Desert. The project will produce 554 megawatts, enough for 400,000 homes.
clamb@bizjournals.com | 916-558-7866
GM Stuffit. Calpine climbed 8% yesterday after news (CPN $17.85)
PG&E seeks geothermal power deal with Calpine
Friday February 15, 4:43 pm ET
Pacific Gas and Electric Co. said Friday it seeks regulatory approval for a 175 megawatt geothermal power deal with Calpine Corp.
The deal, if approved, would add 57 megawatts of new power to PG&E's supply and consolidate power from six plants totaling 118 megawatts.
Energy would come from the Geysers Geothermal Field in Northern California, 75 miles north of San Francisco, which has been producing power since 1960.
California requires utilities in the state to generate 20 percent of their power from renewable sources by 2010.
Calpine Corp. is based in San Jose and PG&E is based in San Francisco.
bizjournals.com
Thanks very much!
Are you sure it was for me?
Lol. DPDW went deep down. Nomen est omen.
Wildbill. What the h.. has happened to DPDW? Last I watched it it was over $1.00. Has there been bad news?
GTEC is fighting to hold its 0.30 level. Can you see the Level II? What do you think, will GTEC keep it?
I red the quarterly report, and it seems quite reliable. They aim to stay in Chinese market, and have good possibilities (good profit margins) for that, but the competition certainly is very hard in this sector in China.
They will have a Conference Call next Tuesday.
Proteinspike. Go and take a look at this board:
http://investorshub.advfn.com/boards/board.asp?board_id=9964
They handle some of those PIPE-financed cases.
Lol. So do we but we do not tend to tell them.
We all know that. Big boys' "Sell" means - to us, and "Buy" - means from us. No pun meant.
Lol. Goldman Sachs: sell coal stocks - (to us.)
GM Stock Lobster. GTEC.ob 0.28 Genesis Pharmaceuticals (in China) released yesterday their quarterly results, which were pretty good (sales up 7% to $25 mill, net income $5 mill, comprehensive income 7.8 mill).
TOPS $3.07 Top Ships Favorably Resolves Class Action Litigation -
may start to climb
DSX $31.10 Diana Shipping Inc. Reports Financial Results for the Fourth Quarter and Year Ended December 31, 2007
Friday February 15, 7:45 am ET
DECLARES CASH DIVIDEND OF 60 CENTS PER SHARE FOR THE FOURTH QUARTER
ATHENS, Greece, Feb. 15 /PRNewswire-FirstCall/ -- Diana Shipping Inc. (NYSE: DSX - News), a global shipping transportation company specializing in dry bulk cargoes, today reported net income and net income available to common stockholders of $36.4 million for the fourth quarter of 2007. This compared to net income and net income available to common stockholders of $19.4 million reported in the fourth quarter of 2006.
Voyage and time charter revenues were $58.9 million for the fourth quarter of 2007, compared to $35.2 million for the same period of 2006, due to an increase in prevailing time charter rates and an increase in the number of vessels in the Company's fleet.
Net income and net income available to common stockholders for the full year 2007 amounted to $134.2 million. This compared to net income of $61.1 million and net income available to common stockholders of $40.8 million for 2006. Net income for 2007 also included gains of $21.5 million relating to the sale of the Pantelis SP realized in July 2007. Voyage and time charter revenues were $190.5 million for 2007, compared to $116.1 million for 2006.
Dividend declaration
The Company has declared a cash dividend on its common stock of $0.60 per share, based on its results of operations during the fourth quarter ended December 31, 2007. The cash dividend will be payable on or about March 6, 2008 to shareholders of record as of February 29, 2008. The Company has 74.4 million shares of common stock outstanding.
Fleet Employment Profile (As of February 13, 2008)
Currently Diana's fleet is employed as follows:
Sister Year
Name ships(3) Built DWT Employment(1) Charter Expiration(2)
Nirefs A 2001 75,311 $76,000 Mar. 7, 2008(8)
Alcyon A Feb 20, 2008 -
2001 75,247 $22,582 Feb 22, 2008
Nov 22, 2012 -
$34,500 Feb 22, 2013(9)
Triton A Oct. 17, 2009 -
2001 75,336 $24,400 Jan 17, 2010(4)
Oceanis A Jul 29, 2009 -
2001 75,211 $40,000 Oct 29, 2009
Dione A Jan 7, 2009 -
2001 75,172 $82,000 Mar 7, 2009
Danae A Feb 18, 2009 -
2001 75,106 $29,400 May 18, 2009
Protefs B Feb 3, 2008 -
2004 73,630 $31,650 Apr 3, 2008
Calipso B Jan 14, 2009 -
2005 73,691 $55,000 Mar 14, 2009
Clio B Jan 27, 2009 -
2005 73,691 $27,000 Mar 27, 2009
Thetis B Sep 2, 2008 -
2004 73,583 $60,250 Nov 2, 2008
B Aug 24, 2009 -
Naias 2006 73,546 $34,000 Oct 24, 2009
Erato C Jan 1, 2009 -
2004 74,444 $80,300 Mar 1, 2009
Coronis C Jan 18, 2009 -
2006 74,381 $27,500 Apr 9, 2009
Sideris GS D 2006 174,186 $43,000 Nov 30, 2008
$39,000 Nov 30, 2009
Oct 15, 2010 -
$36,000 Jan 15, 2011(5)
Aliki - 2005 180,235 $52,000 May 1, 2009
Mar 1, 2011 -
$45,000 Jun 1, 2011(5)
Semirio D 2007 174,261 $51,000 Jun 15, 2009
Apr 30, 2011 -
$31,000 Jul 30, 2011(5)
D Sep 28, 2011 -
Boston 2007 177,828 $52,000 Dec 28, 2011(6)
Salt Lake Aug 28, 2012 -
City - 2005 171,810 $55,800 Oct 28, 2012
Jan 12, 2013 -
Norfolk(10) - 2002 164,218 $74,750 Mar 12, 2013
Hull H1107(7)D 2010 177,000 - -
Hull H1108(7)D 2010 177,000 - -
Total: 2,364,887
1 Gross time charter rate per day.
2 Charterers' optional period to redeliver the vessel to owners.
Charterers have the right to add the off-hire days, if any, and
therefore the optional period may be extended.
3 Each vessel is a sister ship of the other vessels that have the same
letter.
4 The charterer has the option to employ the vessel for a further
11-13 month period at a daily rate based on the average rate
of four pre-determined time charter routes as published by the Baltic
Exchange. The optional period, if exercised must be
declared on or before the end of the 30th month of employment and can
only commence at the end of the 36th month.
5 The charterer has the option to employ the vessel for a further 11-13
month period. The optional period, if exercised, must
be declared on or before the end of the 42nd month of employment and
can only commence at the end of the 48th month,
at the daily time charter rate of $48,500.
6 The charterer has the option to employ the vessel for a further 11-13
month period. The optional period, if exercised, must
be declared on or before the end of the 42nd month of employment and
can only commence at the end of the 48th month, at
the daily time charter rate of $52,000.
7 Expected to be delivered to owners in the second quarter of 2010.
8 Based on estimated voyage duration of about 60 days.
9 Assumes latest possible redelivery date from previous charterer.
10 Vessel delivered to owners on February 11, 2008 and the charter
commenced on February 12, 2008.
Summary of Selected Financials & Other Data
Three Months
Ended Year Ended
December 31, December 31,
2007 2006 2007 2006
(unaudited)(unaudited)(unaudited)(unaudited)
INCOME STATEMENT DATA
(in thousands of US Dollars):
Voyage and time charter
revenues $58,889 $35,184 $190,480 $116,101
Voyage expenses 2,669 1,732 8,697 6,059
Vessel operating expenses 8,506 6,226 29,332 22,489
Net income 36,373 19,425 134,220 61,063
Net income available to
common stockholders 36,373 19,425 134,220 40,796
FLEET DATA
Average number of vessels 16.8 14.4 15.9 13.4
Number of vessels 18.0 15.0 18.0 15.0
Weighted average age of fleet
(in years) 3.4 3.7 3.4 3.7
Ownership days 1,542 1,321 5,813 4,897
Available days 1,542 1,321 5,813 4,856
Operating days 1,531 1,319 5,771 4,849
Fleet utilization 99.3% 99.8% 99.3% 99.9%
AVERAGE DAILY RESULTS
Time charter equivalent (TCE)
rate (1) $36,459 $25,323 $31,272 $22,661
Daily vessel operating
expenses (2) $5,516 $4,713 $5,046 $4,592
(1) Time charter equivalent rates, or TCE rates, are defined as our voyage
and time charter revenues less voyage expenses during a period divided
by the number of our available days during the period, which is
consistent with industry standards. Voyage expenses include port
charges, bunker (fuel) expenses, canal charges and commissions. TCE
rate is a standard shipping industry performance measure used
primarily to compare daily earnings generated by vessels on time
charters with daily earnings generated by vessels on voyage charters,
because charter hire rates for vessels on voyage charters are
generally not expressed in per day amounts while charter hire rates
for vessels on time charters are generally expressed in such amounts.
(2) Daily vessel operating expenses, which include crew wages and related
costs, the cost of insurance, expenses relating to repairs and
maintenance, the costs of spares and consumable stores, tonnage taxes
and other miscellaneous expenses, are calculated by dividing vessel
operating expenses by ownership days for the relevant period.
Conference Call and Webcast Information
Diana Shipping Inc. will conduct a conference call and simultaneous Internet webcast to review these results at 9:00 A.M. (Eastern Standard Time) on Friday, February 15, 2008.
Investors may access the webcast by visiting the Company's website at www.dianashippinginc.com, and clicking on the webcast link. The webcast also is accessible at www.viavid.net, by clicking on the Diana Shipping link under "Events". The conference call also may be accessed by telephone by dialing 1-866-225-8754 (for U.S.-based callers) or 1-480-629-9562 (for international callers).
A replay of the webcast will be available soon after the completion of the call and will be accessible on both www.dianashippinginc.comand www.viavid.net. A telephone replay will be available by dialing 1-800-406-7325 (for U.S.-based callers) or 1-303-590-3030 (for international callers); callers must use the PIN number 3841276.
About the Company
Diana Shipping Inc. is a global provider of shipping transportation services. The Company specializes in transporting dry bulk cargoes, including such commodities as iron ore, coal, grain and other materials along worldwide shipping routes.
Cautionary Statement Regarding Forward-Looking Statements
Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward- looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.
The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words "believe," "anticipate," "intends," "estimate," "forecast," "project," "plan," "potential," "will," "may," "should," "expect," "pending" and similar expressions identify forward-looking statements.
The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management's examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections.
In addition to these important factors, other important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for dry bulk shipping capacity, changes in our operating expenses, including bunker prices, drydocking and insurance costs, the market for our vessels, availability of financing and refinancing, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessels breakdowns and instances of off-hires and other factors. Please see our filings with the Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties.
DIANA SHIPPING INC.
FINANCIAL TABLES
Expressed in thousands of U.S. Dollars, except share, per day and fleet data
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended Year Ended
December 31, December 31,
2007 2006 2007 2006
(unaudited)(unaudited) (unaudited)
REVENUES:
Voyage and time charter
revenues 58,889 35,184 $190,480 $116,101
EXPENSES:
Voyage expenses 2,669 1,732 8,697 6,059
Vessel operating expenses 8,506 6,226 29,332 22,489
Depreciation and
amortization of deferred
charges 7,595 4,728 24,443 16,709
Management fees - - - 573
Executive management
services and rent - - - 76
General and administrative
expenses 5,082 1,932 11,718 6,331
Gain on vessel sale - - (21,504) -
Foreign currency losses
(gains) 14 26 (144) (52)
Operating income 35,023 20,540 137,938 63,916
OTHER INCOME (EXPENSES):
Interest and finance costs (627) (1,317) (6,394) (3,886)
Interest Income 1,977 202 2,676 1,033
Total other income
(expenses), net 1,350 (1,115) (3,718) (2,853)
Net Income 36,373 $19,425 $134,220 $61,063
Preferential deemed dividend - - - (20,267)
Net income available to common
stockholders 36,373 $19,425 $134,220 $40,796
Earnings per common share,
basic and diluted 0.49 $0.37 $2.11 $0.82
Weighted average number of
common shares,
basic and diluted 74,375,000 53,050,000 63,748,973 49,528,904
BALANCE SHEET DATA
December 31,
2007 2006
(unaudited)
ASSETS
Cash and cash equivalents 16,726 14,511
Other current assets 4,788 4,551
Advances for vessels under construction and
acquisitions and other vessel costs 53,104 24,347
Vessels' net book value 867,632 464,439
Other fixed assets, net 956 897
Other non-current assets 1,136 1,930
Total assets 944,342 510,675
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities 20,964 7,636
Long-term debt 98,819 138,239
Deferred revenue, non-current
portion 23,965 146
Other non-current liabilities 1,120 1,551
Total stockholders' equity 799,474 363,103
Total liabilities and
stockholders' equity 944,342 510,675
OTHER FINANCIAL DATA
Three Months Ended Year Ended
December 31, December 31,
2007 2006 2007 2006
(unaudited) (unaudited) (unaudited)
Net cash from operating
activities $50,562 $25,547 $148,959 $82,370
Net cash used in investing
activities (256,120) (97,306) (409,085) (193,096)
Net cash from financing
activities 31,862 77,860 262,341 104,007
TOPS $3.07 TOP Ships Favorably Resolves Class Action Litigation
Friday February 15, 7:35 am ET
ATHENS, Greece, Feb. 15 /PRNewswire-FirstCall/ -- TOP Ships (Nasdaq: TOPS - News) announced today that it is filing for the Court's approval a settlement agreement with lead plaintiffs in the securities class action lawsuit pending against the Company and certain of its directors and officers in the United States District Court for the Southern District of New York. If the court gives preliminary approval to the settlement, notice will be provided to shareholders, who have the opportunity to object to the settlement, and to opt out of the settlement, which will then be subject to final approval by the Court and possible appeals.
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The terms of the agreement call for a payment of $1.2 million dollars to the plaintiffs. Attorney's fees for plaintiff's counsel, which have not been determined, will be paid out of this amount. The settlement will be funded entirely by the Company's Directors and Officers insurance carriers. The Company and its officers and directors will receive a complete release of all the remaining direct claims against them in the shareholder class action litigation. Many of the claims had already been dismissed voluntarily by the plaintiffs when they amended their complaint last fall after TOPS initially moved to dismiss.
"We're extremely pleased to have resolved this matter," said Evangelos Pistiolis CEO, of TOP Ships. "We believe that we have settled this dispute for a modest amount, and have eliminated the distraction to management which protracted litigation would have caused. We have always believed that the class action was meritless, and were pleased that many of the allegations were voluntarily dropped by the plaintiffs some months ago. We intend to continue to rebuild shareholder confidence in TOP Ships."
Pistiolis added, "We remain confident that TOP Ships' move into the drybulk sector is the correct strategy given the global demand for goods. We believe that the drybulk fleet will contribute significantly to the growth of the company moving forward. This settlement enables us to fully concentrate on what we do best -- running a modern and efficient shipping business."
About TOP Ships Inc
TOP Ships Inc, formerly known as TOP Tankers Inc., is an international provider of worldwide seaborne crude oil and petroleum products and of drybulk transportation services. The Company operates a combined tanker and drybulk fleet as follows:
-- a fleet of 19 tankers, consisting of 11 double-hull Suezmax tankers and
8 double-hull Handymax tankers, with a total carrying capacity of
approximately 2.0 million dwt, of which 78% are sister ships. Twelve of
the Company's 19 tankers are on time charter contracts with an average
initial term of over two years with all but three of the time charters
including profit sharing agreements above their base rates. In
addition, the Company has ordered six newbuilding product tankers,
which are expected to be delivered in the first half of 2009.
-- a fleet of four drybulk vessels with delivery of two additional drybulk
vessels expected during February and March 2008. Including these two
vessels, three of the Company's six drybulk vessels will have period
charter contracts for an average period of 18 months.
Take look at BDI(Baltic Dry Index). Looks good.:
http://www.dryships.com/index.cfm?get=report
Dry Bulk Shippers: The Rebound Begins
(Edit: open the link to see the tables, very usefull)
posted on: February 14, 2008 | about stocks: DRYS / DSX / EGLE / EXM / GNK / NM / OCNF / PRGN / QMAR / TBSI
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This was one of my big picture items for 2008 listed in the January 2 Post, in fact, it was the first first bullet point under the first theme. Click here to check out all those big picture thoughts.
* More Consolidation Coming. This was one of my beginning of the year themes– insert link and in the wake of the EXM/QMAR merger industry executives see more mergers on the horizon which appears to be dragging up the valuations of the smaller players.
* Rates Have Rebounded Sharply. We thought this would happen as we approached the Chinese New Year on Feb 8 and it did, with a pronounced V-shape. Click here to see the latest move in shipper rates.
Earnings For The Big Bulkers Begin This Week. (DRYS) and (QMAR) on Thursday, (DSX) on Friday.
http://seekingalpha.com/article/64666-dry-bulk-shippers-the-rebound-begins?source=yahoo
click to enlarge
dry-bulk-multiple-021208.jpg
Key Points of the above table: These data are compared to 1/10/08 which is when I started to warm back up to the group after its year end beheading.
1) After a rather heterogeneous rebound in the group, current size leader and spot market levered leader (DRYS) remains the cheapest game in town on current year earnings.
2) Earnings estimates have slowed to a crawl and in some cases reversed a bit.