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DRYS - another excellent results and excellent report. Read the whole report, and you'll see this industry is easy to follow and understand. Remember, what Warren Buffett says: "I do not buy stocks of companies, whose operating I do not understand". Very, very important.
DryShips Reports Results for the Fourth Quarter and Twelve Months Ended December 31, 2007
Thursday February 14, 5:39 pm ET
ATHENS, GREECE--(MARKET WIRE)--Feb 14, 2008 -- DryShips Inc. (NasdaqGS:DRYS - News), a global provider of marine transportation services for drybulk cargoes, today announced its unaudited financial and operating results for the fourth quarter and twelve months ended December 31, 2007.
Financial Highlights
-- For the fourth quarter of 2007 the Company reported Net Income of
$195.2 million or $5.37 per share. Included in the fourth quarter results
is a capital gain on the sale of 1 vessel of $31.5 million or $0.87 per
share. Excluding this gain, Net Income would amount to $163.7 million or
$4.50 per share.
-- For the fourth quarter of 2007 the Company reported EBITDA(1) of
$229.3 million.
-- For the year ended December 2007, the Company reported Net Income of
$475.4 million or $13.32 per share. Included in the full year results is a
capital gain on the sale of 11 vessels of $135.0 million or $3.78 per
share. Excluding this gain, Net Income would amount to $340.4 million or
$9.54 per share.
-- For the year ended December 2007 the Company reported EBITDA of $600.8
million.
-- In January 2008 the Company declared and paid its eleventh consecutive
quarterly cash dividend of $0.20 per common share.
No hurry, take your time :)
The board could try to dig out some agricultural and fertilizer stocks. I red an article (auf Deutsch, so I dont post it here) where they said that cocoa, coffee and sugar will be hot hot hot in the near future.
BQI and its volume seem to be in uptrend.
GDOCF/GOGL fleet list as of February 2008:
http://goldenocean.no/fleetlist/
DRYS reports today after market closes. BDI is up 247 points.
BULK__Dry Bulk Fixtures Thursday 14. February 2008
Lloyds - Thursday 14 Feb. 2008 - here 4 of in all 23 > Dry Bulk Fixtures:
Capesize: Unique Carrier 177.000 dwt built 2007 Shanghai/South China 10 Feb. $ 130.000 daily
--------------------------------------------------------------------------------
Panamax: CMB Florentina 75.624 dwt built 2005 Japan/Worldwide 20/22 Feb. 1 year $ 64.500 daily
--------------------------------------------------------------------------------
Panamax: Boomerang 76.200 dwt built 2004 Jingtang/Worldwide 18/22 Feb. 3/5 months $ 65.000 daily
--------------------------------------------------------------------------------
Supramax: Dubai Energy 55.300 dwt built 2004 Lome/Black Sea 14/17 Feb. $ 60.000 daily
--------------------------------------------------------------------------------
FRO up in Oslo 4.15% at NOK251.00 = $46.22. Analysts are stumbling over another to upgrade Frontline. They were "astonished about the results" (haven't they ever listened, what Big John says, or red the filings?). The analysts are beginning to believe that to make money Frontline is not only hauling oil.
Now we can wait for an announcement of distribution of 20% of ITC shares to FRO shareholders, in first or in second quarter of 2008.
Nice!
That young Casanova! Well, main thing is that he is happy and observative - and blixtsnabb.
FRO - Q4 2007 Presentation
Please find enclosed the presentation of the Preliminary Fourth Quarter and Financial Year 2007 Results, held in the morning on Thursday February 14, 2008. The presentation is also available for download at the Frontline website, www.frontline.bm
Oslo, February 14, 2008
Presentation of 4th quarter 2007 results
http://www.frontline.bm/
GM Stock Lobster. Yes, I have noticed that many times...
RLOG $5.35 Rand Logistics Posts 38 Percent Year-over-Year Revenue Growth for the Third Quarter of Fiscal 2008
Thursday February 14, 7:00 am ET
Reports Significant Improvement in Vessel Operating Margins
Recent Completion of WMS Acquisition, Ongoing Vessel Upgrades and Recently Amended Financing Position Rand for Future Growth
NEW YORK--(BUSINESS WIRE)--Rand Logistics Inc. (Nasdaq: RLOG; RLOGW; RLOGU) (“Rand”) today announced operational and financial results for the fiscal third quarter ended December 31, 2007, and provided an update on recent business developments and their expected contribution to future results.
Business Highlights
* Rand recently exercised its option and purchased three vessels it previously operated under a time charter from Wisconsin and Michigan Steamship (“WMS”) for approximately $20 million in cash including transaction expenses. This acquisition represents a significant opportunity for future profit growth through the elimination of duplicate overhead and the full integration of the vessels into Rand’s fleet, resulting in more cost efficient operations. Going forward, the results of the three vessels will be consolidated into Rand’s financial statements, eliminating the Variable Interest Entity line item.
* Rand has announced that it has begun an approximately $13 million project to repower the Saginaw, one of its Canadian-flagged vessels, with a new highly automated emissions-compliant power plant. The repowering is expected to improve operating margins due to an increase in speed, and a reduction in fuel consumption, labor, maintenance and other operating costs. Management estimates that the investment will generate an annual mid-teens return on investment and will be completed in April 2008.
* The Company recently announced that it has amended its credit facility with GE Capital, increasing its borrowing capacity to approximately $100 million. The additional capital will be used to finance the WMS acquisition, the Saginaw repowering project and will provide additional liquidity for future capital investments.
* Rand has decided to permanently retire the Calumet, the oldest and smallest vessel in its fleet. The capital investment required to enable the vessel to generate a satisfactory rate of return over the next five years was not justifiable. In addition, one of the three vessels purchased from WMS has been transferred to Canadian registry. The removal of the Calumet and one of the WMS vessels from the U.S. market reduces 3.0 million tons of capacity. The retirement of the Calumet will not have a material impact on Rand’s cash flow.
* During the nine months ended December 31, 2007, the Company incurred $1.2 million in one-time G&A expenses to improve its management infrastructure, upgrade business software and IT, and further improve internal controls. With this enhanced infrastructure in place, the Company now has the capacity to expand without substantially increasing overhead costs. Management believes that it has now substantially completed the necessary infrastructure investments.
Rand Chairman and Chief Executive Officer Laurence S. Levy commented, “The successful implementation of several strategic initiatives is the result of the continued execution of our business plan and the hard work of all our employees. We are pleased to be able to demonstrate the strength of our business and are excited about the growth opportunities that lie ahead.”
Third Quarter Fiscal 2008 Financial Results
In the fiscal third quarter ended December 31, 2007, revenue increased 38% to $35.9 million, compared to $26.1 million in the prior year period, primarily due to increased freight rates, better operating efficiencies and the acquisition of the two Voyageur vessels. The increase in revenues was partially offset by a decrease in revenues from the three WMS vessels due to difficulties in assembling qualified crews to operate the vessels subsequent to the end of the previously announced work stoppage. These three vessels contributed $6.3 million of revenue during the period, compared to $7.5 million in the prior year period.
Excluding the VIE, earnings before interest, taxes, depreciation and amortization (“EBITDA”) for the fiscal third quarter ended December 31, 2007, was $1.9 million, compared to $2.7 million in the prior year quarter. The decline in EBITDA was primarily due to:
* A loss of $1.1 million from the three vessels operated under the time charter with WMS for the three months ended December 31, 2007, due to the previously announced work stoppage, versus a profit of $1.2 million for the three months ended December 31, 2006; and,
* A $0.3 million charge to EBITDA associated with one-time expenses related to improving management infrastructure, upgrading business software and IT, and further improving internal controls.
FRO - EXCELLENT RESULTS!
FRO - Preliminary Fourth Quarter and Financial Year 2007 Results
Highlights
# Frontline reports net income of $202.3 million and earnings per share of $2.70 for the fourth quarter of 2007, including gain on sale of assets and securities of $144.0 million
# Frontline reports annual net income in 2007 of $574.4 million and earning per share of $7.68, including gain on sale of assets and securities of $323.2 million
# Frontline announces a cash dividend of $2.00 per share for the fourth quarter of 2007
# Frontline has paid a total dividend of $767.8 million in 2007, including the spin off of Ship Finance in the first quarter of 2007
# In line with our strategy to reduce exposure to single hull tankers, Frontline has agreed to sell three single hull vessels in the fourth quarter of 2007. Twelve single hull vessels have been sold or committed to be sold in 2007
Preliminary Fourth Quarter and Financial Year 2007 Results
The Board of Frontline Ltd. (the "Company" or "Frontline") announces net income of $202.3 million for the fourth quarter of 2007, equivalent to earnings per share of $2.70. Operating income for the quarter was $152.7 million including a gain on sale of assets of $53.4 million. This gain consists of $37.0 million relating to the delivery of the second converted heavy lift vessel to Dockwise Ltd. ("Dockwise") and $16.4 million relating to the termination of the lease for the Front Birch.
The reported earnings reflect a stronger spot market. The average daily time charter equivalents ("TCEs") earned in the spot and period market in the fourth quarter by the Company's VLCCs, Suezmax tankers and Suezmax OBO carriers were $45,700, $33,100 and $42,400, respectively compared with $36,000, $25,000 and $41,300 respectively in the third quarter. The results show a continued differential in earnings between single and double hull tonnage. The spot earnings for the Company's double hull VLCC and Suezmax vessels were $43,600 and $37,500 in the fourth quarter, compared to $35,500 and $28,300 in the third quarter.
Profit share expense of $16.1 million has been recorded in the fourth quarter as a result of the profit sharing agreement with Ship Finance International Limited ("Ship Finance") compared to $5.5 million in the third quarter.
Interest income was $14.4 million in the fourth quarter, of which $7.6 million relates to restricted deposits held by subsidiaries reported in Independent Tankers Corporation ("ITC"). Interest expense, net of capitalized interest, was $58.1 million in the fourth quarter of which $14.0 million relates to ITC and $44.1 million relates to the capital lease interest expense.
Other financial items in the fourth quarter includes a $48.7 million gain on the sale of the Company's entire shareholding in Dockwise and a $41.9 million gain on the sale of the Company's entire shareholding in IMAREX ASA ("IMAREX").
Frontline announces net income of $574.4 million for the year ended December 31, 2007, equivalent to earnings per share of $7.68. The average TCEs earned in the spot and period market by the Company's VLCCs, Suezmax tankers, and Suezmax OBO carriers for the year ended December 31, 2007 were $45,700, $33,000 and $39,700, respectively.
As of December 31, 2007, the Company had total cash and cash equivalents of $819.8 million which includes $651.4 million of restricted cash. Restricted cash includes $422.8 million relating to deposits in ITC and $228.6 million in Frontline Shipping Limited and Frontline Shipping II Limited which are restricted under the charter agreements with Ship Finance.
The financial statements for the fourth quarter of 2006 have been restated to reflect the revised accounting treatment for three entities within the ITC group which were previously fully consolidated but are now being accounted for as investments under the equity method. The restatement has no effect on net income.
As a result of the spin-off and subsequent deconsolidation of Ship Finance in the first quarter of 2007, Frontline no longer reports vessels leased from Ship Finance as owned vessels, but rather as vessels held under capital lease. Additionally, Frontline no longer reports results relating to containerships and rig that were consolidated by Ship Finance since the Company will not have continued involvement with these vessels. Consequently, the results for the years ended December 31, 2007 and 2006 have been reclassified to reflect discontinued operations related to these containerships and rigs.
As of February 2008, the Company has average total cash cost breakeven rates on a TCE basis for VLCCs and Suezmaxes of approximately $31,400 and $22,500, respectively.
Sale of Assets
In line with our strategy to reduce exposure to single hull tonnage, Frontline has in the fourth quarter of 2007 agreed with Ship Finance to terminate the long term charter parties between the companies for the single hull VLCC Front Duchess and for the double side single bottom Suezmax tankers Front Birch and Front Maple. Ship Finance has simultaneously sold the vessels. Frontline has received and recognized a compensation payment of approximately $16.4 million for the early termination of the charter party regarding Front Birch in the fourth quarter of 2007 and will receive and recognize a further $41.8 million in the first quarter of 2008 relating to Front Duchess and Front Maple.
In October 2007, Frontline announced the sale of its entire holding of 34,976,500 shares in Dockwise. The shares were sold at a gross price of NOK 25 per share, with net proceeds of approximately $157 million. Frontline has recorded a gain of $48.7 million in the fourth quarter of 2007 as a result of this sale. This is reported in other financial items. Simultaneously with the sale of the shares, Frontline declared an interim extraordinary dividend of $1.75 per share which was paid on October 24, 2007. In the second quarter of 2007, Frontline recorded a gain on the issuance of shares by Dockwise of $43.7 million and in the second and fourth quarter of 2007 Frontline recorded a gain on delivery of vessels to Dockwise in an amount of $60.7 million. Further gains will be recorded at the time of delivery of the two remaining vessels to Dockwise, which is estimated to be in the second quarter of 2008.
In November 2007, Frontline sold its entire holding of 1,714,544 shares in IMAREX to NYMEX Holdings, Inc. The sale price was NOK 160 per share, with proceeds of approximately $51 million. Frontline has recorded a gain of $41.9 million in the fourth quarter of 2007 as a result of this sale. This is reported in other financial items.
Other Matters
Frontline announces today that it has agreed to invest $20 million in NAVIG8 LIMITED ("Navig8") against the issue of new share capital representing a total of 15.8% stake in the company. Navig8 controls approximately 30 tankers representing approximately 1.4 million dwt, including newbuildings on order. Navig8 actively trades a time-charter fleet, owns and invests in tonnage, commercially and technically manages vessels for third parties and trades in the freight-derivatives market. The investment should be considered as purely financial, but gives Frontline at the same time a foothold in the Clean Petroleum Product market.
In January 2008, Golden President Shipping Corporation, a 100% subsidiary of Golden Ocean Group Limited ("Golden Ocean"), had a full and final win in the court case against Bocimar N.V. on the Channel Alliance Time Charter Party and was awarded $14.7 million plus interest thereon in an amount of $2.3 million. The amount of $14.7 million was originally guaranteed by Frontline to Golden Ocean in connection with the spin-off in December 2004, and was later paid to Golden Ocean as it became due according to the charter party. The full settlement from Bocimar N.V. is therefore due to Frontline. The proceeds are expected to be recognized in the first quarter of 2008.
On February 13, 2008, the Board declared a dividend of $2.00 per share. The record date for the dividend is February 26, 2008, ex dividend date is February 22, 2008 and the dividend will be paid on or about March 10, 2008.
74,825,169 ordinary shares were outstanding as of December 31, 2007, and the weighted average number of shares outstanding for the quarter was also 74,825,169.
The full report is avalable for download in the link.
February 13, 2008
The Board of Directors
Frontline Ltd.
Hamilton, Bermuda
Questions should be directed to:
Bjørn Sjaastad: Chief Executive Officer, Frontline Management AS
+47 23 11 40 99
Inger M. Klemp: Chief Financial Officer, Frontline Management AS
+47 23 11 40 76
4th quarter 2007 results
FRO - YEEEEHAAAW
GM Stuffit, WildBill and all Frontline fans:
FRO - Preliminary Fourth Quarter and Financial Year 2007 Results
Highlights
# Frontline reports net income of $202.3 million and earnings per share of $2.70 for the fourth quarter of 2007, including gain on sale of assets and securities of $144.0 million
# Frontline reports annual net income in 2007 of $574.4 million and earning per share of $7.68, including gain on sale of assets and securities of $323.2 million
# Frontline announces a cash dividend of $2.00 per share for the fourth quarter of 2007
# Frontline has paid a total dividend of $767.8 million in 2007, including the spin off of Ship Finance in the first quarter of 2007
# In line with our strategy to reduce exposure to single hull tankers, Frontline has agreed to sell three single hull vessels in the fourth quarter of 2007. Twelve single hull vessels have been sold or committed to be sold in 2007
Preliminary Fourth Quarter and Financial Year 2007 Results
The Board of Frontline Ltd. (the "Company" or "Frontline") announces net income of $202.3 million for the fourth quarter of 2007, equivalent to earnings per share of $2.70. Operating income for the quarter was $152.7 million including a gain on sale of assets of $53.4 million. This gain consists of $37.0 million relating to the delivery of the second converted heavy lift vessel to Dockwise Ltd. ("Dockwise") and $16.4 million relating to the termination of the lease for the Front Birch.
The reported earnings reflect a stronger spot market. The average daily time charter equivalents ("TCEs") earned in the spot and period market in the fourth quarter by the Company's VLCCs, Suezmax tankers and Suezmax OBO carriers were $45,700, $33,100 and $42,400, respectively compared with $36,000, $25,000 and $41,300 respectively in the third quarter. The results show a continued differential in earnings between single and double hull tonnage. The spot earnings for the Company's double hull VLCC and Suezmax vessels were $43,600 and $37,500 in the fourth quarter, compared to $35,500 and $28,300 in the third quarter.
Profit share expense of $16.1 million has been recorded in the fourth quarter as a result of the profit sharing agreement with Ship Finance International Limited ("Ship Finance") compared to $5.5 million in the third quarter.
Interest income was $14.4 million in the fourth quarter, of which $7.6 million relates to restricted deposits held by subsidiaries reported in Independent Tankers Corporation ("ITC"). Interest expense, net of capitalized interest, was $58.1 million in the fourth quarter of which $14.0 million relates to ITC and $44.1 million relates to the capital lease interest expense.
Other financial items in the fourth quarter includes a $48.7 million gain on the sale of the Company's entire shareholding in Dockwise and a $41.9 million gain on the sale of the Company's entire shareholding in IMAREX ASA ("IMAREX").
Frontline announces net income of $574.4 million for the year ended December 31, 2007, equivalent to earnings per share of $7.68. The average TCEs earned in the spot and period market by the Company's VLCCs, Suezmax tankers, and Suezmax OBO carriers for the year ended December 31, 2007 were $45,700, $33,000 and $39,700, respectively.
As of December 31, 2007, the Company had total cash and cash equivalents of $819.8 million which includes $651.4 million of restricted cash. Restricted cash includes $422.8 million relating to deposits in ITC and $228.6 million in Frontline Shipping Limited and Frontline Shipping II Limited which are restricted under the charter agreements with Ship Finance.
The financial statements for the fourth quarter of 2006 have been restated to reflect the revised accounting treatment for three entities within the ITC group which were previously fully consolidated but are now being accounted for as investments under the equity method. The restatement has no effect on net income.
As a result of the spin-off and subsequent deconsolidation of Ship Finance in the first quarter of 2007, Frontline no longer reports vessels leased from Ship Finance as owned vessels, but rather as vessels held under capital lease. Additionally, Frontline no longer reports results relating to containerships and rig that were consolidated by Ship Finance since the Company will not have continued involvement with these vessels. Consequently, the results for the years ended December 31, 2007 and 2006 have been reclassified to reflect discontinued operations related to these containerships and rigs.
As of February 2008, the Company has average total cash cost breakeven rates on a TCE basis for VLCCs and Suezmaxes of approximately $31,400 and $22,500, respectively.
Sale of Assets
In line with our strategy to reduce exposure to single hull tonnage, Frontline has in the fourth quarter of 2007 agreed with Ship Finance to terminate the long term charter parties between the companies for the single hull VLCC Front Duchess and for the double side single bottom Suezmax tankers Front Birch and Front Maple. Ship Finance has simultaneously sold the vessels. Frontline has received and recognized a compensation payment of approximately $16.4 million for the early termination of the charter party regarding Front Birch in the fourth quarter of 2007 and will receive and recognize a further $41.8 million in the first quarter of 2008 relating to Front Duchess and Front Maple.
In October 2007, Frontline announced the sale of its entire holding of 34,976,500 shares in Dockwise. The shares were sold at a gross price of NOK 25 per share, with net proceeds of approximately $157 million. Frontline has recorded a gain of $48.7 million in the fourth quarter of 2007 as a result of this sale. This is reported in other financial items. Simultaneously with the sale of the shares, Frontline declared an interim extraordinary dividend of $1.75 per share which was paid on October 24, 2007. In the second quarter of 2007, Frontline recorded a gain on the issuance of shares by Dockwise of $43.7 million and in the second and fourth quarter of 2007 Frontline recorded a gain on delivery of vessels to Dockwise in an amount of $60.7 million. Further gains will be recorded at the time of delivery of the two remaining vessels to Dockwise, which is estimated to be in the second quarter of 2008.
In November 2007, Frontline sold its entire holding of 1,714,544 shares in IMAREX to NYMEX Holdings, Inc. The sale price was NOK 160 per share, with proceeds of approximately $51 million. Frontline has recorded a gain of $41.9 million in the fourth quarter of 2007 as a result of this sale. This is reported in other financial items.
Other Matters
Frontline announces today that it has agreed to invest $20 million in NAVIG8 LIMITED ("Navig8") against the issue of new share capital representing a total of 15.8% stake in the company. Navig8 controls approximately 30 tankers representing approximately 1.4 million dwt, including newbuildings on order. Navig8 actively trades a time-charter fleet, owns and invests in tonnage, commercially and technically manages vessels for third parties and trades in the freight-derivatives market. The investment should be considered as purely financial, but gives Frontline at the same time a foothold in the Clean Petroleum Product market.
In January 2008, Golden President Shipping Corporation, a 100% subsidiary of Golden Ocean Group Limited ("Golden Ocean"), had a full and final win in the court case against Bocimar N.V. on the Channel Alliance Time Charter Party and was awarded $14.7 million plus interest thereon in an amount of $2.3 million. The amount of $14.7 million was originally guaranteed by Frontline to Golden Ocean in connection with the spin-off in December 2004, and was later paid to Golden Ocean as it became due according to the charter party. The full settlement from Bocimar N.V. is therefore due to Frontline. The proceeds are expected to be recognized in the first quarter of 2008.
On February 13, 2008, the Board declared a dividend of $2.00 per share. The record date for the dividend is February 26, 2008, ex dividend date is February 22, 2008 and the dividend will be paid on or about March 10, 2008.
74,825,169 ordinary shares were outstanding as of December 31, 2007, and the weighted average number of shares outstanding for the quarter was also 74,825,169.
The full report is avalable for download in the link.
February 13, 2008
The Board of Directors
Frontline Ltd.
Hamilton, Bermuda
Questions should be directed to:
Bjørn Sjaastad: Chief Executive Officer, Frontline Management AS
+47 23 11 40 99
Inger M. Klemp: Chief Financial Officer, Frontline Management AS
+47 23 11 40 76
4th quarter 2007 results
Thanks SL. We need him sniffing around good picks and rotten stocks :)
Stock Lobster. Can you post a picture of our financial advisor? There are new members, who may not know him.
Kujo. The financial advisor of the Lotto Board is Harvey The Cat. He sniffs easily if there is something rotten in a stock, and gives a sign to act blixtsnabbt when needed. We can usually trust his judgement :)
Yeah. You see I'm a little worried about he may now be sometimes a little absent minded in the heat of trading day. The brains may not be working as blixtsnabb as in NS...
SL. How is now doing the financial advisor of the Lotto Board? Did he have to leave all three girlfriends in NS?
VLCCF $27.46 distributes 4Q dividend $0.75.
OCNF $19.94. Quite a growth in the quarter!
UPDATE 1-OceanFreight Q4 profit rises on higher average day-rate
Tue Feb 12, 2008 5:59pm EST
(Recasts; adds details, share movement)
Feb 12 (Reuters) - Greek dry bulk carrier OceanFreight Inc (OCNF.O: Quote, Profile, Research) reported fourth-quarter earnings that beat Wall Street view due to a sequential increase in average day-rate, sending shares up by 12 percent in after-hours trade.
The company also raised its quarterly dividend by about 50 percent to 77 cents a share.
Fourth-quarter earnings were $6.4 million, or 44 cents a share, compared with $974,000 or 11 cents a share in the previous quarter.
Quarterly gross revenue was $23.2 million and voyage revenue rose about 50 percent sequentially to $20.6 million.
Analysts on average were expecting earnings of 37 cents a share, on revenue of $20.50 million.
OceanFreight, which went public last April, reported quarterly average time charter equivalent rate -- a measure of dayrate -- of $31,554 a day, compared with $25,399 in the third quarter. (Reporting by Sakthi Prasad in Bangalore; Editing by Jarshad Kakkrakandy)
Dividends, dividends
Paragon Shipping Inc. (PRGN $17.18) Declares Quarterly Dividend of $0.4375 Per Share
Tuesday February 12, 4:20 pm ET
ATHENS, Greece, Feb. 12, 2008 (PRIME NEWSWIRE) -- Paragon Shipping Inc. (NasdaqGM:PRGN - News), a global shipping transportation company specializing in dry bulk cargoes, announced today that its Board of Directors has declared a quarterly dividend of $0.4375 per share, payable on February 28, 2008 to shareholders of record as of February 19, 2008.
EDIT: Previous dividend $0.438. PRGN will release 4Q earnings on February 20 after market closes. (?!!??)
I have been regretting since the beginning of 2003 that I did not buy TORM then.. lol, but I did not want to buy too many different currencies and concentrated on FRO. Must say the journey would have been less rollercoaster ride with TORM.
Dambskipssellskapet TORM and MAERSK are icons in shipping industry.
AGIX is in the same sector as ORMP.ob, Oramed, trying to develope a diabetes pill. AGIX should release some information on Feb 14th.
GM Kujo. TORM (TRMD $30.67) is a good dividend payer too. As far as I remember they have both tankers and bulkers, don't they?
Diana adds a capesize.
Diana Shipping Inc. Announces Delivery of Capesize Bulk Carrier
Tuesday February 12, 7:30 am ET
ATHENS, GREECE, Feb. 12 /PRNewswire-FirstCall/ -- Diana Shipping Inc. (NYSE: DSX - News), a global shipping transportation company specializing in dry bulk cargoes, today announced that the Company has taken delivery of the 164,218, dwt Capesize dry bulk carrier "Thalassini Kyra", renamed "Norfolk", built in 2002 by China Shipbuilding Corporation, Kaohsiung Shipyard. The agreement to purchase this vessel was originally announced on October 17, 2007.
As previously announced, "Norfolk" was purchased for US$135 million and is chartered as of February 12, 2008 to Corus UK Ltd., as agents on behalf of Corus Staal B.V., for a period of minimum 59 to maximum 61 months, at a daily rate of US$74,750 less 3.75% commission. Current employment is anticipated to generate approximately US$133 million of gross revenues for the Company over the minimum scheduled period of the charter.
Including the newly-delivered "Norfolk", the Diana Shipping Inc. fleet currently consists of 19 dry bulk carriers (13 Panamax and 6 Capesize) with a weighted average age of 3.4 years only. The Company also previously announced two Capesize new-building dry bulk carriers that are expected to be delivered during the second quarter of 2010. A table describing the current Diana Shipping Inc. fleet can be found on the Company's website, www.dianashippinginc.com.
NAT $31.02 tanker profit falls due drydocking
Nordic American Tanker net falls, misses view
By Steve Goldstein
Last update: 6:35 a.m. EST Feb. 12, 2008
LONDON (MarketWatch) -- Nordic American Tanker Shipping (NAT
nordic american tanker shipp com NAT) said fourth-quarter net income fell to $1.675 million, or 6 cents a share, from $13.7 million, or 52 cents a share, as net voyage revenue dropped to $26.86 million from $34.27 million. The company, however, was profitable after a third quarter in which it lost $1.18 million. During the fourth quarter, it took 16 cents a share in drydocking and non-cash pension costs. Analysts polled by Thomson Financial expected the firm to earn 28 cents a share. In January, its vessels achieved about $45,000 per day, up from $27,000 during the fourth quarter. It's going to pay a 50 cents a share dividend for the fourth quarter, up from 40 cents in the third quarter. End of Story
Good morning SL. You know that I am thinking about my early, cheap investments in FRO, and therefore keep on keeping GDOCF exposed here, because it still is cheap now, and pays already dividends to its shareholders.
So is FREE, and I'll keep an eye on TOPS too - they may have learned their lesson and start succeeding anew.
Wink, wink :)
GM bulkerfans. Here's GDOCF's/Mr. Billung's opinion of the near term dry bulk market, in connection with GDOCF's 4Q CC today:
http://hugin.info/135378/R/1190656/239756.pdf
GDOCF/GOGL - Q4 2007 Presentation
Please find enclosed the presentation of the Preliminary Fourth Quarter 2007 Results, held in the morning on Tuesday February 12, 2008.
Oslo, February 12, 2008
http://hugin.info/135378/R/1190656/239756.pdf
GDOCF. From the 4Q report:
Outlook and strategy
During the first weeks of 2008 freight rates for dry bulk vessels experienced considerable decline. Given the
high utilisation of the fleet, only a small reduction in demand will lead to a noticeable softer freight market.
We have started the year with a series of negative factors simultaneously:
- Disruption in Brazilian iron ore exports.
- Queensland (Australia) floods
- Chinese energy shortages due to severe weather.
- Indonesian rains
All the above events must be seen as temporary, and we foresee the market to returning to normal within the
next month. In fact we are of the opinion that there currently is a huge back log of cargoes which we expect
will come back into the marketplace in the coming months. In addition, China will reduce exports and
increase imports of coal leading to more tonne-miles. This in combination with the South American grain
export season starting in a few weeks should lead to significantly higher demand and freight rates.
We are of the opinion that the market will remain strong in 2008, mainly supported by a continued strong
demand side. The increased amount of tonnage ordered for 2009 and onwards gives some reasons to concern.
However uncertainty of the delivery schedule for several of the yards, financing issues and a continued high
growth in the coal and iron ore segments reduces the risk for a major setback.
For the remainder of 2008 Golden Ocean has 37 per cent open capacity within the Panamax segment and 42
per cent for 2009. Within the Capesize segment there is currently no exposure.
The Company has continued to secure new long term time charter contacts at attractive levels for both our
segments. The charter contracts signed for the Kamsarmax newbuildings will write down the vessels to zero
in the charter period based on 15 per cent return on equity. At the same time additional two fixed and two
options of Kamsarmax vessels were secured from Jinhaiwan at attractive prices. The co-operation with this
particular yard will be of strategic importance going forward.
The high degree of charter coverage the Company now has arranged reduces the consequences of any setback
in today’s very strong market and strengthens the possibility to continue with a high dividend stream to the
shareholders. The spot chartering capacity and the underlying asset exposure creates significant upside
leverage. The low cost of the chartered in and owned fleet in combination with attractive financing already
secured, has put the company in a strong financial position both to grow the business and increase the
dividend capacity to shareholders. The Board is pleased with the fact that the effort of building a global high
quality dry bulk company can be combined with continued high distribution of dividend. Based on the
development so far in 2008 the results for Q! Is likely to reflect a strong market and continued high dividend
capacity.
GM Stuffit. GDOCF/GOGL 4Q results: EPS 0.36 NET $97.2 mill REV $280.9 mill DIV $0.30
GOGL trading higher in the opening: NOK29.30 = USD5.31
Published: 08:19 12.02.2008 GMT+1 /HUGIN /Source: Golden Ocean Group /OSE: GOGL /ISIN: BMG4032A1045
GOGL - Preliminary Fourth Quarter and Financial Year 2007 Results
Golden Ocean Group Limited (the "Company" or "Golden Ocean") reports net income of $97.2 million and earnings per share of $0.36 for the fourth quarter of 2007. This compares with net income and earnings per share of $52.9 million and $0.20 for the third quarter of 2007. Total operating revenues for the fourth quarter were $280.9 million, total operating expenses were $214.7 million and net other expenses were $0.4 million.
Due to the continued strong freight market during the quarter and the gain on sale of one vessel the Company increased net operating income to $97.7 million compared to $68.5 million in the third quarter.
Cash and cash equivalents increased by $171.5 million during the quarter. The Company generated cash from operating activities and financing activities of $22.3 million and $213.9 million, respectively and used $64.7 million for investing activities. The latter amount includes part payments on newbuilding instalments of $136.8 million and proceeds from sale of assets of $72.8 million. During the fourth quarter the Company repaid $15.6 million in debt and borrowed an additional $319.7 million. This includes a Convertible Bond of $200 million issued during the quarter. In addition the company paid out a dividend of $135.9 million during the quarter.
For the year ended December 31, 2007 the Company reports a net income of $201.0 million and earnings per share of $0.74. Total operating revenues were $708.0 million, total operating expenses were $540.7 million and net other expenses were $40.9 million.
On February 12, 2008 the Board has declared a dividend of $0.30 per share. The record date for the dividend is February 28, 2008, ex dividend date is February 26, 2008 and the dividend will be paid on or about March 7, 2008.
At December 31, 2007 the total number of shares outstanding in Golden Ocean was 271,765,107 of $0.10 par value each.
The full report is available in the link below.
February 12, 2008
The Board of Directors
Golden Ocean Group Limited
Hamilton, Bermuda
Questions should be directed to:
Herman Billung: CEO Golden Ocean Management AS
+47 22 01 73 40
Geir Karlsen: CFO Golden Ocean Management AS
+47 22 01 73 53
Q4 2007 Results
DryShips Inc. Reports Fourth Quarter and Year-End 2007 Results
Monday February 11, 4:08 pm ET
Earnings Release: Thursday, February 14, 2008 After 4:00 P.M. EST; Conference Call and Webcast: Friday, February 15, 2008, at 10:00 A.M. EST
ATHENS, GREECE--(MARKET WIRE)--Feb 11, 2008 -- DryShips Inc. (NasdaqGS:DRYS - News) announced today that it will release its results for the fourth quarter and year end 2007, after the market closes in New York on Thursday, February 14, 2008.
DryShips' management team will host a conference call on Friday, February 15, 2008, at 10:00 A.M. Eastern Standard Time (EST) to discuss the Company's financial results.
Conference Call details:
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1(866) 819-7111 (from the US), 0(800) 953-0329 (from the UK) or +(44) 1452 542 301 (from outside the US). Please quote "DryShips."
In case of any problem with the above numbers, please dial 1(866) 223 0615 (from the US), 0(800) 694-1503 (from the UK) or +(44) 1452 586-513 (from outside the US). Please quote "DryShips."
A replay of the conference call will be available until February 21, 2008. The United States replay number is 1(866) 247 4222; the UK replay number is 0(800) 953 -1533; and the international replay number is (+44) 1452-550 000. The access code required for the replay is : 2133051#
Slides and audio webcast:
There will also be a simultaneous live webcast over the Internet, through the DryShips Inc. website (www.dryships.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
About DryShips Inc.
DryShips Inc., based in Greece, is an owner and operator of drybulk carriers that operate worldwide. As of the day of this release, DryShips owns a fleet of 47 drybulk carriers comprising 5 Capesize, 31 Panamax, 2 Supramax, 1 Handymax, and 8 newbuilding drybulk vessels, with a combined deadweight tonnage of over 4 million tons.
DryShips Inc.'s common stock is listed on the NASDAQ Global Market where it trades under the symbol "DRYS."
Visit our website at www.dryships.com
FRO $ 43.00 up 1.5%
AP Premarket Movers:
Monday February 11, 9:19 am ET
"Shares of oil tanker Frontline Ltd. rose in the early session following an upgrade from JPMorgan Securities analyst Jonathan B. Chappell.
Frontline shares gained $1.07, or 2.5 percent, to $43.40 premarket on the raise to "Neutral" from "Underweight," or "Sell."
Chappell also raised his earnings estimates for the Bermuda-based company. For the upgrade, he cited record prices for fuel and an expectation that the company will keep its dividend despite a slightly weak fourth quarter."
BQI $3.30
Oilsands Quest updates operations activities in Alberta and Saskatchewan, announces appointment of VP of Reservoir Engineering
Monday February 11, 9:00 am ET
Amex: BQI
CALGARY, Feb. 11 /PRNewswire-FirstCall/ - Oilsands Quest Inc. (Amex: BQI - News) announces updates of activities in its drilling and seismic programs on the company's contiguous land holdings in Alberta and Saskatchewan to February 9, 2008. The company also announces the appointment of Claes T.S. Palmgren to the new position of Vice President, Reservoir Engineering.
Alberta operations update
Oilsands Quest initiated exploratory drilling on January 10, 2008 on its exploration permits in Alberta and, by February 9, 2008 had drilled five holes. The holes are located within an area of approximately two sections or five square kilometres (about two square miles) and encountered McMurray formation at depths ranging from 157 to 164 metres (515 to 538 feet). The estimated thickness of the McMurray formation, which includes meaningful bitumen intercepts, ranges from 20 to 46 metres (65 to 150 feet). Bitumen saturation, net pay thicknesses and other reservoir characteristics will be determined following third-party core and laboratory analysis, which will take several months to conduct.
Oilsands Quest currently has four drilling rigs working on the Alberta side of its contiguous land holdings. The company hopes to drill up to 30 exploratory holes in its current Alberta drilling program by the end of the winter drilling season, which traditionally ends during the last half of March with the arrival of spring break-up conditions.
Field work in Oilsands Quest's winter 2007/08 seismic program in Alberta, which includes 2D and 3D surveys, is underway. It is expected that planned seismic field work will also be completed by the end of the winter season.
Saskatchewan operations update
In its winter 2007/2008 Saskatchewan drilling program to date, Oilsands Quest has drilled a total of 96 delineation holes, along with 16 piezometer holes (for ground water monitoring) since September 2007. All of these holes are located in the Axe Lake Discovery area. Core samples and drilling data are being evaluated.
Four drilling rigs are currently at work on the company's land holdings in Saskatchewan. This week, Oilsands Quest plans to shift the focus of current Saskatchewan drilling and step out from the Axe Lake Discovery area. Field work in the Saskatchewan 2D and 3D seismic programs for winter 2007/08 has been completed, and processing is now underway in Calgary. During January, Oilsands Quest's two camps, both located in Saskatchewan, have averaged a total of 305 personnel.
Appointment of Vice President, Reservoir Engineering
On February 1, 2008, Claes T.S. Palmgren, P.Eng., was appointed Vice President, Reservoir Engineering, of Oilsands Quest Inc. Prior to joining Oilsands Quest, Dr. Palmgren was Manager, Reservoir Process Technology at StatoilHydro Canada Ltd. (formerly North American Oil Sands Corporation). He has extensive experience in thermal and thermal-solvent in-situ recovery processes, technology pilot program development and field applications of in-situ heavy oil and bitumen recovery technologies. Dr. Palmgren's biography is posted on the company's website (www.oilsandsquest.com).
Oilsands Quest Inc. is aggressively exploring Canada's largest holding of oil sands permits and licences, located in Saskatchewan and Alberta, and developing Saskatchewan's first global-scale discovery. It is leading the establishment of the province of Saskatchewan's emerging oil sands industry.
GM Stock Lobster. I did not get much done last week, just waiting for my dividends :)
One OTC stock I have been eyeing is CTUM $1.00 Consortium Service Management. They should get the FDA decision for their patented Live Tissue now in near future (they left their application in last June).
GM Wildbill. Do you think Microsoft in this deal would be interested in Yahoo's 40% share in Alibaba.com and its subsidiaries (Alimama, AliPay etc)? Alibaba has had big success in the Asian market, and everybody is waiting for new IPOs of those subsidiaries. Google has not really made a breakthrough there.
Deutshe Bank has upgraded Alibaba to "buy" with a target price 21.15HKD = €2.45 = $3.55.
With the present price (19.58HKD, €1.75 in Frankfurt now) Alibaba shares are cheap, but not so profitable with O/S 5 BILLION and A/S 8 BILLION shares!
I think FREE is sailing fine forwards. They have chosen to grow steadily and do not take unnecessary risks. That's a good sign for a company in its infancy. They have a shareholder-friendly policy, and in a long run that's what counts. The majority of shipping companies' shareholders have traditionally been individual investors, and they have been paid for their loyalty.
Good morning you busy ant! And thank you for that - it's nice to get the news in one place on my screen :)
A Diamond Hits the Short Rough
David Lee Smith
February 8, 2008
As with most companies, for Diamond Offshore (NYSE: DO), there are both short- and long-term considerations. In the latter time frame, the company appears to be one of the more solid participants in the field we broadly label "oilfield services." More immediately, however, its results have been hit by a one-time tax charge and the higher expenses that have been working their way across the energy sector.
In the quarter, the company earned $164.9 million, down 25.5% from the $221.4 million in the comparable period a year ago. The per-share number was $1.19, compared to $1.60 in the December 2006 quarter. The latest quarter included a $0.42 charge related to previously untaxed earnings from a foreign operation. Revenue was up more than 15% from a year ago.
Diamond constitutes a tale of two companies, with its smaller jack-up segment not faring as well as the other types of units because of overcapacity and a Gulf of Mexico slowdown. Indeed, jack-up dayrates were about flat in the quarter, at an average of about $115,000, and a utilization rate that markedly slipped to 63%, from 81% in the December 2006 quarter.
At the same time, the company's deeper-water "intermediate semis" and "high specification floaters" are doing better. Those rigs have experienced dayrate expansions in the past year. And for those with an interest in probing what I believe is a solid company, Diamond's website contains a rig report that provides all manner of intriguing details on its various rigs, their dayrates, general operating costs, and contract status.
Beyond that, Diamond Offshore, whose board has declared another special cash dividend of $1.25 a share, joins such other members of the services set as Schlumberger (NYSE: SLB), BJ Services (NYSE: BJS), Halliburton (NYSE: HAL), and Baker Hughes (NYSE: BHI) in reporting results that frankly have been all over the map. Diamond's deepwater-drilling running mate, Transocean (NYSE: RIG), will tell us about its quarter later in the month.
Diamond's shares have slipped nearly 8% just in this not-yet-completed week. Given the company's crucial role in the worldwide search for oil and gas, my approach is to recommend that Fools keep an eye on its price movement, and as the slide appears to abate, consider slowly building a position in the company.
http://www.fool.com/investing/general/2008/02/08/a-diamond-hits-the-short-rough.aspx
Sector Snap: Oil Service Shares Rally
Friday February 8, 12:22 pm ET
Offshore Drillers and Rising Crude Prices Drive Oilfield Service Sector Rally
NEW YORK (AP) -- Shares of oilfield service providers rose Friday, lifted by higher oil prices and a bright outlook for the offshore drilling market.
The Philadelphia Oil Service Sector Index rose 0.55 percent to 253.56 in morning trading. Broader indexes pulled back, with the Dow Jones industrial average sinking 0.6 percent to 12,171.32.
Higher crude prices, which advanced to add to the previous day's gains, buttressed the sector. Light, sweet crude for March delivery rose $1.12 to $89.23 a barrel on the New York Mercantile Exchange.
Offshore drillers -- especially those that operate movable platforms known as jackup rigs -- were the sector's big winners. The market for the rigs, which are towed into place and then raised on legs resting on the seabed, has been weak for months because of oversupply.
But early in the day, Friedman, Billings, Ramsey analyst Robert MacKenzie issued a report that suggested a near-term shortage of the rigs, meaning that operators should be able to maintain their pricing power well into the summer.
"We expect day rates to remain firm for contractors who hold bidding firm," he wrote.
Shares of Noble Drilling Corp., which operates a fleet composed almost entirely of jackup rigs, jumped $1.45, or 3.3 percent, to $45.37. Another major jackup operator, Ensco International Inc., saw its shares rise 79 cents to $52.15.
Shares of other drillers that offer a range of rig types, including jackups, also rose. Atwood Oceanics Inc. added 86 cents to $86.45. Transocean Inc., the world's largest drilling contractor, gained $2.22 to $124.35.
Shares of Diamond Offshore Drilling Inc. advanced a day after the company reported a sharp drop in fourth-quarter profit because of a big tax charge and idled rigs.
Jefferies & Co. analyst Judson Bailey cut his earnings estimates on the company because he said he expects a number of its rigs will continue to sit unused over the next two years. But he also said he believes the company's shares are undervalued, and stood by a "Buy" rating for the diversified driller.
"Despite more downtime and higher costs, Diamond Offshore's most attractive characteristic remains the company's leverage to the deepwater and intermediate (semisubmersible) market," which continue to attract more lucrative drilling rates than other types of rigs, he wrote.
MacKenzie also recommends the stock, noting that a "recent sell-off presents an attractive entry point." He rates Diamond "Outperform."
Diamond shares fell 68 cents to $106.23.
Stormy shipping industry - the operating managers in this business cannot always wait for the decisions of the annual shareholder meeting...
Forbes.com
International
Curious George
Nathan Vardi 02.25.08, 12:00 AM ET
DryShips is a public company. But the way George Economou runs the place, you'd hardly know it.
Sitting in the library bar of Manhattan's Regency Hotel, Greek shipping billionaire George Economou throws back a salted nut before confronting the shareholder complaints that have been swirling around him. "Listen, guy," he says as if conducting a fractious conference call. "If you don't like it, you don't have to be here. Sell the stock."
Many investors have taken this advice, recently slashing $2 billion, almost half the market value, from Economou's DryShips, which owns 38 dry bulk carriers (from 46,000 deadweight tons to 170,000) that shuttle iron ore, coal, fertilizers and grain around the globe. But Economou is comfortable in choppy waters. DryShips charters its vessels in the volatile spot market, and, despite the recent dip, the stock has quadrupled in the past year to $74.
With his blond hair and perfect English, Economou has led a flotilla of Greek shipowners to the U.S. capital markets. He listed DryShips on the Nasdaq in 2005. Since then 12 mostly Greek dry-bulk shipping firms have followed to New York exchanges as the sector raised $4 billion, reports Dealogic. Not that they've thanked him for helping to pave the way to Wall Street.
On the contrary, some shippers and investors have pilloried Economou for tarring the entire industry by signing controversial deals, often involving family members, that blur the lines between DryShips and his privately held Cardiff Marine, a ship management outfit. Peter Georgiopoulos, chairman of rival Genco Shipping & Trading, blasted Economou in public recently, saying shippers like Economou "play games with their shareholders' money." For his part Economou says his 15-year friendship with Georgiopoulos is over. "Maybe it reflects how he feels about himself and not how he feels about me," Economou opines before swatting the thought away. "Peter doesn't have feelings; he is too self-centered."
Economou has also infuriated professional investors. "I believe he runs DryShips as if it's his own private company," says Steven Abernathy, who heads a New York hedge fund that recently dumped its DryShips holdings. "I am not going to be part of anything where a chief executive is self-dealing."
Abernathy's frustration stems from Economou's abrupt announcement late last year that DryShips had ventured out of the shipping sector and into oil drilling. With no prior notice Economou persuaded his board--five people including himself and Aristidis Ioannidis, general manager of Cardiff Marine--to spend $405 million for a 30% stake in Ocean Rig, a Norwegian firm that owns two deepwater drilling rigs. Economou, who also bought a 4% stake in Ocean Rig for himself, says he feels strongly that deepwater drilling presents a glorious opportunity. A Cardiff Marine affiliate recently ordered two newly constructed drill ships from Samsung Heavy Industries for $1.4 billion.
The sudden tacking by DryShips hasn't played well with shareholders. In a December 2007 conference call investors complained about DryShips' intention to pay Cardiff Marine a $4 million fee for brokering the Ocean Rig deal. They also expressed concern that Economou was using the public company to fund his private interests. Would Economou now press Ocean Rig to buy Cardiff's new ships? "The more salient issue is that DryShips' balance sheet is potentially being deployed as bridge financing for Mr. Economou's long-term entry into the drill-rig sector," says Oppenheimer & Co. analyst Tim J. Tiberio.
But Economou, who owns 34% of DryShips, has learned he can do nearly anything he wants in the capital markets as long as it's fully disclosed. "Once you have full disclosure, if you don't like it, don't invest," he says. He does, however, sometimes seem to be disdainful of his shareholders. "Who are my investors? Computer models, hedge funds and some institutions that go in and make $10 and get out."
So much for consensus. DryShips has been operating with two employees (Economou, 54, and his internal auditor) since his chief financial officer quit in May, the second to split in three years. The company's fleet is managed by Cardiff, 70% owned by Economou, which gets more than $7 million a year for its troubles. Cardiff also manages Economou's private fleet of 13 dry bulkers and 21 oil tankers. How do investors know that when a sweet chartering deal comes up Cardiff won't give preferential treatment to vessels owned wholly by Economou? They can read DryShips' securities filings, Economou says.
Born in Athens, Economou first came to America to attend MIT, where he received two masters of science, one in naval architecture and marine engineering, another in shipping and shipbuilding management. His dad owned a small paper-products firm, but Economou was drawn to the sea. "The only people who made it where I am from were involved in shipping," he explains. He toiled at shipping outfits in New York before returning to Greece, buying his first ship in 1986 and later setting up Cardiff.
Economou returned to New York in 1998 to raise $175 million in junk bonds to expand his fleet with a company called Alpha Shipping. A year after raising the cash, Alpha failed to make an interest payment and defaulted on the bonds, which largely ended up with Credit Suisse. Operating smoothly in bankruptcy court, Economou struck a deal that let him pay creditors 37 cents on the dollar and left him in possession of most of the fleet.
In 2005 Economou tapped Wall Street again, taking DryShips public and raising $250 million. Good timing. The company rose on the growth in global trade, particularly iron ore demand from China, which pushed charter rates higher. The price to charter one of DryShips' bigger vessels jumped from $30,000 a day in January 2006 to $170,000 in November 2007, though prices have weakened lately in the global economic slowdown. Meantime DryShips borrowed $819 million, at 5.98% to 7.33% interest rates, to add ships. DryShips' net profit rose 749% to $177 million in the nine months ended Sept. 30.
A family business, this. Economou's two former wives own a total 15% of DryShips. Chryssoula Kandylidis, his sister, holds 30% of Cardiff Marine. With proceeds from its initial offering, DryShips bought six ships that had recently been picked up by Kandylidis. Five were sold at cost, but DryShips paid his sister a $3 million fee. Economou says she made very little money on the deal and bore great risk.
Kandylidis' son, Antonios Kandylidis, is also in this cozy network. The 30-year-old Antonios is the founder and largest shareholder in OceanFreight, which raised $218 million when it went public on the Nasdaq last year. Cardiff helped OceanFreight pick up its first dry-bulk vessels, helps manage that fleet and shares office space with OceanFreight.
A rocky maiden voyage. OceanFreight had to clarify its reporting in October, announcing third-quarter earnings per share were really 7 cents as opposed to the 11 cents it had advertised a day earlier. In December Antonios fired his chief executive, who says he intends to sue for wrongful termination. Then OceanFreight's chief financial officer quit; Antonios took over both the executive roles. Within days of the fuss OceanFreight announced it was buying the first of two tankers privately owned by Economou for $112 million. Antonios says the first tanker has already been chartered to ExxonMobil for three years thanks to Cardiff's efforts and that Economou gave him a "break" on price with the second tanker.
Conflict of interest? Antonios insists the decision to buy the tankers was made by OceanFreight's directors, of whom there are five, including Antonios' dad. "Everything was done at arm's length; they are not going to approve a transaction that is overpriced," Antonios says. OceanFreight's stock recently traded at its offering price, but Natasha Boyden, a Cantor Fitzgerald analyst, recommends buying both DryShips and OceanFreight. Boyden shrugs at all the interfamily dealings. "They have been doing business like this for hundreds of years," Boyden says. "They are not going to stop doing it just because they are public."
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