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TRX.V 0.36 Here's the link to the article:
Here is one junior mining company (gold, copper, zinc, molybden) with good fundamentals, which looks like it has arrived to the next level Exploration II: Terrane Metals TRX.V 0.41.
A comprehensive report titled: "One of the Most Undervalued Juniors Ready to Leap to the Next Level"
(Certainly not the only one in this wide world, but as far as I understand they have good resources to become a real producer.)
http://www.resourcestockguide.com/home_page.php?hpc=15&nid=2740
So you have more mouths to feed?? No wonder you have been working so hard. Take a look at Terrane Metals TRX.v too ("The Most Undervalued Metal Stock"). There you might find more potential income to feed your family :)
Edit: I could use some income too
Oh that Harvey! Must have had rough times to entertein three girlfriends. Young Casanova has to learn the facts of life..
Oh yes, you have this ability to sniff good moves... and then of course you have Harvey. I need an intraday chart to see if the stock goes up or down..lol.
I have noted in the recent markets that the only thing I can do reasonably good is just counting my dividends lol
BTW why the US people cannot buy Canadian stocks directly from their US accounts, but must set up a broker/bank account in Canada? I understand that Canadians can buy/sell US stocks from their accounts. FYI we can trade both US and Canadian stocks from our broker accouts here in Scandinavia.
What's the problem?
Stock Lobster. Do you have the intraday charts of your Canadian stocks? Where do you get the charts from? TIA
DHT $13.52 Shares of Double Hull Tankers Rise
Thursday December 6, 7:34 pm ET
Analyst Offers 'Buy' Rating, $20 Price Target on Double Hull Tankers, Shares Up Nearly 7 Pct
NEW YORK (AP) -- Shares of Double Hull Tankers rose Thursday after a Jefferies & Co. Inc. analyst initiated coverage of the stock at "Buy," citing the shipper's profit-sharing agreements, extensive charters and current value.
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Analyst Douglas J. Mavrinac noted the company has a fleet of nine, modern, double-hulled oil tankers, two of which are set to be delivered over the next several months. Further, every Double Hull vessel is on long-term charter contracts, which will allow the company to avoid the volatile spot tanker market.
Eight out of nine vessels are also under time-charter agreements with profit-sharing arrangements, which Mavrinac said will allow the company to grow if the market rates are higher than the contract's negotiated rates. This extensive time charter coverage should "insulate" the company's earnings next year, he wrote.
The analyst also wrote that shares are "attractively valued, trading at a projected 2008 dividend yield of 12 percent."
Additionally, Double Hull's agreement with Overseas Shipholding Group Inc. boosts the potential for fleet expansion, Mavrinac said.
He set his 12-month price target at $20.
Shares rose 94 cents, or 7.4 percent, to $13.62 Thursday. The stock has ranged between $11.62 and $18.79 in the past year.
Weekly Offshore Rig Review: North Sea Scrutiny
RigLogix 12/6/2007
URL: http://www.rigzone.com/news/article.asp?a_id=53747
Over the last two weeks, a spate of small safety incidents has turned some of the industry's attention to the North Sea. First, on Sunday, November 25th, a fire on the Thistle Alpha platform caused the evacuation of 116 crew members, all of whom returned safely by Monday. Then, on Tuesday, November 27th, a small fire broke out, this time on Shell's North Cormorant platform. The incident was quickly contained and no evacuation was necessary. Most recently, on Tuesday, December 4th, a fire occurred on the Songa Dee semisubmersible drilling rig at StatoilHydro's Troll field. While these incidents are unrelated, their timing has drawn attention to the region.
In this week's offshore rig review, we too will turn our attention to the North Sea to examine recent offshore rig utilization and contract trends. Starting with the Songa Dee, which experienced the fire earlier this week, we'll look at utilization and day rates for key rig types in the region.
Semisubs
The Songa Dee started working for Norsk Hydro in December 2005 at a day rate of $155,000, and the rig has been drilling around the Troll field for the last two years. When the contract began, its $155,000 day rate was 16% above the average day rate at the time for semisubs working in the North Sea. Over the course of the last two years, average semisub day rates in the North Sea have more than doubled from $133,446 in December 2005 to $292,309 right now. As such, the Songa Dee has moved from earning an above-average day rate to a below-average one.
Looking at North Sea semisubs more broadly, this group of rigs accounts for the largest segment of the North Sea mobile offshore rig fleet (including jackups, semis, and drillships) with its 39 rigs amounting to 51% of the 76 rigs in the region as of December 6th. Of these 39 semis, 37 are currently contracted for a 95% utilization rate. That utilization level is at the very peak of semisub utilization rates for the North Sea, which have increased steadily over the last four years from less than 60% in late 2003.
While utilization rates have risen, day rates have not been left behind. During the four year period that saw utilization rates climb so much, day rates have also soared. From an average of about $90,000 in December 2003, North Sea semisub day rates have more than tripled to $292,309 for December 2007. As recently as April 2006, semisubs in the North Sea were earning as little as $50,000 day rates, but in January 2008, the lowest day rate set to be paid is $155,000.
Looking forward to 2008, day rates for North Sea semisubs are set to continue their strong upward trend. Currently, 80% of the semis in the North Sea are contracted for work in December 2008, and the average day rates for those contracts in $357,521, more than 20% higher than current rates. With such a tight market and only a handful of rigs available for new contracts in 2008, rates for new contracts are likely to stay high and push that average up as the year moves forward.
Jackups
In the North Sea, jackup rigs account for 47% of the mobile offshore rig fleet and represent a very important segment of the market that is only slightly smaller than the semisub fleet. Of the 36 jackups that are currently in the North Sea, 34 are under contract for an overall utilization rate of 94%, on par with the semisub fleet utilization rate. Unlike the semisub fleet, which has seen utilization rates climbing steadily over the last 4 years, the North Sea jackup fleet has maintained consistently high utilization levels going back more than 15 years. Since 1994, when the North Sea jackup fleet size stabilized between 35 and 40 rigs, utilization has only dropped below 80% for two periods of time: from February 1999 to May 2000 and again from March to June 2004.
While North Sea jackup utilization rates have been quite steady, day rates have been very much on the rise over the last three years. After rising steadily over the course of 2001 and 2002 and then dipping back down in 2003, rates held fairly steady in the $60,000 to $70,000 range from mid 2003 to early 2005. The second quarter of 2005 marked a turning point when North Sea jackup day rates began climbing from an average of about $70,000. Within a year, by March 2006, rates had risen just over 60%. After two years, by March 2007, day rates had more than doubled from their April 2005 level, averaging $170,912 in April 2007.
While day rates continued to climb through the rest of 2007, things seem to be cooling off at this point. The December 2007 average day rate is off almost 3% from November, which is the first month-to-month decrease since a 0.9% dip in April 2006 which was followed by steady increases. Looking forward to next year, jackup day rates in December 2008 look to be nearly 20% lower than current rates. With 58% of jackups already contracted for that time period, there is not a lot of free capacity to influence that average. At the same time there are enough free rigs to avoid creating a very tight market that would push day rates up. Plus, with the glut of newbuild jackups that will be available next year, there will potentially be several new rigs entering the North Sea and little pressure for rigs to leave for other regions. All of these factors look to combine to create a probable weakening in North Sea jackup day rates in the coming year.
For More Information on the Offshore Rig Fleet:
RigLogix can provide the information that you need about the offshore rig fleet, whether you need utilization and industry trends or detailed reports on future rig contracts. Subscribing to RigLogix will allow you to access dozens of prebuilt reports and build your own custom reports using hundreds of available data columns. For more information about a RigLogix subscription, visit www.riglogix.com.
GM Stuffit. GDOCF.PK $5.95 As expected GDOCF's bond offer was bought out in a blink. It is very favourable to GDOCF (with 3.625% interest!) and shows that "Store Ulven" is respected in credit markets to get this kinds of loans.
Now, what for did they need money this quick? There's much buzz about this in Oslo, and people are betting on an acquisition of another bulker company (nowadays it can be cheaper to buy a shipping company than individual ships!) We'll see.
Published: 16:06 07.12.2007 GMT+1 /HUGIN /Source: Golden Ocean Group /OSE: GOGL /ISIN: BMG4032A1045
GOGL - GOLDEN OCEAN GROUP LIMITED ANNOUNCES PRICING OF $200 MILLION CONVERTIBLE BOND
Golden Ocean Group Limited ("Golden Ocean" or the "Company") today announces that the Company has successfully completed its $200 million convertible bond offering.
The proceeds from the bonds will be used to part-finance the Company's newbuilding program.
The senior unsecured convertible bonds will have an annual coupon of 3.625% payable semi-annually in arrear and a conversion price of $8,2588 per bond representing a conversion premium of 40% of the volume weighted average price of the Company's shares on the Oslo Stock Exchange (converted into $) up to the pricing of the bonds on 7 December 2007 (the reference price).
The reference price of the Company's common shares has been set at $5.89914 (based on a volume weighted average price of NOK 32,2844).
The Bonds will be issued and redeemed at 100% of their principal amount and will, unless previously redeemed, converted or purchased and cancelled, mature in December 2012.
Golden Ocean has the right to call the bonds after three years, if the value of the Golden Ocean shares underlying one Bond on the Oslo Stock Exchange (translated into $) exceeds, for a specified period of time, 130% of the principal amount of the Bond.
The Bonds are expected to be settled on or around 20 December 2007. Golden Ocean may decide to list the Bonds on an exchange at a later stage.
ABG Sundal Collier Norge ASA is Sole Bookrunner for the Offering. ABG Sundal Collier Norge ASA and Nordea Bank Norge ASA are Joint Lead Managers.
7 December 2007
Hamilton, Bermuda
Contact Persons:
Herman Billung: CEO, Golden Ocean Management AS
+47 22 01 73 40
Geir Karlsen: CFO, Golden Ocean Management AS
+47 22 01 73 53
GM Stuffit. GDOCF is raking in money "to part-finance the Company's newbuilding program." To part-finance what else - we'll see. Chance to buy more, if the price dips.
Published: 08:39 07.12.2007 GMT+1 /HUGIN /Source: Golden Ocean Group /OSE: GOGL /ISIN: BMG4032A1045
GOGL - Launch of a $200 million convertible loan
Golden Ocean Group Limited ("Golden Ocean" or the "Company") is pleased to announce that the Company intends to issue $200 million in principal amount of convertible bonds with a five-year tenor. The senior unsecured bonds will be convertible into common shares of the Company. The bonds are expected to have an annual coupon in the range of 3.125% and 3.625% payable semi-annually in arrear, and have a conversion premium of 40% to 45% over the volume weighted average price of the Company`s shares on the Oslo Stock Exchange (converted into $) at the time of pricing.
The convertible bonds will be issued and redeemed at 100% of their principal amount and will, unless previously redeemed, be converted or purchased and cancelled, mature in December 2012.
Golden Ocean has the right to call the bonds after three years, if the value of the Golden Ocean shares underlying one bond on the Oslo Stock Exchange (translated into $) exceeds, for a specified period of time, 130% of the principal amount of the bond.
The bonds are expected to be settled on or around 20 December 2007. Golden Ocean may decide to list the bonds on an exchange at a later stage. The proceeds from the convertible bond offering will be used to part-finance the Company's newbuilding program.
ABG Sundal Collier Norge ASA is Sole Bookrunner for the Offering. ABG Sundal Collier Norge ASA and Nordea Bank Norge ASA are Joint Lead Managers.
7 December 2007
Hamilton, Bermuda
Contact Persons:
Herman Billung: CEO, Golden Ocean Management AS
+47 22 01 73 40
Geir Karlsen: CFO, Golden Ocean Management AS
+47 22 01 73 53
South Korea Coast Guard Battles Supertanker Oil Spill (Update2)
By Sungwoo Park
Dec. 7 (Bloomberg) -- South Korea's coast guard sent boats to contain the country's biggest oil spill in more than a decade after a Hong Kong-registered supertanker collided with a barge.
About 11,000 metric tons (81,000 barrels) of crude oil was spilt after a crane on the barge crashed into the Hebei Spirit at 7:15 a.m. local time, Jeong Seon Mun, deputy director of the maritime safety information center at South Korea's Ministry of Maritime Affairs & Fisheries, said. The ship was anchored 5 miles (8 kilometers) northwest of the Taean peninsula at the time.
The leak is almost a third of the 37,000 tons spilled into Prince William Sound, Alaska, by the Exxon Valdez in 1989, according to data on the International Tanker Owners Pollution Federation's Web site. The Taean Coast Guard deployed 12 patrol boats and 3 accident control vessels, Jeong said today.
``Oil is still spilling,'' Jeong said by telephone in Seoul. ``The police face difficulty in carrying out the operation because high waves make it hard to contain the spill.''
Today's leak is the largest in South Korean waters since 1995, when a 5,000 ton spill occurred at Yeosu, 455 kilometers south of Seoul, the Ministry of Maritime Affairs and Fisheries said in a statement.
The barge that collided with the Hebei Spirit is owned by Samsung Heavy Industries Co. and suffered minor damage, the ministry said. The accident left three holes on the left side of the supertanker, it said.
The vessel was carrying crude oil for Hyundai Oilbank Co.'s refinery at Daesan, Kim Sung Yong, a spokesman for the South Korean company, said by telephone. South Korea's fourth-biggest oil refiner may reduce processing at its 390,000 barrels-a-day Daesan plant following the spill, said company officials said who asked not to be identified.
The very large crude carrier, or VLCC, capable of carrying more than 2 million barrels of oil, is registered to Hong Kong- based Hebei Ocean Shipping Co., according to data compiled by Bloomberg.
To contact the reporter on this story: Sungwoo Park in Seoul at spark47@bloomberg.net .
Last Updated: December 7, 2007 01:48 EST
BP, Husky Form Integrated Oil Sands Business
BP plc 12/5/2007
URL: http://www.rigzone.com/news/article.asp?a_id=53658
BP announced Wednesday that it is moving into the Canadian oil sands by acquiring a half-share in the Sunrise field in Alberta, operated by Husky Energy. At the same time Husky will acquire a half share in BP's Toledo oil refinery in Ohio, US, between them forming an integrated North American oil sands business. Two independent 50/50 joint ventures will be formed from the equally valued assets to own and develop the businesses.
"Toledo and Sunrise are excellent assets. BP's move into oil sands is an opportunity to build a strategic, material position and the huge potential of Sunrise is the ideal entry point for BP into Canadian oil sands," said Tony Hayward, BP's group chief executive. "In addition this deal will help guarantee a supply of advanced transportation fuels to major North American markets from Toledo which is a flexible and advantaged site."
The Sunrise oil sands field is expected to be sanctioned in 2008 with first production of bitumen in 2012, building to 200,000 barrels of oil a day (bpd) by the end of the next decade with a 40 year production plateau. Sunrise, located in the Athabasca oil sands in northeast Alberta will be developed using steam assisted gravity drainage (SAGD), a tested technology which heats the bitumen within the reservoir, allowing it to flow to the surface. The bitumen will be piped to Hardisty, Alberta, from where it will be transported via existing pipeline networks for refining. Sunrise will be operated by Husky as a Canadian oil sands partnership, based in Calgary.
Toledo Refinery's crude distillation capacity is currently 155,000 bpd of which 60,000 bpd capacity is currently heavy oil. The refinery is located in one of the largest energy consumption regions of the US and, subject to necessary approvals and permits, will be expanded to process approximately 170,000 bpd of heavy oil and bitumen by 2015. It will be operated by BP as a US refining LLC.
"This transaction completes Husky's Sunrise Oil Sands total integration with respect to upstream and downstream solutions," said John C.S. Lau, President & Chief Executive Officer of Husky Energy Inc. "Husky is extremely pleased to be partnering with BP, a world class global E&P and Refining company."
"The upstream and downstream joint ventures announced today will be investing billions of dollars to expand North American energy supply and enhance North American energy security," said Bob Malone, chairman and president of BP America. "The result will be the development of a major new Canadian oil field and the modernization and expansion of the Toledo refinery to allow far greater use of Canadian heavy oil and to increase clean fuels production by as much as 600,000 gallons a day."
Full regulatory approval of the proposed deal and final commercial agreements are expected to be completed in 1Q 2008, with a partnership effective date of January 1, 2008.
BP has been advised by BMO Capital Markets.
The Sunrise field in the north of Athabasca, NE Alberta, will be developed in three phases based on SAGD. The field has been fully delineated by the drilling of 650 appraisal wells. Front end engineering is well advanced on Sunrise with completion expected in early 2008. Joint investment up to 2012 is estimated at around US$3bn. Site preparation work, including clearing of the various development areas and the rough grading of the central plant site, field facility roads and well pads, is ongoing. The partnership will be responsible for sourcing fuel gas and diluents for Sunrise; and delivering product to a market transfer point at Hardisty where each party will take their respective production share.
SAGD is a thermal in situ recovery process using pairs of horizontal wells. A horizontal production well is located near the bottom of the reservoir and steam is injected into a second horizontal well placed above it, heating the bitumen and enabling it to flow. The bitumen and condensed steam, under the influence of gravity, drain to the lower horizontal well and are produced through the wellbore to the surface.
Around 175 billion barrels of Alberta's oil sands are currently thought to be commercially recoverable. These resources are split between oil sands which require mining methods (about 25% of resource), and oil sands which can be developed using adaptations of conventional oilfield technologies (about 75% of resource).
Toledo Refinery is located in the city of Oregon in northwest Ohio. It is well positioned to receive Canadian crudes for refining and supply into the US Midwest and the neighboring Canadian markets. It is a heavy sour coking refinery and is highly flexible (Nelson complexity index of 11.6), one of the few complex refineries outside the Gulf Coast region and California. It can take heavy and medium sour crudes and upgrade them to advanced, cleaner transport and heating fuels such as low sulfur gasoline, ultra low sulfur diesel, aviation fuels, propane, kerosene and asphalt. It produces daily 3.8 million US gallons of gasoline, 1.1m gallons of diesel, 756,000 gallons of jet fuels, about 0.5% of US total refining capacity. The value of Toledo on the books of BP Products North America Inc. as at 30 September 2007 was US$494 million.
Joint investment of around US$2.5 billion is expected up to 2015 to sustain and reposition the refinery to process increased amounts of heavy crude oil and bitumen.
BP will initially market 100 percent of the refinery products until commencement of Sunrise deliveries, when Husky will have the right to market its share of the refinery products.
BP operates five wholly owned refineries in the US, located in Ohio, Indiana, Texas, Washington and California.
BP is one of the world's largest oil and gas companies, serving millions of customers every day in more than 100 countries across six continents. BP's business activities are in exploration and production; refining and marketing; and its low-carbon BP Alternative Energy division. Through these businesses, BP provides fuel for transportation, energy for heat and light, retail services, and petrochemicals products.
Husky Energy Inc. is a fully integrated energy company that participates in upstream, midstream and refined products business areas. The Husky Energy group of companies produce crude oil, natural gas, synthetic crude oil and a range of derivative products, for North American and international markets. Husky Oil Operations Limited (Husky), one of the Husky Energy group of companies, has a 100 percent interest in oil sands leases east of Kearl Lake, about 60 kilometers northeast of Fort McMurray.
BQI:
Energy Manager Buys With an Eye on U.S. Growth
By Gregg Greenberg
TheStreet.com Staff Reporter
12/5/2007 12:03 PM EST
URL: http://www.thestreet.com/newsanalysis/assetmanagers/10392999.html
The energy story isn't over by a long shot.
"Any long-term portfolio must have a significant energy stake," says Kent Croft, co-portfolio manager of the Croft Value fund. "We have entered a new era of higher energy prices primarily for three reasons: geopolitical risk, supply constraints and global growth."
Croft's multi-cap, go-anywhere fund has certainly benefited from the run-up in energy prices. Almost 15% of the $30 million portfolio is in energy stocks. The fund is up nearly 17% year to date, 11 percentage points better than the S&P 500. It has returned an average of 17.5% annually over the past five years, 5.6 percentage points better than the index.
In order to limit geopolitical risk, Croft prefers to own North American names like Petrobank Energy and Resources, an oil and gas exploration and production company with operations in Canada, and Oil Sands Quest (BQI), which has exploration rights to approximately 700,000 acres, primarily in Saskatchewan.
Edit Xanadu: Petrobank (PBG.TO CAD 51.89 PBEGF.PK USD 51.00) has the THAI-oil extraction method, and lately made a reservation bordering with BQI's territory in Sask.
He has also owned Houston-based Ultra Petroleum (UPL) since the natural gas company's market cap was less than $500 million. Now it's close to $10 billion and Croft says it will head higher once the Rockies Express Pipeline opens in early 2008.
"We look for catalysts like the Rockies Express Pipeline when we search for stocks," says Croft. "We also look for contrarian plays and, of course, growth at a discount because we are a value fund."
Aside from getting into energy stocks like Ultra before the crowd, Croft -- who manages the fund with his father and brother -- was also early with his infrastructure investments. The fund has scored big-time with its investments in Foster Wheeler (FWLT) and Terex (TEX) .
Right now Croft is partial to General Cable (BGC) because of its electrical transmission business. "It's well known that the U.S. has an inadequate grid system, and General Cable will benefit when it gets upgraded."
Croft is also looking at companies levered to -- believe it or not -- U.S. growth.
"Right now everybody is touting companies with strong international sales. We were there two years ago. And as contrarians, we believe the smart thing is to look at what everybody else is leaving behind. U.S. companies that sell their goods domestically are getting cheap. The U.S. will slow, but eventually it will pick up again. And we'll be there."
BQI $4.47 Oilsands Quest announces close of public offering
Wednesday December 5, 9:25 am ET
Amex: BQI
CALGARY, Dec. 5 /PRNewswire-FirstCall/ - Oilsands Quest Inc. (Amex: BQI - News; the "Company") announced the completion today of its previously-announced marketed public offering (the "Offering") of 11,000,000 units ("Units"), priced at US$5.00 per Unit, and 2,600,000 common shares on a flow-through basis ("Flow-through Shares"), priced at Cdn$6.17 per Flow-through Share. The Flow-through Shares were not offered in the United States.
http://biz.yahoo.com/prnews/071205/to237.html?.v=61
FYI: CPNLQ.PK 0.67
UPDATE 1-Calpine sees Ch 11 emergence before Jan 31, 2008
Wed Dec 5, 2007 6:00pm EST
NEW YORK, Dec 5 (Reuters) - Power company Calpine Corp (CPNLQ.PK: Quote, Profile, Research) said on Wednesday it has filed to list the common stock of the reorganized company on the New York Stock Exchange after it emerges from bankruptcy.
It expects to emerge from Chapter 11 prior to Jan 31, 2008, the company said.
Two weeks ago, Calpine said it was trying to emerge from bankruptcy by Dec. 31 before the expiration of its current $8 billion exit financing. Calpine secured the financing before the subprime mortgage debacle hit credit markets this summer.
Subject to approval of its listing application and the effectiveness of its plan of reorganization, Calpine anticipates the newly issued stock will begin trading on the NYSE in January under the ticker symbol CPN.
Last month, the company said it was worth about $900 million less than previously estimated, sharply cutting into returns for shareholders.
The value of Calpine has been a source of dispute between the company and its shareholders and is seen as one of the main obstacles to its emergence from bankruptcy protection.
Calpine shares dropped 8 cents, or 10.67 percent, to 67 cents on Wednesday. The stock had set a 52-week high of $4.15 in April.
Citing increased market volatility and falling values of its peers, Calpine said in November its total enterprise value was at $18.3 billion to $20.4 billion, with a midpoint of $19.35 billion. Enterprise value is a company's market capitalization plus debt and preferred stock, but excluding its cash.
Calpine sought Chapter 11 protection in December 2005, burdened by more than $22 billion in debt and court battles with creditors on how to use its cash.
The company, whose more than 14,000 megawatts of generating capacity are in markets that include the high-demand states of Texas and California, struggled after it went on a credit- financed power plant building spree in the late 1990s. (Reporting by Steve James; Editing by Andre Grenon)
Frontline got rid of two old single hull tankers, and the analysts got desperate of the company's loss of two simple nuisances. Oh my.
Of course the analysts cannot count on JF pulling a rabbit out of the hat time after time to rescue FRO's economy, but if they have followed the walk of life of Frontline they could have guessed it, and simply been quiet instead of declaring their opinions.
Teekay spinoff to offer 10 million shares in IPO
By Wallace Witkowski
Last update: 5:41 p.m. EST Dec. 3, 2007
Print RSS Disable Live Quotes
SAN FRANCISCO (MarketWatch) -- Teekay Corp. (TK:
teekay corporation com
TK 54.15, -2.10, -3.7%) said late Monday its Marshall Islands-based spin-off Teekay Tankers Ltd. filed for an initial public offering of 10 million Class A shares, along with 1.5 million shares to cover overallotments. The spin-off plans to be listed on the New York Stock Exchange under the ticker "TNK." After the IPO closes, Teekay Tankers plans to acquire nine double-hull Aframax-class oil tankers from Teekay Corp. Citi and Morgan Stanley will act as joint book-running managers and represent underwriters, including Merrill Lynch, Wachovia, Deutsche Bank, JPMorgan, Dahlman Rose, Scotia Capital, and Johnson Rice & Co.
What Tanker Glut?
By Toby Shute December 3, 2007
7 Recommendations
You wouldn't know it by looking at share prices in the sector, but certain oil-tanker rates have exploded in recent weeks.
Remember our discussion of how DryShips' (Nasdaq: DRYS) scary-high profits are closely tied to the Baltic Panamax Index? Well, for the crude-oil shippers, it's useful to keep an eye on the Baltic Dirty Tanker Index (BDTI). "Dirty" tankers transport crude, while "clean" tankers move refined products like gasoline or jet fuel. The two are generally not interchangeable, because crude's sludgy residue would contaminate other products.
In the last two weeks of November, the BDTI, which tracks a dozen different tanker routes, rose more than 50%. Long-haul voyage rates have changed even more dramatically in the same period. While owners of very large crude carriers (VLCCs) were reluctantly accepting jobs in the vicinity of $17,000 a day -- actually a money-losing proposition for a company such as Frontline (NYSE: FRO) -- benchmark rates have recently risen to as high as $140,000 a day.
Let's return to those relatively stagnant share prices. If tanker operators are now able to earn multiples of what they were pulling down just two weeks ago, why haven't their stocks rocketed higher?
For one thing, many of the bigger companies in this space, such as Overseas Shipholding Group (NYSE: OSG) and Tsakos Energy Navigation (NYSE: TNP), have a mix of crude and product carriers in their fleet.
Second, tankers come in all shapes and sizes, so even pure crude-movers don't necessarily have the type of transporter that's most in demand. Nordic American Tanker (NYSE: NAT), for example, owns only Suezmax vessels, which are smaller than VLCCs and thus don't make the same long-haul voyages.
Third, even Knightsbridge Tankers (Nasdaq: VLCCF), a rarity among publicly traded shippers in that its fleet consists solely of VLCCs, has only two vessels trading on the spot market.
I'm afraid those of you looking to make a quick buck on this turning of the tanker tide are straight out of luck. But if you're a shareholder of a company such as OSG or Teekay (NYSE: TK), you have to be pleased that the stormy scenarios causing analyst agitation have simply not taken shape.
RIG Transocean plans to raise $8.5 bln to pay down debt
Mon Dec 3, 2007 4:35pm EST
NEW YORK, Dec 3 (Reuters) - Transocean Inc (RIG.N: Quote, Profile, Research), the world's largest offshore oil and gas drilling contractor, on Monday said it plans to raise $8.5 billion by issuing debt in order to repay borrowings to pay shareholders in its recent purchase of GlobalSantaFe Corp.
The company plans public offerings of $6 billion of convertible senior notes due 2037 and $2.5 billion of senior notes due 2013, 2018, and 2038.
Transocean completed its purchase of GlobalSantaFe last week. It said it plans to use the proceeds from the proposed offerings along with $1.5 billion of borrowings under its revolving credit facility to repay a portion of the outstanding borrowings under its $15 billion bridge loan facility. (Reporting by Michael Erman, editing by Phil Berlowitz)
RIG $ 137,55 Transocean CEO Long Exercises Options
Monday December 3, 2:39 pm ET
Transocean Chief Executive Robert L. Long Exercises Options for 287,059 Shares of Stock
WASHINGTON (AP) -- The chief executive and director of offshore oil drilling Transocean Inc. exercised options for 287,059 shares of common stock under a prearranged trading plan, according to a Securities and Exchange Commission filing.
In a Form 4 filed Friday with the SEC, Robert L. Long reported he exercised the options Thursday for $22.58 to $59.99 apiece and then sold all 287,059 shares on the same day for $134.80 to $137.71 apiece.
The stock sale was conducted under a prearranged 10b5-1 trading plan which allows company insiders to set up a program in advance for such transactions and proceed even if they come into possession of material nonpublic information.
Insiders file Form 4s with the SEC to report transactions in their companies' shares. Open market purchases and sales must be reported within two business days of the transaction.
Transocean is based in Houston.
No, that was an analyst talking. I buy my Seadrill stocks from Oslo. And not solely because of the media influence, but because I have owned Seadrill stocks long time and have had strong faith in these deepsea drillers already before I ever heard somebody talk about them in TV. Anyway, good to see and hear that somebody else has noted this sector too.
GM Stuffit. I just listened to a talking head on European CNBC, who was so enthusiastic about deepsea drillers, mainly because of the lack of heavy class semisubmersibles, that I bought some Seadrill shares more. Don't talk to me about the influence of media - here's a good example...lol
Thank you Stock Lobster. You can express the things clearly and to the point. I must read now your post several times to catch all your thoughts. We seem to think alike about media's influence. "Media, The Fourth Estate". What is the real role of media? They say their role is just to deliver information to people. Me thinks their role is just to choose the information (of ALL possible information) they tell to people. The fact that most of media is financed by advertisers - not any more by the subscribers - has made many mediasectors untrustworthy.
As Drybulk Goes, So Goes The World Economy
Ruthie Ackerman, 11.30.07, 8:20 PM ET
Shares of drybulk shippers jumped on Friday as the cost of chartering vessels extended its advance, a sign that the global economy -- powered in large part by China -- is expanding at a smart pace.
Drybulk future rates were up about 17% from last week with an average Capesize rate at $137,000 per vessel per day, up from $116,000, said Cantor Fitzgerald analysts. Meanwhile, spot rates for Capesize vessels, which are the largest ships, shot up on Friday to $177,418, up 2.9%, from $172,369 on Thursday, but down slightly from last week. A year ago, however, the rate was below $68,000.
One reason may be that the world’s largest iron ore producer, Brazil’s Companhia Vale do Rio Doce, said on Thursday that it had begun discussions with its customers over iron-ore prices for next year. China is the world’s biggest iron importer, and it gets 24% of its needs from Brazil. Analysts and investors are expecting significant price increases for iron ore in 2008, indicating strong demand. In turn, dry bulk forward rates for 2008 are also showing increases.
On Friday, dry bulk shipping stocks shot up, with those most exposed to the spot market posting the biggest rises.
DryShips, which is heavily exposed to spot rates, saw its shares jump 5.0%, or $4.52, to $94.48 at the close, while Diana Shipping shot up 4.5%, or $1.52, to $35.41. Excel Maritime rose 1.4%, or 76 cents, to $53.54; Quintana Maritime gained 3.1%, or 79 cents, to $26.55; and Euroseas increased 4.0%, or 58 cents, to $15.20.
Dahlman Rose analyst Omar Nokta said China’s demand for ships to deliver steel exports continues to be strong, which proves that the global economy isn’t slowing. “Until we start seeing steel prices ease, things are still very strong,” Nokta said.
Last year at this time, Nokta said, there were also a lot of concerns, but he kept reassuring investors that as long as drybulk stocks were strong the economy was doing fine. “At this moment in time drybulk is still rocking, but it remains to be seen what’s going to happen going forward.”
For now, Chinese demand keeps increasing with projects lined up for next year. “Right now it doesn’t seem like they’ll just go off a cliff,” Nokta said.
The Associated Press contributed to this article.
Somehow it often feels that people with humanity, honesty and decency are looked as naive and simple, and you are a smarty if you succeed in deceiving and cheating them. It is very difficult for the parents to teach their children those values and at the same time fight the allmighty media, who idolizes those kind of smarties.
No, we have to use studded (?) tyres (tyres with studs?) from the beginning of December to end of March in the whole country. Middle-European drivers use chains, because snow storms are only occasional there. They need not use studded tyres (and spoil their autobahns).
Thanks, Dave007. Author unknown.. I think most of us could underwrite that obituary of Common Sense, Good Heart and Moral Responsibility.
We had a vigorous snow storm here. Roads are icy and many bad car accidents happened. People never learn to change the winter tyres in their cars in time.
Hello Stuffit. Are you feeling better?
Hello Stock Lobster. Thanks for the numerous articles again today. Can't help agreeing with the Irishman Feargal Sharkey... A Good Heart is Hard to Find.. nowadays. Makes you think why is it so hard in these modern times. What have we forgot or lost?
U.S. Weekly Oil and Gas Rig Count Up 50
Friday November 30, 3:50 pm ET
HOUSTON (AP) -- The number of rigs actively exploring for oil and natural gas in the United States rose by 50 this week to 1,823.
Of the rigs running nationwide, 1,463 were exploring for natural gas and 354 for oil, Houston-based Baker Hughes Inc. reported Friday. Six were listed as miscellaneous.
A year ago, the rig count stood at 1,717.
Of the major oil- and gas-producing states, Texas gained 13 rigs, and Colorado, Oklahoma and Wyoming each added four. Louisiana lost three, Alaska lost one and New Mexico and California were unchanged.
Baker Hughes has tracked rig counts since 1944. The tally peaked at 4,530 in 1981, during the height of the oil boom. The industry posted several record lows in 1999, bottoming out at 488.
SDRLF.PK Seadrill. Homework for all language entusiastics (read - good news!):
Anbefaler riggaksje på det varmeste
Meglerhus opgraderer John Fredriksens riggselskap til "strong buy".
Artikkel av: Øystein Byberg (HegnarOnline - 30.11.07 10:50)
Relaterte artikler:
Seadrill ser høyere rater
Seadrill ikke helt i mål
SDRL
Nordea Markets oppgraderer Seadrill-aksjen til "strong buy" i kjølvannet av fremleggelse av kvartalsrapporten. Den viste at selskapets nybyggingsprogram utvikler seg som planlagt. Kursmålet settes til 152 kroner, melder TDN Finans.
"Vi ser potensielt rater på 600.000 dollar bli inngått for de to ultra-dypvann-enhetene med oppstart i 2009 ettersom konkurransen vil være begrenset og markedet i segmentet fortsatt vil være sterkt", skriver analytiker Ingolf Gillesdal i Nordea Markets.
Seadrill-aksjen stiger 1,9 prosent til 121,25 kroner på Oslo Børs.
Great! If only you had time to enjoy your abilities... read articles - not to mention literature - in original language. But even I do not have time for that. Too much everything else.
Take care, Stuffit and rest. Wall Street will always be there.
Do you speak Spanish - or is it Portugies they speak in Brazil?
Hello Lady-baron. Yes, that was Swedish, but you know that the Scandinavian languages do not much differ from each other - they are kind of different dialects.
Economic language is rather understandable almost in whatever European language, thanks to the vocabulary of Latin roots. At least I can understand almost all headlines of even a Dutch newspaper...
My goodness! And I thought I don't even try to recommend you a Finnish business magazin. Ok. Try Kauppalehti http://www.kauppalehti.fi/4/i/etusivu
There we have a linguistic talent!
"Trying to feel better".. What's up?? Have you been ill?
GM Stuffit. You know Stock Lobster has skills to understand at least Norwegian language..
Go'morron Stock Lobster. Du kan säkert läsa och förstå norsk/svensk/dansk businesspråk, och så kan du ta en titt på nordiska ekonomitidningar: Dagens Industri i Sverige http://di.se/, iMarkedet i Norge http://www.imarkedet.no/ och Boersen i Danmark http://borsen.dk/
Det är inte så svårt att förstå (du vet det).
Med vänlig hälsning,
Xanadu
Hejsan Kujo. Där ser du, vi måste vara försiktiga.. han förstår nordiska språk...