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ANW $46.70 Aegean Marine Petroleum Network Inc. Announces Filing of Registration Statement for Offering by Selling Shareholders
Thursday October 25, 8:36 am ET
PIRAEUS, Greece, Oct. 25 /PRNewswire-FirstCall/ -- Aegean Marine Petroleum Network Inc. (NYSE: ANW - News), an international marine fuel logistics company that markets and physically supplies refined marine fuel and lubricants to ships in port and at sea, today announced that it has filed a registration statement with the Securities and Exchange Commission for the secondary offering by two of its shareholders of an aggregate of 6,750,000 shares of common stock.
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Leveret International Inc., which is controlled by Aegean's founder, Dimitris Melisanidis, is expected to offer 6,500,000 shares of common stock and John P. Tavlarios, Director, is expected to offer 250,000 shares of common stock. The selling shareholders also intend to grant the underwriters of the secondary offering an option to purchase up to an additional 1,012,500 shares of common stock for purposes of covering over-allotments. Following the offering, the share ownership of Leveret International Inc. is expected to be 15,928,000 shares and the share ownership of John P. Tavlarios is expected to be 1,151,750 shares. The share ownership of the Company's Chairman, Peter Georgiopoulos, is expected to remain unchanged at 4,205,250 shares. The Company will not receive any proceeds from the shares of common stock sold by the selling shareholders.
A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. Bear, Stearns & Co. Inc. is the sole book-running manager for the offering. Dahlman Rose & Company, LLC, Jefferies & Company, Inc., Johnson Rice & Company LLC and Stephens Inc. are acting as co-managers for the offering. When available, copies of the prospectus relating to the offering may be obtained by contacting:
Bear, Stearns & Co. Inc.
383 Madison Avenue
New York, NY 10179
Attn: Prospectus Department
866-803-9204
This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or other jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
About Aegean Marine Petroleum Network Inc.
Aegean Marine Petroleum Network Inc. is an international marine fuel logistics company that markets and physically supplies refined marine fuel and lubricants to ships in port and at sea. As a physical supplier, the Company purchases marine fuel from refineries, major oil producers and other sources. Through its service centers in Greece, Gibraltar, Singapore, Jamaica, the United Arab Emirates, Ghana and Belgium, the Company sells and delivers these fuels to a diverse group of ocean-going and coastal ship operators and marine fuel traders, brokers and other users.
OCNF $30.00 OceanFreight 3Q Profit Falls Under Views
Wednesday October 24, 6:03 pm ET
OceanFreight's 3rd-Quarter Earnings Miss Wall Street Estimates in First Full Quarter Since IPO
NEW YORK (AP) -- Greek drybulk shipper OceanFreight Inc. said Wednesday its earnings fell short of Wall Street expectations in the third-quarter, its first full quarter of operations as a public company.
The company, which had its initial public offering in May, earned $974,000, or 14 cents per share, on total revenue of $15.8 million.
Analysts were expecting a profit of 20 cents per share on revenue of $14.5 million, according to a poll by Thomson Financial.
Net voyage revenue -- or revenue less voyage expenses, a performance indicator for shipping companies -- was $13 million for the quarter.
Shares fell $1.56, or 5.2 percent, to $28.44 in aftermarket electronic trading, after closing down 45 cents to $30 during the regular session. The stock has traded between $17.35 and $30.48 since May.
OceanFreight Declares Dividend
Wednesday October 24, 6:07 pm ET
OceanFreight Declares Dividend of 51.25 Cents Per Share, Payable Nov. 15
NEW YORK (AP) -- Greek drybulk shipper OceanFreight Inc. said Wednesday its board of directors declared a quarterly dividend of 51.25 cents per share.
The dividend is payable on or about Nov. 15 to shareholders of record as of Nov. 5.
FREE. FreeSeas Inc. Announces Pricing of Common Stock Offering
Thursday October 25, 8:18 am ET
PIRAEUS, Greece, Oct. 25, 2007 (PRIME NEWSWIRE) -- FreeSeas Inc. (NasdaqCM:FREE - News) (NasdaqCM:FREEW - News) (NasdaqCM:FREEZ - News) (``FreeSeas'' or ``the Company''), a provider of seaborne transportation for drybulk cargoes, today announced the pricing of its follow-on offering of 11,000,000 shares of its common stock at a price of $8.25 per share. Credit Suisse and Cantor Fitzgerald & Co. are the joint book running managers and Oppenheimer & Co., and DVB Capital Markets are co-managers. FreeSeas has granted the underwriters an option to purchase an additional 1,650,000 shares of FreeSeas common stock at the public offering price to cover any over-allotments, exercisable within 30 days.
A registration statement relating to these securities was declared effective by the Securities and Exchange Commission on October 24, 2007 and an additional registration statement became effective automatically upon filing on October 25, 2007. This release shall not constitute an offer to sell, or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The common stock offering may be made only by means of a prospectus, copies of which may be obtained by contacting:
GM Stuffit. GDOCF. Big John again pulled a rabbit from his hat, and we may see a GOOD dividend 4Q/07 or 1Q/08. In addition to that sales price, those two Panamax will keep on earning us money up till May 2008 :)
It begins to feel that some are really in desperate need of dry bulk ships.
Re: South-Korean STX Group (Shipbuilding) buying Norwegian Aker Yards.
- STX Group owns Pan Ocean shipping company (among 6-7 other marine industry companies) with 59 vessels of which 47 are dry bulk carriers. Pan Ocean listed in S-Korean bourse in September, and has expressed plans to list in USA too
- "Store Ulve" (Big Wolf) John Fredriksen owns 8.7% of STX Group. He owns also a chunk of Aker Yards.Interesting to see what he is cooking up of all this.
STX Group Acquires Aker Yards Stake for $800 Million (Update4)
By Kyunghee Park and Seonjin Cha
Oct. 23 (Bloomberg) -- STX Group, parent of the first South Korean shipyard in China, paid $800 million to become the biggest shareholder in Norway's Aker Yards ASA, moving into cruise liners as competition increases with Chinese builders.
New stock worth $300 million will be sold and $500 million will be borrowed to buy 39.2 percent of Europe's biggest shipbuilder, STX Shipbuilding Co. and STX Engine Co. said in filings today. The units paid 97 kroner ($18) apiece for the shares, the Norweign company said in a statement today, 38 percent more than yesterday's closing price of 70.50 kroner.
The stake in Oslo-based Aker Yards would enable the fifth- biggest South Korean shipyard to start building cruise liners, which are more profitable than mid-sized containers and chemical carriers. Bigger rivals Samsung Heavy Industries Co. and Daewoo Shipbuilding & Marine Engineering Co. are also venturing into liners as Chinese yards aim to double production by 2015 to overtake South Korea as the world's biggest shipbuilding nation.
``This is definitely part of STX Shipbuilding's efforts to diversify the type of vessels it builds,'' said Sung Ki Jong, a Seoul-based analyst at Daewoo Securities Co. with a ``buy'' rating on the shipbuilding industry. ``With the stake, it will allow them to take the first step into making cruise ships.''
Shares Gain
Aker Yard climbed 18 percent, the biggest gain since the shares debuted in June 2004. They rose to 83.25 kronor as of 9:25 a.m. in Oslo.
STX Shipbuilding shares climbed by their 15 percent daily limit to 68,000 won in Seoul, the biggest gain in two months. The stock has more than quadrupled this year, making it the fourth- best performer among 200 top companies trading on South Korea's Kospi index. STX Engine, which makes marine engines, advanced 10 percent to 76,000.
Orders for cruise liners reach $13 billion annually, accounting for more than 12 percent of the global ship market, according to Samsung Heavy. A total of $124.4 billion was invested in new vessels last year, according to London-based Clarkson Plc, the world's biggest shipbroker.
STX Group's purchase is the biggest overseas acquisition by a South Korean shipyard. The group has been expanding its businesses by acquiring domestic companies, including STX Shipbuilding in 2001 and STX Pan Ocean Co. in 2004. The stake in Aker would make it the biggest shareholder in Aker, leapfrogging UBS AG, BNP Paribas SA and Aker Yards itself, which have a combined 19.9 percent stake, according to the company's Web site.
The Norwegian company on Aug. 25 said profit before interest, tax, depreciation and amortization will be 900 million kroner ($165 million) this year, from an earlier forecast of as much as 1.1 billion kroner. It also set aside 500 million kroner partly for rising compensation costs.
Increased costs for on-board facilities such as swimming pools will reduce full-year profit at its ferry unit in Finland, the company said.
To contact the reporters on this story: Seonjin Cha in Seoul at scha2@bloomberg.net ; Kyunghee Park in Singapore at kpark3@bloomberg.net .
Last Updated: October 23, 2007 03:58 EDT
"Golden goose
Norway's Golden Ocean nets $78m in purchase and sale of panamax pair it had on charter from compatriot owner."
Published: 08:47 25.10.2007 GMT+2 /HUGIN /Source: Golden Ocean Group /OSE: GOGL /ISIN: BMG4032A1045
GOGL - SALE OF VESSELS
Golden Ocean Group Limited ("Golden Ocean" or the "Company") has agreed to get released from the bare boat agreements for the two 1994 built Panamax vessels "M/V Golden Jade" and "M/V Golden Jasmine" against purchasing the vessels for $14.5 million per vessel.
Simultaneously the Company has agreed to sell the two vessels for net sale proceeds of $124.1 million in total. Delivery to the buyers is expected to take place in May 2008.
This transaction will give a positive addition to net income of approximately $77.9 million, and is estimated to release approximately $88 million in additional liquidity. In August 2006 the Company paid $38 million to take over the bareboat agreements for the five Panamax vessels under the deal with Clipper Bulk Shipping Ltd. Four out of these vessels are now sold and the Company does still keep one remaining 1994 built vessel. The company will continue to pay $5,600 in bare boat hire for this vessel until June 2011 when the Company has an option to buy the vessels in accordance with the original agreement.
This sale does not represent a change in strategy, but is rather showing the Company's ability to make profitable asset play and secure historic high earnings on portion of its fleet going forward. The sale of Golden Jade and Golden Jasmine should be seen up against the sizeable new building commitments Golden Ocean has taken on during the last year. From such point of view the deal constitutes a natural renewal and increased focus on high quality modern tonnage.
October 25, 2007
Hamilton, Bermuda
Contact Persons:
Herman Billung: CEO, Golden Ocean Management AS
+47 22 01 73 41
Geir Karlsen: CFO, Golden Ocean Management AS
+47 22 01 73 53
GM Stock Lobster. A good link for the tanker board Ibox could be the daily chart of Dry Bulk Index (BDI). DRYS has a good one on its web page:
http://www.dryships.com/index.cfm?get=report
Take a look at it if it is possible to add the daily BDI chart in Ibox. Thanks!
For daily changes in tanker rates I have not found a good link - many of them charge a fee.
TradeWinds - a daily shipping magazine - shows the direction of rates on its front page, but for more detailed information you have to subscribe:
http://www.tradewinds.no/
Hello Camelotmbc. I know only the O/S, which is now 271.6 million shares. A year ago the O/S was 271.3 million, so no serious dilution. I'm not quite sure if the Nowegian practice is that A/S = O/S - anyway they have to ask for any more shares at the Shareholder meeting.
I know it's a pity that GDOCF.PK is traded in greysheet in USA. I asked CEO Mr. Herman Billung about it, and here is our correspondence:
My message:
-----Original Message-----
From: xxxxxanadu
Sent: 24. mai 2007 12:16
To: Herman Billung
Subject: GDOCF.PK listing in USA
Golden Ocean Group Ltd.
Mr. Herman Billung
Sir,
I would like to ask about your plans as to the listing of Golden Ocean in USA. I have noted much interest towards Golden Ocean, but the listing in Pinksheets keeps the investors away. You cannot see the bid/ask quotes during the day, and you can only see the closing price & volume after the market closes in USA. As long as GDOCF.PK is traded in Pinksheets, it is very thinly traded in USA despite the clear interest towards the stock.
Do you have plans to move Golden Ocean up to a higher level
exchange? I can see no reason why GDOCF could not reach the standards of Amex or Nasdaq.
Yours sincerely,
xxxxxxxanadu
Here's the answer to my email. Herman Billung is the CEO of GDOCF:
Attn xxxxxxanadu
Sorry for not coming back to you earlier but we have been very active
last couple of days.
We are continuously considering a dual listing.
Our biggest concern is all the extra work related to US Gap
Today we have a very lean organisation focusing on profitable
transactions for shareholders
But we might change our view on this subject at a later stage
Brgds
Herman
- - -
Can't you trade it directly in Oslo from USA? The ticker is GOGL in Oslo Bourse
"Excel Maritime Carriers downgraded by Oppenheimer" briefing.com
- Don't take these upgrades/downgrades too seriously - or play the a couple day dips/boosts. I've learned many times that they usually mean "Sell - to us" or "Buy - from us" ...lol
Arlington Tankers Announces Unaudited Third Quarter 2007 Results
Tuesday October 23, 4:30 pm ET
Company Declares Cash Dividend of $0.59 Per Share
HAMILTON, Bermuda, Oct. 23 /PRNewswire-FirstCall/ -- Arlington Tankers Ltd. (NYSE: ATB - News) today announced financial results for the third quarter and the nine months ended September 30, 2007. For the quarter ended September 30, 2007, the Company's total revenues were $17.5 million, consisting of $16.5 million in basic vessel charter hire and $1.0 million in additional charter hire that the Company received under its profit sharing arrangements.
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On the basis of the third quarter results, Arlington's Board of Directors has declared a cash dividend of $0.59 per share. The dividend is payable on November 6, 2007 to shareholders of record at the close of business on November 2, 2007.
http://biz.yahoo.com/prnews/071023/nytu121.html?.v=101
I made a small profit after all, because the downturn was quite sudden and steep. Transmeta was a high flyer at that time, and high hopes were fixed to it because of Linus and all the young people of Silicon Valley working there. Must go and look at their website now. Hopefully they recover.
Hello Wildbill. TMTA - Congratulations! You did a good trade. How did you find this company? I'm interested because I used to own TMTA when it went public long time ago. I bought it because Linus Thorvalds - one of the founders of Linux -operating system - worked for Transmeta. Linus is a Finnish guy (öhym!..), and we followed of course with interest, what he was doing in Transmeta after he left for USA.
He left the company, when the troubles began, and works in a private company now (as far as I know). Did you know Transmeta before, or is this just one of your fabulous trades?
Do you think the setting of the dispute could recover Transmeta?
GM Stock Lobster. Remember this? Something was wrong with NIHK - it reported contract (with money!) after contract, and the price did not do much anything.
NIHK.OB $0.102
Nighthawk Systems Provides Guidance on Third Quarter 2007 Results
Wednesday October 24, 7:00 am ET
-- Record Revenues from Electric Utility Product Sales --
SAN ANTONIO--(BUSINESS WIRE)--Nighthawk Systems, Inc. (OTCBB: NIHK), a leading provider of intelligent wireless power management and emergency notification solutions, today discussed financial results expected to be included in the filing next month of its Form 10-QSB for the quarter ended September 30, 2007. Boosted by record sales of its CEO700 remote disconnect units to electric utilities, revenues for the quarter were more than 55% higher than in the same period in 2006. Total revenues for the quarter represented the highest total from the previous four years, surpassing the previous high from the immediately preceding second quarter.
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H. Douglas Saathoff, Nighthawk’s CEO commented, “I’m very pleased with the revenue results from both the second and third quarters of this year, and particularly pleased with the progress we’ve made in bringing on new, larger orders from new utility customers. Even before the recently announced acquisition of the IPTV set-top box business, we were on pace this year to far exceed any historical annual revenue figures. Revenues through the first three quarters of 2007 already exceed revenues for all of 2006. The addition of the IPTV set-top box business in the fourth quarter of 2007 accelerates our growth rate even further, perhaps doubling our recent record revenue results in the near term. We’ve got great momentum right now that I believe will carry well into next year.”
About Nighthawk Systems, Inc.
Nighthawk is a leading provider of intelligent wireless power control products that enable simultaneous activation or de-activation of multiple assets or systems on demand. Nighthawk's installed customer base includes major electric utilities, internet service providers and fire departments in over 40 states. Nighthawk's products also enable custom message display, making them ideal for use in traffic control and emergency notification situations.
Nighthawk recently announced that on October 11, 2007, it had purchased the IPTV set-top box business of Eagle Broadband. Nighthawk now produces and sells the MediaPro IP3000HD, a high-definition set-top box with a compact footprint and quiet, fan-less design that delivers exceptional streaming video quality for both NTSC and PAL broadcast standards. Capable of supporting a variety of leading middleware and video-on-demand systems, including Java Script capabilities, the MediaPro IP3000HD platform delivers the advanced content system security and digital rights management (DRM) needed by various industries and markets, most notably the hospitality industry.
Individuals interested in Nighthawk Systems can sign up to receive email alerts by visiting the Company's website at www.nighthawksystems.com.
Forward-looking statements
Statements contained in this release, which are not historical facts, including statements about plans and expectations regarding business areas and opportunities, acceptance of new or existing businesses, capital resources and future business or financial results are "forward-looking" statements. You should not place undue reliance on these forward-looking statements. Such forward-looking statements are subject to risks and uncertainties, including, but not limited to, customer acceptance of our products, our ability to raise capital to fund our operations, our ability to develop and protect proprietary technology, government regulation, competition in our industry, general economic conditions and other risk factors which could cause actual results to differ materially from those projected or implied in the forward-looking statements. Although we believe the expectations reflected in the forward-looking statements are reasonable, they relate only to events as of the date on which the statements are made, and our future results, levels of activity, performance or achievements may not meet these expectations. We do not intend to update any of the forward-looking statements after the date of this press release to conform these statements to actual results or to changes in our expectations, except as required by law.
Contact:
Nighthawk Systems, Inc.
Doug Saathoff, 877-7-NIGHTHAWK, ext. 701
dsaathoff@nighthawksystems.com
Here's a list of various companie's tanker fleets. A bit old (from June 9, 2007), but gives a picture of the companies at one glance. Check the company's website to see the possible changes, links to the tanker companies on the right.
http://oiltankers.blogspot.com/2007/09/tanker-fleets.html
Stuffit. One good dividend paying shipping stock is SFL $26.81. SFL is not only a tanker stock, but is a ship financing stock. Do some DD if interested.
Open the link to see the included table (can't get is posted).
By Motley Fools:
Shrink! Buybacks of 5 Undervalued Stocks
By Rich Duprey October 22, 2007
4 Recommendations
Stock buybacks are generally considered a bullish signal on Wall Street. They often announce management's belief that its company's stock is cheap and that its own shares will provide its best return on investment. Like dividends, buybacks also let companies return capital to shareholders.
How buybacks work
Done right, share repurchases will increase earnings per share, as long as profits stay at least at the same level. A company with $1 million in earnings and 1 million shares outstanding will have earnings per share of $1. Now, if it buys back 250,000 shares and leaves only 750,000 shares outstanding -- and total profits remain $1 million -- its new EPS would be $1.33, or $1 million divided by 750,000.
We're seeking companies that have announced stock-buyback programs. Then we'll head over to Motley Fool CAPS to get some insight into the 70,000-strong investor community's preferred picks. If companies announce stock buybacks, and CAPS' top investors endorse their future prospects, Fools should take notice.
Here are some of the latest companies to announce share-repurchase programs.
Company
Buyback Announcement Date
Amount of Buyback
CAPS Rating (Out of 5)
Ship Finance International (NYSE: SFL)
10/19/2007
7 million shares
*****
Sources: Company press releases, Motley Fool CAPS.
The CAPS Advantage
Investors at CAPS seem to have pretty dour opinion of this group of companies announcing buyback programs -- only one of the five garners anything above the average three-star rating.
Bermuda-based oil-tanker operator Ship Finance International is the CAPS favorite here. This spinoff of Frontline (NYSE: FTO) has been slowly selling off its single-hull fleet and has cut its share down to nine such ships, half the number it had last year. It trades at two-thirds of the multiple that industry leader Teekay (NYSE: TK) sports, yet at 8.3%, it pays a yield about eight times greater than that of its rival.
Top-rated All-Star SokorScout notes that this company has consistently outperformed since it was spun off and should continue to do so because of conservative management.
When [Frontline] let this little birdie out of the nest, all it has done since is fly. ... This operation manages, leases, [and] finances the [building] and repairing of ships. [It] has double-hull, dry cargo, and several special use ships that are deployed for use, even before they are built [or] taken in to be rehabilitated or retrofitted. SFL appears to be financially more conservative, but aggressively operated. ... It is my prediction that this recently liberated typhoon will soon lead the pack.
If there are any doubts about this company, it seems that they involve macroeconomic factors more than issues specific to Ship Finance. For that reason, we could see current CAPS investor bear DaveOfDuke become a bull next year: "The analyst expects tanker rates to even out throughout the rest of the year, and then to turn around in 2008 and 2009," he writes.
With the company's shares trading at a 15% discount to their 52-week high, possibly fueled in part by a drop in shipping rates, management seems to think its stock is cheap.
Foolish fallout
Bull or bear, for or against, Motley Fool CAPS is a completely free, fun service where more than 70,000 investors have their say every day. You've heard from your fellow investors; now's your chance to say your piece. Sign up today, and give us your best pitch for why your favorite stock will beat the market.
http://www.fool.com/investing/dividends-income/2007/10/22/shrink-buybacks-of-5-undervalued-stocks.aspx
Good Morning Stuffit. Did you read the post about purchase of Aker Yards? John Fredriksen is a big shareholder also of Aker Yards, and now through STX Shipbuilding even bigger. Big John will soon build his ships himself!
BULK__ Dry Bulk Fixtures tirsdag 23. oktober 2007__
:
Lloyds - tirsdag 23. okt. 2007 - her 4 af ialt 15 > Dry Bulk Fixtures
Capesize: Anangle Fortune 174.333 dwt built 2005 Japan/WW 25/30 Oct. 22-24 months $ 140.000 daily
--------------------------------------------------------------------------------
Panamax: Maritime Taboneo 76.302 dwt built 2004 Kosichang/East Coast India 20/23 Oct. $ 100.000 daily
--------------------------------------------------------------------------------
Panamax: Loch Maree 75.798 dwt built 2004 South East Asia/China 29 Oct/2. Nov. $ 103.000 daily
--------------------------------------------------------------------------------
Supramax: Massidor 55.317 dwt built 2004 North Spain/India ?/? $ 74.000 daily
--------------------------------------------------------------------------------
http://www.nordic-drybulk.info/</a></a></a>
News from Oslo/Helsinki. South-Korean STX Shipyard has bought a 30% stake in Aker Yards. Aker Yards is specialised in building luxury cruisers, e.g. Carnival/Cunard/Costa are their big customers. STX Shipyards builds mainly freight ships, and has announced that they wanted in Aker Yards to learn to build high class ships. STX Shipyard is growing fast, and is already seventh big shipyard in the world.
STX spokesman told that there will be no changes in Aker Yards businesses in Scandinavia!
No wonder when John Fredriksen (FRO, GDOCF, SDRLF, GLNG etc.) is a big owner of STX Shipyard.
An article about the current tanker market (seen that, been there before):
Crash of Frontline, Teekay Nears Amid Record Crude, Tanker Glut
By Alaric Nightingale and Todd Zeranski
Oct. 22 (Bloomberg) -- The record increase in oil prices and the unprecedented number of new tankers transporting crude is a stock market crash waiting to happen.
That, at least, is the growing consensus among analysts who say the widening gap between West Texas Intermediate crude and the rate for supertankers shipping Middle East oil to Asia means industry titans Frontline Ltd., Overseas Shipholding Group Inc. and Teekay Corp. have unsustainable valuations.
The Bloomberg Tanker Index has risen 19 percent in the past two years, even as freight rates sank 38 percent. The price of marine fuel, the biggest cost for shipowners, has advanced 73 percent to a peak of $446.50 a metric ton and the number of ships available is near a record.
``It doesn't look good at all,'' said Andreas Vergottis, who helps manage $1.2 billion at Isle of Man-based Tufton Oceanic Ltd., the world's biggest hedge fund dedicated to shipping. ``We've got a wall of worry and a wall of new buildings flooding the market ahead of us.'' He said the stocks are 30 percent overvalued.
Frontline, the world's largest tanker company, gained 50- fold in the past nine years, helping to make Chairman John Fredriksen into Norway's richest man, with a fortune that Forbes magazine estimates at $7 billion. Frontline shares this year have gained 33 percent to 238 kroner in trading on the Oslo Stock Exchange.
Too Many Ships
The looming decline for tanker stocks is a legacy of the biggest ship construction program in history. Teekay, Frontline and Overseas Shipholding in 2004 earned a combined $2.2 billion, triple the level of a year earlier, because of a jump in world oil demand. They used that profit to help order 522 tankers from builders including Hyundai Heavy Industries Co. and Samsung Heavy Industries Co.
The size of the oil tanker fleet expanded 3.8 percent this year, overwhelming the 1.7 percent increase in crude oil demand estimated by the International Energy Agency. The fleet will increase by as much as 32 percent during the next five years, estimates Lloyd's Register-Fairplay, the company that assigns ship registration numbers.
Tankers are being built at the fastest rate ever, according to Clarkson Plc, the world's largest shipbroker, which began collecting industry data in 1852.
Tankers capable of hauling 1.2 billion barrels of crude, equal to about two weeks of global oil consumption, will enter service in the six years that end in 2009, according to Clarkson. The total is 1 percent higher than the previous record, from the 1970s.
Straight to Scrapyards
Ship demand at that time slowed, and newly built tankers were sent straight to demolition, said Per Mansson, a shipbroker for Nor Ocean Stockholm AB, a former second mate and executive at Frontline before Fredriksen bought the company. Some tankers hauled one cargo from Asian shipyards to northwest Europe, only to be laid up in the fjords of Norway, he said.
``It got so bad that, on one voyage from Sweden to Venezuela, we turned the engine off and went with the current down to the Caribbean because fuel was so expensive,'' said Mansson, 55. ``We got a telegram from Exxon to go at 7 knots, so we just floated down.''
The Bloomberg Tanker Index has gained 32 percent this year, outpacing a 5.8 percent increase in the Standard & Poor's 500 Index, and a 6.4 percent drop in U.S. government 10-year bonds. Oil is up 52 percent to almost $89 a barrel in New York Mercantile Exchange trading.
Teekay has appreciated 32 percent this year to $57.72 on the New York Stock Exchange, valuing the Bahamas-based company at $4.3 billion. Overseas Shipholding, based in New York, has advanced 27 percent to $71.56.
Demolitions
Shares of Frontline are heading for an 11 percent decline, according to Henrik With, the DnB Nor Markets analyst whose advice on Frontline gave clients a 91 percent gain in the past year. Teekay may decline 26 percent, he forecasts. Among all analysts tracked by Bloomberg, at least 70 percent say the two stocks aren't worth buying.
Frontline Chief Executive Officer Bjoern Sjaastad in an interview said oil carriers will be sold and converted to haul bulk commodities, easing the ship surplus. Also, the speed of demolitions ``will go a lot faster than many people think,'' bolstering freight rates, he said.
Teekay spokeswoman Alana Duffy said the company can't comment before an earnings release at the end of the month. Overseas Shipholding spokeswoman Jen Schlueter said CEO Morten Arntzen wasn't immediately available for an interview.
Time Charters
Shipowners can protect against a drop in the single-voyage market by leasing vessels on so-called time charter contracts that can last months or years, while paying a fixed amount.
About 40 percent of Frontline's ships had such protection for 2007 and 2008, according to an Aug. 22 statement. Seventeen percent of Teekay's 111 carriers had such contracts, while none of Overseas Shipholding Group's biggest carriers had such deals.
Frontline and Overseas Shipholding don't protect themselves against increases in the cost of marine fuel. The industry's pricing mechanism, known as Worldscale, is updated once a year to reflect changing fuel prices.
Demand for single-voyage charters is ``stuck in a rut'' because the soaring price of oil is squeezing refiners and discouraging purchases, said Omar Nokta, an analyst at Dahlman Rose & Co. in New York. He advises investors hold their Frontline shares.
Losing Money
Refineries are losing 63 cents on each barrel they process in Europe, compared with a profit of $7.86 in May, because crude costs are rising faster than prices for gasoline and diesel, according to data compiled by Bloomberg.
``All this weakness is stemming from refineries not being in the market,'' said Nokta, whose call on Frontline during the past year led to a 35 percent profit for investors.
Analysts value shipping stocks in relation to the cost of second-hand tankers. From December 2003 through July 2007, those ship values more than doubled, according to data from the London-based Baltic Exchange. Since then, ship prices have dipped, exchange data show.
``Asset values will fall and dividend payments must be cut,'' said DnB Nor Markets' With. ``Too much fleet capacity coming on stream will put pressure on earnings from 2008 to 2010.''
Freight Rates
Falling freight rates and record fuel costs have given shipowners their longest string of losses in five years, according to Citigroup Inc., the third-largest lender to the shipping industry. So-called very large crude carriers, which transport about 2 million barrels, are losing more than $13,000 a day in the market for day-to-day charters. Shipowners are spending more on fuel and debt payments than they collect in rent.
Suezmax vessels, the biggest tankers that can navigate Egypt's Suez canal while full, are losing more than $10,000 a day. Owners of aframaxes, 600,000-barrel carriers that usually haul crude within the same continent, are losing about $13,000 a day, Citigroup estimates.
Thirty of the largest tankers may be sold and converted into carriers for grain, coal and iron ore, markets where freight rates are at a record high, Frontline's Sjaastad said.
``For the next 15 months, there isn't going to be substantial additions to the fleet, you'll have depletions going to dry bulk,'' said Dahlman Rose's Nokta. ``If you have the demand push, then they'll be able to absorb the vessels. Demand would keep a natural floor.''
China's economy is growing at almost 12 percent a year and India's by 9.3 percent, spurring demand for oil, steel, iron ore and coal.
No Cargoes
Some 50 supertankers have failed to find cargoes in the past month, and vessels will compete for consignments in November, extending declines for owners, forecasts Paris-based shipbroker Barry Rogliano Salles.
Relief may not come until 2010, when the United Nations' shipping agency, the International Maritime Organization, adopts a ban on single-hull tankers, those at greatest risk of spilling oil in the event of an accident. Once the policy takes full force five years later, the only tankers plying the oceans must have two steel hulls.
``Everything now is about what happens between today and 2010,'' says Ole Stenhagen, an analyst at SEB Enskilda in Oslo. ``We are in for a real dip in rates and a rough environment.''
To contact the reporters on this story: Alaric Nightingale in London at Anightingal1@bloomberg.net .; Todd Zeranski in New York at tzeranski@bloomberg.net
Last Updated: October 21, 2007 19:44 EDT
A BONANZA FOR DRY BULK SHIPPERS!
The Coal Miner's Hotter
By Toby Shute October 22, 2007
0 Recommendations
You know Mr. Market's having a bad day when a stock's 1.5% decline looks like a strong trading session. That's just what happened with Arch Coal (NYSE: ACI) on Friday, a day that saw the SPDR S&P Metals & Mining (AMEX: XME) ETF fall in lockstep with the broader market indices.
Judging by the headlines, it's surprising that Arch's shares were spared. A 46% earnings drop is not often greeted with equanimity. As always, there's plenty more to the story here, but let's quickly run through the firm's quarterly results.
Coal revenue dropped 2%, with lower coal prices more than offsetting the firmwide boost in tonnage sold. Cash and operating costs rose, which crimped margins. Operating income thus fell 39%, and it's just a short cruise from there to the bottom-line bruising mentioned earlier.
A look at sequential results reveals a very different picture. Cash and operating margins improved on account of rising prices, combined with relatively flat costs across roughly 90% of Arch's production portfolio. While Central Appalachia, which accounts for the remaining piece of the business, registered a slide in prices, cash costs improved, thanks to the divestiture of a high-cost mine.
Central Appalachia may look like it's the runt of the pack, but this is the part of the business that you should actually be most excited about. Arch is rolling out production at Mountain Laurel at a time when the world metallurgical coal market is booming. Prices for import into the European market recently touched a record, thanks to Asian demand siphoning off supply from Australian and South African ports.
This market tightness has of course created a bonanza for dry bulk shippers like Excel Maritime (NYSE: EXM) and Diana Shipping (NYSE: DSX), but it has also opened the door for North American metallurgical coal players to step in and reap the reward of higher export rates.
As I noted in early August, Fording Canadian Coal (NYSE: FDG) will benefit once its contracts expire in March. Arch and Peabody Energy (NYSE: BTU) can cash in even sooner. Investors have realized this, bidding up the group by roughly 20%. The shares of these companies sit at a level that leaves room for rewards, certainly, but nothing to get too stoked about.
For further Foolishness:
Last quarter, I broke down the ABCs of the PRB.
Check out this dry bulk fire sale.
Here's my take on governmental coal coddling.
McQuilling Services: Shipbuilding Report: Tankers
September 19, 2007
Read this:
http://www.mcqservices.com/pdfs.asp?ID=Shipbuilding
McQuilling has interesting reports on-line.
Oceanaut, Inc. Enters Into Definitive Agreements for Purchase of Nine Vessels and $82,500,000 Investment
4:05p ET October 15, 2007 (Market Wire)
Oceanaut, Inc. (AMEX: OKN $7.55) (AMEX: OKN.U) (AMEX: OKN.WS) (the "Company" or "Oceanaut") today announced that it has entered into definitive agreements pursuant to which it has agreed to purchase, for an aggregate purchase price of $700 million in cash, nine dry bulk carriers including five newbuildings, from companies associated with members of the Restis family. The Company also announced that it has entered into definitive agreements pursuant to which it has agreed to issue 10,312,500 shares of its common stock, at a purchase price of $8.00 per share, in exchange for an aggregate investment by separate companies associated with members of the Restis family of $82,500,000.
Following the completion of the fleet acquisition and investment, companies associated with members of the Restis family are expected to own approximately 30% of the Company's outstanding shares of common stock. Excel Maritime Carriers Ltd. and its affiliates currently own approximately 24% of the Company's outstanding shares of common stock.
Upon delivery of the vessels, the fleet will be comprised of two Capesize, four Panamax and three Supramax dry bulk carriers. These dry bulk carriers transport a variety of dry bulk cargoes such as coal, iron ore and grain. The vessels have a combined cargo-carrying capacity of 809,000 deadweight tons and an average fleet age of approximately seven years upon delivery of all newbuilding vessels. The two Supramax dry bulk carriers are scheduled for delivery in 2008 and the third Supramax dry bulk carrier, together with the two Capesize dry bulk carriers, are scheduled for delivery in 2009.
In addition, it is intended that, after the closing of the transaction, Maryville Maritime Inc. will provide technical management services and Safbulk Pty Ltd. will provide commercial management services to Oceanaut's fleet.
"We are pleased to bring this significant fleet acquisition and synergistic investment to our shareholders," said Mr. Christopher Georgakis, Chief Executive Officer and President of Oceanaut. "We believe that the quality of the acquired fleet in this transaction combined with sound technical and commercial vessel ship management practices, will result in Oceanaut being well-positioned to become a significant player in the fragmented dry bulk shipping sector."
The Company's acquisition of the fleet of dry bulk carriers and the issuance of its common stock in exchange for the $82,500,000 investment are conditioned upon the consummation of such other transaction and are each subject to the approval of Oceanaut's shareholders.
Oceanaut will also file a Current Report on Form 8-K disclosing further details on the fleet acquisition and investment and attaching copies of the definitive agreements.
About Oceanaut, Inc.
Oceanaut, Inc. (AMEX: OKN) (AMEX: OKN.U) (AMEX: OKN.WS) is a blank check company formed for the purpose of acquiring, through a merger, capital stock exchange, asset acquisition, stock purchase or other similar business combination, vessels or one or more operating businesses in the shipping industry.
Look! Marine service companies are also earning well!
Martin Midstream Partners Announces Increase in Quarterly Distribution to be Paid on November 14, 2007
Monday October 22, 9:20 am ET
KILGORE, Texas, Oct. 22 /PRNewswire-FirstCall/ -- Martin Midstream Partners L.P. (Nasdaq: MMLP - News) announced today that it has declared a quarterly cash distribution of $0.68 per unit for the quarter ended September 30, 2007. The November distribution reflects an increase of $0.02 per unit over MMLP's August 2007 distribution and is 11% greater than the distribution for the comparable quarter of the prior year. The distribution is payable on November 14, 2007 to common and subordinated unitholders of record as of the close of business on October 31, 2007. The November distribution is based on the current operating performance of, and the current general economic, industry and market conditions impacting MMLP and reflects an annualized distribution rate of $2.72 per unit.
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About Martin Midstream Partners
Martin Midstream Partners is a publicly traded limited partnership with a diverse set of operations focused primarily in the United States Gulf Coast region. The Company's primary business lines include: terminalling and storage services for petroleum products and by-products; natural gas services; marine transportation services for petroleum products and by-products; sulfur gathering, processing and distribution; and fertilizer manufacturing and distribution.
Additional information concerning Martin Midstream is available on its website at http://www.martinmidstream.com.
Forward-Looking Statements
Statements about Martin Midstream Partners' outlook and all other statements in this release other than historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements and all references to financial estimates rely on a number of assumptions concerning future events and are subject to a number of uncertainties and other factors, many of which are outside its control, which could cause actual results to differ materially from such statements. While MMLP believes that the assumptions concerning future events are reasonable, it cautions that there are inherent difficulties in anticipating or predicting certain important factors. A discussion of these factors, including risks and uncertainties, is set forth in MMLP's annual and quarterly reports filed from time to time with the Securities and Exchange Commission. Martin Midstream Partners disclaims any intention or obligation to revise any forward-looking statements, including financial estimates, whether as a result of new information, future events, or otherwise.
Contact: Robert D. Bondurant, Executive Vice President and Chief Financial Officer of MMLP's general partner, Martin Midstream GP LLC, at (903) 983-6200.
Danaos Corporation Orders With Hyundai Five 12,600 TEU Post Panamax Containerships and Agrees 12 Year Charters for All
Monday October 22, 9:00 am ET
ATHENS, GREECE--(MARKET WIRE)--Oct 22, 2007 -- Danaos Corporation (NYSE:DAC - News) today announced that it has ordered five 12,600 TEU containerships. All five Post Panamax containerships will be built by Hyundai Samho Heavy Industries and are expected to be delivered to Danaos gradually starting from January until August of 2011.
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Danaos has also arranged for a large international liner company to charter all these vessels for 12 years each, at accretive rates. The deal increases Danaos' contracted fleet to 32 vessels with a total carrying capacity of 217,421 TEU or 150% of its current fleet.
The total contract deal size is approximately $830 million and will be financed by own funds and debt. For the first full year of operation, this five vessel block addition to Danaos' fleet of containerships is expected to contribute approximately $92 million of EBITDA, annually upon delivery of all 5 vessels. For this purpose, EBITDA, a non-GAAP measure, shall mean net earnings before interest, un-drawn credit facility fees, taxes, depreciation and amortization of deferred dry-docking charges and financing fees.
"We have ordered the largest size containerships available," said Dr. Coustas, Chief Executive Officer of Danaos. "In addition we have arranged 12 year charters at accretive rates with one of the largest liner companies in the world for all five of these vessels scheduled to be delivered to us in 2011. With this order Danaos is reaffirming its position as one of the major players in the containership market worldwide. With this deal we have not only managed to increase our contracted fleet to 32 containerships, but also secure long term charters for all of our vessels currently comprising our contracted fleet. Our contracted revenue has now reached $ 6.5 billion."
About Danaos Corporation
Danaos Corporation is an international owner of containerships, chartering its vessels to many of the world's largest liner companies. Its current fleet of 36 containerships aggregating 147,472 TEUs ranks Danaos among the largest containership charter owners in the world based on total TEU capacity. Danaos is the largest US listed containership company based on fleet size. Furthermore, the company has a contracted fleet of 32 additional containerships aggregating 217,421 TEU with scheduled deliveries up to 2011. The company's shares trade on the New York Stock Exchange under the symbol "DAC."
Visit our website at www.danaos.com.
Indie Research
Quintana is a Favorite Drybulk Shipper Among Pro Investors
Monday October 22, 10:27 am ET
By the tickerspy.com Staff
Commodity supply and demand helps drive business for drybulk shippers, and at present, the trends look good for the industry, driving substantial gains for stocks in this sector. Analysts are expecting dry bulk shipping demand to outpace fleet additions during the remainder of this year and 2008, which would boost spot charter rates and underpin further enthusiasm for the sector.
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According to Jefferies & Co., "approximately 60 million tons per annum of incremental iron ore production capacity is scheduled to come online, and the onset of the North American grain season soaks up Panamax tonnage in a supply constrained market. Meanwhile, dry bulk fleet deliveries are likely to slow in 2H07 versus 1H07, and deliveries are likely to remain flat relative to 2007 levels in 2008."
Jefferies has one drybulk shipper, DryShips (Nasdaq: DRYS - News) on its "Top 10" list, but other Wall Street institutions have been bullish on the sector as well, with a few funds holding sizeable stakes in a number of drybulk shipping firms.
Glickenhaus & Co, an investment advisor, added to positions in a pair of drybulk shipping firms in Q2: Quintana Maritime (Nasdaq: QMAR - News) and Eagle Bulk Shipping (Nasdaq: EGLE - News). However, Glickenhaus also trimmed its stake in Navios Maritime Holdings (NYSE: NM - News) during that period. Glickenhaus also held shares of companies in other sectors, with its largest equity holding being a $118.8 million stake in midstream energy services company Enterprise Products Partners (NYSE: EPD - News). A list of the other companies Glickenhaus is investing in is available at tickerspy.com.
Quintana proved to be the most popular drybulk shipper among Pro investors in Q2. Among the four investment firms holding stakes in the company, Glickenhaus' $71.3 million position was the largest. Meanwhile, Diana Shipping (NYSE: DSX - News) is the favorite drybulk shipping stock among tickerspy members, though Eagle, DryShips, Excel Maritime Carriers (NYSE: EXM - News), and Genco Shipping & Trading (NYSE: GNK - News) are popular as well.
Pro portfolio performance is based on institutions' top 15 holdings as disclosed in quarter-end filings with the SEC. Pro performance does not take into account additional holdings beyond the top 15 nor does it include positions that are not required to be disclosed by the SEC. As such, Pro portfolio performance should be considered an approximation and not a precise record of how an institution has performed over time.
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Good Morning Stuffit. I know you were in favour of a special shipping board, and here it is! People can collect news and information of the sector and post it in one place, where it all is easy to find and check out.
Take your time and look and read the Ibox. Stock Lobster made it really fine.
Text of P.F. Bassoe's weekly tanker report: Week 42
Tanker chartering Crude
Market comments
A familiar face returned to the market this week; Volatility.
Owners, having spent the last few weeks way back on the
defense, seemed to have huddled together and collectively
and dug their heels in. Helped by a solid increase in market
activity, they got what they wanted; A broad-based increase
in rates. The focus in the VLCC market has been on the
single hulls, which have seen the biggest increase in rates
and for once are in shorter supply than their double hull
brethren. One may say that an increase in WS-rates was
long overdue as bunker prices have followed the spectacular
rise in crude oil prices thereby cutting heavily into owners'
bottom-line. The short-term outlook of course depends on
how well the activity
can be sustained; There is still an
overhang of tonnage although not as wide as in recent
weeks. The broad-based increase in activity across all
segments may be an indication that winter demand finally
has arrived in the freight market and that Opec's statement
this week that the oil market was "well supplied" may not be
fully shared by charterers who were a lot more eager to
secure tonnage.
GM Stock Lobster. A good link for Ibox could be the chart of Dry Bulk Index (BDI). DRYS has a good one on its web page:
http://www.dryships.com/index.cfm?get=report
Take a look at it if you can add the daily chart in Ibox.
For tankers I usually follow P.F. Bassoe's Weekly Report and Barry Rogliano's Newsletter (click Market Information - Tanker - Tanker Newsletter (pdf):
http://www.pfbassoe.no/EpsPareto/Templates/WebRequestPage.aspx?Main=Y&
http://www.brs-paris.com/index.php?page=news&type_news=tanker&page_news=1&numero_news=54....
For daily changes in tanker rates I have not found a good link - many of them charge a fee.
TradeWinds - a daily shipping magazine - shows the direction of rates on its front page, but for more detailed information you have to subscribe:
http://www.tradewinds.no/
I'd leave the Ibox outlook to you, you can make it look much better than I.
Speckies Trader, you too Welcome onboard! Add all the information you have about shipping industry and shipping stocks here.
Thanks Teapeebubbles. Welcome onboard!
An exerpt from OPEC Monthly report of September 15:
The Tanker Market
OPEC spot fixtures declined by around
0.3 mb/d in September
After having increased by around 7% in August, preliminary data show that OPEC spot fixtures
fell in September by around 2% from the previous month. The decline in spot fixtures came on
the back of lower Asian activities due to maintenance as well as various holidays during the
month. However, despite the decrease in OPEC spot fixtures, global spot fixtures increased in
September by around 3% compared to the previous month. The increase in global spot fixtures
can be attributed to healthier demand in the post-maintenance season. Both global and OPEC
spot fixtures indicated an annual growth of 5% and 1% respectively. Middle East spot fixtures
on the other hand declined in September on both East and West destinations with an 8% and 9%
drop from the previous month respectively. It is worth highlighting that Middle East spot
fixtures declined around 10% on an annual basis.
According to the preliminary data, OPEC sailings remained relatively steady in September with
a minor increase of less than 1%. The majority of the increase in sailing is estimated to be from
non-Middle East members as Middle East sailings fell slightly in September from the previous
month. On an annual basis, OPEC sailings experienced a decline of 2% in September, while
Middle East sailings experienced a similar decrease. Arrivals at the main importing regions
showed a minor declining trend in September. US Gulf Coast, US East Coast and Caribbean
saw steady arrivals with a decline of just over 1%, in line with US crude oil imports in
September. Arrivals at the North West Europe and Euromed regions declined marginally by less
than 1%.
Crude oil spot freight rates improved in the
second half of September on increasing activities
In September, crude oil spot tanker rates explored the bottom with the lowest rates for the
VLCCs in 2007 and on some routes the weakest rates in years. At the same time, the market
encountered the long awaited rebound in September. On average, dirty spot tanker rates
remained steady in September with the gains offsetting the initial slump. Availability and
market perceptions were the main factors pulling rates toward different ends, with almost an
equilibrium-state created at the end compared to the month before. The bottom defining move
for the VLCC sector occurred in the second half of the month with a spillover to the Suezmax
sector where its own dynamic mechanism kept it in the red on an average basis. The Aframax
sector went through a similar sequence of events on most reported routes.
The VLCC sector began September following the trail of the previous month with tonnage
availability, on average more than 86 VLCCs for the next 30 days, outstripping demand.
Accordingly, spot freight rates had no direction to head but south reaching low levels unseen
since 2002 on some routes. VLCC rates from the Middle East went through a gradual decline in
the first half of September reaching WS44 on the route to the West. Global refinery
maintenance as well as vessel availability were the key factors for the decline. However, with
the market sensing the impending benefit of OPEC’s decision to increase output, coupled with
an influx of tonnage availability by the second half of September, spot freight rates reacted with
an increase in rates that continued toward the end of the month.
East of Suez VLCC long-haul freight rates from the Middle East to eastern destinations closed the
month with a steady note with rates increasing 1%, while to western destinations rates indicated a
decline of 3%. On an annual basis, spot freight rates for VLCCs trading on the Middle East/west
route showed a decline of more than 50%. West of Suez VLCCs from West Africa went through a
similar drift with rates closing the month with a decline of around 7% from the previous month.
Despite the steady-to-slightly declining average for September, VLCC owners were glad to see
some activities and optimism set in that the market could witness some more upward moves.
However, the coming period will show whether spot freight rates will stabilize or the recent
upward step is the first in a long walk to higher rates in the winter.
A similar move was encountered by the Suezmax sector, with spot freight rates declining at the
beginning of September on the back of limited activities and a long tonnage availability list that
kept on growing. In the second half of the month, activity started to pick up, clearing some of
the tonnage build, however, VLCC availability halted the increase and rates stabilized toward
the end of the month. Suezmax moving volumes from West Africa to the US declined around
3% in September from the previous month, while North West Europe rates declined 7%. On an
annual basis, Suezmax spot freight rates indicated a y-o-y decline of 44% on average.
The Aframax sector closed the month with positive notes on all of its reported routes, despite
being small. Going through the same momentum experienced in other sectors, the Aframax
indicated on average an 8% increase on its reported routes. West of Suez Aframax spot freight
rates remained steady in the first half of September with owners holding the upper hand in the
second half on more activities and thinning tonnage availability. Spot freight rates for Aframax
in the Mediterranean averaged 10% higher in September compared to the previous month. East
of Suez spot freight rates for Aframax experienced declining fuel oil activities from China at
one point, and increasing lightering operations on the other side pulled rates in opposite
directions. However, given market sentiment and owners holding their positions on a higher
bunker price basis, the route averaged the month with a minor increase of 2% in September
compared to the previous month.
It should be highlighted that on an annual basis, all reported spot freight rates for all tanker
sectors indicated a drop ranging from 30% to 52%, which can be attributed to the new deliveries
boosting tonnage supply to a level which forced market fundamentals to produce the resulting
lower rates. However, such a high annual decline can be viewed positively that there is more
room for rates to improve from their current level, as well as negatively, that the tanker spot
market has entered a period of fundamentally low earnings.
"Rather then look for modest gains, they want the 5000% home run. I can't blame them, but those are far and few between, and you can wind up losing alot of money trying to chase down every rumor of a runner."
That's what I have learned hard way. I've learned that if you want to earn your living in stock market, you MUST have 4-5 good dividend paying stocks to support you. Your trading/investing can turn such that you HAVE to sell some stocks in wrong time to pay the bills, and you know where that can lead.
Build a buffer from dividends to protect you from bad decisions.
My FRO stocks, main part of which I bought by and by when it traded $6-$12, have paid themselves back ten folds. I could live only with FRO's dividends a good life. You remember its last dividend was $3.25. Next one will be lower - maybe the usual $1.50 - but $3.75 is not unusual. This year FRO has paid in all $9.50, and in 2004 it paid $11.15 dividend ONLY from Q4!
That's why I have been banging drum for GDOCF.PK, when it is now $7 (it was $2 when I started...). It is FRO's "little brother", and it will go the same way: as long as John Fredriksen owns big part of it, it will pay good dividends to its shareholders as it matures. Heck, even now it paid Q2 dividend $0.05, and I expect Q3 dividend be already bigger.
It's a pity it is traded in the Pinksheets in USA, which is stupidly complicated, but I would only buy it now and then, and put the shares on a shelf.
Cheers Stock Lobster! To the Board.
I don't either understand that iHub has not had any board for the shipping industry. There are boards for some stocks (FRO, DRYS), but they have raised astonishing little interest. Shipping industry - or marine industry - how do you want to call it, with all its sectors: tankers, bulkers, bunkers, heavy lifts, container ships, LNG carriers, even tugs and barges, has always interested me. I find it very exciting.
Now Asia rising as a considerable producer of goods, they must be shipped to the buyers all over the world. I can see nothing, what could replace ships. Can you?
Here are some links to glossary of shipping - may be usefull:
http://www.frontline.bm/glossary.shtml
http://www.ds-norden.com/glossary/
Yess, it works, thanks. But could you please look at it - it is at the bottom of iBox. It could be in better place, so that new to tanker world could find it sooner. It gives a clear and simple explanation of types of vessels etc. Where would you put it?
Hello Stock Lobster. Thank you for setting this shipping board up. Now we can collect information about tankers and dry bulkers in one place, and easily find it.
Here's a link for beginners: Tanker education
http://www.geocities.com/uksteve.geo/mships.html
I'll look for more useful links. Er..uh.. how do you post a link into the Ibox? Are there instructions for that somewhere in iHub?
Cheers! Wildbill. I know that you too put a part of your gains in shipping sector as longer term investments. I have moved a good deal of my investments into shipping (and offshore drilling) during a long time period. I have found both interesting sectors to follow, and that's enough to me. Can't diversify my brain cells too much lol.
For savvy traders the seasonality gives good chances to flip these stocks with good results.
OK Stock Lobster. I'll do my best.
I agree. Our tanker & bulker posts easily vanish in the myriad of daily posts in the Lotto board. Now we can collect them in their own board, where they are easily found. Lotto board is for different thing, very much needed (look at the reader, poster and board mark numbers!!) Well, I think you know it :)
But do not take too much trouble = work for this new board. It will live its own life with not as much readers, posters etc., but it can be very useful.
Good Day Wildbill. Thanks for coming to the team you too! Now tell me what does a moderator or an assistant exactly do? I'm a simple poster and do not have any idea of this promotion in my iHub career.