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A good article about geothermal energy. Click the link to read the whole article:
Geothermal markets heat up
By Karen Broyles
Filed from Houston 5/5/2008 11:06:13 PM GMT
Geothermal power plant
Geothermal, long the "Sleeping Beauty" of sustainable energy, is now showing clear signs of waking up, particularly in the U.S., where geothermal potential remains largely untapped, according to Iceland-based Glitnir Bank.
Late last year, Glitnir opened a New York office with the aim of investing in geothermal projects. Glitnir then estimated that up to US$39.4 billion in funding would be needed to develop available geothermal energy resources in the U.S. through 2025, including US$16.9 billion over the next eight years and an additional US$22.5 billion in the following decade.
In the past, a lack of investment capital and technology to unlock lower heat geothermal resources, as well as a global emphasis on oil and gas exploration, kept geothermal on the backburner in the U.S. However, that tale is beginning to change as investment capital, a growing emphasis on cleaner-burning fuel alternatives to oil and gas and technological know-how are unlocking the wider potential use of geothermal.
"Geothermal energy is very complex and diverse in terms of its use. It's used for fish farming in China, alligator growing in Idaho, power production in China, spas and greenhouses in Mexico and Iceland, and used to heat buildings in Iceland," said Karl Gawell, executive director of the Washington, D.C.-based Geothermal Energy Association (GEA).
Now, companies such as Iceland-based financial group Glitnir are seeking a stake in U.S. geothermal potential through investment. In recent months, other financial investment companies such as Merrill Lynch also have backed U.S. geothermal development.
The expense of drilling geothermal wells has been a hindrance. However, investment capital has begun flowing into geothermal, and investment bankers are starting get their heads around that, while a geothermal well may take five to 10 years to pay off, it could run indefinitely as an energy resource, said Craig Nunn, member director of the Canadian Geothermal Energy Association.
With developments in turbine technology, "we can look at resources up to 100 degrees Celcius. If we're able to tap lower temperature geothermal systems, it opens a lot of doors to many, many locations."
"And we're not even looking at EGS [enhanced geothermal systems]. That opens a whole other set of doors," Nunn said.
Technology such as organic Rankine steam power plants has allowed regions such as southern Germany to access lower temperature geothermal resources. Gawell said that technology has allowed areas such as the U.S. state of Nevada to utilize geothermal power.
Other engineering techniques, for instance, using wastewater to generate geothermal power such as takes place at The Geysers geothermal field in California, also allow geothermal resources that couldn't be accessed previously to be utilized.
http://www.energycurrent.com/index.php?print=10318
A good article about geothermal energy. Click the link to read the whole article:
Geothermal markets heat up
By Karen Broyles
Filed from Houston 5/5/2008 11:06:13 PM GMT
Geothermal power plant
Geothermal, long the "Sleeping Beauty" of sustainable energy, is now showing clear signs of waking up, particularly in the U.S., where geothermal potential remains largely untapped, according to Iceland-based Glitnir Bank.
Late last year, Glitnir opened a New York office with the aim of investing in geothermal projects. Glitnir then estimated that up to US$39.4 billion in funding would be needed to develop available geothermal energy resources in the U.S. through 2025, including US$16.9 billion over the next eight years and an additional US$22.5 billion in the following decade.
In the past, a lack of investment capital and technology to unlock lower heat geothermal resources, as well as a global emphasis on oil and gas exploration, kept geothermal on the backburner in the U.S. However, that tale is beginning to change as investment capital, a growing emphasis on cleaner-burning fuel alternatives to oil and gas and technological know-how are unlocking the wider potential use of geothermal.
"Geothermal energy is very complex and diverse in terms of its use. It's used for fish farming in China, alligator growing in Idaho, power production in China, spas and greenhouses in Mexico and Iceland, and used to heat buildings in Iceland," said Karl Gawell, executive director of the Washington, D.C.-based Geothermal Energy Association (GEA).
Now, companies such as Iceland-based financial group Glitnir are seeking a stake in U.S. geothermal potential through investment. In recent months, other financial investment companies such as Merrill Lynch also have backed U.S. geothermal development.
The expense of drilling geothermal wells has been a hindrance. However, investment capital has begun flowing into geothermal, and investment bankers are starting get their heads around that, while a geothermal well may take five to 10 years to pay off, it could run indefinitely as an energy resource, said Craig Nunn, member director of the Canadian Geothermal Energy Association.
With developments in turbine technology, "we can look at resources up to 100 degrees Celcius. If we're able to tap lower temperature geothermal systems, it opens a lot of doors to many, many locations."
"And we're not even looking at EGS [enhanced geothermal systems]. That opens a whole other set of doors," Nunn said.
Technology such as organic Rankine steam power plants has allowed regions such as southern Germany to access lower temperature geothermal resources. Gawell said that technology has allowed areas such as the U.S. state of Nevada to utilize geothermal power.
Other engineering techniques, for instance, using wastewater to generate geothermal power such as takes place at The Geysers geothermal field in California, also allow geothermal resources that couldn't be accessed previously to be utilized.
http://www.energycurrent.com/index.php?print=10318
ITCL (NOK8.50 = $1.70) First Quarter 2008 Results
Highlights
# Independent Tankers was established on January 18, 2008.
# Shares in Independent Tankers were registered on the Norwegian over-the-counter market on March 7, 2008.
# Independent tankers reports net income of $3.7 million and earnings per share of $0.05 for the first quarter of 2008.
# In January 2008, BP Shipping Limited extended the charter for the VLCC British Pioneer for one year after the fixed period ends in January 2009. After January 2009, the vessel will trade on a market rate, with a minimum of $20,000 per day.
# In March 2008, Chevron Transport Corporation chose not to declare the termination option for the VLCC Antares Voyager.
# In April 2008, Chevron Transport Corporation chose not declare the termination option for the Suezmax vessel Cygnus Voyager.
# In April 2008, Front Voyager Inc. declared a one year extension of the charter for the Suezmax vessel Front Voyager.
Introduction
Independent Tankers Corporation Limited (the "Company" or "Independent Tankers") was incorporated on Bermuda on January 18, 2008 and the shares have traded on the Norwegian over-the-counter market, since March 7, 2008. Independent Tanker's business is mainly concentrated on the ownership and operation of crude oil tankers on long term bareboat contracts, which include certain cancellation options to major oil companies. Independent Tankers owns or leases six VLCC's and four Suezmax tankers. All vessels are financed through bonds in the US market and some of the vessels are also subject to financial lease arrangements.
First Quarter 2008 Results
The Board of Independent Tankers announces a net income of $3.7 million and earnings per share of $0.05 for the first quarter of 2008. This compares with a net income of $3.1 million and earnings per share of $0.04 for the first quarter of 2007 based on predecessor combined accounts.
The average daily bareboat rate earned by the Company's VLCCs and the Suezmax tanker were approximately $26,100 and $7,800, respectively compared with approximately $26,100 and $7,700, respectively in the preceding quarter.
Net operating income for the first quarter was $10.0 million (2007 comparable quarter predecessor combined accounts: $9.9 million) and net interest expense for the quarter was $6.2 million (2007 comparable quarter predecessor combined accounts: $6.8 million). At March 31, 2008, all of the Company's debt is fixed rate with interest rates ranging from 6.56% to 8.52%.
British Pioneer owned by Buckingham Shipping PLC lease ends on January 15, 2009. The lease obligation of $86.9 million has therefore been classified as a current lease obligation.
As all cash is restricted there was no movement in cash and cash equivalents in the quarter. In May 2008, the Company has an average cash breakeven rate for its VLCCs and Suezmax tanker (Front Voyager) of approximately $21,900 and $4,900 per vessel, respectively.
Charter development
In January 2008, BP Shipping Limited extended the charter for the VLCC British Pioneer for one year after the fixed period ends in January 2009. The vessel will continue to be on a bareboat rate of $24,895 per day until the fixed period is finished in January 2009 and then followed by a market rate with a minimum of $20,000 per day until January 2010.
In March 2008, Chevron Transport Corporation chose not to declare the termination option for the VLCC Antares Voyager and the vessel will continue to be on a bareboat rate of $28,500 per day until December 2010.
In April 2008, Chevron Transport Corporation chose not to declare the termination option for the Suezmax vessel Cygnus Voyager, and the bareboat charter will continue until 2015.
In April 2008, Front Voyager, Inc., a subsidiary of Frontline Ltd., has extended the charter party with Calpetro Tankers (Bahamas III) Ltd. for the single hull Suezmax tanker, Front Voyager, for one year from April 1, 2008 at an average daily bareboat rate of $4,242.
Other Matters
The Board of Independent Tankers has engaged the Vice President Finance in Frontline Management AS Bengt Neteland (35) as the dedicated person to focus on the restructuring process of the Company. Mr. Neteland holds an MSc from the Norwegian School of Economics and Business Administration (NHH) and has worked for Frontline Management AS the last three years.
In May, 2008 the Board of Independent Tankers approved a grant of 1,000,000 share options to Mr. Neteland with a subscription price of NOK 10.0 per share. The options vest one third each year over three years, and the option period is set to five years. In addition, 500,000 share options have been reserved at the same subscription price and will be allocated on the Board's discretion.
74,825,166 ordinary shares were outstanding as of March, 31 2008 and the weighted average number of shares outstanding for the quarter was also 74,825,166.
The Market
The average market rate for VLCCs from MEG to Japan in the first quarter was approximately WS 126 ($86,000 per day) compared to approximately WS 117 ($78,900 per day) in the fourth quarter of 2007. The average rate for Suezmaxes from WAF to USAC in the first quarter was about WS 145 ($47,400 per day), compared to about WS 140 ($45,800 per day) in the fourth quarter of 2007.
Bunkers at Fujairah averaged about $485/mt in the first quarter with a low of about $447/mt and a high of approximately $515/mt.
The International Energy Agency (IEA) reported in May 2008 an average OPEC oil production, including Iraq, of 32.3 million barrels per day during the first quarter of the year, a 0.8 million barrels per day increase from the fourth quarter. The next OPEC meeting is scheduled to take place on September 9, 2008.
IEA further estimates that world oil demand averaged 86.6 million barrels per day in the first quarter, a 0.4 percent decrease from the fourth quarter of 2007. IEA predicts that the average demand for 2008 in total will be 86.8 million barrels per day, or a 1.2 percent growth from 2007, hence showing a firm belief in continued demand growth.
According to Fearnleys, the VLCC fleet totalled 486 vessels at the end of the first quarter with seven deliveries during the quarter. There are 32 additional deliveries expected in 2008. The total orderbook amounted to 184 vessels at the end of the first quarter, up from 177 vessels after the fourth quarter of 2007. The current orderbook represents about 38 percent of the VLCC fleet. Seven VLCCs were deleted from the trading fleet whilst 14 VLCCs were ordered during the quarter. The single hull fleet amounted to 126 vessels at the end of the first quarter.
The Suezmax fleet totalled 339 vessels at the end of the quarter, down from 344 vessels after the fourth quarter of 2007, a 1.4 percent fleet decrease over the quarter. Seven Suezmaxes were deleted from the trading fleet, no Suezmaxes were ordered and two deliveries took place in the quarter. The total orderbook amounted to 134 vessels at the end of the quarter, a decrease of two from the end of the fourth quarter. There are 17 additional deliveries expected in 2008. The orderbook represents approximately 39 percent of the current Suezmax fleet. The single hull fleet amounted to 38 vessels at the end of the first quarter.
Strategy
The Company's strategy will mainly be concentrated around long term charter to reputable companies, for the time being BP Shipping Limited, Chevron Transport Corporation and Frontline Ltd. In order to enhance shareholder value the Company's short and medium strategy would be to focus on restructuring the Company's debt as well as trying to renegotiate charter terms.
Outlook
The quarterly earnings for the remainder of the year will be in line with first quarter of 2008. From January 2009 the Board anticipate stronger results as a consequence of the VLCC vessel British Pioneer coming off a fixed charter rate and staring to trade at a market rate. The Imarex TD3 forward market rate for 2009, as of 28 May 2008, was approximately $76,000 per day, which is favorable compared to present charter of approximately $33,000 (including opex) per day. Further three VLCC vessels will start trading at a market rate during 2010.
Forward Looking Statements
This press release contains forward looking statements. These statements are based upon various assumptions, many of which are based, in turn, upon further assumptions, including the Company's management's examination of historical operating trends. Although the Company believes that these assumptions were reasonable when made, because assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond its control, the Company cannot give assurance that it will achieve or accomplish these expectations, beliefs or intentions.
Important factors that, in the Company's view, could cause actual results to differ materially from those discussed in this press release include the strength of world economies and currencies, general market conditions including fluctuations in charter hire rates and vessel values, changes in demand in the tanker market as a result of changes in OPEC's petroleum production levels and world wide oil consumption and storage, changes in the Company's operating expenses including bunker prices, drydocking and insurance costs, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, and other important factors described from time to time in the reports filed by the Company with the Norwegian over-the-counter market in Oslo.
The full report is available in the link below and on the Company's website: http://www.itcl.bm
May 29, 2008
The Board of Directors
Independent Tankers Corporation Limited
Hamilton, Bermuda
Questions should be directed to:
Bengt Neteland: Vice President Finance, Frontline Management AS
+47 23 11 40 37 or +47 924 99 386
http://hugin.info/138953/R/1223896/258387.pdf
Published: 09:12 30.05.2008 GMT+2 /HUGIN /Source: Independent Tankers Corporation Limited /OSE: ITCL /ISIN: BMG4758V1000
US hedge fund enters iron ore battle
Friday, 30 May 2008
A United State's hedge fund has placed itself in a powerful position to help determine the outcome of the battle to develop Western Australia's Midwest into a world class iron ore producing region. US hedge fund owner Phil Falcone has bought eight per cent of Midwest Corporation after the company announced it was supporting a merger with its iron ore rival Murchison Metals. Midwest Corporation is also the subject of a $1.3 billion bid by its other major shareholder Sinosteel.
Mr Falcone's fund Harbinger already owns nearly 19 percent of Murchison, and if he votes Murchison's way the two will have sufficient votes to block Sinosteel's offer.
Mr Falcone is a friend of Australia's richest man Andrew Forrest and owns almost 16 per cent of his company Fortescue Metals Group.
He also owns large holdings in other WA resource projects including Moly Mines and Compass Resources.
Source: ABC
U.A.E. Says It's Prepared to Raise Oil Production
Friday, 30 May 2008
The United Arab Emirates, OPEC's third-largest oil producer, is prepared to raise production if required by the market. "The U.A.E. is willing and well-prepared, if the market requires, to meet our responsibilities,'' Ali Al Yabhouni, the U.A.E.'s governor to the Organization of Petroleum Exporting Countries, told reporters at a media briefing in Dubai yesterday. "We have to see if there is a demand, and definitely, we can meet that demand." Saudi Arabia, OPEC's biggest producer, earlier this month said it would boost production by 300,000 barrels a day to meet demand from its customers. Pressure has increased on OPEC, which pumps more than 40 percent of the world's oil, to increase output as record crude prices threaten economic growth.
The increase announced by Saudi Arabia ``did not impact prices'' and there is no need for OPEC to raise output, Hasan Qabazard, the group's head of research, told reporters in Dubai.
`` There is a positive balance in the market, of about 800 to 1 million barrels a day,'' he said. ``With the Saudi additions, the stock-build is even more than I mentioned.''
Crude prices in New York touched a record above $135 a barrel on May 22 amid concerns about future supply constraints and speculation that OPEC is powerless to curb prices. Oil for July delivery fell as much as $1.58, or 1.2 percent, to $129.45 a barrel in electronic trading on the New York Mercantile Exchange. It was at $129.89 a barrel at 12:52 p.m. London time.
`Stable Prices'
Prices are increasing ``too fast, too high,'' the U.A.E.'s Yabhouni said. ``High prices are not good for producers or consumers, we would like to see stable prices,'' he said.
The U.A.E. pumped 2.59 million barrels a day of crude in April, according to Bloomberg estimates, making it OPEC's biggest producer after Saudi Arabia and Iran.
The country has 150,000-200,000 barrels a day of spare capacity, as does Kuwait, Qabazard said. Al-Yabhouni declined to confirm this number.
In total, OPEC has more than 3 million barrels a day of spare capacity, Qabazard said. Saudi Arabia has about 2 million barrels, Nigeria has additional oil that cannot reach markets because of rebel attacks on export routes, and Iraq also has lots of potential growth, he said.
``I don't see a need this year for OPEC to raise oil output,'' Qabazard said. ``The primary driver of the high oil price is speculation -- oil has become a financial asset as investors seek to hedge against inflation.''
He expects an average stock build of 400,000 barrels a day for 2008, with some 500,000 barrels a day of extra oil stocks during the third quarter and up to 300,000 barrels a day in the fourth quarter.
OPEC will next meet on September 9. It has left oil production unchanged at its last three meetings in December, February and March, saying the market was well supplied.
Source: Bloomberg
Chinese punt on price
Friday, 30 May 2008
CHINESE steel mills are taking advantage of relatively low iron ore contract prices to speculate on the lucrative spot market - in a move that effectively siphons off profits from Australian miners. The news comes as BHP Billiton and Rio Tinto remain locked in an increasingly bitter battle with their most important customers in this year's iron ore contract price negotiations. A Chinese steel mill official said this week that speculative investors were piling into the spot market as a bet on future price increases - sending the dollar value of iron ore sky-high.
"The key reason behind the high spot prices is that some big mills are making use of the long-term iron ore agreements to dabble in speculation themselves," he said. "The government or the China Iron and Steel Association should do something about their activities."
The benchmark system, which has operated for about 40 years, requires BHP and Rio to accept contract prices set by the world's biggest iron ore producer, Brazil-based Vale, and a leading steelmaker such as China's Baosteel or Japan's Nippon.
But the Anglo-Australian mining giants have become increasingly frustrated with being price-takers because of the widening gap between contract and spot market prices for the steel-making ingredient.
Iron ore is trading at around $US200 a tonne on the spot market - much higher than the $US120 that Australian miners are set to receive under the 65 per cent increase agreed between Vale and Baosteel in this year's contract price negotiations.
For this reason, BHP and Rio are pushing for their iron ore contracts with Chinese steel mills to reflect the cheaper cost of shipping the raw material from Australia compared with Brazil.
China Inc has so far resisted paying a freight premium to Australian miners, even threatening to boycott Rio iron ore sold on the spot market.
However, BHP's separate campaign to dismantle benchmark pricing appears to be making progress, with Metals Bulletin and Platts planning to start competing indices for iron ore sold into China.
The official made the comments to industry journal Steel Business Briefing.
BHP shares fell $1.60 to $45.10 and Rio shares dropped $5.05 to $141.95.
Source: Herald Sun
Liners wary of new bunkering procedures
Friday, 30 May 2008
Carriers may not welcome new bunkering regulations at ports as they are already under pressure for faster turn-around times, says a liner executive. Rashmin N. Jolapra, assistant operations manager for CMA CGM & ANL (NE) LLC in Dubai told Bunkerworld and Portworld on Thursday that “ships compete with economies of scale and one way of reducing this strain is fast turn-around times. “One of the several ways operators endeavor to reduce port stay time is plan to bunkering operations concurrent with cargo operations,” said Jolapra.
According to Jolapra, operators coped with “time pressed situations like port congestions” through “window berthing concepts and occasionally vessels skipping the next port of call and/or trimming down cargo intake for the sake of maintaining the advertised schedule on a popular service.”
“Any delays attributed to bunkering would be the proverbial last straw on the camel's back,” said Jolapra.
He stressed that vessel operators aim for "the minimum port stay and endeavor to maximize trips under a time charter.”
His comments came after authorities in Port Klang, Malaysia announced that new bunkering procedures would come into force at the beginning of June. Some players in the Malaysian bunker market warned that regulations might trigger delays.
One of the new regulations calls for a 45 minute inspection on each bunker barge before every bunkering operation.
Jolapra said that “Port Klang needs to reconsider the time frame.”
Source: Portworld
Supply hit as India phases out single hull tankers
Friday, 30 May 2008
Indian shipping firms will meet a global deadline to phase out all single hull tankers by 2010, but their inability to reinforce fleet numbers may lead to supply constraints in the next few years, industry officials said. In 2005, a legislation by International Maritime Organisation, a United Nations body for ship safety, made it mandatory that all single-hull tankers be replaced with double hull by 2010 to check pollution A double hull ship, in which the bottom and sides have two complete layers of watertight hull surface, is considered a safer bet against oil spill during underwater damage or collisions.
G.E Shipping, the biggest player with 31 tankers, is converting two of its ten single-hull tankers to double hull.
"And the rest would be scrapped out or sold between now and 2010," a spokewoman said.
It has four product carriers on order and has no plans to buy crude tankers due to higher cost of the vessel now, she said.
Ship builders are demanding 15-30 percent premium over last year for tankers, forcing firms to delay purchases, an analyst with Dolat Capital said.
"All shipyards are full till FY11 and they're mostly building dry bulk carriers. So, if you order a tanker today, it will be delivered only by 2011, which doesn't make sense," said Dolat's Kapil Yadav.
"Availability is a problem now," said an official with Mercator Lines, who did not wish to be identified.
Mercator, which has 8 tankers and one on order, is converting one of its single hull tankers to dry cargo bulk vessel, the official said. "The other three, we may convert to FPSOs."
A floating production, storage and offloading vessel, or FPSO, is a type of floating tank system used by the offshore oil and gas industry.
Out of the 39 tankers that the state-run Shipping Corp of India has, around 30 percent are single hull but the company is yet to decide on them, Director Umesh Grover said. SCI has 16 tankers on order.
DEMAND-SUPPLY MISMATCH
According to industry estimates, capacity additions in the tanker segment is at 6.8 percent year-on-year, compared with 11 percent in the dry bulk segment.
A bulk carrier is designed to transport unpackaged bulk cargo, such as grains, coal, ore, and cement. Tanker transports oil and oil products.
Industry players expect the supply gap to widen as it is not feasible for companies to replace their single hull tankers on a one-to-one basis, leading to higher tanker freight rates.
Gains in crude oil, which is hovering near $130 a barrel, and lower oil inventory are also likely to support the uptrend in tanker freights, analysts and officials said.
"Now that they have to replace all single-hull tankers with double hull, there's going to be a big gap. We are anticipating the market will be firmed up in oil tankers because the single hull is phasing out slowly," the Mercator official said.
Source: Reuters
Container shipping set to see growth despite record bunker prices Friday, 30 May 2008
Despite current record bunker prices, the container industry will still see positive growth this year, said Jasper Praestengaard, chief executive officer for AP Moeller-Maersk in the Asia Pacific region. While Praestengaard acknowledged that the container industry would not enjoy the 10% growth rate seen in 2007 and previous years, he declined to comment on the projected rate for 2008. "It [record high bunker prices] has a huge impact -- 50 per cent of our total operating cost is bunker fuel. In container shipping, we will still have
positive growth. Last year, we had a 10 per cent growth rate. This year it
will be lower, but not significantly lower," he said Thursday. Praestengaard was speaking on the sidelines of a conference --
Sustainable Shipping - Fueling a cleaner future -- held in Singapore Thursday
and attended by about 80 delegates.
Also at the conference, Shell Marine Products CEO Isabella Loh spoke on
the need to develop a "blueprint" scenario for the future -- where greater
action is taken to develop sustainable sources of fuel. And through
innovation, unique solutions prove beneficial. Loh cited the case of sulfur, a
once unwanted byproduct of the desulfurization process by refineries, which
now commands a price of more than $700/mt for use as fertilizer.
Loh also noted the increasing use of low sulfur fuel oil and 580 CST fuel
oil, which can be used in newer ships as bunker fuel.
Elaborating on this growing market, she mentioned how Asian sellers were
selling the 500 CST grade to traders in the Baltic region.
Other dominant themes at the conference included the need for the
shipping industry, which transports 90 per cent of the world's goods, to
reduce its sulfur dioxide, nitrogen oxide and particulate matter emissions.
Source: Platts
You are so right, Milner: If you want to have some additional income later in your life, dividend paying stocks are a good way to get it. If you find a starting-up company in a VITAL sector, which has a GOOD MANAGEMENT, and you have PATIENCE in building your portfolio, you have good chances to succeed in your effort.
But patience is really needed, it takes years - and not months - to gather the sufficient amount of stocks (if you are not already a multimillionaire.. lol). In the first years buy small amounts of the stocks of your favourite company regularly, because in this way you also follow the development of the company, and if something goes wrong, you do not loose so much. When the company starts to show it is strong and growing, add the lots and invest the already possible dividens back to the company. Follow the sector, and read all the company's filings carefully - there may be told things that do not show elsewhere.
Put this company in the sidelines and do not stare day in day out the shareprice on the screen - that's what makes longterm shareholding frustrating and booring. Just use your other investments for the daily trading.
A good management of the company is the most important thing, a management, which can handle successfully bad times too. And of course the company's policy - are the shareholders treated as investors in the company and thus as a part of the company, or are they treated as a necessary nuisance to the management.
In the course of the years I have been a shareholder in FRO, GOGL, SDRL etc. I have always felt as a respected shareholder. JF's shareholder policy is by no means charity, of course he takes his own gains from it. But I like it when the management says:"All the money WE DO NOT NEED we distribute to the shareholders". In the course of the years I have noted that - in spite of doubtfull analysts - this kind of corporate policy works excellently :)
I have noticed that the shareholder-friendly policy is
spreading. Companies have noted its strong positive effects.
Here's some information about Safe Bulkers (SB). A Greek family company, they have a brand new fleet of ships (11 Capesize/Panamax/Kamsarmax bulkers + 11 newbuilds), net income $211 mill. in 2007, EPS $3.88 in 2007.
Safe Bulkers, Inc. Announces Pricing of Its Public Offering and Listing on the New York Stock Exchange
May 29, 2008 8:00 AM EDT
ATHENS, GREECE -- (MARKET WIRE) -- 05/29/08 -- Safe Bulkers, Inc. (the "Company") (NYSE: SB) announced today that its public offering of 10,000,000 shares of common stock was priced at $19.00 per share. As of today, the Company's common stock will trade on the New York Stock Exchange under the ticker symbol "SB".
The Company is an international provider of marine drybulk transportation services, transporting bulk cargoes, such as grain, iron ore and coal, along worldwide shipping routes for some of the world's largest users of marine drybulk transportation services.
All of the shares were sold by Vorini Holdings Inc., a selling stockholder controlled by the family of the Company's Chief Executive Officer Polys Hajioannou and Chief Operating Officer Nicolaos Hadjioannou. Vorini Holdings Inc. has also granted the underwriters a 30-day option to purchase up to an additional 1,500,000 shares of the common stock to cover over allotments, if any.
The offering was book-run by Merrill Lynch, Pierce, Fenner & Smith Incorporated ("Merrill Lynch") and Credit Suisse Securities (USA) LLC ("Credit Suisse"). Co-managers of the offering are Jefferies & Company, Inc., Dahlman Rose & Company, LLC, Poten Capital Services LLC and DnB NOR Markets, Inc.
A registration statement relating to these securities was declared effective by the Securities and Exchange Commission on May 28, 2008. A copy of the prospectus relating to these securities may be obtained when available from Merrill Lynch, 4 World Financial Center, New York, NY 10080 or Credit Suisse Prospectus Department, One Madison Avenue, New York, NY 10010.
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 statements in this press release that are not historical facts may be forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause the outcome to be materially different.
About Safe Bulkers, Inc.
Safe Bulkers, Inc. is an international provider of marine drybulk transportation services, transporting bulk cargoes, particularly grain, iron ore and coal, along worldwide shipping routes for some of the world's largest users of marine drybulk transportation services.
More information:
IPO SEC Filing:
http://www.sec.gov/Archives/edgar/data/1434754/000093041308003253/c52273_f1.htm
I have not taken a look in it yet, but as you have seen how SINO's IPO- and IPOs in general - are handled it could be wise to see a couple of days how the stock behaves before jumping in.
I'll try to find some information about SB.
Thank you Stuffit. My "expertise" comes from just following the marine industry loooong time, and learning the sources of good information.
And you are now a much better "expert" in shipping than what you were a year ago, aren't you? Now you know better some preliminary things, and where to look for more information if you want to. If I have helped in that, I am very glad.
There, there you two! I am not either an expert, just followed the sector so long time that some information has got stuck to my two braincells :). As you see, you have learned much all this time you have followed the sector.
As to the Brasilian maritime building program, it is surely big enough to get attention in shipping and drilling markets. But it will realise so far in the future that it will have no direct influence on shipping and drilling, at least in a couple of years. They say they will build self the ships and also the rigs, and as far as I know they have a few very small shipyards and no rig builders today. They must first build the facilities and get the expertise - a deepsea semisubmersible rig is extremely complicated constructure and it takes 3 years to build one, even by an expert rigyard.
But clearly that kind of increase in number of vessels in the seven seas will affect the shipping market in time. Still I think that shipping will remain a fairly profitable business. The dayrates are now unbelievable high - and profitable: a Capesize spot market price $221.000/day when the daily costs are ca $30.000!! - that shippers can well bear some rate lowerings. You have seen that the same rates were ca $40.000 some 6 months ago, so you have certainly learned that shipping is a very volatile sector. The main thing is that the management of the company is capable of handling the volatility.
Good morning, Early Bird. Re: GDOCF $6.57 in Oslo now. Mr. Billung, the CEO, said in the Conf. Call that the Olympics MAY cut the iron ore shipments for a short period, because the port, whereto e.g. GDOCF is hauling the iron ore, is quite near the place, where Olympics water sports (sailing) will take place. So the iron port may be closed down during the Olympics. That has not been announced yet but it may cause a short dip in the GOGL's price. You know how the markets work :)
Lula Launches Fleet Program for Petrobras
Petrobras 5/28/2008
Luiz Inacio Lula da Silva, President of the Republic, recently participated in the Petrobras Fleet and Support Vessel Modernization and Expansion Program launch ceremony, in Niteroi (Rio de Janeiro). This is the biggest vessel contracting plan of its sort ever in Brazil, with a high level of job generation and national content of 70 to 80%. Petrobras' president, Jose Sergio Gabrielli de Azevedo, and Company executives attended the event.
The program President Lula launched foresees orders, in Brazil, for 146 new units to support Petrobras' offshore oil exploration and production activities, for an estimated total of $5 billion. Petrobras also confirmed it intends to contract drilling vessels, semi-submersible drilling platforms, and large vessels.
Aligned with the Prominp (Program for the Mobilization of the National Oil and Natural Gas Industry), the initiative is part of the Federal Government's Productive development Plan, which was launched last May 12th, at the BNDES. By ensuring a large volume of orders to be delivered in the next six years, the new program will make a significant contribution to revitalizing the Brazilian Naval industry, a sector which has been getting special attention and incentive measures since the early stages of President Luiz Inácio Lula da Silva's administration.
An extremely positive effect of the Petrobras Fleet and Support Vessel Modernization and Expansion Program will be the increase in job offers. Building each of the 146 vessels is expected to generate nearly 500 positions. Also, when the fleet is fully operational, there will be openings for nearly 3,800 crew members. According to the chartering agreements to be signed, only Brazilian nationals will be allowed to man the vessels. Additionally, by contract, the new fleet is required to have 70% to 80% national content, depending on the type of vessel.
Seven bidding procedures will be held during the six years of the program. The first, which is already in progress, foresees the contracting of 24 vessels. The others will be held through 2014 and have contractual terms of eight years. All of the vessels, once built, will be chartered to Petrobras by the bidding companies.
Of the 146 scheduled vessels, 54 will be used to handle very large anchors, ten as tugboats, and 64 will be used in supply activities. In addition to these, another 18 vessels will be contracted to carry out oil collection operations, as required by the Brazilian Environmental and Renewable Natural Resource Institute (Ibama) to cover oil exploration and production areas. All of them belong to the Petrobras' Third Maritime Support Fleet Renewal plan, approved last December.
The Third Maritime Support Fleet Renewal plan is the outcome of Petrobras' policy to modernize its maritime support fleet on an ongoing basis. The Fleet Modernization Plan was approved in November 2003, when 20 existing vessels were contracted and underwent upgrades and deep technical changes and then reincorporated to the national fleet. The Second Fleet Modernization Plan was approved in July 2004, and called for the contracting of 38 new vessels. Of these, 7 are currently in operation, 17 under construction, and 14 are in the contract signature phase.
Petrobras also intends to contract 40 drilling vessels and semi-submersible drilling platforms to operate in deep and ultra-deep waters. The plan calls for the construction and delivery of these new units by 2017, and priority will be given to construction in Brazil. These units will be allocated to meet the portfolio's total demand: exploration of blocks that have been acquired, discovered field development and production – including a few in the pre-salt layer –, new discoveries, new blocks to be acquired, and maintenance.
Over and beyond vessels for offshore activities, Petrobras is buttressing the Brazilian naval industry's growth with several other actions. A memorandum of understandings signed last year with Noroil Empresa de Navegação Ltda. aims at studying and analyzing the viability for future chartering agreements for two oil tankers to be built in Brazil. The planned vessels are of the VLCC (Very Large Crude Carrier) type and will have capacity for 300,000 tons.
To meet the logistics demands that will be created to move Petrobras' production, the company plans to contract 19 more vessels under long-term chartering agreements to be signed with Brazilian riggers, always with the consideration of having these vessels built in Brazil in mind.
During the launch of the Petrobras Fleet and Support Vessel Modernization and Expansion Program, Transpetro, a Petrobras subsidiary, presented the second stage of the Program for the Modernization of the Oil Tanker Fleet (Promef), through which it will give continuity to the program that was first kicked-off in 2005, when 26 oil tankers were bid for by Brazilian shipyards. The second stage of the program foresees a new lot of 23 new medium to large vessels.
With the Promef, Transpetro commenced a program that seeks to revitalize the Brazilian naval industry and to renew its self-owned fleet of 54 oil tankers, with currently average 17 years of age. The initiative also aimed at being in compliance with the UN resolution that determines the substitution of the global oil tanker fleet for vessels built with double hulls.
Launched in 2005, the first stage of the Promef alone will result, by 2011, in the payment of upwards of R$205 million in taxes, including ICMS, ISS, PIS/Cofins, CSLL (Social Contribution on Net Profit), and Income Tax. Furthermore, some 22,000 jobs are expected to be generated and it is hoped that there will be a positive impact on the Country's payment balance in the order of $270 million.
The foreseen investments not only meet the needs of Petrobras' exploration and production development portfolio, but also those of oil and derivative transportation, and they are aligned with the Company's Strategic Planning insofar as growing its oil and natural gas production is concerned.
URL: http://www.rigzone.com/news/article.asp?a_id=62371
FYI BQI $4.36
(Bakken oil shale companies mentioned in the readers' comments: CLR BEXP WLL and NOG may also be interesting long term investments)
Oilsands Quest: Canadian Black Gold
by: QualityStocks posted on: May 28, 2008 | about stocks: BQI
Incorporated in Colorado, U.S.A. and headquartered in Calgary, Alberta, Oilsands Quest, Inc. (BQI) is an explorer and developer of oil sands projects. The company has oil sands permits in the Canadian provinces of Alberta and Saskatchewan. Their goal is to build shareholder value for the long-term through the development of these oil sands.
Oilsands Quest, Inc. trades on the American Stock Exchange [AMEX] as part of the Nonmetallic Mineral Mining sector. The company’s main operating subsidiaries are Oilsands Quest Sask. Inc., Township Petroleum Corporation, and Oilsands Quest Technologies Inc. They wholly own and operate their resource rights. Since 2004, the company has raised US$258 million in capital.
Oilsands Quest, Inc. is planning for production at its first major discovery, Axe Lake in northwest Saskatchewan. This project is in position for a joint venture partnership. Along with the planning, field-testing is also underway on this Axe Lake Discovery project. The company acquired permits for oil sands exploration in this area of the province in 2004, and is leading the way in the first major oil sands exploration program in Saskatchewan’s history.
The company seeks to explore and quantify other global-scale discoveries on their properties in Alberta and Saskatchewan. They also seek to negotiate agreements with selected partners to develop individual projects while still maintaining a significant interest in each one. In January of this year, the company initiated exploratory drilling on contiguous Alberta permits. This same month saw two oil sands exploration permits acquired in the province as well.
Oilsands Quest, Inc. strives to move forward as a leading developer of Saskatchewan’s oil sands industry. They hope potential shareholders will join them in their sandbox as they look to develop new sources of oil. They believe that this black gold is certainly a valuable Canadian version of it for their shareholders.
This article has 2 comments:
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Gintaras
May 28 03:58 AM
That is the reason I buy BQI in my personal account on large dips systematically for the sake of my retirement anf the future of children benefit. I systematically beat the S&P Index by a wide margin. Yet I have just established a positon in CLR, BEXP, WLL and NOG - all of them are the emerging drivers of the "Bakken oil shale" long play.
Good investing
*
Tracy
May 28 11:22 AM
BQI has a strong, trustworthy, experieced management team. They have discovered the resources and are now experimenting with lab tests on the best recovery methods to extract it. A joint venture partner is expected this fall. Only 10% of their land has been explored. Management's conservative estimates are 10+ BILLION barrels of bituman. Test production on three wells will begin this fall. If you believe that most of the world's cheap oil has already been discovered, now is the time to own this stock.
Thanks, Pan.v was it. Oil/gas shales will be precious reserves some day, and Panterra has a vast area reservation. There's no doubt that there's gas in those leases, but it takes time before the estimated reserves are proved and officially confirmed.
Saskatchewan is a good place for oilsands/gas shales projects, and the governement seems to amply support exploration companies. Interesting thing also is that Chinese businessmen direct their travels especially there...
GM Stock Lobster. Do you remember what was the little Canadian oil shale company the board was talking about some weeks ago? They made reservations in Saskatchewan oil shales.
I'm fine, thanks. And you?
SDRLF.pk $33.50 SDRL - Seadrill reports first quarter 2008 results
Highlights
Seadrill reports net income of US$263.0 million and earnings per share of US$0.66 for the first quarter of 2008
Seadrill takes delivery of four newbuilds (two semi-submersible rigs, one jack-up and one tender rig)
Seadrill mainly on track for the remaining newbuild program deliveries
Seadrill secures contracts worth US$4.1billion with Petrobras in Brazil for three deepwater semi-submersible rigs
Seadrill orders new self-erecting tender rig, T12, for US$121 million
Seadrill posts a US$148 million gain on sale of shareholding in PT Apexindo Pratama Duta TBK
Seadrill resolves to distribute cash dividend of US$0.60 per share
Seadrill enters a US$850 million sale and leaseback arrangement with Ship Finance for the drillship West Polaris
Seadrill presents a mandatory offer of NOK80 per share for all outstanding shares in Scorpion Offshore Ltd
Seadrill orders new semi-submersible drilling rig for US$640 million from Jurong Shipyard
First quarter results
Seadrill today reported consolidated revenues for the first quarter 2008 of
US$438.3 million compared to US$446.0 million for the fourth quarter 2007.
Operating profit for the first quarter was US$110.1 million as compared to US$110.2 million in the fourth quarter 2007.
Operating profit from the Mobile units amounted to US$74.2 million as compared to an operating profit of US$71.5 million in the fourth quarter 2007. The increase was mainly due to full operations for the jack-up West Triton, which was partly offset by downtime on the drillship West Navigator.
Operating profit from the Tender rigs amounted to US$26.2 million as compared to US$26.6 million in the fourth quarter 2007.
Operating profit from Well services amounted to US$9.7 million as compared to US$12.2 million in the fourth quarter.
Net financial items for the first quarter showed an income of US$162.0 million as compared to a loss of US$4.2 million in the fourth quarter 2007. The increase is due to the sale of the shareholding in PT Apexindo Pratma Duta TBK.
Income before income taxes amounted to US$272.1 million.
Income taxes were US$4.5 million.
Net income for the quarter amounted to US$263.0 million.
Earnings per share were US$0.66 for the first quarter.
For further information, please see the first quarter 2008 report attached.
Analyst contact
Jim Daatland
VP Investor Relations
Seadrill Management AS
+47 51 30 99 19
Media contact
Trond Brandsrud
Chief Financial Officer
Seadrill Management AS
+47 51 30 99 19
Seadrill Limited
Hamilton, Bermuda
May 27, 2008
Published: 16:44 27.05.2008 GMT+2 /HUGIN /Source: Seadrill Limited /OSE: SDRL /ISIN: BMG7945E1057
ITCL (NOK 9.25 = $1.85) Published: 16:09 26.05.2008 GMT+2 /HUGIN /Source: Independent Tankers Corporation Limited /OSE: ITCL /ISIN: BMG4758V1000
ITCL - Notification of date of release of Q1 2008 Results
Independent Tankers Corporation Limited's first quarter 2008 results will be released on Friday May 30, 2008. A press release and a presentation will be sent out before the market opens.
Bermuda
May 26, 2008
More information you can find, if you go to e.g. Hegnar's (Norwegian) website, and write DESSC in the right upper corner box and then click Søk (Find). For News click "Nyheter" on the left hand menu. They have all their own news/PRs in English too.
http://www.hegnar.no/netfonds/aksjekurser/
Did you see the 1Q results?
14/05-2008 07:00:00: (DESSC) 1st quarter 2008 - Record high EBIT - reduced EBITDA due to seasonal slowdown
The 1st quarter of 2008 showed similar pattern as last year; A weaker
spot market in the North Sea resulted in lower rates and utilization
levels and hence lower total revenues than the previous quarter.
Solid gain from sale of the PSV "Sea Trout" resulted in a record high
EBIT.
The Board has decided to make a 1st quarter dividend payment of $
0,13 per share equivalent to a dividend yield of 12%.
The revenues in the 1st quarter were $ 42,6 mill. compared to $24,9
mill. in the 1st quarter of 2007. The vessels' operating expenses
were $14,5 mill. ($ 7,0 mill.). EBITDA was $25,6 mill. ($16,8 mill.)
and EBIT was a record high $35,8 mill ($13,4 mill.) following a gain
on sales of $16,9 mill. most of which was related to the sale of "Sea
Trout".
Due to unrealized currency losses and unrealized changes in value of
financial derivatives the net result after taxes was $ 11,3 mill. ($
11,7 mill.).
The Company is bullish about the future market evidenced by the many
strong long term contracts done recently.
14 May 2008
Deep Sea Supply Plc
Ekstern link: http://hugin.info/136132/R/1218893/255574.pdf
Milner. Here's some latest news about DESSC. Insiders are buying shares.
16/05-2008 14:54:00: (DESSC) Mandatory notification
Saa Capital AS, a company controlled by Svein
Aaser, Chairman of Deep Sea Supply Plc,
acquired today, 16 May 2008, 5,000 shares in
Deep Sea Supply Plc at price NOK 21,10 per share.
After this acquisition, Svein Aaser controls
65,000 shares in the Company.
16 May 2008
Deep Sea Supply Plc
- - -
5/05-2008 08:47:00: (DESSC) Distribution to shareholders for Q4 2007 and Q1 2008
Reference is made to the USD 0,40 per share distribution to
shareholders for 4th quarter 2007 with ex-date 26 March 2008.
As previously announced, the distribution will be made subject
to successful completion of the refinancing of the Company's
bank financing. The financing has taken somewhat longer than
first assumed. We are however in the process of finalizing all
necessary documentation and we aim to complete the documentation
required in order to draw down the loan before 29 May 2008.
Reference is also made to the USD 0,13 per share distribution to
shareholders for 1st quarter 2008 with ex-date 14 May 2007. The
distribution is expected to take place approximately 15 June 2008.
15 May 2008
Deep Sea Supply Plc
- - -
14/05-2008 16:46:00: (DESSC) Delivery of newbuilding
We are pleased to inform that Deep Sea Supply today
has taken delivery of "Sea Wolverine", a newbuilding AHTS
from ABG Shipyard, India.
Sea Wolverine" is the 2nd delivery in a series of 9 newbuilding
AHTS vessels delivered to Deep Sea Supply from ABG.
14 May 2008
Deep Sea Supply Plc
- - -
14/05-2008 16:43:00: (DESSC) Mandatory notification
Odd Brevik, CEO of Deep Sea Supply, acquired
today, 14 May 2008, 10,000 shares in Deep
Sea Supply Plc at price NOK 20,90 per share. Mr.
Brevik controls after this acquisition 320,918
shares in the Company.
14 May 2008
Deep Sea Supply Plc
- - -
07/05-2008 08:11:00: (DESSC) Contracts to Deep Sea Supply Plc
Deep Sea Supply has entered into two time charters with
Esso Exploration Inc. for the PSVs "Sea Pollock" and "Sea
Turbot". The contracts start in August 2008 and last for four
years. "Sea Turbot" will be delivered from Cochin Shipyard
in August 2008.
"Sea Trout", the newbuilding PSV to be delivered from
Karmsund verft end May 2008, is fixed to Petrofac from delivery
for the duration of drilling seven wells.
"Sea Lynx" has been fixed to Saipem for a minimum of 175 days.
Total value of the contracts is in excess of USD 90 mill.
7 May 2008
Deep Sea Supply Plc
GM board. Weekend reading and videos:
A Tank of Gas, a World of Trouble.
Pulizer Prize winner Paul Salopek traces gasoline sold at a Chicago-area station back to its origins. His safari reveals how Ameica's oil addiction binds it to some of the most violent corners of the planet - and to a petroleum economy nearing crisis.
http://www.chicagotribune.com/news/specials/broadband/chi-oilsafari-html,0,7894741.htmlstory
You mean FRO's dividend $2.75, and you get it? Congratulations!
Dockwise does not distribute dividend - not yet :)
Frontline's Freight Feast
By Toby Shute May 22, 2008 Comments (0)
Another quarter, another flurry of activity for Frontline (NYSE: FRO $67.52). This crude hauler cuts so many deals, it's a veritable tanker banker.
For one, there was the partial spin-off of Independent Tankers to shareholders. Frontline also invested in both Navig8 and Overseas Shipholding Group (NYSE: OSG). Before the quarter's end, the firm also ordered up four new Very Large Crude Carriers (VLCCs) from a Chinese shipyard, where it has an option on two additional vessels.
There's also a core business here, which benefited from a freight rate fiesta. VLCCs averaged $82,400 in the period, but that figure actually understates the strength of the market. The firm's double-hulled VLCCs trading in the spot market pulled down 27% higher rates than that fleetwide average. The second quarter is looking even better, with modern VLCC rates averaging about $112,000 so far. That's more than double the average rate in Q2 2007.
The tanker supply situation merits a review, because an overabundance of vessels would dampen those dreamy market rates. At the end of the first quarter, there were 486 VLCCs globally, with 184 on order. The phasing out of single-hulled vessels, which pose a greater environmental risk, can offset about two-thirds of those newbuilds. Add conversions to ore carriers and floating production, storage, and offloading vessels, and simple scrapping of old vessels. Finally, consider the shipyard delays being reported by OSG, Excel Maritime (NYSE: EXM), Eagle Bulk Shipping (Nasdaq: EGLE), and now Frontline. While Eagle Bulk isn't experiencing delays in its own newbuild program, there's an industry-wide shipyard squeeze that makes a tanker supply spike look even more improbable.
As with Nordic American Tanker (NYSE: NAT), Frontline (which now commercially manages six of Nordic's ships) is strongly committed to capital return via robust dividend payouts. It's a model that another of John Fredriksen's companies appears to be adopting in the deepwater. Nordic American's cash breakeven level is far lower, providing succor for the skittish. Frontline has financed its way to fantastic profits over the years, and to some, the potential equity upside may outweigh the risks. It's up to you to pick the tanker flavor that matches your risk tolerance.
CPN $23.00 Calpine surges on $10.8 billion NRG buyout offer
Thursday May 22, 8:05 pm ET
Calpine rises on NRG bid; analyst says Reliant and other wholesalers could be takeover targets
NEW YORK (AP) -- Shares of power wholesaler Calpine Corp. jumped Thursday after NRG Energy Inc. offered to buy the company in a move analysts said could open up buyout chatter elsewhere in the sector.
ADVERTISEMENT
NRG's all-stock offer for Calpine was valued at $10.8 billion as of Thursday's close. Analysts said the deal would make sense for NRG if the price was right. The initial offer, on May 14, valued Calpine shares at $22.98 per share, and Brian Chin of Citi Investment Research said a fair price would not go above the mid-$20 range. The per-share price is currently valued at $21.55 per share.
Calpine stock rose $1.72, or 8.1 percent, to $23, and reached a high of $23.36. Shares began trading in January. NRG shares fell $2.16, or 5.1 percent, to $40.35.
Chin said the last buyout in the sector was the $32 billion purchase of TXU Corp. by private equity firms Kohlberg Kravis Roberts & Co. and TPG. That deal was announced in February 2007. The analyst said there is a "plethora of possibilities" for buyouts and singled out Reliant Energy Inc. as one company that could get more attention.
Reliant shares gained $1.01, or 4.1 percent, to $25.81.
Calyon Securities analyst Gordon Howald said NRG has a good track record with integrating buyouts, and he added investors "should be comforted" that NRG does not plan on making an extended buyout attempt if Calpine is resistant to the offer.
FRO $67.89 - First Quarter 2008 Results
Highlights
# Frontline reports net income of $221.0 million and earnings per share of $2.95 for the first quarter of 2008, including gain on sale of assets and partial spin-off of subsidiary of $37.0 million
# Frontline announces a cash dividend of $2.75 per share for the first quarter of 2008
# 17.53% of our shareholding in Independent Tankers Corporation Limited was spun off to Frontline's ordinary shareholders
# Frontline invested $20 million in February 2008 in NAVIG8 LIMITED against the issue of new share capital representing a total of 15.8% stake in the company
# Frontline agreed to terminate the long term charter party for the single hull VLCC Front Sabang and has received a compensation payment of approximately $24.6 million in the second quarter of 2008
# In April 2008 Frontline entered into a contract in China for delivery of four 320,000 dwt VLCC newbuildings
# Frontline announces that it has declared options for further two similar VLCC newbuilding contracts in China
# The third heavy lift vessel, Front Comor, converted by COSCO was redelivered to Dockwise in May, 2008.
.
First Quarter 2008 Results
The Board of Frontline Ltd. (the "Company" or "Frontline") announces net income of $221.0 million for the first quarter of 2008, equivalent to earnings per share of $2.95. Operating income for the quarter was $235.4 million including a gain on sale of assets of $15.5 million. This gain includes $17.1 million relating to the termination of the lease for the Front Maple.
The reported earnings reflect a stronger spot market. The average daily time charter equivalents ("TCEs") earned in the spot and period market in the first quarter by the Company's VLCCs, Suezmax tankers and Suezmax OBO carriers were $82,400, $51,600 and $43,200, respectively compared with $45,700, $33,100 and $42,400 respectively in the fourth quarter of 2007. The results show a continued differential in earnings between single and double hull tonnage. The spot earnings for the Company's double hull VLCC and Suezmax vessels were $104,700 and $53,700 in the first quarter, compared to $43,600 and $37,500 in the fourth quarter of 2007.
Profit share expense of $33.7 million has been recorded in the first quarter as a result of the profit sharing agreement with Ship Finance International Limited ("Ship Finance") compared to $16.1 million in the fourth quarter. No profit share expense was recorded in the first quarter of 2007 since Ship Finance was consolidated in that quarter.
Charterhire expenses have increased by $19.5 million in the first quarter compared with the fourth quarter of 2007 mainly as a consequence of chartering in six vessels from Nordic American Tankers under a floating rate timecharter agreement. These six vessels are also included in result on time charter basis with $19.8 million and about 450 trading days.
Interest income was $10.9 million in the first quarter, of which $7.5 million relates to restricted deposits held by subsidiaries reported in Independent Tankers Corporation ("ITCL"). Interest expense, net of capitalized interest, was $47.9 million in the first quarter of which $13.6 million relates to ITCL.
Other financial items in the first quarter include an $18.0 million gain on the spin-off of 17.53% of the Company's shareholding in ITCL and a $3.5 million gain on the forward contract to purchase shares in Overseas Shipholding Group, Inc. ("OSG").
As of March 31, 2008, the Company had total cash and cash equivalents of $766.9 million which includes $638.2 million of restricted cash. Restricted cash includes $414.6 million relating to deposits in ITCL and $223.6 million in Frontline Shipping Limited and Frontline Shipping II Limited which are restricted under the charter agreements with Ship Finance.
As of May 2008, the Company has average total cash cost breakeven rates on a TCE basis for VLCCs and Suezmaxes of approximately $31,500 and $23,500, respectively.
Fleet development
In line with our strategy to reduce exposure to single hull tonnage, Frontline has in the first quarter of 2008 agreed with Ship Finance to terminate the long term charter party between the companies for the single hull VLCC Front Sabang and Ship Finance has simultaneously leased the vessel to an unrelated party. Frontline has received a compensation payment of approximately $24.6 million in the second quarter of 2008 for the early termination of the charter party, which will be recognized in the second quarter of 2008
The single hull Suezmax Front Maple was sold in January 2008 by Ship Finance and the charter with Frontline terminated. Frontline has recognized a gain in the first quarter of approximately $17.1 million related to the termination of the lease.
The vessels Front Granite and Front Marble were delivered to Dockwise Ltd. for conversion for their account in February and March 2008, respectively. The third heavy lift vessel, Front Comor, converted by COSCO was redelivered to Dockwise Ltd. in May 2008.
In April 2008 Frontline entered into a contract with Zhoushan Jinhaiwan Shipyard Co., Ltd. ("Jinhaiwan") in China for delivery of four 320,000 dwt VLCC newbuildings at a contract price of $135 million each and with attractive payment terms. The vessels are expected to be delivered in the second half of 2011. Frontline announces that it has also declared options for a further two similar VLCC newbuildings at a fixed price for delivery in the first half of 2012.
Other Matters
In January 2008, Golden President Shipping Corporation, a 100% subsidiary of Golden Ocean Group Limited ("Golden Ocean"), had a full and final win in the court case against Bocimar N.V. on the Channel Alliance Time Charter Party and was awarded $14.7 million plus interest thereon in an amount of $2.3 million. The amount of $14.7 million was originally guaranteed by Frontline to Golden Ocean in connection with the spin-off in December 2004, and was later paid to Golden Ocean as it became due according to the charter party. In the second quarter of 2008 an amount of $16.6 million has been received from Bocimar N.V which will be recognized in the second quarter of 2008.
In February 2008, Frontline spun off 17.53% of its holding in ITCL to Frontline shareholders. Frontline has recorded a gain of $18.0 million in the first quarter of 2008 as a result of this spin off. This is reported in other financial items.
In February 2008, Frontline announced that it had agreed to invest $20 million in NAVIG8 LIMITED ("Navig8") against the issue of new share capital representing a 15.8% stake in the company. Navig8 controls approximately 30 tankers representing approximately 1.4 million dwt, including newbuildings on order. Navig8 actively trades a time-charter fleet, owns and invests in tonnage, commercially and technically manages vessels for third parties and trades in the freight-derivatives market. The investment should be considered as purely financial, but gives Frontline at the same time a foothold in the clean petroleum product market.
In March 2008, we announced that the Company and companies indirectly controlled by Mr. John Fredriksen, our Chairman and principal shareholder, together held an aggregate of 1,628,300 shares in OSG, or 5.3% of the total outstanding shares of OSG. In addition to this holding, Frontline also entered into a forward contract for an additional 1,366,600 shares in OSG, or an additional 4.4% of the total outstanding shares of OSG.
On May 20, 2008 the Company filed a Schedule 13 D with the United States Securities and Exchange Commission reporting that companies indirectly controlled by Mr. John Fredriksen have reduced their holding in OSG to 244,900 shares and that the Company and companies indirectly controlled by Mr. John Fredriksen as of May 20, 2008 together held an aggregate of 1,794,900 shares in OSG, corresponding to 5.2% ownership.
In April 2008, Bjørn Sjaastad, the Chief Executive Officer ("CEO") of Frontline Management AS, informed the Board of Frontline of his resignation and he left the Company in May 2008. The Board has started the recruitment process in order to find a new CEO for Frontline Management AS and expects that conclusion will be made before end of August. In order to fill the operative functions in the meantime the Board has asked Frontline's Vice President S&P Jens Martin Jensen to be temporarily in charge.
On May 21, 2008, the Board declared a dividend of $2.75 per share. The record date for the dividend is June 4, 2008, ex dividend date is June 2, 2008 and the dividend will be paid on or about June 25, 2008
74,825,169 ordinary shares were outstanding as of March 31, 2008, and the weighted average number of shares outstanding for the quarter was also 74,825,169.
The full report is available for download in the link enclosed below and on the Company's website: www.frontline.bm
May 21, 2008
The Board of Directors
Frontline Ltd.
Hamilton, Bermuda
Questions should be directed to:
Jens Martin Jensen:, Vice President S&P, Frontline Management AS
+47 23 11 40 99
Inger M. Klemp: Chief Financial Officer, Frontline Management AS
+47 23 11 40 76
SINO - Stuffit sent this to me:
SINO..know anything>SINO new shipper set to trade today
BEIJING and FLUSHING, N.Y., May 21 /Xinhua-PRNewswire/ -- Sino-Global Shipping America, Ltd. (Nasdaq: SINO) ("Sino-Global"), a leading,
non-state-owned provider of shipping agency services in China, today announced its initial public offering of 1,229,032 shares of common stock at a price of $7.75 per share. The common stock will begin trading on the NASDAQ Capital Market on May 21, 2008 under the ticker symbol "SINO."
Of the 1,229,032 shares sold in the offering, all of the shares were sold by Sino-Global.
Anderson & Strudwick, Inc. acted as the lead placement agent for the offering.
Sino-Global's registration statement relating to these securities has been declared effective by the United States Securities and Exchange Commission. This news 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 jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
The offering of the securities is made only by means of a prospectus forming a part of the effective registration statement. A copy of the prospectus relating to the offering may be obtained by contacting Anderson & Strudwick, Inc. by email at mdowns@andersonstrudwick.com.
About Sino-Global Shipping America, Ltd.
Registered in the United States in 2001 and operating in Mainland China, Sino-Global is a leading, non-state-owned provider of high-quality shipping services. With local branches in five of China's 76 ports and contractual arrangements in all those where it does not have branch offices, Sino-Global is able to offer efficient, high-quality services to shipping companies entering Chinese ports.
Sino-Global provides comprehensive yet customized shipping services to ship owners, operators and charters including intelligence, planning,
real-time analysis and on-the-ground implementation and logistics support. Sino-Global has achieved both ISO9000 and UKAS certifications.
For investor and media inquiries, please contact:
In the United States:
Mr. Richard Nowak
Vice President of Investment, Sino-Global Shipping America, Ltd.
Tel: +1-585-427-0995
Fax: +1-585-424-6548
Toll-Free: +1-800-420-9899
Email: ir@sino-global.net
Mrs. Wendy Zhong-Hall
Investor Relations Manager, Sino-Global Shipping America, Ltd.
Tel: +1-585-427-7110
Fax: +1-585-424-6548
Toll-Free: +1-800-420-9899
Email: ir@sino-global.net
DRYS is very much on spot market, and they earn LOTS of money there.
This is a long time project for us... buy, put on a shelf and forget for some time. Must see a couple of quarters before we put our big money in it :)
I have also added small amounts time to time. Heavylift is an interesting sector, and Dockwise is very aggressive actor :)
Härregud! Tanker rates over $200.000!!
"Three VLCCs going from West-Africa to US Gulf. Rates are WS 226,25, WS 227,5 and WS 235, corresponding 195- to 205.000 dollar per day."
DOCK $4.08 in Oslo now. Headline in TradeWinds:
Bigger is better for Goedee
Larger fleet and lower crewing costs help Dockwise to post improved profits in the first quarter.
OCNF $23.91 OceanFreight (a bulker) declares dividend of 77 cents
Tuesday May 20, 4:58 pm ET
OceanFreight declares dividend of 77 cents, payable May 23 to shareholders as of May 16
NEW YORK (AP) -- Greek shipper OceanFreight Inc. said Tuesday its board declared a quarterly dividend of 77 cents.
The dividend is payable May 23 to shareholders of record as of May 16.
Tsakos Energy profit jumps 50%
By Simon Kennedy
Last update: 7:08 a.m. EDT May 21, 2008
LONDON (MarketWatch) -- Tsakos Energy Navigation (TNP $36.75)
TNP) said Wednesday that its first-quarter net profit rose 50% to $65.1 million, or $1.70 a share, from $43.5 million, or $1.14 a share, a year earlier. The company, which operates a fleet of oil tankers, said voyage revenues rose 18.6% to $136.7 million. Fleet utilization improved to 98.3% in the quarter from 94.4%, though operating expenses per ship rose 23% to $8,969 a day, under pressure from the weaker dollar. End of Story
SFL $32.43 Ship Finance Int'l Has Some Good News!
by: Tim Plaehn posted on: May 21, 2008 | about stocks: SFL
SFL - $850 million acquisition of an ultra-deepwater drillship and intention to increase quarterly dividend.
I have considered Ship Finance International (SFL) a core component of my site’s income portfolio. The press release above announces the single most expensive sale/ leaseback transaction in maritime history.
The benefit to SFL after interest and principle payments is 32¢ per share. Ship finance will be borrowing $700 million and the balance will be out of company fund. The drillship will complete construction in June and be on a 15 year bare ship lease fully guaranteed by Seadrill Ltd. (SDRLF.PK). This is SFL’s first acquisition of a deep water drilling rig and I find the timing interesting after reading this article on Seeking Alpha recently: Petrobras is Hoarding the World’s Deep Sea Drillers.
At the same time, SFL announced it will increase the quarterly dividend 2¢ to 57¢. This is good news after several quarters without an increase. Ship Finance is conservatively managed and has more than adequate coverage for the dividend. It is good to see the company putting some capital to work to increase the return to shareholders. I am looking forward to the earnings release on Thursday! SFL is a component of my site’s Income Portfolio.
Good morning Stuffit. Sunny here and now it begins warming. The spring has been unusually cold here, and the explanations for it from the meteorologists have been hilarious - totally confronting each others (read: they don't know the reason)