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XSNX.ob $0.44 O sole mio!
Company Overview
XsunX, Inc. was created in 2003 to develop and commercialize advanced, thin-film photovoltaic (TFPV) solar cell technologies and manufacturing processes. Over the past year, the Company has shifted its focus from licensing its technologies to using its technologies to design a cutting-edge manufacturing system for producing and marketing thin-film amorphous solar modules.
The Company has begun work on a multi-megawatt solar module production facility in the US. XSNX has commissioned a baseline production system expected to come on-line in early 2008, which will serve as the blueprint for a 25 megawatt (MW) production system expected to become operational by year-end 2008. The Company anticipates expanding its annualized solar module manufacturing capacity to 100 MW by early 2010. XSNX has secured a $21 million financing commitment from Fusion Capital Fund II, LLC and is already contracting with vendors to begin building the parts and sub-systems for a solar module production system. XSNX will initially produce solar cells and modules incorporating thin-film amorphous silicon on glass substrates. In the future, the Company may expand its product offerings to include nano-crystalline and proprietary multi-junction solar designs which will improve performance and further reduce per watt production costs. The Company is traded over the counter as XSNX.
XSNX plans to market its solar cells and modules to large-scale solar energy device installers and operators, including solar farms, government agencies, power purchase associations, utility companies and large commercial installations. In anticipation of commercial production, the Company has begun loading its sales channels and building its brand, to date, XSNX has established pre-sales agreements with solar integrators reserving more than 100 MW of its future solar module production capacity.
Investment Highlights
Increasing demand for solar energy
Exploding worldwide energy demand, depleted fossil fuel resource and soaring oil and gas prices are fueling demand for clean alternative energy sources such as wind and solar energy. The solar energy technology sector currently generates $10 billion in annualized revenues and has been growing 35-40% annually as a result of significant investments in new production facilities and technologies in Europe, the US, China and Japan. Financial incentives from governments around the world are encouraging the deployment of clean, renewable energy technologies. Some experts believe the PV market will reach $25 billion by 2011.
Although the solar photovoltaic (PV) industry potentially addresses a trillion dollar worldwide market, solar energy system deployment has been limited by the fact that until recently solar energy has not been economically viable in the absence of government tax and other incentives. Adoption and deployment rates are expected to increase over the next five to seven years as per watt costs of PV technology are reduced to a level competitive with conventional electricity sources.
Government incentives encourage solar deployment
Germany has established relatively aggressive incentive programs for solar energy and other European nations have followed suit. In the US, the California Solar Initiative provides for $2.9 billion in incentives over ten years. In Oregon, where XSNX is locating its production facility, the Oregon State Senate has passed legislation requiring large utilities to generate 25% of their energy from renewable sources by 2025. The area in Oregon where XSNX’s plant will be located has been classified as an enterprise zone, qualifying the Company for additional savings through the reduction of property and other operating taxes.
Increasing market share for thin film technologies
Thin film technologies, such as the amorphous technology deployed by XSNX, offer the lowest cost per watt at the module level. As a result, thin film’s share of the overall solar photovoltaic market is expected to increase from around 5% currently to as much as 20% in five years and deployment of thin film technologies will grow much faster than the overall PV market.
Competitive advantages of XSNX’s cutting-edge technology
XSNX has an advantage over other solar cell manufacturers because of its cutting-edge technology, which enables the conversion of an inexpensive sheet of 100cm X 160cm glass into a complete solar module in less than three hours. The Company’s thin film PV technology uses only a fraction of the semiconductor material that is required to produce traditional crystalline silicon solar modules. Given the high cost and supply constraints on semiconductor materials, using less silicon gives XSNX a huge cost advantage. In addition, the power conversion properties of the Company’s amorphous solar cells exhibit near 100% conversion potential at temperatures of 65C while other thin film and conventional silicon wafer technologies lose around 20% of conversion potential. Amorphous silicon solar cell technologies also outperform crystalline silicon solar modules on an average and total wattage basis over a complete 24-hour cycle and provide superior performance in cloudy and indirect sunlight conditions.
XSNX has strong research and development capabilities
XSNX has a research and development facility in Colorado and a portfolio of proprietary intellectual properties and processes relating to amorphous thin-film silicon design and manufacturing. Since its inception, XSNX has compiled an impressive list of accomplishments, which include internally developing its key technologies, licensing its intellectual properties and successfully completing proof of concept demonstrations. During its development phase, XSNX focused on developing and refining thin-film solar cell technologies that can more efficiently convert sunlight to electricity, are adaptable across a broad range of applications and temperature conditions, and can be manufactured inexpensively in large scale quantities.
The Company is rapidly advancing towards commercial production
XSNX has commissioned a baseline production system which will serve as a blueprint for the 25 MW production system it is also building. The 25 MW system is expected to commence commercial production in late 2008 with the first of its modules available for sales in early 2009. The Company anticipates having a full 100 MW system in place by February 2010. XSNX has already contracted with vendors to build key parts of the production line components and sub-systems and has already announced agreements with installers for more than 100 MW of reserved production capacity.
$21 million financing commitment supports production system plans
The Company recently secured a $21 million financing commitment from a Chicago-based institutional investor, Fusion Capital Fund II, LLC. These funds will be utilized to purchase the major components and parts of the sub-systems, beginning with components having the longest lead times. Having work on the sub-systems underway now will enable the Company to quickly and efficiently bring its new production system on-line next year.
XSNX has a seasoned management team
The Company’s management team has decades of experience in developing and commercializing thin-film solar energy technologies. President/CEO Tom Djokovich has over 30 years experience in the high-tech and building industries. He is a veteran manager of public companies and has successfully attracted millions of dollars of investment capital to his companies. Joseph Grimes, COO, has more than eight years direct experience in thin-film technology and manufacturing. Jeff Huitt, CFO, has 20 years financial management executive experience and has worked for both large organizations and start-ups. Vice-President of Engineering Robert Wendt has over 20 years experience in thin film solar technologies, most recently as VP of Sales and Operations for Global Solar Energy, Inc. a major producer of thin film photovoltaics.
My Big Fat Greek Shipper
By Christopher Barker May 16, 2008
10 Recommendations
Investors dipping into shipping stocks for the first time might feel like an overwhelmed fiancee being dragged before an eccentric family for a crash course in an unfamiliar culture. Fools looking to shippers as an ancillary play on the global commodities boom, may discover quite a learning curve to this sector's due diligence process.
While DryShips (Nasdaq: DRYS) is attracting far more attention from investors, Diana Shipping (NYSE: DSX) offers plenty of attributes to write home about, particularly an 8%-plus annualized dividend. In the latest quarter, Diana brought home the bacon with a 149% increase in net earnings year over year. That $53.2 million result was also a 46% sequential improvement on the fourth quarter.
Rates continue to rise at an impressive clip throughout the shipping industry, and Diana is no exception. The average daily charter rate per ship increased 66% from the year prior, to $45,191. Meanwhile, 95%-97% of revenue due for remaining operating days in 2008 has already been collected, and charter commitments continue to spread further into the future. In fact, one Capesize vessel that's under construction and not expected to launch until 2010 has already been chartered through 2015. This is a very strong indicator of the tightness in global supply of bulk carriers.
Another commodity in tight supply worldwide right now is credit, and recent reports indicate that many shipping companies with vessels on order are cancelling orders because of difficulties with financing. As banks increase rates and required deposits while shortening loan terms, many shippers are feeling the credit crunch very directly. With an estimated 10%-30% reduction of ship orders amid rising demand, charter rates should experience further upward pressure as a result.
For Fools careful to locate shippers with the best balance sheets, loan facilities, or other advantages (like prebooking), this emerging bottleneck in ship supplies can present a bulky investment opportunity. Iron ore companies like Vale (NYSE: RIO) and producers of multiple bulk products like BHP Billiton (NYSE: BHP) will continue to need shippers to bring their products to market, and Diana Shipping is happy to oblige.
The Best of Bulk Worlds
By Toby Shute May 20, 2008
Now that Excel Maritime (NYSE: EXM) has merged with Quintana, the firm offers a blended approach to the dry bulk market. At first I was skeptical of the perceived benefits to Quintana shareholders, since Excel had deliberately sidestepped the spot market and toed the time-charter line. But with today's astronomical shipping rates, I imagine these shareholders have learned how to stop worrying and love the volatility.
It's not as though Excel is taking on a crazy amount of risk. Rates are about 75% fixed in the back half of 2008, and contracted revenue roughly covers fixed expenses through 2010. In addition to a fairly aggressive post-merger debt paydown, Excel ought to throw off enough free cash flow to implement a robust dividend policy.
The pre-merger first-quarter results demonstrate just how lucrative it can be to ride the spot-market wave. Revenue roared 94% higher, and EBITDA margins were a monster 74% (up from 63% in Q1 of 2007). Earnings more than tripled.
Because it's hard to say how long the good times will last, Excel is sensibly fixing various vessels on very attractive long-term charters, such as a recent deal with Arcelor Mittal (NYSE: MT). The time-charter market is so strong now that even DryShips (Nasdaq: DRYS) has recently fixed 14 of its vessels. I would expect Excel to seek further long-term commitments with other "blue chip" customers like BHP Billiton (NYSE: BHP) and Bunge (NYSE: BG).
One interesting item in the conference call was that a new Korean shipyard, contracted to build several Capesize vessels for Excel, is facing some credit issues. Excel reports that this is a growing trend across emerging, "greenfield" shipyards throughout Asia. Excel's deliveries will be delayed by at least a year, or they may never get delivered at all. While this cramps future cash flow, the company hasn't made a down payment, and widespread delays would be very bullish for the dry bulk market, which faces a sizeable newbuild order book over the next few years.
DOCKF.pk $3.50 Q1 2008 - A strong start to a promising year
DOCKWISE Ltd., announces Q1 2008 results.
Hamilton, Bermuda, 20 May 2008,
Financial highlights
- Revenue up 63% to USD 104 million (USD 64 million Q1 2007);
- Adjusted EBITDA** up 53% to USD 51 million (USD 33 million in Q1 2007);
- Adjusted Net Profit*** of USD 14.6 million (USD 4.2 million in Q1 2007)
- Order backlog of Dockwise Heavy Lift (DHL) of USD 264 million;
o up 13% on Q4 2007 (USD 233 million)
o up 75% on Q1 2007 (USD 151 million).
Strategic and operational highlights
- 30 contracts; all successfully executed in Q1 period
- Encouraging growth in Offshore, T&I and Onshore contract opportunities in the long term;
- Improving efficiency and utilization;
o Growth in fleet contributed to improved schedule efficiency
o Consistently high vessel utilization rates
- Fleet expansion plans on track:
o Delivery of tankers Triumph and Trustee to shipyard for conversion;
o Delivery of Mighty Servant 3 to shipyard for refurbishment prior to reinstatement in Dockwise fleet;
- Appointments of Rob Strijland as Chief Operating Officer and Martin Adler as Chief Commercial Officer bringing further strength to management team.
André Goedée, CEO of Dockwise Ltd. commented: "Having the right vessel, in the right place at the right time is the key to success in our industry. With 17 fully operational vessels in Q1, including the recently arrived Yacht Express, Transporter and Target, Dockwise reaped full benefit from good conditions in our target markets. The planned expansion of our fleet during 2008 will allow us to sustain our growth rate and maintain our outstanding scheduling flexibility.
The execution of our strategy is on track and our story remains the same. Dockwise's market leadership is bringing us consistent access to short, medium and long term opportunities across our markets. Our long-standing presence in different market segments, particularly those with short lead times, and the economies of fleet scale we enjoy, have again allowed Dockwise to optimize its vessel utilization. Looking at the financial performance in Q1, and with five vessels due to become operational in 2008, the management continues to be confident of achieving its full year targets."
A teleconference for analysts and investors following the presentation of Q1 2008 results will be conducted on 20 May 2008, at 09:30 CET; 08.30 GMT (UK); The dial in number for the conference is +44 (0) 20 3003 2666. The teleconference will be live audio-webcasted on the Company's website www.dockwise.com.
For further information please contact:
Stefan Malfliet
Tel : +14415991919
Stefan.malfliet@dockwise.com
Fons van Lith
Tel : +14415991818
fons.van.lith@dockwise.com
Q1 results
Key Figures
HTM $2.45 U.S. Geothermal Announces Stock Option Grant
Monday May 19, 3:14 pm ET
BOISE, Idaho, May 19 /PRNewswire-FirstCall/ -- U.S. Geothermal Inc. (Amex: HTM, TSX: GTH), a renewable energy development company focused on the production of electricity from geothermal energy, announced today that it has granted options pursuant to its Stock Option Plan to directors, employees and consultants to acquire 1,505,000 shares in capital of the company. The options are exercisable at a price of US$2.22 per share for a term of 5 years expiring May 19, 2013. The options will vest subject to the Company's Stock Option Plan.
ADVERTISEMENT
The Stock Option Plan was approved by the shareholders of the company at an Annual General Meeting held September 8th, 2005.
About US Geothermal:
U.S. Geothermal is a renewable energy development company that is operating geothermal power projects at Raft River, Idaho and San Emidio Nevada and drilling Neal Hot Springs in eastern Oregon.
HTM $2.54 U.S. Geothermal Announces Stock Option Grant
Monday May 19, 3:14 pm ET
BOISE, Idaho, May 19 /PRNewswire-FirstCall/ -- U.S. Geothermal Inc. (Amex: HTM, TSX: GTH), a renewable energy development company focused on the production of electricity from geothermal energy, announced today that it has granted options pursuant to its Stock Option Plan to directors, employees and consultants to acquire 1,505,000 shares in capital of the company. The options are exercisable at a price of US$2.22 per share for a term of 5 years expiring May 19, 2013. The options will vest subject to the Company's Stock Option Plan.
ADVERTISEMENT
The Stock Option Plan was approved by the shareholders of the company at an Annual General Meeting held September 8th, 2005.
About US Geothermal:
U.S. Geothermal is a renewable energy development company that is operating geothermal power projects at Raft River, Idaho and San Emidio Nevada and drilling Neal Hot Springs in eastern Oregon.
GDOCF.PK $7.95. Look at the pinksheet volume on Friday: 293.676! Normally 50.000.
DRYS 1Q earnings release today aftermarket. Estimated EPS $4.05!
GM Stock Lobster. Offshore drilling is certainly a sector to watch, especially the companies with ultra deep drilling ships and rigs: RIG, DO, and NE and the Norwegians Seadrill (SDRLF.pk), Awilco (AWO in Oslo) and Ocean Rig (OCR in Oslo, bought by DRYS recently).
Another sector to research is the deepsea service and equipment companies. When you think that the Norwegian gas field Ormen Lange (opened last November) is operated by ROVs (Remote Operated Vehichles) on the seabed - no platforms above sealevel - there must be something in that kind of operating coming up. Drilling was made by rigs, but now no operating platform rigs needed.
We know that most of the explorative drilling is made offshore and most of the achieveable oil reserves are predicted to be found under sea areas, so the deepsea industry is a growing industry - very much welcomed by the innovative minds of the mankind.
ANW $42.71 Aegean Marine Petroleum: Stock Price Outrunning Earnings Growth
by: Tim Plaehn posted on: May 18, 2008
Aegean Marine Petroleum Network (ANW) has released earnings for the 1st quarter of 2008. My impression is the company is expanding its operations rapidly, but earnings growth is not yet following the increasing sales. The report shows sales increased 46% from Q1, 2007. Earnings per share came in at 18¢ per share, 2¢ more than the 1st quarter of 2007 and the same as Q4, 2007.
The business of Aegean Marine is to provide ship fueling services at its own service centers worldwide. The company currently has 8 centers, working towards 10 at the end of 2010. Ship fuel is delivered by bunkering tankers, of which ANW currently has 22 with orders in to bring its fleet to the 40 range. The bunkering market is very fragmented worldwide with many single hull bunkering tankers that will have to be removed from service in the next few years. Aegean’s plan to build a global network of double hulled bunkering tankers should allow the company to be the dominant player in ship fueling.
I like the company’s growth, but do not currently like the stock valuation ($40+). As noted above, earnings are not yet keeping pace with revenue growth. The stock trades at better than 60 times 2007 earnings and 32 times “projected” 2008 earnings. However, per share earnings have been basically flat for 6 straight quarters, so the stock price is anticipating some serious earnings growth. I think the stock will be more attractive if one of three things happens:
1. The stock price falls: below $30 would be good, $25 much better. The company will continue to grow, we just need the market to get tired of waiting.
2. Earnings actually do start to increase and accelerate without a significant increase in stock price.
3. The company finishes most of its fleet build out and starts paying out free cash flow as a significant dividend. This would be probably in 2010 or 2011.
I will continue monitoring ANW in my Special Situations Portfolio. This is a company with tremendous prospects.
GTEC.ob 0.32 reports good results:
Genesis Pharmaceuticals Reports Results for the Third Quarter of Fiscal Year 2008
Thursday May 15, 5:57 pm ET
LAIYANG, China, May 15 /Xinhua-PRNewswire-FirstCall/ -- Genesis Pharmaceuticals Enterprises, Inc. (OTC Bulletin Board: GTEC - News; "Genesis" or the "Company"), a U.S. pharmaceutical company with its principal operations in the People's Republic of China, today announced its financial results for the quarter ended March 31, 2008, the Company's third quarter of its fiscal year ended June 30, 2008. A 10QSB Form was filed for the quarter with the U.S. Securities Exchange Commission that is available through the Company's website and from the SEC.
Third Quarter 2008 Highlights:
-- Revenue totaled $28.1 million, up 48.5% year-over-year
-- Gross profit totaled $21.8 million, up 60.7% year-over-year
-- Gross margin was 77.4%, compared to 71.5% a year ago
-- Net income rose to $4.5 million, up 138.46% from the quarter ended
March 31, 2007, $0.01 per basic and diluted share
-- Engaged Moore Stephens Wurth Frazer & Torbet, LLP as independent
auditor
"We are pleased to report financial results that confirm the growing popularity of our products. Our best selling products continue to be Clarithromycin sustained-release tablets and Itopride Hydrochloride granules. Sales for Baobaole chewable tablets, our first Chinese herbal over the counter drug product, have grown rapidly since we introduced it at the end of 2007," said Mr. Cao Wubo, Chairman and CEO of Genesis Pharmaceuticals Enterprises, Inc. "We have several new drugs that are still in various stages of approval from China's State Food and Drug Administration, and we believe that we will be able to introduce four new drugs in the near future."
Maersk's CEO told yesterday on TV that they have no intentions to split the share. He said that the shareholders do not want to split the share and suffer from increased volatility!
GDOCF.pk 1Q presentation:
http://hugin.info/135378/R/1220045/256303.pdf
NOTE Supply of new ships: In all 120 bulkers should have been delivered in 1Q/2008 - only 65 were delivered!
GOGL - Q1 2008 Presentation
Please find enclosed the presentation of the Preliminary
First Quarter 2008 Results, held in the morning on Friday May 16,
2008.
Oslo, May 16, 2008
http://hugin.info/135378/R/1220045/256303.pdf
NOTE: 120 bulkers should have been delivered in 1Q/2008 - only 65 were delivered! Mr.Billung, the CEO, said that the orderbooks announced by the shipyards, especially by the new ones (of which many are not even constructed!) cannot be trusted.
Tanker and bulker rates ALL heading up!
GDOCF.pk $7.65 GOGL - Interim Results for the Quarter ended March 31, 2008
Golden Ocean Group Limited (the "Company" or "Golden Ocean") reports net income of $53.7 million and earnings per share of $0.19 for the first quarter of 2008. This compares with net income and earnings per share of $25.2 million and $0.09 respectively for the first quarter of 2007. Total operating revenues for the first quarter were $223.3 million, total operating expenses were $161.8 million and net other expenses were $7.9 million.
Cash and cash equivalents decreased by $139.7 million during the quarter. The Company generated cash from operating activities of $54.1 million and used for investing and financing activities $111.9 million and $81.9 million respectively. This includes part payments on newbuilding instalments of $114.4 million. During the first quarter the Company repaid $34.5 million in debt and borrowed an additional $57.3 million. In addition the Company purchased its own shares in the amount of $15.9 million.
On May 15, 2008 the Board has declared a dividend of $0.55 per share. The record date for the dividend is May 30, 2008, ex dividend date is May 28, 2008 and the dividend will be paid on or about June 5, 2008.
At March 31, 2008 the total number of shares outstanding in Golden Ocean was 276,540,107 of $0.10 par value each.
The full report is available in the enclosed attachment.
May 16, 2008
The Board of Directors
Golden Ocean Group Limited
Hamilton, Bermuda
Questions should be directed to:
Herman Billung: CEO Golden Ocean Management AS
+47 22 01 73 40
Geir Karlsen: CFO Golden Ocean Management AS
+47 22 01 73 53
Published: 08:20 16.05.2008 GMT+2 /HUGIN /Source: Golden Ocean Group /OSE: GOGL /ISIN: BMG4032A1045
Good Morning Stuffit. GDOCF $7.65 Excellent 1Q results. Dividends $0.55!! Mr. Billung said in the CC that "growth of demand will be bigger in 2009, 2010 and 2011 than in 2008"
GOGL - Interim Results for the Quarter ended March 31, 2008
Golden Ocean Group Limited (the "Company" or "Golden Ocean") reports net income of $53.7 million and earnings per share of $0.19 for the first quarter of 2008. This compares with net income and earnings per share of $25.2 million and $0.09 respectively for the first quarter of 2007. Total operating revenues for the first quarter were $223.3 million, total operating expenses were $161.8 million and net other expenses were $7.9 million.
Cash and cash equivalents decreased by $139.7 million during the quarter. The Company generated cash from operating activities of $54.1 million and used for investing and financing activities $111.9 million and $81.9 million respectively. This includes part payments on newbuilding instalments of $114.4 million. During the first quarter the Company repaid $34.5 million in debt and borrowed an additional $57.3 million. In addition the Company purchased its own shares in the amount of $15.9 million.
On May 15, 2008 the Board has declared a dividend of $0.55 per share. The record date for the dividend is May 30, 2008, ex dividend date is May 28, 2008 and the dividend will be paid on or about June 5, 2008.
At March 31, 2008 the total number of shares outstanding in Golden Ocean was 276,540,107 of $0.10 par value each.
The full report is available in the enclosed attachment.
May 16, 2008
The Board of Directors
Golden Ocean Group Limited
Hamilton, Bermuda
Questions should be directed to:
Herman Billung: CEO Golden Ocean Management AS
+47 22 01 73 40
Geir Karlsen: CFO Golden Ocean Management AS
+47 22 01 73 53
Q1 2008 Results
Published: 08:20 16.05.2008 GMT+2 /HUGIN /Source: Golden Ocean Group /OSE: GOGL /ISIN: BMG4032A1045
Yes. The gas plant in Hammerfest (Shnøhvit gas field in Barents Sea) is closed now because of some leaks (?). There will be more plants shut down for maintenance. I have not noticed that Golar had informed about any effects of the gas plants to the company.
VLCCF $31.09 VLCCF - Knightsbridge Tankers Limited First Quarter 2008 Results
Thursday May 15, 6:38 am ET
HAMILTON, BERMUDA--(MARKET WIRE)--May 15, 2008 --
Highlights
* Knightsbridge reports net income of $14.8 million and earnings per
share of $0.87 for the first quarter of 2008,
* Knightsbridge announces a cash dividend of $0.75 per share for the
first quarter of 2008
ADVERTISEMENT
FIRST QUARTER 2008 RESULTS
Knightsbridge Tankers Limited (the "Company") reports net income of $14.8 million and earnings per share of $0.87 for the first quarter of 2008. This compares with net income of $9.7 million and earnings per share of $0.57 for the first quarter of 2007. The average daily time charter equivalent ("TCEs") earned by the Company's VLCCs was $55,300 compared with $46,800 in the preceding quarter. The increase represents the continuation of the strong market, which started in the prior quarter. Net operating income was $15.2 million (2007 comparable quarter: $11.1 million) and net interest expense for the quarter was $0.3 million (2007 comparable quarter: $1.4 million). At March 31, 2008 all of the Company's debt is floating rate debt.
The net increase in cash and cash equivalents in the quarter was $5.8 million. The Company generated cash from operating activities of $21.3 million, used $2.2 million to repay loan facilities, invested $0.5 million in its newbuilding project and distributed $12.8 million in dividend payments. In May 2008, the Company has an average cash breakeven rate for its vessels of $19,100 per vessel compared to $18,439 in May 2007.
On May 14, 2008 the Board declared a dividend of $0.75 per share. The record date for the dividend is May 27, 2008, ex dividend date is May 22, 2008 and the dividend will be paid on or about June 9, 2008.
The full report is available in the link enclosed and on the Company's website: http://www.knightsbridgetankers.com/
May 14, 2008
The Board of Directors
Knightsbridge Tankers Limited
Hamilton, Bermuda
GDOCF $7.58 now in Oslo. Remember: GDOCF is a dry bulk carrier, like DRYS and Diana, not a (crude) tanker.
GDOCF will release the 1Q results tomorrow.
Good Morning SL. Latest in German TUI (Tourist Union International) / Fredriksen battle:
- TUI has accepted the selling to a shareholder/spin-off or a merge of the containership subsidiary Hapag Lloyd. But Fredriksen said TUI should first focus on developing Hapag-Lloyd's business and then spin-off or merge with another shipping line.
- The chairman of the board of TUI Mr. Krumnow is seeking for a "soft landing" exit from his chair - as Fredriksen has hoped. No official information of his resignation has yet been made
Hapag Lloyd was a great company in the beginning of the container ship era, but it has deteorated considerably under the present management, which was more interested in tourismus than shipping. John Fredriksen (of course he snapped the situation) bought cheap shares, and is now the biggest shareholder. JF says he is not out for buying Hapag Lloyd, but he has no containerships in his empire, so... who knows.
At the latest shareholder meeting JF did not get the majority of the votes to remove Chairman Krumnow, but he got a seat at the Board - and that's the clou.
I posted Tor-Olav Trøim's speech at that TUI shareholder meeting on Tanker board (link below). It gives a clear picture, what's up in the battle.
"We'll be back" said Trøim after the meeting. They sure will.
http://investorshub.advfn.com/boards/read_msg.asp?message_id=29306585
TUI(Tourist Union International)/Hapag Lloyd - Fredriksen battle: Tor-Olav Trøim's speech at the TUI Annual Shareholder Meeting on May 7, 2008. Explains well the situation.
Trøim is "the right hand" of Fredriksen. JF could not participate the meeting due to an operation (he's all right now).
Redetext von Tor Olav Trøim - Vertreter von John Fredriksen auf der Hauptversammlung der TUI AG am 7.5.2008
Limassol, Zypern (ots) - Sehr geehrter Herr Vorsitzender, liebe Mitaktionäre, ich freue mich, hier heute zu Ihnen sprechen und mich Ihnen persönlich vorstellen zu dürfen. Mein Name ist Tor Olav Trøim und ich arbeite seit vielen Jahren eng mit John Fredriksen zusammen. Ich spreche hier für den mit einem Anteil von rund 11,7 Prozent größten Aktionär der TUI, Monteray Enterprises Ltd. sowie John Fredriksen. Außerdem kandidiere ich für einen Sitz im Aufsichtsrat. I hope you will excuse that my German is not good enough to do this entire speech in the language. I will therefore continue in English. Mrs. [Heeßel or Seidel] will be so kind to translate my comments. I unfortunately have to excuse Mr. Fredriksen, who was planning to be here today but at short notice had to undergo a medical procedure. Mr. Fredriksen regrets not being here today as he would have liked to introduce himself to you in person. We expect that this will not be the last shareholders' meeting. I am sure you will have a chance to meet him in person soon. I promise that he will be here next time.
Today is an important day for TUI's future. It is not about personalities and egos, it is about the future of what was one of Germany's most important companies. The company which during the last 14 years has suffered from weak management and a lack of clear leadership. It is a company that during the last 14 years has given shareholders a return of less than 4% per annum and thereby the worst performance in the Dax Index. I represent Monteray Enterprises, a company owned by John Fredriksen. Monteray have invested close to $1 billion in this company and are today TUI's largest shareholder. We are presently not represented on the Company's supervisory board. With our investment we have shown our belief in this company, much more so than TUI's management who, according to the last Annual Report, all together own 2,750 shares, less than an EUR50,000 investment. Last year they were however awarded EUR10 milllion in performance related remuneration, an amount more than 2 X their fixed salary. That was the year the Annual Report described as a successful year. Successful? The return on book equity was less than 4% significantly under bank deposit rate. Is that what the managment calls a success? We are not troublemakers. We are not a hedge fund. We are not a private equity company. (PAUSE). We are fellow shareholders. Shareholders who want to build the company and create long-term value for shareholders and secure jobs for the people at TUI.
We started this venture with friendly intentions. We had several meetings with management and thought the intention was to focus and grow the container business and ultimately sell out of tourism. Two months into our meetings the strategy had changed again. It was now 2 pillars; tourism and containers. A further 2 months later, after Frenzel met Mr Mordashov, TUI was defined as a 1 pillar tourism company. Such a lack of strategic direction about what kind of business the shareholders invest in forced us to be more active. We began investing in TUI shares in 2007 because we saw and continue to see Hapag-Lloyd as the key value driver of TUI Group. Hapag-Lloyd is a business with an excellent management, with an important strategic position in the European container shipping market, outstanding development potential and a very good brand name.
Why have we taken our recent initiatives and why am I here today? Consider this: had you invested the equivalent of EUR1.000 in TUI shares when Dr. Frenzel became CEO in 1994 your share price and dividend return would have left you with a value of EUR970 until on 22 January of this year, when we decided to take initiative. Had you done the same with the DAX, you would have had approx. EUR2.900 on 22 January. Had you invested in shares of John Fredriksen's Frontline, the oil tanker company, in 1997 when it was introduced to the Oslo stock exchange, you would now have more than EUR23,000. In the year we have invested in TUI our investment has gone down by approximately 10%. That is in the year the Annual Report called successful. If you had invested the same amount of money into our two main public companies, Seadrill and Frontline, the $1 billion investment would today have grown to approximately 50% including dividends. Looking at the performance since Dr. Krumnow became chairman of the supervisory board on 11 November 2004, EUR1,000 invested in TUI would have decreased to approx. EUR960 by the time we took our initiative whereas such investment in the DAX would have increased to ca. EUR1,650. There is a consistent track record of underperformance. You will have noted that this is not only our personal observation but is well documented by other independent observers: equity analysts, academics, financial journalists, etc.
Between the summer of 2007, when we started to invest, and 22 January 2008, the TUI share price actually dropped by ca. 30%, underperforming the DAX significantly. At this point, and after learning that TUI management was planning to merge Hapag-Lloyd into TUI, we felt we had to take the initiative. We made known to the company our opposition to the planned merger and subsequently, in March, we requested that TUI explore the separation of Hapag-Lloyd via a spin-off, as has been done successfully in a number of other prominent German companies, and which conceptually we consider to be the best way of separating shipping from tourism. We were therefore pleased to note that TUI in April finally announced that it will abandon its obsolete "two-pillar-strategy" and effect the value-maximizing separation of Hapag-Lloyd. However, we strongly fear, that this apparently positive development of TUI management's business strategy will prove no more than a temporary pause in the long and well documented track record of underperformance under the current management.
What truly concerns us the most, and this brings me back to why we are here today trying to bring positive change to the supervisory board, is that this track record was allowed to continue over many years apparently largely unchecked and unopposed by the supervisory board. This obvious failure of TUI's current corporate governance regime is in our view directly related to two unique features of TUI's corporate governance:
Firstly, a number of supervisory board members appear to be "hand-picked" by the management based on their support for Dr. Frenzel. Let me remind you of events last week, when Dr. Vranitzky resigned from the supervisory board and was replaced with Mr. Yakushev, a representative of S-Group, the second largest shareholder of TUI. We do welcome Mr. Yakushev as a commercially minded shareholder representative. However, this appointment of a representative of a shareholder who previously has publicly declared his support for management, was made upon the initiative of TUI's management by court order. We have reason to believe that the S-Group, made a commitment against our motion for change in return for a board seat and a commercial deal around tourism. All this happened less than a week before we all as shareholders could have voted on such matter, given that we had placed Dr. Vranitzky's replacement onto the agenda. Thus far we were of the understanding that it's the shareholders' privilege to appoint the shareholders' representatives on the supervisory board. We, and a number of you have told us that you agree with our view, consider this a violation of shareholder democracy.
One of TUI's major shareholders said in the Financial Times yesterday that the appointment of Mr Yakushev after finalisation of the annual meeting agenda is "like spitting in the owners' faces." Another case of hand-picking the supervisory board, I am sure you will agree. You get no control in a company if the people who are meant to be controlled pick their own controllers. We have noted that management, after the Vranitzky/Yakushev swap, has tried to declare votes which were cast ahead of this happening as invalid. It just shows how tricky this process has become. The management have through their own action put votes cast at risk of being invalid even without the shareholders themselves knowing about it. At the same time management appears to have spent a lot of time trying to gather support against our proposed motion to modify the supervisory board. They have spent time and money soliciting shareholder support but they have not spent sufficient time on dealing with Hapag-Lloyd.
Secondly, there appear to be conflicts of interest among several of the current TUI supervisory board members entertaining apparently profitable business relationships with the company's travel division. In order to look into the affiliated party business of among others 3 of the people sitting on the board we have read with great interest the Annual Report pages 227-228. There is no material information given in that chapter about what kind of business dealings the Riu family or any of the related party board members have with the company. When the votes from this shareholder meeting will be announced this afternoon, remember the following fact. 76.6 million shares or approximately 30,5 % of the shares are owned by groups who have direct business relationships with the company.
S-Group: 25.2 million shares, 10.03% * Vladimir Yakushev on the board) * Travel JV for the Russian market RIU Group: 12.8 million shares, 5.08% * Carmen Riu Güell on the board * JV partner for TUI hotels business Teck Capital Mgmt (Morocco): 12.6 million shares, 5.0% * Common travel interests in Morocco Caja de Ahorros del Mediterrâneo: 12.6 million shares, 5.0% * Roberto López Abad on the board * Caja reportedly holds a stake in leading Spanish hotel group Sol Melia Hamed El Chiaty: 7.6 million shares, 3.0% * Owner of TravCo * leading figure in Egyptian travel sector * TUI allegedly has exclusive contract with TravCo for operating arriving guests in Egypt through Travco, also filling bed capacities in Iberotels (owned by El Chiaty, TUI holds minority share) Fiesta Hotels and Resorts: 6.0 million shares, 2.4% * Dr. h.c. Abel Matutes Juan on the board * Hotels operator in Spain
These people have more effective ways to make money than owning shares in TUI. These people are effectively paid off by the management with separate deals to support the existing management. The independent shareholders paying the price for this. Monteray want to investigate these deals, we are not at all happy with the disclosure in the annual report and will most likely ask for these relationship to investigate on a separate basis.
However remember the number x million shares ...Deduct that from the votes the other side will get tonight and you will find out what kind of support the existing regime have from people who have invested in this company on a normal basis. We don't think this is fair. This is almost like a bought election. Bought with the Companys money.
Dear Fellow Shareholders, for a value oriented shareholder and investor, this status of corporate governance is simply unacceptable. We are dedicated and determined to bring to the supervisory board of TUI and the company's corporate governance as a whole a culture of performance, effectiveness and independence.
As a consequence, we have requested an amendment of the agenda for today's general meeting proposing the removal of supervisory board chairman Dr. Krumnow as well as board member Dr. Vranitzky and to elect Mr. John Fredriksen and myself as representatives of TUI's largest shareholder to the company's supervisory board. In our view, in order to bring positive change to TUI's corporate governance one should start from the top and replace the chairman of the supervisory board who has been in charge of supervising the management over the last years and who has apparently tolerated continued underperformance.
We are not against Mr Krumnow as a person. I have never met him and he might be a nice person. However, he is ultimately responsible for the lack of performance in this company. Therefore he has to go. Instead, we would wish for the supervisory board to elect as its chairman a senior German business leader of unquestionable standing who brings substantial experience in leading companies at the executive and supervisory board level.
People have asked us why we have elected to vote against Mr Krumnow and not asked to remove Dr Frenzel. The reason for that is simple. The shareholders elect the Supervisory Board. The Supervisory Board controls, evaluates and hires the Chief Executive. It is not good corporate governance for us as a major shareholder to get involved in the day to day management. However, we have had the right to influence and set in place the people who have this role.
What do we stand for? In many years in business, John Fredriksen and myself have been involved in the formation and development of more than a dozen highly successful publicly quoted companies, all of which have grown into leading players in their respective markets and have created significant value for all their shareholders. Unlike some observers have said about TUI management, we are not into destroying the value or stripping or shrinking a company. We have during the last 13 years built a company which today employs more than 20,000 people and we have given billions of euros back to shareholders in share price development and dividends. We have done it with the support of some of the best financial institutions in the world, like Fidelity, Wellington, Templeton and the Capital Group. Our well documented actions towards changes in TUI's business strategy since 22nd January 2008 have made a strong contribution to an almost 40% improvement in TUI's stock price over the past three months. You may take this as evidence of our strong commitment to the creation of value for all TUI shareholders.
In addition, we have longstanding experience and expertise in the shipping industry, which we believe has currently no match within the supervisory board of TUI and which would be a significant benefit in the process of separating Hapag-Lloyd.
Finally, unlike other representatives in the current supervisory board, both Mr. Fredriksen and I are free of conflicts of interest. Neither of us holds significant investments in other container shipping companies, nor have we separate business dealings with TUI or intend to acquire Hapag Lloyd from TUI. We are confident that our proposal is convincing and in the best interest of TUI. We have received a very positive response to our proposals in the last weeks from many investors. You may have noted that ISS/RiskMetrics, the leading proxy advisory firm, has published a detailed analysis, recommending its clients, which include the world's largest institutional investors, to support our proposals.
Dear Fellow Shareholders, We are not here to make noise. We are here to build long-term value and have during the last couple of days done our utmost to try and find a solution which could be to the benefit of all parties. In this spirit, and in the interest of the company, we are proposing an amicable solution which in our view should be acceptable to all parties involved. We from our side would limit our request for representation in TUI's supervisory board in this shareholders' meeting to one membership rather than the two memberships we had initially requested.
We would thus not take any action to revoke the recently appointed supervisory board member Mr. Yakushev, since we believe that S-Group as second largest shareholder of TUI should also be represented in the supervisory board. In this context, we have taken note that both the management and the supervisory board of TUI have stated that they would welcome representation of Mr. Fredriksen in the supervisory board. We do, however, continue to insist on the most important element of our request which is the revocation of the chairman of the supervisory board. The chairman, as a result of his function, in our view, must take responsibility for the development of the company. I therefore strongly apply to you as shareholders of TUI to support our request to revoke Dr. Krumnow's appointment and to appoint me as a member of the supervisory board. On this basis and with a view to achieving an amicable outcome, we request that concerning agenda item 11 "Revocation of the appointment of the supervisory board members elected by the general meeting Dr. Jürgen Krumnow and Dr. Franz Vranitzky.", the general meeting resolves as follows: "The appointment to the supervisory board of TUI AG of Dr. Jürgen Krumnow is revoked with effect as of the closure of this general meeting."
We further request that concerning agenda item 12 "Election of new supervisory board members for the remaining term of the revoked members of the supervisory board.", the general meeting resolves as follows: "Mr Tor Olav Trøim, manager, London, United Kingdom, is elected new member to the supervisory board for the remaining term of the revoked member of the supervisory board with effect as of the closure of this general meeting." For further information in accordance with the German Stock Corporation Act regarding my memberships in boards of a comparable nature, I may refer you to the written information handed out to the chairman of this general meeting and also made available as hard copy [at the document desk over there].
To sum up, we have given out a sheet which simplifies our messages. The sheet describes TUI's current credentials in 5 points.
1. Lack of a clear and consistent strategy
2. Wrong management focus: Self preservation rather than value creation.
3. Weak, ineffective corporate governance
4. Limited shipping expertise in the board at time of critical need.
5. Unsatisfactory financial results and share price performance.
Monteray is today the Company's largest shareholder and that is a strong enough argument to appoint us to the Board. However, I will run through the 5 main arguments for putting us on the Board.
1. Have built and are major shareholders in 10 public companies (NYSE, NASDAQ and OSE) all with clear focus and strategy
2. Have during the last 13 years built companies which today employ more than 20,000 people
3. Substantial shipping experience including container shipping
4. No conflicts of interest
5. Track record of financial performance and value creation for the benefit of all shareholders
- Frontline: From US $100 million to US $4 billion in 11 years + additional US$ 8 billion in dividend
- Seadrill: From US $200 million to US $ 11 billion in three years.
The choice is simple. You either support existing management in their fight against the Company's largest shareholder or you vote for a change. A change much needed in this company. Es ist Zeit für Veränderung!
BrightSource gets $115 million in new funding
Google, BP, StatoilHydro invest in solar thermal firm
By Steve Gelsi, MarketWatch
Last update: 12:00 a.m. EDT May 14, 2008
NEW YORK (MarketWatch) -- BrightSource Energy, Inc., a specialist in harnessing the heat from the sun to create steam for electric power generation, on Wednesday said it closed a $115 million round of financing from a diverse group of blue-chip backers.
VantagePoint Venture Partners, the company's initial investor, played a major role in forming the syndicate, which includes companies ranging from BP PLC (BP)to Google (GOOG) to StatoilHydro (STO) and BlackRiver, a unit of privately held Cargill.
Existing investors that participated in the latest round included DBL Investors, Draper Fisher Jurvetson, and Chevron Technology Ventures (CVX)
Oakland, Calif.-based BrightSource said the round marks its third major injection of capital for a total of $160 million in funding.
"These additional funds will enable the company to accelerate its plans to deliver utility-grade solar power at a time when many utilities are searching for reliable sources of renewable energy," BrightSource said in a written statement.
"Operating more efficiently than older solar thermal methods, and costing much less to build, our technology will change the way utilities generate electricity," said Arnold Goldman, the company's founder.
In March, BrightSource announced power-purchase agreements with PG&E (PCG) for up to 900 megawatts of electricity. It's now developing solar power plants in the Mojave Desert of Southern California, with construction of the first plant planned to start in 2009.
The move comes amid growing interest in solar from both institutional and retail investors.
In the last few weeks alone, Van Eck Global launched the Solar Energy exchange traded fund (KWT) along with a rival ETF called the Claymore /MAC Global Solar Energy Index (TAN) and a smaller mutual fund, the Firsthand Alternative Energy Fund (ALTEX).
Well, this was not geothermal news.. but still interesting news about alternative energies:
BrightSource gets $115 million in new funding
Google, BP, StatoilHydro invest in solar thermal firm
By Steve Gelsi, MarketWatch
Last update: 12:00 a.m. EDT May 14, 2008
NEW YORK (MarketWatch) -- BrightSource Energy, Inc., a specialist in harnessing the heat from the sun to create steam for electric power generation, on Wednesday said it closed a $115 million round of financing from a diverse group of blue-chip backers.
VantagePoint Venture Partners, the company's initial investor, played a major role in forming the syndicate, which includes companies ranging from BP PLC (BP)to Google (GOOG) to StatoilHydro (STO) and BlackRiver, a unit of privately held Cargill.
Existing investors that participated in the latest round included DBL Investors, Draper Fisher Jurvetson, and Chevron Technology Ventures (CVX)
Oakland, Calif.-based BrightSource said the round marks its third major injection of capital for a total of $160 million in funding.
"These additional funds will enable the company to accelerate its plans to deliver utility-grade solar power at a time when many utilities are searching for reliable sources of renewable energy," BrightSource said in a written statement.
"Operating more efficiently than older solar thermal methods, and costing much less to build, our technology will change the way utilities generate electricity," said Arnold Goldman, the company's founder.
In March, BrightSource announced power-purchase agreements with PG&E (PCG) for up to 900 megawatts of electricity. It's now developing solar power plants in the Mojave Desert of Southern California, with construction of the first plant planned to start in 2009.
The move comes amid growing interest in solar from both institutional and retail investors.
In the last few weeks alone, Van Eck Global launched the Solar Energy exchange traded fund (KWT) along with a rival ETF called the Claymore /MAC Global Solar Energy Index (TAN) and a smaller mutual fund, the Firsthand Alternative Energy Fund (ALTEX).
Those interested in- take a look at the videos about exploring and preparing StatoilHydro's Ormen Lange ("Long (Viking) Boat") gasfield in the Norwegian Sea. Informing and interesting material about deepsea operating:
http://www4.hydro.com/ormenlange/en/
GM Lotto Board. Those interested in- take a look at the videos about exploring and preparing StatoilHydro's Ormen Lange ("Long (Viking) Boat") gasfield in the Norwegian Sea. Informing and interesting material about deepsea operating:
http://www4.hydro.com/ormenlange/en/
IMO Chief defends shipping's environmental record
Friday, 09 May 2008
The Secretary-General of the International Maritime Organization (IMO) says the shipping industry is improving its record on environmental protection. "It is caring, sensitive to criticism and prompt and keen to improve its performance so that it may become even better," said Efthimios Mitropoulos at an event at the IMO's London headquarters this week. "Shipping today is an industry with good, and improving, credentials on safety, security and environmental protection. It is characterized by a high sense of corporate responsibility."
Mitropoulos mentioned in particular shipping's eagerness to contribute to sustainable development.
His remarks were made during a presentation on a new generation of cruise ships being developed by Royal Caribbean International.
Mitropoulos has frequently defended the shipping industry from charges that it has been slow to respond to concerns about its environmental impact.
He said in March this year that shipping should not be a "scapegoat" for damage to the world environment, saying the industry had a "fine record".
Mitropoulos said attacks that presented shipping as "disproportionately responsible for air pollution" were "disappointing and disconcerting."
Those remarks came ahead of the IMO meeting that agreed new targets for limiting air pollution from ships, in part by reducing the sulphur content of marine fuel.
Source: Sustainable Shipping
Hunger for Steel Causes Scrap Iron Price to Soar
Friday, 09 May 2008
The price of scrap iron has been soaring, turning the once humble material into a treasured and protected commodity. The international price of scrap iron rose by 36 percent last year, and in just the first four months of this year it has leaped by 73 percent. Over the past three years the price has increased 2.5 times. The skyrocketing price is the result of surging demand for less costly metal in the wake of price hikes for iron ore. Another reason is the growing use of scrap by steelmakers in Europe and Japan looking to reduce greenhouse gas emissions, as scrap emits much less carbon dioxide than iron ore when making steel.
With prices rising, "resource nationalism" is kicking in, with Russia and Taiwan imposing controls on scrap exports. Meanwhile countries around the world have been plagued by metal thieves who steal any kind of iron they can get away with, from manhole covers to gates, guardrails and even bridges.
Scrap welcomed as eco-friendly material
Last Friday the local price of imported Japanese scrap iron was US$690 per ton, up $80 (11.3 percent) from $610 in early April, and more than 72.5 percent higher than $400 in early January. The price of domestic scrap iron also leaped from the W300,000 (US$1=W1,026) per ton range in early January to W600,000 in early May.
Just as escalating demand for iron and steel in China and India has pushed up the price of iron ore, it has also pushed up the international price of scrap iron. Scrap is now viewed as a valuable resource, as steelmakers in advanced countries concerned with regulating carbon dioxide emissions are using more of it.
Scrap iron is melted down in electric furnaces and used as a raw material in steel H-beams and reinforcing bars for construction projects. Because scrap has many impurities, the quality of the resulting steel is lower than that of steel made from iron ore. But because it emits less than one-tenth the carbon dioxide in the steelmaking process, scrap is considered more environmentally-friendly.
Since early this year, Nippon Steel and JFE Steel Corp., two Japanese steelmakers that use blast furnaces, have increased their use of scrap in the melting process from 9-10 percent to 13-14 percent. By mixing molten iron ore with scrap, they have reduced their overall carbon dioxide output.
In a recent lecture to executives and employees, POSCO chairman Lee Ku-taek said, "Advanced steelmakers in Europe and Japan are using more scrap iron when melting iron ore to reduce their carbon dioxide emissions. POSCO should take similar steps."
Surging scrap metal theft around the world
The price of scrap iron has risen partly because Russia, one of the largest scrap exporters, has greatly reduced its exports. In the 1990s, Russia contributed to pushing down the international price of scrap by selling old and outdated Soviet-era tanks and heavy industrial machinery. But since early this year it has curtailed its scrap exports in response to a sudden surge in domestic demand for iron and steel.
In February, Taiwan, another major exporter of iron and steel, introduced a system that compels exporters to obtain government permission before exporting scrap. Taiwan was also responding to hikes in the price of scrap caused by its own increasing demand for iron and steel. "With prices skyrocketing, 'resource nationalism' is raising its head to protect scrap iron as a raw material," a POSCO official said.
Countries around the world have been plagued by scrap iron theft. Since early January, thieves in Korea have stolen manhole covers, LPG canisters, wrought iron tree guards, steel gates, and farm machinery parts. Britain imposed controls on scrap iron dealers after guardrails and even street lamps began disappearing. And in Khabarovsk, a city in the Russian Far East, traffic was thrown into chaos last December after night-time thieves made off with an 11.5-m-long steel bridge.
Source: Chosun
GM Stuffit. WA sees rising iron ore prices till 2011
Friday, 09 May 2008
The Western Australian government expects the iron ore price bonanza to end in 2011/12 as prices for the valuable commodity begin to decline. In the state budget handed down on Thursday the WA government said a declining share of GST revenue and softer iron ore prices from early next decade will lead to a fall in its budget surplus. State Treasure Eric Ripper said the government expected the benchmark iron ore price to increase by 67 per cent in 2008/09 to $134 per tonne.
The price is expected to fall in 2011/12 to $101 per tonne, when global iron ore supply is expected to exceed demand.
In 2003/04, the iron ore price was $30 per tonne.
"The eyes of the world are fixed on Western Australia's surging resources industry," Mr Ripper said in his budget speech.
"Export volumes are forecast to grow by 10.75 per cent in 2008/09, underpinned by the resources sector.
"Current iron ore production in the Pilbara is 285 million tonnes.
"Together, iron ore companies aspire to export 1.1 billion tonnes by 2015.
"That is, output in the Pilbara could more than treble in volume in seven years."
Revenue from the state's lucrative mining sector is expected to account for 17 per cent or $3.423 billion of total general government of revenue in 2008/09, compared to 15 per cent in 2007/08.
The WA government has forecast an operating budget surplus of $1.855 billion for 2008/09, down from an expected surplus of $2.093 billion in 2007/08.
Mr Ripper said the surplus was forecast to decline by the end of the 2011/12 financial year to $203 million, when iron ore prices were expected to come off their record price base.
Surpluses of $1.67 billion are expected in 2009/10 and $1.073 billion in 2010/11.
Mr Ripper said the declining surplus drop would be due to the state's falling share of GST revenue.
In 2008/09, improving ports was also a key government priority.
Some $377 million will be spent on deepening the Fremantle inner harbour and on the multi-use Panamax berth at Utah Point in Port Hedland, and upgrading key rail freight facilities.
Mr Ripper said investing in crucial infrastructure would ensure WA's continued economic growth and prosperity, which had been underpinned by its huge iron ore sector in recent years.
He said the state's ports were predicted to handle an average increase of over 60 per cent in tonnage over the next five years, with tonnage in Port Hedland expected to increase by 133 per cent.
Investing in Port Hedland infrastructure would provide better access to export markets for smaller mining operations and new entrants to the iron ore industry, he said.
Source: Sydney Morning Herald
Europe and US unite on stronger dollar
Friday, 09 May 2008
The US and Europe now have a united desire to see the dollar strengthen against the euro, senior officials have told the Financial Times. Policymakers welcome the recent rebound in the dollar, which at one point on Wednesday rallied to a six-week high against the euro. They are concerned that the currency markets have been paying too much attention to short-term economic weakness and market stress in the US, and not enough to the medium-term prospects for the US and Europe, a senior US official said.
Senior eurozone officials believe that the dollar-euro rate had reached levels unhelpful to both the US and Europe.
Policymakers on both sides of the Atlantic want to avoid a situation in which the dollar falls too far, before snapping back as investors realise the US is not heading for a depression and Europe’s economy is starting to soften, too. Such abrupt currency movements could fuel instability in financial markets.
Top officials also want to avoid dollar weakness reinforcing the rise in oil prices. They do not think the dollar is the main cause of the rise – oil has gained on days when the dollar has strengthened. But they agree that dollar weakness has at times contributed to oil’s strength.
François Fillon, French prime minister, told reporters last week in Washington: “We believe that the euro globally speaking is overvalued...the US authorities are repeating ad nauseam that the dollar is too weak.” Jean-Claude Trichet, president of the European Central Bank, has long stressed US interest in a strong dollar.
Officials highlight the importance of the April G7 communiqué, which expressed “concern” about “sharp fluctuations in major currencies”. Many analysts still reckon the US has a policy of benign neglect towards the dollar – welcoming the boost from dollar weakness to exports.
However, both US and European officials intended the communiqué to signal that they did not want the dollar to weaken and, in the context of a likely US recovery, feel it had reached the stage where it was oversold.
“The short-term was getting more attention than the long term,” the senior US official said.
The US is still a long way from agreeing to intervene in currency markets or identifying desired exchange rates. But both sides believe fundamentals and central bank policies are turning in the direction of relative dollar strength. After cutting interest rates aggressively, the Federal Reserve has indicated its desire to pause. Meanwhile, the ECB is softening its hawkish tone, and could shift further if weaker growth reduced inflation risk.
The central banks have not ÿco-ordinated their policies to manage the exchange rate. But policymakers feel communicating the change in relative fundamentals and monetary policies may be effective.
Source: Financial Times
DOCK ($3.27) Dockwise Subsidiary Takes Delivery of Talisman
Dockwise 5/7/2008
Following the delivery of mv Transporter in May 2007 and mv Target in December 2007, the third vessel out of a series of six mv Talisman, now joins the fleet of Dockwise Transport, a wholly owned subsidiary of Dockwise Ltd.
The remaining three converted tankers will be delivered in the course of 2008. With the addition of six vessels to the fleet, Dockwise is able to optimize strategic deployment of the 22-vessel fleet to best serve the various markets. More specifically, Dockwise will be able to provide clients with unparalleled flexibility in using various types of vessels, reducing risk and increasing scheduling and contracting opportunities for different clients.
After successfully completing the submerging test and sea trials, mv Talisman was delivered to the owners on May 7, 2008. The heavy transport vessel is designed to transport complex, high-value cargo like semi- submersible and jack- up drilling units and has a carrying capacity in excess of 35,000 tons. The Talisman will load its first cargo at Singapore, immediately after leaving the yard, contributing to revenue and earnings as from than.
This vessel was converted at the COSCO shipyard at Nantong, China. During the conversion the majority of the steel structure has been replaced and machinery and equipment was fully replaced and/or upgraded.
To ensure the most effective way of operating the vessel, Dockwise has appointed Anglo-Eastern Ship Management to provide technical and crew management. As such, the new vessels will operate under the same management systems as the existing Dockwise vessels. Crews, superintendents and other personnel will therefore be completely familiar with all operating procedures, ensuring safe operations.
URL: http://www.rigzone.com/news/article.asp?a_id=61614
Kujo. Sun Microsystems (JAVA) was newly added to 262 funds!
Take a look:
http://www.mffais.com/rankings/all/top-10-newly-added-stocks.html
ACUS $0.77 Q1 2008 Acusphere Inc. Earnings Release - After Market Close CCBN
AFN $4.16 You know how my eyes start sparkling when I hear the word "dividends"...
Are the Commercial REITs Now Stabilizing?
by: Prudent Speculations posted on: May 08, 2008 | about stocks: AFN / CSE / RAS / RSO
It would appear from the recent quarterly reports of four commercial REITs that the credit market, at least in the ways that it affects the commerical REITs, is beginning to stabilize. Here is a list of the four REITs that, when you consider what has happend over the last year, have reported incredible reports over the last week:
Rait Financial Trust (NYSE: RAS)
Resource Capital Corp (NYSE: RSO)
CapitalSource (NYSE: CSE)
Alesco Financial (NYSE: AFN)
The quarterly reports put out by these four companies are all worth a read as they show four companies that are well positioned to begin expanding their businesses after a brief but sharp contraction caused by the turmoil in the credit markets last August. In looking at the reports of these four companies, we see that all are now relatively free of short-term financings, poor performing CMBS & RMBS securities and nonperforming whole loans.
They are all undoubtedly preparing to expand into new areas of the commercial loan market in the future as their cash situations allow. While shareholders wait for the companies to begin expanding again, the dividends of these four respective companies can be collected as they are quite safe at their current levels. The adjusted earnings of the four should all cover the common stock dividends for the foreseeable future.
For the most part, these companies have removed a large majority of the questions that have been surrounding them, especially after taking the appropriate write-downs over the last year. The assets that remain are all of high credit quality and show no signs of increasing delinquency rates.
For example, Rait Financial Trust now has no net short term liabilities on its balance sheet and its residential mortgage portfolio, which totals $3.96 billion, has only experienced $3.1 million in losses since its inception three years ago.
In the case of Resource Capital, its quarterly report showed its business of commercial real estate and commercial finance lending has continued to thrive as can be seen in their increase production. It does not hurt that Resource Capital is now benefiting from a fairly wide yield curve, thanks to the Federal Reserve's actions.
CapitalSource is another example of a company that has addressed its problems through proactive measures designed to protect its funding base. Its purchase of Fremont’s bank in Californian (minus its loans) has ensured that the company has quite possibly the deepest and widest funding base of any of the publicly traded commercial REITs.
Finally, Alesco Financial has managed to limit loan losses and preserve cash as it prepares to either acquire new assets to maintain its REIT status or convert to a more capital efficient entity.
To close, the results of these companies should not be ignored as they show credit market dependent companies surviving and in most cases growing, if only slightly. As the Federal Reserve’s policy of low interest rates begin to open up the credit market these companies will be well positioned to benefit.
You see, when one tries to follow Mr. Fredriksen's moves, one surely stay brisk :)
Re: TUI/H-L Rivals step up combat before TUI annual meeting
Wed May 7, 2008 3:37am IST
By Arno Schuetze
FRANKFURT (Reuters) - Pressure mounted on TUI AG (TUIGn.DE: Quote, Profile, Research) on Tuesday to axe its supervisory board chief after Norwegian shipping tycoon John Fredriksen said he would not take a seat on the board if Juergen Krumnow did not quit.
"We don't want to work with a supervisory board that would continue the cronyism of (TUI Chief Executive Michael) Frenzel and Krumnow," said a spokesman for Fredriksen, who is TUI's biggest shareholder with an 11.7 percent stake.
TUI's biggest shareholders are at loggerheads with each other and management before Wednesday's annual meeting at Europe's biggest tourism group, whose Hapag-Lloyd unit is the world's fifth-largest container shipping company.
Another TUI shareholder, activist U.S. investor Guy Wyser-Pratte, who holds a 1 percent stake in TUI, told Reuters Frenzel and Krumnow should step down.
In an e-mailed response to questions, Wyser-Pratte said Frenzel had "accomplished nothing in 14 years except destruction of shareholder value of 25 percent, vis a vis a 256 percent increase in the (German blue-chip index) DAX."
"Everything he sold has tripled in value and everything he bought, he bought at the top. For all this 'superb performance', his salary has quadrupled. It is time for him to go."
Wyser-Pratte added that he did not "trust Frenzel to act in the interest of the shareholders. He and Krumnow never have. I expect them to attempt a 'politically soothing' solution at under fair market value" for the sale of Hapag-Lloyd.
TUI declined to comment on the shareholder criticism.
It denied, however, a Financial Times Deutschland report that it planned to use proceeds from selling Hapag-Lloyd to buy the rest of its TUI Travel (TT.L: Quote, Profile, Research) tourism unit.
"We see this as targeted speculation against TUI to unsettle investors before the annual meeting." TUI said in a statement.
"We remain committed to our statement to shareholders last week that shareholders will participate in an appropriate way in proceeds from the divestment process," it said, adding details could only be decided once the divestment was completed.
Under pressure from activist shareholders, Frenzel has abandoned his twin-pillar strategy of tourism and shipping and is seeking now to sell or spin off Hapag-Lloyd.
Fredriksen sees synergies of 300 million euros ($464.6 million) if Hapag-Lloyd's container shipping business merged with rival Neptune Orient Lines (NEPS.SI: Quote, Profile, Research), a spokesman for Fredriksen said.
The spokesman also said if Fredriksen lost a vote on the composition of TUI's supervisory board at the AGM, he would either sell his stake completely or build it up further to bring a new vote.
Fredriksen, Norway's richest man, and Russian steel tycoon Alexei Mordashov, the country's second-richest man, are also expected to tussle at the meeting on Wednesday.
Fredriksen wants two seats on TUI's supervisory board, but last week TUI appointed a Mordashov ally to its supervisory board, hampering Fredriksen's plans.
Mordashov, with 10 percent of TUI shares, supports Frenzel and wants to launch a strong tourism business in Russia and the Commonwealth of Independent States with TUI's help.
He and Spanish hotel group Riu, which owns about 5 percent of TUI shares, have said they do not support Fredriksen's ambition to win two seats on TUI's supervisory board.
(Reporting by Arno Schuetze; editing by Elaine Hardcastle)
GM Stuffit. Fight over the chairmanship of TUI/Hapag Lloyd containership company at the Annual Meeting yesterday resulted in John Frdriksen's defeat. He got 42,6 % of the votes, and the present chairman of the board Juerge Krumnow got over 57%. Fredriksen wants to spin off Hapag-Lloyd from TUI, a travel company. "You do not make money with tourism" he says.
JF has accused Krumnow for inefficiency in managing Hapag-Lloyd (world's fifth largest container shipper, 140 ships), which is true. €1000 invested in H-L in the 90's is ca €800 now.
Knowing Fredriksen he will not leave it there.
"We will be back" said Tor-Olav Trøim, his "right hand"
ONT is in a fiercely competed business, but it seems now they can take their share in it. Good work, Hantro!
Should industry be prepared for biofuel?
Thursday, 08 May 2008
OVER the years, the cargoes carried by the shipping industry have changed and ship designs have evolved to meet market design. One of the most striking developments at present is the rapid expansion of the liquefied natural gas (LNG) carrier fleet which will soon only be a bit smaller, in terms of numbers, than the very large crude carrier (VLCC) fleet. Another ongoing development is the big increase in the carriage of vegetable oils, something accentuated in the shipping industry by the new requirement to carry this cargo in International Maritme Organisation (IMO) designated chemical tankers.
Vegetable oil transportation has increased greatly in the past few years but could be set for another boost as demand for biofuels increases.
Figures quoted in a presentation late last year by shipping analyst and specialist in the chemical tanker trades, Fred Doll, showed that seaborne vegoil trade grew from 33 million tonnes in 2000 to a forecast 56 million tonnes in 2007. Until 2005, vegetable oils were primarily used for foodstuffs or chemical production. Since then, the driver has been demand for biofuels.
It is against this background that the CEO of UK-based classification society Lloyd's Register (LR), Richard Sadler, has called on the shipping industry to be prepared for the global drive towards biofuels.
He argued that if second and third-generation technologies are successful, then current projections of demand would see the world fleet unable to cope with the logistic demands.
Speaking at the recent IMarEST's annual Stanley Gray lecture in London, Mr Sadler predicted that the increase in demand for biocargoes would require an additional fleet size of 400 handy-size equivalents by 2030.
Moreover, with additional environmental pressures, these vessel requirements could well increase.
Before shipowners rush off to find a shipyard with an early building slot for half a dozen chemical tankers, it might be worth having a good look at this biofuel revolution.
Mr Sadler himself sounded a note of caution. He warned that the International Energy Agency (IEA) World Energy Outlook projections for biofuel demand may well be inflated by political pressures to find alternative bio-energy in shortening timescales.
The implications for the shipping industry are significant according to the LR boss. Whether first or third generation, whether biodiesel or bioethanol, shipping will be at the heart of the supply chain and anticipatory investment will have to be made by the industry.
Mr Sadler did make a practical suggestion. He said that contradictory information makes the risk in that investment uncertain and, therefore, it is vital to look at ways to hedge the future - through flexible initial oil tanker design for vessels to be constructed now, and converted in the future to take advantage of growing biotrade.
According to Mr Sadler, the biofuels industry is in the early stages of low carbon impact second and third-generation biofuel development.
Companies investing time and money in developing technology into economically viable and socially acceptable solutions are naturally keeping quiet about the technology or products being developed. Whether as a cargo or for use in the engine room, these new solutions will have to be incorporated into marine systems. Current ship designs are constrained by current legislation, creating poor designs if biofuel becomes a large scale global energy source. New standards may be required to meet essential safety and environmental needs and an early start is essential to meet these challenges.
There is also a political dimension to the uncertainty over the future of biofuels. The idea of using 'carbon neutral' fuels derived from crops has been seen, by and large, as environmentally friendly policy.
From the early days of biofuels in Brazil, however, some conservationists have pointed to habitat destruction that is often caused by expanding plantations of, for example, sugar cane or oil palm, to produce fuel.
Such worries have grown and have recently been compounded by a realisation that there are growing shortages of basic foodstuffs worldwide. This has been demonstrated dramatically by recent sharp increases in the prices of rice and other grains.
So what should the shipping industry do? Probably the best advice is to be cautious and wait and see. Mr Sadler argued that shipping is unprepared but, in fact, this industry is very good at responding to the market. If there is demand for a certain type of vessel, the rates they command will go up and more ships of that type will be built.
Let's wait and see just how green and socially acceptable biofuels really are.
Source: Business Times Singapore
ONT $0.89 Here it is!
Sun Adds Comprehensive Video Capabilities to Ubiquitous Java Platform with On2 Technologies
Wednesday May 7, 6:33 pm ET
SAN FRANCISCO--(BUSINESS WIRE)--Sun Microsystems, Inc. (NASDAQ:JAVA - News), today announced it has entered into a multi-year agreement with On2 Technologies (AMEX:ONT - News) to add comprehensive video capabilities, using On2 Technologies TrueMotion video codecs, to Sun's JavaFX(TM), a family of products for creating Rich Internet Applications (RIAs) with immersive media and content across all the “screens of your life”. For more information on the JavaFX family of products visit http://www.javafx.com and for details on On2 video technologies visit http://www.on2.com.
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Consumers are demanding a rich video experience across multiple screens and this deal compliments the Java(TM) platform for RIAs by adding On2 Technologies TrueMotion codecs. Sun and On2 have come together to deliver the essential technologies and services that are designed to power compelling video applications. With JavaFX rich client technology, the same high resolution video and media applications can run across the billions of devices that use the Java platform -- browsers, desktops, mobile and embedded devices. The first availability of On2 video codec for JavaFX software products is scheduled for the fall of 2008.
“The JavaFX runtime environment is designed from the ground up to support high fidelity media, empowering content authors to deliver media-rich content and applications across all the screens of your life. On2 shares Sun's vision of driving video convergence across desktops and mobile devices and we look forward to working with On2 to deliver this capability as part of the JavaFX family of products,” said Rich Green, executive vice president, Software at Sun.
“On2 is recognized as a world leader in video compression technologies. Our codecs deliver the highest quality with less data, and enable compelling video in products and services, from mobile devices to web, VoIP, gaming, broadcast and more. Because of the pervasiveness of Java technology, we are pleased that Sun will be including TrueMotion as the video codec to key partners across the digital media ecosystem,” said Bill Joll, President and CEO of On2 technologies.
The Java platform is the global standard that powers billions of devices – from desktop browsers and computers (91 percent) to mobile phones (more than two billion) and Blu-ray Disc players (13 million), TVs (nine million) and other connected consumer products. Through continual innovation, On2 satisfies the toughest quality, bandwidth, and power requirements for video. The company's TrueMotion video codecs the video market, with more than two billion deployments on desktops worldwide and more than 200+ million in mobile. The combination of On2 TrueMotion video with the Java platform and JavaFX rich client technology brings a whole new dimension to the immense breadth of high fidelity media applications and devices.
About the JavaOne Conference
Now, in its 13th year, the annual JavaOne conference brings together a global community of more than 15,000 developers, students, bloggers, social media, Web 2.0 companies and blue-chip businesses along with more than 135 exhibitors from 65 countries together to share the power of Java technology. This year's Conference theme “Java + You” captures the consumer and developer perspectives and how they experience amazing, consumer-centric Java technology. For consumers interested in downloading the Java platform or learning more about how Java technology impacts their lives, go to http://java.com, a consumer focused site which boasts more than 20 million visitors per month. For more information about the JavaOne conference, visit http://java.sun.com/javaone.
About Sun Microsystems, Inc.
Sun Microsystems develops the technologies that power the global marketplace. Guided by a singular vision -- "The Network is The Computer"(TM) -- Sun drives network participation through shared innovation, community development and open source leadership. Sun can be found in more than 100 countries and on the Web at http://sun.com.
About On2 Technologies, Inc.
On2 Technologies (AMEX:ONT - News) ensures a compelling video experience for any video application anywhere. From low bit rate to high definition, On2 provides optimized video compression technology enabling innovative solutions for application developers, content and service providers, chip vendors, device manufacturers, digital signage companies and beyond.
On2 TrueMotion compression schemes are built to deliver the highest video quality within any given data bandwidth. Moreover, On2 video is designed for simple decode enabling optimal playback at higher resolutions on systems with less powerful processors. This also gives developers the overhead they need to integrate more exciting user interfaces and functionality in their applications.
Established in 1992 and headquartered in Tarrytown, New York, On2 has offices and partners in Finland, Germany, UK, Japan, China, Taiwan, Korea and India. Customers include Nokia, Samsung, Freescale, AMS, Atmel, Adobe, AOL, Sony, Skype, Facebook, VideoEgg, Brightcove, Move Networks and XM Satellite Radio. For more information please visit http://www.on2.com.
Sun, Sun Microsystems, the Sun logo, Java, JavaFX, JavaOne and The Network Is The Computer are trademarks or registered trademarks of Sun Microsystems, Inc. in the United States and other