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Shares Drop

A Second Look: Defense

The Associated Press reported that the Street gave a motley review of defense titans Lockheed Martin Corp.'s and Northrop Grumman Corp.'s outlook for the year, a day after both companies posted higher fourth-quarter earnings. Market observers warned that despite solid growth by Lockheed and Northrop in 2006, performance expectations for 2007 appear to be uncertain due to ambiguous budget requests. The Defense Department submits its fiscal 2008 budget request to Congress for approval next month. Initial estimates suggest the defense budget could reach more than $600 billion for 2008 in addition to the $100 billion supplemental request for war spending for the remainder of 2007. CIBC World Markets Corp. research analysts noted that Los Angeles-based Northrop, considered to be one of the U.S. Navy's top ship providers, is expected to see a cutback in shipbuilding as the Navy requested four ships -- rather than the six initially planned for in 2006. There has also been speculation that the Pentagon may issue cutbacks in missile defense and space tracking and surveillance systems. Also facing Northrop has been a slow growth rate, compared to its competitors, due to damage from Hurricanes Katrina and Rita to the company's shipbuilding operations. Shares of Northrop grew modestly by 13 percent in 2006 compared to rival Lockheed Martin which surged 45 percent for the year based on earnings growth.

Offshore Shares Are Leading The Way

Offshore shares on the Oslo Stock Exchange continued to rise in November, buoyed by the continuing high oil price and expectations of increased level of activities from oil companies in the year 2000. After a few dismal months, offshore shares regained the positive position they have occupied for most of the year. Other maritime shares fell during November so it was offshore and cruise that carried the Shipping Index to a 1.9 percent rise for the month and the rise of 36

Maritime Stocks Take A Dive On Oslo Bourse

The All Share Index in Oslo lost a further 4.2 percent in April, and as in March the main reason for the fall was international repricing of technology stocks. However, shipping and offshore companies were not providing any help for the market, as the Shipping Index fell a solid 5.8 percent during the month. Det Søndenfjeldske (SFJ), Ocean Rig (OCR) and Stolt Comex Seaway (SCS and SCSA) all fell between 14 and 19 percent, leading the way down for offshore stocks

Downturns in Chinese Shipping Industry

Though it has sustained economic growth for the past ten years, China’s shipbuilding industry suffered in 2008. The nation contracted 48.3% fewer ships in the first half of the year as compared to 2007. Carrying capacity was down by about 45%, and China’s total market share in the shipbuilding industry dropped to 33.7%.

Offshore shares driving the market

Share prices in Oslo rose in August for the sixth consecutive month, and can thus show for positive share price movements for 7 out of 8 months so far this year. While the All Share Index gained another 2.4 percent in August, the Shipping Index was a little behind with a 1.4 percent increase. Shipping and Offshore shares are up 43.2 percent for the year. The oil price continued to rise in August. For the first time since October 1997 North Sea oil for immediate delivery (Brent spot) was

Carnival, Star Team Up To Buy NCL

Carnival Corp. and Malaysia's Star Cruises surprisingly joined forces in a battle to buy Norwegian cruise firm NCL Holding. The two companies dropped a bidding war in favor of Star's lower $1.1 billion share offer for NCL. Star will stick with its 35 crowns per share bid for NCL, expiring on Feb. 10. Carnival will cancel a planned 40 crowns NCL offer and instead acquire a 40 percent stake in Arrasas Ltd., Star's unit set up to acquire NCL. Star would hold the remaining 60 percent.

Transocean Shares Poised for Big Move

Photo: Transocean

Transocean Ltd shares are expected to move about 8 percent in either direction following its earnings results on Wednesday, options data showed, but positioning among traders suggests some worry.   This would be the biggest post-earnings move for the shares in at least eight quarters.   The outlook among traders was pessimistic, however, as seven of the ten most active Transocean options on Tuesday were puts, which are usually either a bet on or a hedge against the shares falling

BW Offshore Cuts Dividend

BW Offshore cut its dividend on Monday, blaming lower spending by customers due to a fall in crude prices as well as a deadly accident in Brazil last week. The company, which also met fourth-quarter earnings forecasts, said it planned a dividend of 2 U.S. cents a share for October-December, one cent less than in recent quarters and below expectations for 3 cents in a Reuters poll of analysts. On Feb 11, an explosion on one of BW's oil production vessels offshore Brazil killed five

Year's End Appears To Be Timely For Buying Cruise Shares

Now is the time to buy cruise shares, says a cruise industry review released by Lazard Frères & Co., which notes that although shares have been up and down in the past few weeks with only a 1 percent increase in the last month, the relatively defensive performance of the cruise/leisure segment is encouraging. The report states cruise shares are sensitive to any data showing a slowdown in consumer spending in 2000. In September

Oil's Worst Year Since 2008

Oil prices fell on Wednesday as concerns about demand for fuel kept worries about a global supply glut intact.   Both Brent and U.S. crude significantly pared losses just before government data showed U.S. crude oil inventories fell 1.8 million barrels last week, a bigger drop than analyst expectations for a 100,000-barrel dip in stocks.   After initially paring more losses, crude futures pushed lower.  

Baltic Index Slips as Demand Falls

The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry bulk commodities, fell on Monday as demand dropped across all vessel categories. The overall index, which factors in average daily earnings of capesize, panamax

Transatlantic Eastbound Rates Fall

Photo: CMA CGM

 Transatlantic eastbound chemical freight rates dropped slightly this week on a continued lull in the spot market, ICIS reports  brokers as saying. It was the second drop in as many weeks.   The latest SSY Base Oil Shipping Report noted that eastbound rates “took a tumble

Aker ASA Equity Holdings Restructured

Aker Philadelphia Shipyard

  Aker ASA has on 30 September 2015 transferred its equity holdings in Converto Capital Fund AS to Aker Capital AS, a wholly-owned subsidiary of Aker. As per 30 September 2015, Converto Capital Fund AS directly held 7,237,631 of the issued shares and votes in Aker Philadelphia Shipyard ASA

Allowing US Oil Export Could Push Crude Prices Higher -CBO

Lifting the ban on U.S. crude exports could push the price of domestic oil up roughly $2.50 a barrel in the coming decade, a report from the Congressional Budget Office said on Wednesday.   "CBO estimates that authorizing exports of domestically produced crude oil without restrictions

Weaker Capesize Demand Pulls Down Baltic Index

Photo: Alex Sergienko

The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry-bulk commodities, fell on Wednesday, primarily due to lower demand for capesize vessels.   The overall index, which factors in average daily earnings of capesize, panamax

Mitsui Shipbuilding Acquires TGE Marine

Photo: TGE Marine Gas Engineering GmbH

 Japanese shipbuilder Mitsui Engineering and Shipbuilding (MES) has bought 99.36% of the outstanding ordinary shares in German designer and manufacturer of gas tanks and gas handling systems TGE Marine AG to expand its foothold within the market for medium sized multi-gas carriers.  

Glencore Assets Plunge But Hope for Bondholders Remains

Glencore's debt and equity plunged on Monday on the back of a damning analyst note, with only the commodity firm's shortest bonds maturing this year managing to resist the sell-off.   But the outlook for the debt-laden firm does not appear to be as bleak as the headline figures suggest

Baltic Sea Freight Index Remains Flat

The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry bulk commodities, remained unchanged on Monday.   The overall index, which factors in average daily earnings of capesize, panamax, supramax and handysize dry bulk transport vessels

Scorpio Services Holding Ups Stake in Scorpio Bulkers

Photo: Scorpio Bulkers

Scorpio Bulkers Inc. announces purchase of 1,436,352 common shares by Scorpio Services Holding Limited    Dry bulk commodities shipper Scorpio Bulkers Inc. announced today that Scorpio Services Holding Limited has purchased an aggregate of 1,436

Shell Withdraws from Arctic Exploration

Fennica, an icebreaker vessel deployed by Shell in the Arctic (Photo: Arctia Shipping)

Royal Dutch Shell has abandoned its Arctic search for oil after failing to find enough crude in a move that will appease environmental campaigners and shareholders who said its project was too expensive and risky. Shell has spent about $7 billion on exploration in the waters off Alaska so far and

Asia-Europe Rates Further Contract

Photo: Maersk Line

 Major container shipping rates plummeted again this week, with declines on the trunk Shanghai-Europe routes falling at record amounts,  says Shangahi Containerised Freight Index (SCFI).   A eport in ASC  says that the SCFI for Far East to North Europe dropped by a staggering

Iraqi Kurds Reassert Right to Export Oil to US Despite Court Ruling

Kurdistan reasserted its right to export oil independently to the United States and other countries on Tuesday despite a court ruling in favour of the Iraqi federal government, which has sought to block crude sales from the autonomous region.  

Norfolk Ship Repair Announces 650 Layoffs

Photo by BAE Systems Norfolk Ship Repair

 BAE Systems Ship Repair Norfolk has announced plans for layoffs - 650 people will be layed off effective November 20, 2015, says company sources.   This represents 43 percent reduction in workforce. The company attributed to a decrease in Navy repair work.  

Asia-Europe Box Rates Drop 22.4 pct

A Maersk Containership underway (file image, credit: Maersk)

Shipping freight rates for transporting containers on the world's busiest route have dropped by more than 20 percent for the second consecutive week and are now at their lowest level since July 24. Spot rates fell 22.4 percent to $456 from ports in Asia to Northern Europe after a fall of 22

Dry bulk shipping, Tankers Fall Down

Graph: Drewry Maritime Equity Research

 All stocks under Drewry Maritime Equity Research (DMER)’s dry bulk coverage were down and recorded double-digit negative returns, taking cues from vessel earnings.   The BDI shed its gain of the previous two months and nudged down 20% m/m in August led by a fall in the Capesize

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