Pegasus Tanker Fleet Is Back In The Game

Friday, April 27, 2001
A crucial Caribbean tanker fleet re-entered the market this week, having been held back for over a month because of a dispute between its owner, Pegasus Shipping, and junk-bond creditors in New York. U.S. brokers said the fleet's return would add surplus tonnage to a market that is already cooling, and would put further downward pressure on freight rates. Fuel oil freight stood at around $1.65 per barrel for 50,000 ton upcoast cargoes on Friday (April 27), compared to about $1.90 per barrel in mid-March, brokers said. Pegasus said the two time-charters and five spot fixtures so far completed were all done at market rate. Chairman Nicos Peraticos has resumed negotiations with bondholders and hopes to complete a buy-back of the $150 million Pegasus debt in June, a spokesman in London said. The 11 tanker fleet had been held back from trading on fears it would be impounded after a bondholder had one of the tankers, the 62,000 tonner Kite, impounded in Jacksonville, U.S. on March 16. The fleet operates in a niche sector of just 100 or so ships carrying 50,000 ton cargoes of crude and fuel oil from Caribbean refineries to the United States. An anticipated freight surge when the fleet was withdrawn never happened, brokers said, but charterers remained edgy while the market imbalance continued. Pegasus is offering bond-holders $75 million cash to write off the $150 million debt, which would leave it with vastly improved finances in a market that analysts have tipped to soar in the fourth quarter of 2001. "Products imports are playing a bigger swing role in the U.S. than ever before," Paul Horsnell of Oxford Energy Studies told a tanker owners' conference in Sydney this week. "Expect a surge in demand for fuel oil imports every fourth quarter." And while demand for this size range of tankers is high, supply is short. "This sector has been neglected in terms of investment in new tonnage in the past decade, which is beginning to result in an acute shortage of modern ships," said London tanker broker SSY. Shipowners tapped the U.S. junk bond markets between 1997 and 1999, and since then much of the debt has been bought back having traded down to less than half its original value. - (Reuters)
Maritime Reporter March 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Schlumberger Announces Q1 Results

Schlumberger Limited (NYSE:SLB) today reported first-quarter 2014 revenue from continuing operations of $11.24 billion versus $11.91 billion in the fourth quarter of 2013, and $10.

Russia Ships First Oil From Offshore Arctic Platform

President Vladimir Putin hailed Russia's first shipment of Arctic offshore oil on Friday, saying the platform decried by environmentalists will help Moscow expand its global energy markets share.

Shipping Turns From Banks to Equity Markets for Cash

Shipping companies are turning to equity markets to fill a growing funding gap, betting that investors hungry for decent returns will provide capital to a sector

 
 
Maritime Careers / Shipboard Positions Maritime Security Naval Architecture Navigation Pipelines Salvage Ship Electronics Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1459 sec (7 req/sec)