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Finance News

08 Mar 2024

Gram Car Carriers Refinances Viking Adventure

(Photo: Gram Car Carriers)

Norwegian shipowner Gram Car Carriers announced it has refinanced the Viking Adventure with an undisclosed Japanese bank.The new $41 million loan has a duration matching the vessels current charter ending in mid-2028 and a margin of SOFR +1.73%. This compares a margin of SOFR +4.26% under the previous lease financing which was repaid earlier this year, the company said.“We are pleased to welcome one of the premier banks in Japan in our banking group as we optimize our capital structure and cost base to maximize profit and shareholder returns.

12 Feb 2024

MARAD’s Title XI Changes: Good News for Offshore Wind?

© Maxim Khalansky / Adobe Stock

The U.S. Department of Transportation's Maritime Administration (MARAD) in December issued a final rule updating its financial requirements for the Federal Ship Financing Program, commonly referred to as Title XI. While the move applies to the U.S. maritime industry as a whole, it is seen as especially helpful for players looking to serve the U.S. offshore wind sector.Designed to promote the growth and modernization of the U.S. merchant marine and U.S. shipyards, Title XI provides for a full faith and credit guarantee by the U.S. government. The program essentially aims to encourage U.S.

07 Feb 2024

US, UK Ship Investors Hit by Soaring Red Sea Insurance

© sandsun / Adobe Stock

War underwriters have raised the premiums they charge to U.S., British and Israeli firms by as high as 50% for ships transiting the Red Sea and some providers are avoiding such business due to targeting of the vessels by Yemen's Houthis, sources said.Attacks by the Iran-aligned Houthis since November have slowed trade between Asia and Europe and alarmed major powers. The Houthis say they are acting in solidarity with Palestinians as Israel's war against Hamas militants in Gaza…

12 Feb 2024

Royal Caribbean Upbeat on 2024 Profit

© Roberto Sorin / Adobe Stock

Royal Caribbean Group projected 2024 profit above Wall Street expectations after robust demand for cruise vacations and steeper ticket prices helped it beat fourth-quarter earnings estimates on Thursday.With travelers opting for cruises instead of more expensive land-based vacation options, operators are experiencing record levels of bookings compared to pre-pandemic levels, giving them enough room to mark up ticket prices."2023 was an exceptional year, propelled by unmatched demand for our brands from new and loyal guests…

30 Jan 2024

Carnival Warns of Hit to 2024 Earnings After Rerouting of Red Sea Itineraries

© icholakov / Adobe Stock

Carnival said on Tuesday that its annual earnings would take a hit as the cruise operator reroutes its ships that were due to pass through the Red Sea, a key transit route linking Asia and Europe.A growing list of companies have rerouted vessels as the Houthis, a Yemeni militant group, steps up attacks on Israeli ships or ships heading towards Israel, in solidarity with the Palestinians.The rerouting by Carnival is expected to have an impact of 7 cents to 8 cents on its adjusted earnings per share for full-year 2024, with the majority of the impact coming in the second quarter.

29 Jan 2024

Saltchuk Takes Anther Run at OSG Takeover

FILE PHOTO: The Greenbrier Companies, Inc.

Seattle-headquartered Saltchuk Holdings has renewed its bid to take over Overseas Shipholding Group (OSG), a New York-listed marine transportation company based in Tampa, Fla.Privately-held Saltchuk—OSG’s largest shareholder—had previously offered to acquire OSG in June 2021 but suspended those discussions several months later, citing pandemic-related market uncertainties.OSG, which operates U.S.-flag tankers and articulated tug barges (ATB), on Monday confirmed its board of directors…

28 Dec 2023

"Green" Loan Secured for Low-Emission Cruise Ship

Copyright UMB-O/AdobeStock

Fincantieri signed a "green" construction loan for a maximum amount of $461m with Intesa Sanpaolo (IMI Corporate & Investment Banking Division) and Cassa Depositi e Prestiti (CDP), the proceeds of which will be used to cover the financial needs linked to the construction of the Mein Schiff Relax, the first of two newly designed dual-fuel inTUItion class cruise ships (Liquid Natural Gas - LNG and Marine Gas Oil - MGO) that Fincantieri is building for TUI Cruises, a joint venture between the TUI AG and Royal Caribbean Cruises.

22 Dec 2023

Great Lakes' MARAD Title XI Financing Application Completed

(Image: Great Lakes Dredge & Dock Corporation)

Great Lakes Dredge & Dock Corporation announced its MARAD Title XI Financing application for its offshore wind rock installation vessel, the Acadia, has been updated to the "completed" category, indicating the loan process is moving towards the final phase.Lasse Petterson, Great Lakes president and CEO, said, “We have fostered a strong relationship with MARAD and are pleased to have reached this significant milestone in the application process. We continue to make great strides in our strategy to be a leading contributor in the evolving U.S.

15 Dec 2023

Edda Wind Secures Green Financing for Newbuild Program

(Image: Edda Wind)

Edda Wind announced it has entered into a green term loan facility agreement for the pre- and postdelivery financing of four new commissioning service operation vessels (CSOV) under construction at Vard.The agreement is a €161 million green loan facility with Crédit Agricole Corporate and Investment Bank, Danske Bank A/S, DNB Bank ASA and SpareBank 1 SR-Bank ASA, with expiry in 2029 and a profile of 12 years. The facility corresponds to a leverage ratio of 60% of the total ready…

15 Dec 2023

MOL First Shipping Company to Issue 'Blue Bonds'

An examples of potential uses of the bonds’ proceeds include Wind Hunter, the ultimate zero emission ship. Image courtesy MOL

Mitsui O.S.K. Lines, Ltd. has decided to issue “blue bonds” through a public offering in Japan’s domestic market in January 2024, reportedly the world’s first blue bonds in the shipping industry, which refer to the guidance provided by the International Capital Markets Association (ICMA) and other organizations.The Blue Bond Framework developed for the issuance of the bonds will ensure that all uses of the bonds’ proceeds will contribute to a sustainable blue economy, and the bonds received the highest rating of “Blue1(F)” from the Japan Credit Rating Agency, Ltd.

07 Dec 2023

Hornbeck Offshore Discloses Revenue Growth in Its IPO Paperwork

(File photo: Hornbeck Offshore)

Marine transportation services provider Hornbeck Offshore on Thursday made public its paperwork for a stock market listing in New York, which showed its revenue rose in the three months ended September.The listing will test the appetite for another stock flotation at a time when green shoots in the U.S. IPO market have been overshadowed by the poor post-debut performances of some high-profile firms that listed recently.Hornbeck intends to list its shares on the New York Stock…

27 Nov 2023

Maersk Sells Remaining Share Holding in Hoegh Autoliners

Source: Hoegh Autoliners

Danish shipping firm Maersk has sold 20,000,000 shares in Norway's Hoegh Autoliners, cutting its holding to zero, according to a stock exchange filing.The sale at a price of 90.00 Norwegian crowns ($8.34) per share represented approximately 10.48% of the share capital and votes in Hoegh Autoliners, the Norwegian firm said.(Reuters - Reporting by Nora Buli, Editing by Franklin Paul)

21 Nov 2023

Shipbuilder Diverse Marine Launches Client Finance and Lease Program

(Image: Diverse Marine)

U.K. shipbuilder Diverse Marine has introduced its own finance and lease program designed initially for the financed construction of offshore wind crew transfer vessels (CTV).Funding for offshore wind CTVs has been challenging, and the company said it has observed over the last 24 months pressures felt by clients and vessel owners trying to justify builds in the U.K., with conventional vessel procurement methods uncompetitive against yards in Europe, Scandinavia and the Far East…

21 Nov 2023

Havfram Secures Loan for Offshore Wind Vessel Construction

Credit: Havfram

Offshore wind installation company Havfram has signed a Senior Secured Green ECA Term Loan Facility to fund its two wind turbine installation vessels ("WTIVs"), currently under construction at CIMC Raffles in China. The Facility was entered into with a syndicate led by DNB Bank ASA (Coordinator, Bookrunner, Green Loan Advisor and Agent) with SpareBank 1 SR-Bank ASA, Credit Agricole, Sparebanken Vest and Rabobank as Mandated Lead Arrangers and with Export Finance Norway as ECA lender.

15 Nov 2023

ZEI Raises $8.75 Million in Series A Funding

ZEI is best known as the technology team behind the Sea Change ferry, the world’s first commercial hydrogen fuel cell vessel. (File photo: All American Marine)

San Francisco-based hydrogen technology company Zero Emission Industries (ZEI) announced it has raised $8.75 million through the completion of a Series A financing round led by Chevron New Energies, with participation from commodity trading company Trafigura and shipping and logistics company Crowley.ZEI, formerly known as Golden Gate Zero Emission, is best known as the technology team behind the Sea Change ferry, the world’s first commercial hydrogen fuel cell vessel launched…

09 Nov 2023

Hapag-Lloyd Posts 77% Drop in Nine-month Net Profit, Cuts Outlook

© olrat / Adobe Stock

German container shipper Hapag-Lloyd on Thursday posted a net profit of 3.2 billion euros ($3.43 billion) for the first nine months of 2023, down by 77% from a year earlier, and cut its forecasts for full-year earnings.Net profit was down from 13.8 billion euros in comparable 2022 when the shipping industry, a proxy for global trade, boomed amid post-pandemic recovery and because logistics disruptions drove up prices for consumers.This year, the global economic slowdown and the clearing of port log-jams sent freight rates down sharply…

31 Oct 2023

US Offshore Wind Writedowns Seen Soaring with Orsted Earnings

© Cavan / Adobe Stock

European energy companies, including Denmark's Orsted, will likely write down more of their U.S. offshore wind investments this week after BP and Equinor booked $840 million in impairments in recent days.Orsted, the world's largest offshore wind developer, said in August it may see impairments of 16 billion Danish crowns ($2.3 billion) on its U.S. offshore developments due to supply chain problems, soaring interest rates and a lack of new tax credits.Orsted, which was not immediately available for comment…

27 Oct 2023

Royal Caribbean Raises Profit Target Again on Robust Cruise Vacation Demand

© aerial-drone / Adobe Stock

Royal Caribbean Group on Thursday lifted its full-year profit forecast for a third time and said bookings for the next year were "significantly outpacing" pre-pandemic levels by a wide margin, sending its shares up about 3%.Cruise operators are reaping the rewards as travelers gravitate to cruise vacations that are cheaper compared to taking a land-based holiday.This has given the companies the ability to hike itinerary prices, especially in North America and Europe, as occupancy…

20 Oct 2023

ABB Flags Q4 Slowdown and China Challenges

© Roland Magnusson / Adobe Stock

ABB flagged a slowdown in revenue growth in the fourth quarter and reported a continued decline in orders in China, sending its shares lower even as the Swiss engineering group posted third-quarter earnings broadly in line with forecasts.The maker of industrial drives and motors noted some signs of stabilisation in China, its second-largest market and said higher quarterly revenues and earnings were boosted by price increases outstripping cost inflation, and higher volumes.But…

19 Oct 2023

Deutsche Bank Sets Emissions Targets for Shipping Clients

© jeayesy / Adobe Stock

Deutsche Bank has set emissions reduction targets for loans to clients in the coal mining, cement and shipping sectors and now has a net-zero plan for 55% of its financed emissions, its chief sustainability officer told Reuters.A key funder to polluting sectors, Germany's biggest lender, like many of its peers, is under increasing pressure from policymakers and investors to push clients to curb climate-damaging emissions.Its corporate loan book stood at 107 billion euros ($112.72 billion) at the end of 2022."Once we have pathways…

11 Oct 2023

MarTrust Appoints New CEO

Stuart Gregory courtesy of MarTrust

The Marcura Group Board has announced Stuart Gregory is taking the helm as CEO of MarTrust.MarTrust is set to undergo a renewed phase of development and expansion, the company said. Over the past years, under the leadership of Domenico Carlucci and with the support of the Marcura Board, MarTrust has become a prominent fintech entity, managing over $12 billion in payments annually.Gregory brings a wealth of fintech expertise, having been instrumental in building and scaling Wise Business through to its successful public listing in London.

02 Oct 2023

Big Money Needed to Develop US Offshore Wind Ports

(Source: Business Network for Offshore Wind, “Building a National Network of Offshore Wind Ports: A $36B Plan for Domestic Clean Energy Infrastructure”)

Much has been written about potential bottlenecks in store for various parts of the U.S. offshore wind industry, from vessels to monopiles. A new report published by the Business Network for Offshore Wind (BNOW) outlines the need for significant investment in and development of port infrastructure to support the industry in its goal of 30 gigawatts (GW) of offshore wind power by 2030 and 110 GW by 2050.The good news is that more than 35 new offshore wind port projects have gone into development or began commercial operations in the U.S.

08 Sep 2023

Virgin Voyages Raises $550 Million in Ares Management-led Fundraise

© Riccardo Arata / Adobe Stock

Virgin Voyages, the cruise brand from Richard Branson's Virgin Group, said on Friday it has raised $550 million in fresh capital to expand into new international markets.The funding was led by Ares Management with participation from existing investors, including British conglomerate Virgin Group and venture capital firm Bain Capital.Launched at the end of 2021, Virgin Voyages operates three ships servicing the Caribbean and the Mediterranean. It plans to operate in Australia and…

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