Nanjing Tanker To Be Delisted, First By Central Gov't Backed Firm

Posted by Joseph R. Fonseca
Friday, April 11, 2014

 Loss-making shipping company Nanjing Tanker Corp will be delisted from the Shanghai Stock Exchange after a five-day grace period, marking the first time for a company backed by the central government to be dropped from a domestic exchange.

 
The delisting comes after the government allowed China's first-ever public bond default in March and underscores the difficulties facing domestic companies saddled with record debt in a slowing economy.
 
The delisting had been widely anticipated after the company said in January it was poised to post its fourth straight year of loss, breaching exchange rules.
 
A statement carried on the Shanghai exchange's official microblog on Friday said Nanjing Tanker will be delisted after booking losses from 2010 to 2013.
 
The company has the option of appealing the decision in the next five days. Trading in Nanjing Tanker shares has been suspended since April 2013.
 
Officials at Nanjing Tanker - the oil and bulk chemicals marine freight subsidiary of state-owned Sinotrans & CSC Holdings Co Ltd - declined to comment when contacted by Reuters.
 
Nanjing Tanker reported 12.45 billion yuan ($2.05 billion) in total debt at the end of September, with debt outpacing equity by more than four times, exchange filings showed.
 
According to Reuters calculations based on exchange data, around 90 firms have been delisted from the Shanghai and Shenzhen exchanges since their establishment over twenty years ago. However the Nanjing Tanker delisting is the first by a company backed by the central government.
 
Nanjing parent Sinotrans operates under the direct administration of the State Council's State-owned Assets Supervision and Administration Commission.
 
Sinotrans reported group turnover of 106.7 billion yuan and assets of 122.9 billion yuan in 2012. The group holds five listed companies, including Sinotrans Ltd - a shipping, warehouse, and railways company - and Sinotrans Shipping Ltd.
 
The problems of high debt and slowing growth are worse for sectors struggling with overcapacity. The State Council has said it would block new approvals in five industries affected by chronic oversupply, including shipbuilding.
 
Analysts widely expect more defaults on loans, bonds, and shadow bank products this year. Semiconductor, software, and commodities firms are among the most at risk of default, a Reuters analysis of more than 2,600 Chinese companies showed.
 
Most government-controlled enterprises are willing to help their subsidiaries stay afloat, but most of those units are in better financial shape than Nanjing Tanker, analysts have said.
 
(Reporting by Pete Sweeney, Lu Jianxin and Chen Yixin; Writing by Kazunori Takada; Editing by Christopher Cushing)
 
 
($1 = 6.2125 Chinese Yuan)
 
 
 

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter July 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Tanker Trends

NASSCO Delivers Garden State to APT

Marking its seventh ship delivery in the span of just over a year, General Dynamics NASSCO has delivered the newly built ECO Class tanker Garden State for American Petroleum Tankers.

Bahri Q2 Net Profit Soars

National Shipping Company of Saudi Arabia (Bahri), the exclusive oil-shipper for Saudi Aramco, reported a 47.2 percent increase in second-quarter net profit on Tuesday.

First LNG Vessel Transits Expanded Panama Canal

Today, the Panama Canal marked another milestone with the transit of the first-ever liquefied natural gas (LNG) carrier through its expanded locks.   Shell-chartered

Finance

China Joins UN Trucking Treaty

China has taken a major step towards establishing a speedy new "Silk Road" to Europe by signing up to a U.N. trucking treaty.   Fifteen years after joining the World Trade Organization (WTO),

Bahri Q2 Net Profit Soars

National Shipping Company of Saudi Arabia (Bahri), the exclusive oil-shipper for Saudi Aramco, reported a 47.2 percent increase in second-quarter net profit on Tuesday.

Gulf Petrochem Group Expands European Bunker Operations

Gulf Petrochem Group, the UAE based global bunker supplier, has announced that it is now officially offering physical bunker supply in the port of Rotterdam, out of its new office based in Dordrecht.

Energy

Bahri Q2 Net Profit Soars

National Shipping Company of Saudi Arabia (Bahri), the exclusive oil-shipper for Saudi Aramco, reported a 47.2 percent increase in second-quarter net profit on Tuesday.

Fuel Consumption, Emissions Monitoring Software Updated

As part of the ongoing Blue Star Delos Renewable Energy Innovation Project, Eco Marine Power (EMP) stated that the Aquarius Management & Automation System (MAS)

Los Angeles Pushes for Valero Terminal Improvements

The Port of Los Angeles has released an Initial Study/Notice of Preparation (IS/NOP) — the first step in the Environmental Impact Report (EIR) process — for a Marine

News

NASSCO Delivers Garden State to APT

Marking its seventh ship delivery in the span of just over a year, General Dynamics NASSCO has delivered the newly built ECO Class tanker Garden State for American Petroleum Tankers.

Long Beach Awards Sovcomflot for Green Shipping

PAO Sovcomflot earned the Green Environmental Achievement Award from California's Port of Long Beach, recognizing the shipper for its ongoing commitment to environmental stewardship.

Bahri Q2 Net Profit Soars

National Shipping Company of Saudi Arabia (Bahri), the exclusive oil-shipper for Saudi Aramco, reported a 47.2 percent increase in second-quarter net profit on Tuesday.

Vessels

NASSCO Delivers Garden State to APT

Marking its seventh ship delivery in the span of just over a year, General Dynamics NASSCO has delivered the newly built ECO Class tanker Garden State for American Petroleum Tankers.

LNG-fueled Bulker Ordered from Korea

Hyundai Mipo Dockyard (HMD) has signed a contract to build a 50,000 dwt bulk carrier with ILSHIN LOGISTICS. The project is a collaboration between POSCO and ILSHIN

BMT to Lead Repower for Historic USCG Eagle

BMT Designers & Planners, a subsidiary of BMT Group, an international maritime design, engineering and risk management consultancy, is leading the effort to repower the historic U.

 
 
Maritime Careers / Shipboard Positions Maritime Standards Offshore Oil Pipelines Pod Propulsion Salvage Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Sonar
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: 0.1259 sec (8 req/sec)