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

Finance

Defense Appropriations Bill Includes $1 Bln for US Icebreaker

The U.S. Senate Appropriations Committee’s FY2017 Defense Appropriations Bill has included $1 billion in funding to accelerate construction of a new polar icebreaker for the U.

Higher Capesize Demand Pushes up Baltic Index

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, rose on Friday buoyed by higher demand for capesize vessels.

TT Club Reports Robust Financial Results for 2015

TT Club has announced its financial results for the year ended December 31, 2015, and AM Best affirms its A- (Excellent) rating for the 10th consecutive year.   Knud Pontoppidan,

Energy

Hercules Offshore Filing for Bankruptcy Again

Hercules Offshore Inc said it planned to file for prepackaged Chapter 11 bankruptcy, just six months after the rig contractor emerged from bankruptcy protection.

Strike Idles 38 Oil Tankers at Fos-Lavera

Some 38 oil tankers have been held up at the Fos-Lavera oil port in southern France, the country's biggest, including 25 at harbour, up from 12 the previous day,

Höegh LNG Turns to Profit in 1Q

Höegh LNG returned to profit following a Profit after tax of USD 6.3 million for the first quarter of 2016, up from USD 4.0 million net loss in the fourth quarter 2015.

News

US Hospital Ship Aids South Korean Sailor

A U.S. hospital ship conducted a medical evacuation, or “medevac”, May 27 to assist an ailing Republic of Korea sailor aboard a Republic of Korea Navy (ROK-N) submarine.

Details El Faro's Sinking Emerge from US Probe

U.S. investigators on Friday concluded two weeks of hearings into the sinking of cargo ship El Faro in a hurricane last fall that included reports the vessel had

NASSCO Lays Keel for Jones Act Tanker Liberty

U.S. shipbuilder General Dynamics NASSCO hosted a keel laying ceremony on Thursday, May 26 for the Liberty, one of three new ECO Class Jones Act tankers under a

Vessels

Hansa Offenburg, Hansa Drakenburg Sail Scale-free

Leonhardt & Blumberg was founded in 1903 and has managed more than 180 vessels, the majority of which were general cargo vessels and bulk carriers. Today the company

NASSCO Lays Keel for Jones Act Tanker Liberty

U.S. shipbuilder General Dynamics NASSCO hosted a keel laying ceremony on Thursday, May 26 for the Liberty, one of three new ECO Class Jones Act tankers under a

SAFE Boats Delivers First CIV for Air and Marine Operations

SAFE Boats International (SBI), a manufacturer of aluminum boats located in Bremerton, Wash., has completed the first Coastal Interceptor Vessel (CIV) on contract from U.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Naval Architecture Navigation Offshore Oil Pipelines Port Authority Salvage Ship Simulators 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: 0.0946 sec (11 req/sec)