Thomson Financial News

Arlington Tankers Ltd. (ATB), a sea borne transporter of crude oil and petroleum products, announced first quarter financial results, reporting a net loss, reversing a profit in the year-ago quarter. The , Bermuda-based company's first quarter non-GAAP net income declined to $4.64m or $0.30 per share from $4.93 million or $0.32 per share in the same quarter a year ago. On an average, four analysts polled by First Call/Thomson Financial estimated the company to earn $0.29 per share for the quarter. Net loss for the quarter was $2.48 million or $0.16 per share, compared to net income of $3.85 million or $0.25 per share in the prior year quarter.

According to reports, Japanese steelmaker JFE Holdings Inc said it has reached an agreement with shipbuilder and engineering company Hitachi Zosen Corp to turn their shipbuilding joint venture into a JFE subsidiary. JFE will acquire an additional 34.9 percent stake in Universal Shipbuilding Corp, its 50-50 joint venture with Hitachi Zosen, for 34.9 billion yen. With the deal, JFE's stake in Universal Shipbuilding will increase to 85 percent while Zosen will hold the remaining 15 percent. JFE said the move is aimed at further increasing Universal Shipbuilding's business efficiency and profitability. Source: Thomson Financial News

Hyundai Heavy Industries was down 4,500 won or 1.2 percent at 380,000 won, Samsung Heavy Industries was off 600 won or 1.9 percent to 30,400 won and Daewoo Shipbuilding & Marine Engineering fell 300 won or 0.8 percent to 39,300 won. Hyundai Motor was down 1,300 won or 1.9 percent at 67,600 won and Kia Motors down 50 won or 0.5 percent at 10,400 won. The mainboard KOSPI was down 0.5 percent. Fears are mounting that key steel makers could jack up product prices to reflect higher cost of raw materials, including iron ore and coal. POSCO and Nippon Steel said Monday that they have agreed to a 65 percent increase in iron ore contract prices with Brazil's Companhia Vale do Rio Doce, which will set a global benchmark.

Cal Dive International, Inc. expects first quarter diluted earnings per share to fall in a range of 8 to 10 cents, below the 11 cent minimum of the company's earlier guidance for the quarter. Analysts surveyed by research firm Thomson Financial/First Call on average expect Cal Dive to report a profit of 12 cents per share in the first quarter. Since this reduction is primarily the result of work being shifted into the second quarter, the company reaffirmed its guidance of 85 to 95 cents in earnings for the full year. Vice Chairman S. James Nelson, Jr. noted, "Our first quarter forecast assumed that the large Nansen/Boomvang project would be substantially completed, including the tie-in work performed by CDI vessels.

Driven by the sustained high price per barrel of oil, oil majors Chevron and Amerada Hess today announced outstanding financial results for the second quarter. Chevron, the No. 2 U.S. oil company, posted second-quarter profits which more than doubled, matching analysts' expectations, thanks to stronger oil and natural gas prices. Second-quarter earnings excluding special items rose to $1.14 billion, or $1.75 a diluted share, from $484 million, or 73 cents a diluted share, in the year ago period, the company said. Meanwhile, Amerada Hess Corp. said lofty oil and natural gas prices resulted in sharply higher second-quarter earnings that surpassed analysts' expectations.

Offshore oil and gas driller Global Marine Inc. said 2Q earnings were flat versus a year ago but surpassed Wall Street expectations as oil companies gradually regained their appetite for drilling in response to strong oil and gas prices. Net income was $28.1 million, or 16 cents per share, virtually unchanged from $28.2 million, or 16 cents per share, in the second quarter of 1999. Analysts had expected earnings of 14 cents a share, according to First Call/Thomson Financial. CEO Bob Rose said high oil and natural gas prices were causing oil companies to overcome their initial hesitance and increase their drilling budgets for finding and producing new oil and gas reserves.

Offshore oil and gas driller Global Marine Inc.'s second-quarter earnings were flat versus a year ago but surpassed Wall Street expectations as oil companies gradually regained their appetite for drilling in response to strong oil and gas prices. Net income was $28.1 million, or 16 cents per share, virtually unchanged from $28.2 million, or 16 cents per share, in the second quarter of 1999. Analysts had expected earnings of 14 cents a share, according to First Call/Thomson Financial. Chief Executive Officer Bob Rose said high oil and natural gas prices were causing oil companies to overcome their initial hesitance and increase their drilling budgets for finding and producing new oil and gas reserves.

Diamond Offshore Drilling Inc.'s second-quarter earnings plunged 93 percent because strong oil prices have not yet fuelled recovery in its main area of operation: mid-depth offshore drilling markets. Net income for the quarter totaled $3.6 million, or 3 cents per share, down from $53.2 million, or 37 cents per share, in the second quarter of 1999. Analysts had expected earnings of 5 cents a share, according to First Call/Thomson Financial. Diamond Offshore's revenues also fell sharply, to $143.3 million from $215.3 million, mainly due to sharply lower contributions from semi-submersible rigs drilling in medium water depths. "The mid-water market remains weak and that has primarily contributed to the decline in earnings…

Barge operator Kirby Corp. said its third-quarter profit would miss Wall Street expectations by about 10 percent because of a fall off in refined petroleum shipments and higher fuel prices. Houston-based Kirby, which operates a fleet of barges and towing vessels transporting chemicals, refined petroleum and agricultural goods on U.S. inland waterways, said in a statement its third-quarter profit would be between 36 cents and 38 cents per share. Wall Street analysts had been expecting Kirby to report a profit of $0.41 cents per share, according to research firm First Call/Thomson Financial. A year earlier it had earned $0.34 cents per share. Refined product volumes were strong in the first and second quarters, but weakened during the third quarter, the company said.

Chevron Corp. said third-quarter profit surpassed expectations, with earnings more than doubling on the back of surging oil and natural gas prices. The oil company, which earlier this month unveiled a takeover bid for rival Texaco Inc., said third-quarter earnings excluding special items rose to $1.65 billion, or $2.53 a diluted share. In the corresponding period a year ago, it earned $702 million, or $1.07 per diluted share. Revenues rose to $13.6 billion from $10.2 billion in a quarter in which the company posted sharply higher results than analysts had expected. On average analysts had forecast earnings of $1.99 a share for the company, according to First Call/Thomson Financial, which tracks estimates.

Military shipbuilder Litton Industries Inc. on Wednesday reported lower fiscal first-quarter earnings, but surpassed Wall Street forecasts due to strength in its recently refocused core operations. Litton, the largest builder of non-nuclear ships for the U.S. Navy, reported a net profit of $44.9 million, or $.97 per share, for the quarter ended Oct. 31, down from $49.9 million, or $1.07 a share, a year earlier. Analysts had expected earnings of $.95 a share, according to tracking firm First Call/Thomson Financial. Excluding discontinued operations, Litton posted earnings of $34.4 million, or $.74 per share, versus $36.3 million, or $.78 per share, a year ago. Total sales and service revenues reached $1.08 billion in the quarter, up from $999.9 million in the same quarter last year.

Military ship and submarine builder Newport News Shipbuilding Inc. on Friday posted flat fourth-quarter earnings, but beat targets in part on a ramp-up in activity on the Virginia-class submarine and a stock buyback that cut the number of shares outstanding. For 2001, the company said revenues would be even with last year, as first-quarter revenues are hurt by submarine volume reported in the last quarter of 2000. Still, per-share profits should grow due to improved margins. Virginia-based Newport News, maker of the world's largest warships, reported fourth-quarter net income of $24 million, unchanged from a year ago. On a per share basis…

The big cruise lines have been steadily filling their rapidly expanding fleets with passengers looking to escape an especially harsh North American winter, but as they get ready to release quarterly results, Wall Street is worried that ticket prices may not be high enough. Analysts are expecting profit declines for the winter quarter from the top three cruise lines, starting with industry leader Carnival Corp., which plans to release its fiscal first-quarter results on Wednesday (March 21, 2001). Cruise stocks, including those of Royal Caribbean, the world's No. 2 operator, and Britain's P&O Princess Cruises, which ranks third, have in recent weeks given up much of their bounce back gains after a sustained decline last year.

Offshore oil drilling contractor Global Marine Inc. said on Tuesday its first-quarter earnings tripled, in line with expectations, as demand for contract drilling in core markets offset a lull in demand for its management services. Houston-based Global Marine, which has 33 drilling rigs worldwide and is the world's largest offshore-drilling management firm, reported first-quarter net income of $40.7 million, or $.23 a share. That compared with net income of $12.6 million, or $.7 a share, a year earlier, the company reportedly said. Wall Street analysts had estimated the company would report quarterly earnings ranging between $.22 to $.28 a share with a consensus of $.24 a share, according to research firm Thomson Financial/First Call.

Double Hull Tankers Inc. said third-quarter net income fell to $6.9m, or 23 cents a share, which met the mean estimate of analysts polled by Thomson Financial. In the year-ago period, the company posted net income of $8.4 million, or 28 cents a share. Revenue for the St. Helier, Channel Islands-based tanker operating company fell to $20.1 million from $21.3 million a year ago, as a result of low refinery demand, and a market that was weaker than expected. The mean of three analysts was also $20.1 million. Source: Thomson Financial News

Keppel Corp said its unit Keppel FELS Ltd has won a $206m contract from Floatel International Ltd to build a 500-men semi-submersible vessel. The vessel is expected to be delivered by December 2010. This is the second contract awarded to Keppel FELS by Floatel in six months. Source: Thomson Financial

ECM Libra Avenue Investment Bank said it is keeping its 'buy' call on Boustead Heavy Industries Corp Bhd (BHIC) because it expects the Malaysian shipbuilder to get more contracts, especially for naval vessels. Boustead Holdings Bhd owns 65 percent of BHIC and the Malaysian armed forces pension fund, Lembaga Tabung Angkatan Tentera, is the major shareholder in Boustead Holdings. BHIC will deliver its third patrol vessel to the Royal Malaysian Navy, a fourth is scheduled for delivery early in December and two more will be delivered by 2009, ECM said in a note. The company will be busy for the next 10 years, reportedly with another 21 patrol vessels in the pipeline.

Italian tanker company Finaval SpA reportedly announced the proceeds of its initial public offering will be used to double the capacity of its fleet and to seize any future M&A opportunity. Finaval operates 13 crude oil and product tankers, of which 6.5 are owned, and has six Aframax crude oil tankers on order with Samsung Heavy Industries Co for a total cost of $380m, plus an option for another four. The new Aframax tankers will be delivered by between the first quarter of next year and the fourth quarter of 2010, allowing the group to nearly double its transport capacity to 1 million tonnes from 600,000. Finaval will be offering some 10.4 million shares, all stemming from a capital increase, until Nov.

Shares of Cosco Corp. Singapore, a shipping company that owns a shipyard in China, rebounded after announcing it secured an order to build 29 bulk carriers worth $1.34b. The news has provided the stock a much needed shot in the arm as investors have been selling the stock in the last two days on concerns its shareholder, shipyard operator SembCorp Marine Ltd., may sell more shares in the company. SembCorp Marine said it had sold 39 million Cosco shares, taking its holding to 111.4 million shares. The latest orders put Cosco's current order book at $6.4b, $6.2b of which were secured this year, according to Kim Eng Securities. The brokerage believes Cosco could secure another $900m in orders based on existing options with customers.

According to Thomson Financial, the Indonesian government launched a tender for 26 oil-and-gas blocks to boost the country's oil and gas production. The oil and gas blocks that were offered today include the Bawean II, East Bawean I, Situbondo, and the North East Madura blocks onshore and offshore East Java province, as well as the South Barito (onshore and offshore) and Mahakam Hilir (onshore) blocks on Kalimantan island. [Source: Thomson Financial]

Japanese shipbuilding and engineering company Mitsubishi Heavy Industries Ltd. will return to building large passenger ships next year in order to meet rising demand, according to a Thomson Financial report. The company suspended its passenger shipbuilding operations after a fire on a vessel that was under construction in October 2002, the business daily said. Mitsubishi Heavy will begin taking orders next year for large cruise ships that have more than 1,000 rooms and cost about 60-100 billion yen each, the report said. Because its mainstay Nagasaki shipyard will not have any extra production capacity until 2011, actual construction of the cruise ships is not likely to begin until 2012 or later, it said. [Source: Thomson Financial]

Overseas Shipbuilding Group Inc. reported third-quarter earnings of $26.6m, or 83 cents a share, down from a year-ago profit of $90.8m, or $2.29 a share. The latest results include a gain of $1.5m, or 5 cents a share, on vessel and securities sales. Last year's performance reflects a similar gain of $15.8m, or 39 cents a share. Revenue rose in the latest three months to $277.2m from $265.9m a year earlier. The mean estimate of analysts polled by Thomson Financial was for a profit of 74 cents a share in the September period. The company said total operating expenses swelled to $243.3m in the September quarter from $176.9m. [Source: Thomson Financial]

Tsakos Energy Navigation, the Greek oil tanker owner, recently reported better-than-expected third quarter earnings on an expanded fleet and a large capital gain. Net income for the third quarter ending Sept. 30 soared to $50m, or $2.61 per share, up from $44.5m, or $2.33 per share, in the previous year. The third quarter included capital gains of $31.8m compared to capital gains of $13.3m in the previous year. Sales rose to $122.5m up from $115.2m a year ago. Analysts polled by Thomson Financial forecast earnings excluding items of $1.12 per share on sales of $106m. Although it was a seasonably weak third quarter due to refiners scaling back crude oil demand ahead of the switch to heating oil, Tsakos was able to realize $96m in capital gains because of the sale of three tankers.