BW Group's 1H Performance Better than Expected
Moody's Investors Service says that operating results of BW Group (Ba2 negative) in 1H 2012 were better than expected, largely because of the higher charter rates achieved by the company for its vessels. "We had expected BW Group's performance to weaken, as many of its vessels were coming off profitable time-charters in 1H and it was increasingly exposed to deteriorating spot-market rates. However, spot rates, especially in the gas carrier segments, either held up or improved," says Vikas Halan, a Moody's Vice President and Senior Analyst. The average time charter equivalent or TCE income per day for BW Group's very large gas carriers and large gas carriers rose over 40% from a year ago. The average TCE for very large crude carriers grew about 5%.
Moody's Downgrades ACL
Moody's Investors Service downgraded the ratings of American Commercial Lines LLC's $535 million senior secured bank facility to B1 from Ba2 and the $300 million 10.25% senior unsecured notes to B3 from B1. The Senior Implied rating was lowered to B2 from Ba3 and the issuer rating was lowered to Caa1 from B2. The rating outlook was changed to stable from negative. The ratings downgrades is prompted by the substantial deterioration in operating performance resulting from a reduction in grain exports to Asia, higher fuel costs, and low water levels and unusual ice conditions on its U.S. transport routes which severely impacted the fourth quarter of 2000.
Stolt Offshore To Report 2003 Losses
Stolt Offshore S.A. announced that following a review of information which became available in recent project reporting and a subsequent major project review led by CEO Tom Ehret, it has identified substantially poorer than anticipated performance and cost overruns on three major EPIC contracts and several smaller projects. In addition, it is expected that activity levels will be slightly lower than previously anticipated. Stolt Offshore at this time expects its full year loss to be in the range of $100 million to $125 million, subject to further review at the time of completion of the previously announced Blueprint for financial recovery in July. A substantial portion of this loss will be taken in the second quarter.
