Investec News

Gulf Marine Services said on Wednesday Chief Executive Officer Duncan Anderson has resigned as the oilfield industry contractor warned a reassessment of its ships and contracts showed profit would fall this year, kicking its shares 12% down.The Abu Dhabi-based offshore services specialist said a review by new finance chief Stephen Kersley of its large E-class vessels operating in Northwest Europe and the Middle East pointed to 2019 core earnings of between $45 million and $48 million…

The boss of Rolls-Royce wants to speed up change at the British engine maker, which is battling to recover from a string of profit warnings, saying more needed to be done to increase the group's resilience in the face of uncertain conditions. The British company, which makes engines for fighter jets, commercial aircraft, ships and nuclear submarines, is one year into a programme to cut costs and simplify operations after a slowdown in several markets hit profits. Chief Executive Warren East said cost savings would be towards the top of his target range, but he was not complacent.

Bank of Ireland said it is winding down its shipping business, joining other banks looking to cut non-core lending and exposure to an industry suffering its worst downturn. Many European banks are already bogged down by a sluggish economy and face tough capital demands from regulators which are eroding profitability, leaving many looking for ways to shore up their balance sheets. Parts of the shipping industry are suffering their deepest ever downturn as international trade slows. Around 90 percent of world trade is transported by sea. "As previously stated, Bank of Ireland no longer lends within the shipping finance sector and we have been winding down the portfolio," the bank, Ireland's largest by assets, told Reuters on Tuesday.

On July 15, 2016, Victoria International Container Terminal (VICT) signed a syndicated loan facility worth AUD 398 million (approximately USD 300 million) with seven leading global financial institutions, namely: Citibank N.A., KFW IPEX-Bank, Standard Chartered Bank as Mandated Lead Arrangers and Bookrunners, Bank of China Limited, DBS Bank Ltd., Investec Bank PLC as Mandated Lead Arrangers, and Cathay United Bank as Lead Arranger. The facility provides significant financial flexibility with long-dated tenors of 7, 10, and 16 years. Finnvera, the Finland based export credit agency, also participated in the transaction by providing a guarantee for a portion of the facility.

Glencore's debt and equity plunged on Monday on the back of a damning analyst note, with only the commodity firm's shortest bonds maturing this year managing to resist the sell-off. But the outlook for the debt-laden firm does not appear to be as bleak as the headline figures suggest. Glencore still has access to billions of dollars of undrawn bank loans and, with the company teetering on the edge of losing its investment grade rating, some investors think dropping into junk territory will spark a rally in the issuer's debt. While Angle American's five-year CDS reacted by widening 10bp to 423bp, the drama lay in Glencore's CDS moves. The firm's five-year CDS leapt by 214bp to 745bp, according to CreditViews. Those swaps were trading at 368bp in early September.

The Shipping Professional Network London (SPNL) has  released their full Future London report, an initiative that gathered the views and opinions of London’s young shipping professionals on what needs to be done for London to retain and improve its position as a global maritime capital. The report was led by Gustav Ellingsen, SPNL Immediate Past Chair and Claudio Chiste, SPNL Chairman who works at Investec Shipping & Marine Finance. “The driver behind the SPNL Future London project…

Shipping Professional Network in London (SPNL) hosted another well attended event, sponsored by DNV-GL and held at the UK Chamber of Shipping offices in London. Organized as an independent, autonomous foundation, DNV-GL serves a range of industries, with a special focus on the maritime and energy sectors. Established in 1864, the company has a global presence with a network of 300 offices in 100 countries, and is headquartered in Oslo, Norway. Martin, responsible for DNV-GL’s Maritime business in the UK and the Republic of Ireland…

When BG Group Plc announced last week it was shifting the headquarters of its oil and liquefied natural gas (LNG) trading operation to Singapore from Britain, it said the aim was to get closer to its customers. Analysts and consultants agreed that the growing importance of Japanese and Korean utilities in the LNG market meant the move would have clear logistical and commercial benefits. But they also said another motivation was likely at play: tax. "Tax is always a factor," said Bob Piller, a Swiss-based energy trading consultant who previously worked for commodities giant Vitol.

Commodity funds bounced in the first quarter from a 2013 loss, with the top performers in the Lipper Global Commodity group racking up double-digit returns after rallies in agriculture, natural gas and nickel. Supply disruptions provided opportunities across the asset class, but fund managers said only a few of these bullish fundamentals would persist into the second quarter and that some commodities are now over-valued. The average actively managed fund in the Lipper Global Commodity sector gained 4 percent in the first quarter, compared with a loss of 9.98 percent in 2013. "It got off to a strong start this year. Commodities outperformed equities for the first time in a while…

A divided U.S. appeals court has rejected BP Plc's bid to block businesses from recovering money over the 2010 Gulf of Mexico oil spill, even if they could not trace their economic losses to the disaster. By a 2-1 vote, the 5th U.S. Circuit Court of Appeals in New Orleans late Monday upheld a Dec. 24 ruling by U.S. District Judge Carl Barbier in New Orleans, authorizing the payments on so-called business economic loss claims. It also said an injunction preventing payments should be lifted. The decision is a setback for BP's effort to limit payments under a multi-billion dollar settlement over the April 20, 2010, explosion of the Deepwater Horizon drilling rig and rupture of BP's Macondo oil well. That disaster killed 11 people and triggered the largest U.S. offshore oil spill.

This year's fleet for the 68th Rolex Sydney Hobart Yacht Race in December reaches 60 already. 'Wild Oats Xl' the boat to beat. The boat to beat for line honours this year will be Bob Oatley‘s super maxi Wild Oats XI, skippered by Mark Richards. It was beaten into second place last year by Anthony Bell’s Investec Loyal, which won by a margin of only three minutes and eight seconds, the fourth closest finish in the history of the race. Wild Oats XI is the race record holder and has claimed line honours in five of the last seven Hobart races…