Metrostar News

The world’s largest listed crude-tanker operator Euronav is planning to buy 18 tankers for around $1.2 billion in one of the biggest deals involving oil carriers this year, reports WSJ. The reports says that Euronav is in advanced discussions with Greece’s Metrostar to buy eight very large crude carriers, The deal to buy four of the VLCCs, plus an option for another four, will be signed as early as next week. Euronav also is in the market to buy 10 smaller Suezmax tankers from Southport, Conn.-based Principal Maritime Tankers Corp. However, Euronav stated that company policy is no to comment on market speculation but it can confirm that it is in advanced discussions to acquire four VLCCs and if concluded…

Far East shipbuilders scoop the pool of latest big ship newbuilding orders reports Clarkson Hellas in their latest Weekly  S+P Bulletin. This week Clarkson Hellas say that Bocimar has announced an order for two firm 206,000 DWT Newcastlemax and one firm 180,000 DWT Capesize at Imabari, with delivery of all three vessels in 2016. Also at Imabari, Wisdom Marine announced an order for two firm 81,000 DWT Kamsarmax. Pricing is understood to be in the region USD 33-Millionper vessel with delivery in 2016.

Rizhao Steel (Cara Shipping) are understood by Clarkson Hellas to have contracted two firm 180,000 DWT Capesize at both Dalian and Qingdao Beihai, with an additional two options at the latter. These orders are understood to have been concluded in the middle of this year, with delivery of the first vessel from Beihai lined up for 2015 and the remainder all due in 2016. Following a limited number of new orders so far this year, the VLCC orderbook, which currently stands at around 50 vessels, has seen the addition of two firm plus two option 300,000 DWT crude tankers from Metrostar at HHI. Although pricing remains undisclosed delivery of both firm vessels is planned for the first half of 2016.

There has been activity in the VLCC, Product Tanker, Container Ship, LNG Carrier, and Car Carrier newbuild markets. China Merchants Energy Shipping (CMES) are reported to have ordered three plus three 320,000 dwt VLCCs at Shanghai Waigaoqiao Shipbuilding with delivery from end of 2014. In the products sector, Clients of Metrostar Management have contracted six firm plus four option MR tankers from SPP Shipbuilding in Korea for delivery from end of 2014. These vessels replace a previous order for four 3,600 TEU container vessels originally placed by Metrostar in 2010. Clients of Stena meanwhile are reported to have declared the 7th and 8th options in their series of 50,000 dwt chemical parcel tankers at Guangzhou Shipyard International.

Takes Delivery of Genco Spirit. Genco Shipping & Trading Limited (NYSE: GNK) today announced that it has taken delivery of the Genco Spirit, a 34,432 dwt Handysize newbuilding. The Genco Spirit is the final vessel to be delivered to the Company under Genco's agreement previously announced on June 9, 2010 to acquire five Handysize vessels from companies within the Metrostar group of companies. The Genco Spirit was delivered to its charterer, Cargill International S.A., to commence a time charter for 34.5 to 37.5 months. The rate for the time charter will be linked to the Baltic Handysize Index (BHSI), incorporating a floor of $8,500 and a ceiling of $13,500 daily, with a 50% profit sharing arrangement to apply to any amount above the ceiling.

Genco Shipping & Trading Limited (NYSE: GNK) today announced that it has taken delivery of the Genco Avra, a 35,000 dwt Handysize newbuilding. The Genco Avra is the third of five vessels to be delivered to the Company under Genco's agreement previously announced on June 9, 2010 to acquire five Handysize vessels from companies within the Metrostar group of companies. The Genco Avra is expected to be delivered to its charterer, Cargill International S.A., on or about May 14, 2011 to commence a spot market-related time charter for 34.5 to 37.5 months.

General Maritime Corporation (NYSE: GMR) today reported its financial results for the three months ended March 31, 2011. Excluding the $3.3 million non-cash loss relating to the disposal of vessels and vessel equipment as well as the $1.8 million impairment of goodwill and $0.1 million other income, the Company recorded a net loss of $26.5 million or $0.31 basic and $0.31 diluted loss per share for the three months ended March 31, 2011, compared to net loss of $9.3 million or $0.17 basic and $0.17 diluted loss per share for the three months ended March 31…

General Maritime Corporation (NYSE: GMR) reported its financial results for the three and nine months ended September 30, 2010. The Company recorded a net loss of $26.0 million or $0.30 basic and $0.30 diluted loss per share for the three months ended September 30, 2010 compared to net income of $14.8 million or $0.27 basic and $0.27 diluted earnings per share for the three months ended September 30, 2009. The decrease in net income was primarily the result of a 31.9% decrease in TCE to $19,109 per day for the three months ended September 30, 2010 compared to $28,077 per day for the prior year period, as well as a $13.6 million increase in net interest expense to $21.4 million for the three months ended September 30, 2010 compared to $7.7 million for the prior year period.

Baltic Trading Limited (NYSE: BALT), a drybulk company focused on the spot charter market, announced that it has taken delivery of the Baltic Breeze, a Handysize newbuilding. The Baltic Breeze is the final vessel to be delivered to the company under Baltic Trading's agreement previously announced on June 9, 2010 to acquire three Handysize vessels from companies within the Metrostar group of companies. The company has signed a novation agreement for the vessel's current time charter with Cargill International S.A., for an initial duration of 45.5 to 50.5 months and a minimum expiration of August 2014. The rate for the spot market-related time charter will be based on 115% of the average of the daily rates of the Baltic Handysize Index (BHSI), as reflected in daily reports.

Genco Shipping & Trading Limited (NYSE:GNK) announced that it has taken delivery of the Genco Bourgogne, a 2010-built Supramax vessel, and the Genco Bay, a 2010-built Handysize vessel. The Genco Bourgogne is the ninth vessel to be delivered to the company under its agreement previously announced on June 25, 2010 to acquire 13 Supramax vessels from Setaf SAS, a wholly owned subsidiary of Bourbon SA. The Genco Bay is the is the second of five vessels to be delivered to the company under its agreement previously announced on June 9, 2010 to acquire five Handysize vessels from companies within the Metrostar group of companies. The company…

Genco Shipping & Trading Limited (NYSE:GNK) reported its financial results for the three and six months ended June 30, 2010. The following financial review discusses the results for the three and six months ended June 30, 2010 and June 30, 2009. --  Maintained short term time charter strategy for Capesize vessels up for renewal due to seasonal weak rate environment. The company recorded net income attributable to Genco shareholders for the second quarter of 2010 of $36.8 million, or $1.17 basic and $1.16 diluted earnings per share. Comparatively, for the three months ended June 30, 2009, our net income attributable to Genco shareholders was $37.6 million or $1.20 basic and diluted earnings per share.

General Maritime Corporation (NYSE:GMR) reported its financial results for the three and six months ended June 30, 2010. The company recorded a net loss of $14.3 million or $0.25 basic and $0.25 diluted loss per share for the three months ended June 30, 2010 compared to net income of $7.3 million or $0.13 basic and $0.13 diluted earnings per share for the three months ended June 30, 2009. The decrease in net income was primarily the result of an 18.1% decrease in TCE to $22,633 per day for the three months ended June 30, 2010 compared to $27,649 per day for the prior year period, as well as an $11.2 million increase in net interest expense to $19.0 million for the three months ended June 30, 2010 compared to $7.8 million for the prior year period.

Genco Shipping & Trading Limited (NYSE:GNK) announced that it has entered into an agreement with Bourbon SA to acquire 16 Supramax vessels, including two newbuildings, from Setaf SAS, a wholly owned subsidiary of Bourbon SA, for an aggregate purchase price of $545m. The acquisition is subject to the completion of customary documentation and closing conditions. Genco intends to retain 13 of the vessels, 12 of which are expected to be delivered to Genco in the third quarter of 2010, with the remaining vessel scheduled to be delivered in the first quarter of 2011. Six of these 13 vessels are secured on time charters with remaining durations between approximately one month and 54 months. The transfer of these time charters to Genco is subject to the charterers' consent.

Genco Shipping & Trading Limited (NYSE:GNK) announced that it has taken delivery of the Genco Commodus, a 170,500 dwt Capesize newbuilding. The Genco Commodus is the seventh vessel to be delivered to the Company under Genco's previously announced agreement on July 18, 2007 to acquire nine Capesize vessels from companies within the Metrostar Management Corporation group. The Genco Commodus is expected to be delivered to its charterer, Morgan Stanley Capital Group Inc., on or about July 23, 2009 to commence a time charter for 23 to 25 months at a rate of $36,000 per day, less a 5% third party brokerage commission. Currently, Genco has approximately 68% of its fleet's estimated available days secured on contracts for the remainder of 2009 and 44% for 2010.

Genco Shipping & Trading Limited (NYSE:GNK) has taken delivery of the Genco Hadrian, a 170,500 dwt Capesize newbuilding. The Genco Hadrian is the sixth vessel to be delivered to the Company under Genco's previously announced agreement on July 18, 2007 to acquire nine Capesize vessels from companies within the Metrostar Management Corporation group. The Company has commenced a time charter upon delivery of the Genco Hadrian with Cargill International S.A., for 46 to 62 months at a gross rate of $65,000 per day, less a 5% third party brokerage commission. The charter, which is due to expire between October 2012 and February 2014, also includes a 50 percent index-based profit sharing component.

ABB, a power and automation technology group, recently won six contracts collectively worth more than $150m to supply main electrical systems for drilling rigs and drill-ships built in Asia. The orders were booked during the third quarter of 2008. Among the new orders are three deepwater drilling rigs now under construction at the Jurong Shipyard in Singapore, two drill-ships (Stena DrillMAX ICE and the Pride #4 drill-ship) to be built at Samsung Heavy Industries and another drill-ship for Metrostar to be built at Hyundai Heavy Industries in Korea. Matti Reinikkala, head of ABB’s Process Automation division attributes the recent commercial success to the group’s global strategy.

Limited announced that it has agreed to acquire three 2007-built drybulk vessels from Bocimar International N.V. and Delphis N.V., for an aggregate purchase price of approximately $257.0 million. The acquisition is subject to the completion of customary additional documentation and closing conditions. The three vessels, comprised of two Panamax vessels and one Supramax vessel, are expected to be delivered to Genco during the third and the fourth quarters of 2008. Upon completion of the acquisition, and including the four remaining Capesize vessels to be acquired from companies within the Metrostar Management Corporation group, Genco's fleet will consist of 35 drybulk vessels with a total carrying capacity of approximately 2,910,000 dwt and an average age of approximately 6.6 years.

Moody's Investors Service has confirmed the debt ratings of General Maritime Corporation ("General Maritime"), completing a review for possible downgrade that was initiated on March 29, 2004. The confirmed ratings include: $250 million senior unsecured notes due 2013, rated B1 Senior Implied rating of Ba3 Senior Unsecured Issuer rating of B1 The rating outlook is stable. General Maritime's ratings had been placed on review for possible downgrade following the announcement by the company of its proposed purchase of Soponata SA for approximately $415 million. At the time of the announcement, Moody's was concerned about the increased levels of debt associated with this acquisition and its effect on near term liquidity…

Moody's Investors Service has confirmed the debt ratings of General Maritime Corporation, completing a review for possible downgrade that was initiated on March 29, 2004. The confirmed ratings include: $250 million senior unsecured notes due 2013, rated B1 Senior Implied rating of Ba3 Senior Unsecured Issuer rating of B1 The rating outlook is stable. General Maritime's ratings had been placed on review for possible downgrade following the announcement by the company of its proposed purchase of Soponata SA for approximately $415 million. At the time of the announcement, Moody's was concerned about the increased levels of debt associated with this acquisition and its effect on near term liquidity…

Genco Shipping & Trading Limited announced that it has taken delivery of the Genco Augustus, a January 2007-built 180,000 dwt Capesize vessel. The Genco Augustus is the first vessel to be delivered to the Company under Genco's previously announced agreement on July 18, 2007 to acquire nine Capsize vessels from companies within the Metrostar Management Corporation group. The Genco Augustus is currently on charter with Cargill International S.A. at a rate of $45,263 per day, less a 5% third party brokerage commission. The charter is due to expire between December 2009 and April 2010.

Genco Shipping & Trading Limited has taken delivery of the Genco Tiberius, a January 2007-built 175,000 dwt Capesize vessel. The Genco Tiberius is the second vessel to be delivered to the Company under Genco's previously announced agreement on July 18, 2007 to acquire nine Capesize vessels from companies within the Metrostar Management Corporation group. The Genco Tiberius is currently on charter with Cargill International S.A. at a rate of $45,263 per day, less a 5% third party brokerage commission. The charter is due to expire between January 2010 and May 2010.

Genco Shipping & Trading Limited (NYSE: GNK) announced that it has taken delivery of the Genco Titus, a 177,000 dwt Capesize newbuilding. The Genco Titus is the fourth vessel to be delivered to the Company under Genco's previously announced agreement on July 18, 2007 to acquire nine Capesize vessels from companies within the Metrostar Management Corporation group. The Company expects to deliver the Genco Titus to its charterer, Cargill International S.A., on November 17, 2007 to commence a time charter for 48 months at a gross rate of $45,000 per day, less a 5% third party brokerage commission. The charter, which is due to expire in November 2011, also includes a 50 percent index-based profit sharing component based on the daily BCI index.

Euronav NV entered into an agreement with Metrostar to buy four VLCCs, the Crude Guardian (1993 - 290,927 dwt), the Crude Creation (1998 - 298,304 dwt), the Crude Topaz (2002 - 319,470 dwt) and a newbuilding (± 318,000 dwt) to be delivered in May 2005 for USD 477.5 million en bloc. Delivery is expected to take place in March for the Crude Guardian and the Crude Creation and in April for the Crude Topaz. The vessels will be employed in the Tankers International pool that currently operates 45 VLCCs and ULCCs. The vessels will be acquired by Euronav NV, a Belgian company and will fly the Belgian flag. Given the market outlook, the Executive Committee is confident that the addition of the 4 vessels will be accretive to both growth and earnings of the company.