Safmarine MD, Safren CEO Step Down
South Africa's Safmarine Container Lines reported that its Managing Director and Safren Chief Executive Tony Farr had stepped down. Moeller, which owns the world's leading container shipping company Maersk, acquired Safmarine's container shipping assets in February for $240 million cash plus the assumption of $115 million debts.
Safmarine, Golden Ocean Avoid Court Fight
South African Marine Corp Ltd. (Safmarine) said that a court bid by another firm seeking its liquidation had been withdrawn and that the company would continue with business as usual. The court application was lodged by Liberian-registered charter firm Golden Ocean to the Cape High Court in June, arguing that Safmarine had stripped itself of income-earning assets in a wider group restructuring. Golden Ocean claimed the restructuring move by Safmarine - a ship owner and operator - would make it impossible for the group to meet its current charter obligations. "Golden Ocean has withdrawn the application because they believe that the balance sheet of Safmarine is now strong enough," Jan Rabie, Safmarine executive director said.
AP Moeller Shares Fly High In '99
Danish shipping and oil group A.P. Moeller shares surged 95 percent in 1999, bolstered by a 150 percent rise in crude oil prices and improved freight rates, and analysts predict solid profits in 2000 along with more takeovers. Earnings per share (EPS) for D/S 1912 is expected to climb to 2,762 crowns this year and rise a further 24 percent to 3,424 crowns next year, with D/S Svendborg seen reaching 3,880 crowns in the current fiscal year and 4,917 crowns in 2000. Moeller's Maersk container liner bought two of its competitors in 1999, South African Safmarine Container Lines in February and U.S. CSX Corp's Sea-Land in July, cementing its position as the world's leading container liner.
Safmarine Adds Three Ships To Schedule
South African shipper Safmarine will add three more ships to its current schedule serving the Mediterranean and Africa on Feb. 1. The new ships bring the number of vessels offering a weekly service to seven. Their route, known as the Lisa String, connects Portugal and Spain with Angola, Namibia and South Africa. Maersk Sealand, a sister company within the AP Moller Group which owns Safmarine Container Lines, will be a partner and vessel provider for the Lisa String.
