Shipping Turns From Banks to Equity Markets for Cash

Posted by George Backwell
Friday, April 18, 2014
File photo

Shipping companies are turning to equity markets to fill a growing funding gap, betting that investors hungry for decent returns will provide capital to a sector recovering from its worst downturn since the 1980s.

Ship owners ordered large numbers of vessels between 2007 and 2009, just as the global economy sank into crisis. Prospects have brightened in recent months as world trade picks up and the ship glut is absorbed.
The industry still faces a multi-billion dollar financing hole after banks, its traditional source of funding, cut back lending to boost capital in the wake of the financial crisis.

Alternative investors such as private equity firms have been snapping up shipping assets including loan portfolios from the banks. Scenting an opportunity, shipping companies are now trying to take advantage of strong equity markets to seek out funds through initial public offerings (IPOs).

Avance Gas listed this week in Oslo. Germany's Hapag-Lloyd and Chilean peer Vapores agreed this week to a tie-up that will include a flotation in 2015. Principal Maritime Tankers Corp, backed by private equity group Apollo Global Management, last week filed with U.S. regulators to raise up to $100 million in an IPO.

Greece's Quintana Shipping and Bermuda-addressed Nordic American Offshore both filed in March to raise $100 million and $115 million respectively in New York IPOs.

Jesper Plenov, global head of equity capital markets at Danske Bank, said the bank placed A-shares in top shipping and energy group A.P. Moller-Maersk for 3.6 billion Danish crowns ($665.70 million) within just an hour and a half.

But the dash into shipping stocks comes with a health warning. "Hopefully ... enthusiasm with offerings will not get out of control and encourage poor quality owners and projects on the roadshow circuit," said Basil Karatzas, a U.S. based ship finance adviser.

(Additional reporting by Ole Mikkelsen in Copenhagen, Mia Shanley in Stockholm and Victoria Bryan in Frankfurt; editing by Carmel Crimmins and Tom Pfeiffer)

 

Maritime Reporter April 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Aqueos Adds OSV to Service Line

Aqueos Corporation, a provider of subsea services to the Gulf of Mexico and Pacific Coast, has entered into a long term time charter of the OSV Clean Ocean, a California

FVF Chenega Completes Sea Trials with MTU Engines

Over the past several months, FVF Chenega, a high-speed car ferry in the Alaska Marine Highway System (AMHS) fleet, was repowered with four new MTU Series 4000 engines.

Diana Containerships Announces Time Charter Contract

Diana Containerships Inc., a global shipping company specializing in the ownership of containerships, has announced that, through a separate wholly-owned subsidiary,

Contracts

Intertek Provides Oil Condition Monitoring for Britannia

Intertek’s Farnborough laboratory is supporting P&O Cruises’ new flagship Britannia by providing independent oil condition monitoring (OCM) services which monitor

Aqueos Adds OSV to Service Line

Aqueos Corporation, a provider of subsea services to the Gulf of Mexico and Pacific Coast, has entered into a long term time charter of the OSV Clean Ocean, a California

Diana Containerships Announces Time Charter Contract

Diana Containerships Inc., a global shipping company specializing in the ownership of containerships, has announced that, through a separate wholly-owned subsidiary,

Shipbuilding

FVF Chenega Completes Sea Trials with MTU Engines

Over the past several months, FVF Chenega, a high-speed car ferry in the Alaska Marine Highway System (AMHS) fleet, was repowered with four new MTU Series 4000 engines.

GE Gas Turbines to Power Turkish Corvettes

GE Marine announced it has signed a contract with Savunma Teknolojileri Mühendislik Ve Ticaret A.Ş. (STM), Ankara, Turkey, whereby GE will provide STM with LM2500 gas turbines.

Cosco Corp Profit Down

Cosco Corporation (Singapore) Limited, offshore marine engineering, shipbuilding, ship repair & conversion and dry bulk shipping group, has posted a net profit of SGD4.

Finance

FVF Chenega Completes Sea Trials with MTU Engines

Over the past several months, FVF Chenega, a high-speed car ferry in the Alaska Marine Highway System (AMHS) fleet, was repowered with four new MTU Series 4000 engines.

India to Sign Port Deal with Iran

India to build port in Iran to get more trade with CIS and Gulf India will push ahead this week with plans to build a port in southeast Iran, two sources said,

XPO Acquires Port Trucker Bridge Terminal

XPO Logistics has made a deal to acquire Bridge Terminal Transport (BTT) Services, one of the largest motor carriers serving ports and intermodal facilities in the United States, for $100 million.

 
 
Maritime Careers / Shipboard Positions Maritime Security Naval Architecture Navigation Port Authority Salvage Ship Electronics Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2094 sec (5 req/sec)