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

People & Company News

Stena Sonangol Suezmax Pool Rings in 10 Years

Stena Sonangol Suezmax Pool celebrates 10 years of collaboration and trading.   The 10th anniversary celebrations took place in London on May 20. Today on May 26 it is Houston’s turn and,

UNOLS Seeks Fleet Improvement Committee Chair

The University-National Oceanographic Laboratory System (UNOLS) informs it is seeking nominations to fill a Fleet Improvement Committee (FIC) Chair position.   The position,

Former Petrobras Exec Sentenced to 5 Years Jail

A Brazilian judge sentenced a former international director at state-run oil firm Petroleo Brasileiro SA to five years in prison for money laundering on Tuesday,

Contracts

Former Petrobras Exec Sentenced to 5 Years Jail

A Brazilian judge sentenced a former international director at state-run oil firm Petroleo Brasileiro SA to five years in prison for money laundering on Tuesday,

Statoil Awards Hull Cleaning Contract to GAC

Eco-friendly HullWiper technology to fight fouling and enhance efficiency for oil and gas company fleet    GAC EnvironHull has signed a contract with the international

Kongsberg to Equip 2 New Jack-Up Vessels

Kongsberg has been selected to deliver a complete Electro, Instrument & Telecom (EIT), propulsion, safety, automation and dynamic positioning package for two new Gusto NG-2500X DP II design,

Shipbuilding

CAT’s New Dual Fuel Engine M 4G DF

At the beginning of 2015 the exhaust limit values for sulfur oxides (SOx) grew ever tighter in emission controlled areas. And with the start of 2016, nitrogen oxides

Bordelon Takes Delivery of the Shelia Bordelon

Bordelon Marine has taken delivery of the M/V Shelia Bordelon, its next Stingray 260 DP2, Ultra-Light Intervention Vessel (ULIV).   This highly specialized vessel

Natural Gas Articulated Conduit System Patented

Elliott Bay Design Group (EBDG) announced that long-time partner Moran Towing Corporation has been granted US Patent 8,967,174 for "Articulated conduit systems

Finance

Former Petrobras Exec Sentenced to 5 Years Jail

A Brazilian judge sentenced a former international director at state-run oil firm Petroleo Brasileiro SA to five years in prison for money laundering on Tuesday,

Rising from the Ashes

The federal government is now taking steps to reverse its 2010 decision to terminate the nation’s LORAN program. The LORAN program was initiated during World War II,

Training: Cutting Costs While Remaining Cutting Edge

Businesses are operating in tough economic times, with budgets being significantly cut during the current industry downturn. Unfortunately, when lowering costs is a key priority,

 
 
Maritime Careers / Shipboard Positions Maritime Security Naval Architecture Offshore Oil Pipelines Pod Propulsion Port Authority Ship Electronics Shipbuilding / Vessel Construction Sonar
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: 0.2968 sec (3 req/sec)