Oil Tanker Rates Soar
The cost of shipping crude surged to all destinations, amid speculation that bookings are increasing to load crude. According to a report in Bloomberg, the oil tanker rates soared to the highest in seven years amid an acceleration in the number of bookings and signs that the ships are being delayed when unloading due to a lack of space in on-land storage tanks. Day rates for 2 million-barrel carrying ships sailing to Japan from Saudi Arabia, the industry’s benchmark route, surged to $111,359, the highest since July 2008, according to the Baltic Exchange in London. Rates to the three destinations monitored by the Baltic Exchange in London all rose on Wednesday by 21 percent as measured by the industry’s standard Worldscale system.
Companies Offered 6% Share of Aker Solutions
Aker ASA has engaged ABG Sundal Collier Norge ASA and Arctic Securities ASA to explore the opportunity to acquire approximately 16.5 million shares (roughly 6% of the share capital) in Aker Solutions ASA, but with the possibility for Aker ASA at its full discretion to increase or decrease the number of shares to be acquired. The offer is carried out through a book building process. The managers will gather and accumulate sales orders from existing shareholders. All existing shareholders are invited to offer shares at a price level defined by the selling shareholder.
Dorian LPG Gets Finance for Scorpio Tankers Deal
US-based Dorian LPG has successfully placed 80,405,405 shares to Norwegian and international institutional investors to raise approximately $250 million intended to part pay for Dorian's recent acquistion of Scorpio Tankers' fleet of 11 Very Large Gas Carrier ("VLGC") newbuildings and an option to build two additional VLGCs. The Private Placement is expected to close on November 14, 2013, subject to satisfaction of certain customary closing conditions and the completion of the Transaction. Upon closing of the Private Placement, the Company will have 213,579,150 shares issued and outstanding. The Company plans to use the proceeds from the Private Placement to part finance a series of VLGC newbuildings and for general corporate purposes.
Crude-Tanker Cargo Rises 32 Percent on Saudi Exports: Report
The supply of crude oil cargoes for the largest tankers rose 32 percent so far this year, as Saudi Arabia boosted exports to compensate for the possibility of fewer Iranian cargoes, Arctic Securities ASA said. Very large crude carriers hauled 97 million metric tons of oil in the first 11 weeks of the year, up from 73.7 million tons during the same period of 2011, Oslo-based analyst Erik Nikolai Stavseth said by phone. Shipments strengthened as Saudi Arabia boosted production before an embargo on Iranian oil takes effect in July, he said. The U.S., the world’s largest oil consumer, imported an average of 1.5 million barrels a day from Saudi Arabia this year, on course for the highest quarterly average since September, 2008, according to preliminary data from the Energy Department.
LNG Ship Rents May Rise with Japan Cargoes Expand
According to a report from Bloomberg, the cost of hiring ships to haul liquefied natural gas may exceed $100,000 a day for the first time since 2003 as Japanese demand for the fuel expands, according to Arctic Securities ASA. Source: Bloomberg
Aker Yards ASA International Financial Advisor Engaged
Following the announcement on October 23 regarding the new ownership situation in Aker Yards ASA the Board of Directors has decided to explore the company's strategic options. The Board has earlier announced that it has engaged Arctic Securities ASA as financial advisors, and has further engaged JP Morgan as the international financial advisor.
