Bank Borrowings News

MISC Bhd, the shipping arm of Petroliam Nasional Bhd or Petronas, which is optimistic of delivering better earnings in its financial year 2018, is setting aside a bigger capital expenditure (capex) totalling RM15.68 billion (US$4 billion) over the next five years to grow its four core businesses, reports Bernama. The core segments are liquefied natural gas (LNG) shipping; petroleum and product shipping; offshore business; and marine and heavy engineering. President and Chief Executive Officer Yee Yang Chien said US$500 million would be set aside for potential FPSO and shuttle tanker contracts yet to be secured this year. “However, that amount (US$500 million) can be increased if we bag more contracts this year.

Gulf Marine Services (GMS), the leading provider of advanced self-propelled self-elevating support vessels (SESVs) serving the offshore oil, gas and renewable energy sectors, is looking at acquisitions due to opportunities in the market, reported Gulf News. GMS, which supports the oil and gas and renewable energy sectors with barges, has a fleet of fourteen vessels that help in offshore oil and gas platform refurbishment and maintenance activities, offshore wind turbine maintenance work, as well as offshore oil and gas platform installation and decommissioning, among other things. The report quoted its chief executive officer Duncan Anderson as saying: "There is more room for consolidation with other businesses in future.

China COSCO has ordered 11 container ships from four Chinese shipbuilders in a $1.51 billion order that will propel the country's largest shipping line into the big league of giant vessel owners. The ships, which will have the capacity to carry up to 19,000 20-foot containers (TEU), will be delivered by the shipyards in 2018, COSCO said in a stock exchange statement late on Wednesday. Such huge box ships are in hot demand as shipping lines try to lower costs, particularly on Asia-Europe trade routes, amid a persistent slump in the global shipping market. COSCO's order follows Hong Kong's Orient Overseas International Ltd's $997.55 million order for six 21…

The Board of Directors of Swissco Holdings Limited has entered into a joint venture with Union Offshore Ltd, a company incorporated in the Republic of the Marshall Islands. The joint venture has secured a charter contract with an approximate value of up to US$115 million to provide an offshore service unit for up to a seven-year period to support the oil & gas activities of an oil company in Asia Pacific. The joint venture has entered into a Memorandum of Agreement to acquire and own an offshore service unit to meet the requirements of the contract. bank borrowings. The above mentioned charter is not expected to have a material impact on the Group’s earnings per share or net tangible assets per share for the financial year ending 31st December 2014.

On 26 August 2014, EOC Limited agreed to acquire 50% of the entire issued share capital of Lewek Antares Shipping Pte. Ltd. (the "Target") , a company incorporated under the laws of Singapore, from Konquest Marine Pte Ltd ("KMPL"). Completion of the Acquisition shall take place on or around 28 August 2014. Prior to the Acquisition, the Target was jointly owned by KMPL and Ezra Holdings Limited ("Ezra"), the largest shareholder of the Company, in a 50-50 proportion. Upon completion of the Acquisition and post completion of the Proposed Business Combination (as referenced in the stock exchange release by the Company on 10 July 2014, and the announcement made on 7 August 2014 in respect of the publication of the shareholder circular dated 7 August 2014)…

In their financial statement for the first half ended 31, December 2013, Asia-Pacific offshore AHTS/OSV owners CH Offshore recorded profit after income tax of US$14.099-million, which was 26.8% lower than the profit after income tax of US$19.25 million for the previous corresponding first half ended 31 December 2012 . The following information is extracted from the financial report. As at 31 December 2013, the financial position of the Group remained healthy. Both total shareholders'…

The Dubai-based shipping company Gulf Navigation has posted a loss of Dh614.3-million in Q3 2013 attributable to a Dh292.8m impairment of goodwill and a write-off of Dh308.6m of the value it expected to receive for the sale of its two very large crude carriers (VLCCs). The Group's condensed consolidated interim fmancial infonnation has been prepared on a 'going concem' basis, however, given the conditions and events described below there exists a material uncertainty that may cast significant doubt about the Group's ability to continue as a going concem.

Silk subsidiary, Jasa Merin Sdn Bhd, signs up to buy two Anchor Handling Tug Supply (AHTS) vessels from previous owners. The vessels named IDS Darul Ehsan and IDS Darussalam are 70-metre 120-tonne bollard pull AHTS with an engine rating of 10,800 break horsepower and were acquired from their previous owners for a total consideration of RM 240.6 million funded by internally generated funds and bank borrowings. Jasa Merin has partly settled a total of RM 16 million of the purchase price for the vessels. Dato’ Mohd Azlan bin Hashim, Executive Chairman of SILK Holdings said, “The Group is delighted with the additions to the fleet, bringing the total number of owned-vessels in the fleet to 18 vessels. The vessels are ready-built and are immediately able to contribute to earnings.

MIS Co. Ltd. Inc. (OSE: MIS) reported record fourth quarter and fiscal year revenues of $125.1m and $387.5m, respectively and closes 2008 with a net profit of $8m and a record quarterly net profit of US$8m in Q4. This strong revenue increase and highest ever quarterly net profit is primarily driven by closing increasing volumes of contracts for the New Build Rigs value stream while maintaining MIS' market share in its traditional works value streams: Rig Refurbishment, EPC and Site Projects, Pressure Vessel, Process and General Fabrication and Technical and Safety Services. The first New Build Rig to be delivered by MIS (Hull #104) was completed with the issue of an ABS Class Certificate and formal Acceptance for Delivery Protocol agreed with MIS' client Seawolf Oilfield Services.

Malaysian shipping firm Nepline Bhd agreed to sell two crude oil tankers to American Eagle Tankers Inc for $38 million cash. The sales were driven by the recent decision by the European Shipowners' Association to impose restrictions on all single-hull tankers plying European and American waters by 2002. "Although the decision has yet to be enforced, it has prompted Nepline to plan for replacing its single-hull tankers with newer double-hull oil tankers," it said. Nepline said proceeds from the sale would be mainly used to settle the offshore bank borrowings originally taken up to finance the acquisition of the vessels in 1996.

Paragon Shipping Inc. has taken delivery of the third of the three drybulk carriers that it had contracted to acquire using the net proceeds of its recent public offering together with bank borrowings. The company took delivery on September 17, 2007 of the Diamond Seas, a 74,274 dwt Panamax drybulk carrier built in 2001. The Diamond Seas has been chartered to Vespucci Marine C.V. pursuant to a time charter with a remaining period of approximately 32 to 34 months at the charterer's option, at an initial rate of $27,500 per day, gross of commissions. The charter commenced immediately upon the delivery of the vessel to the company. With the addition of this vessel…

Paragon Shipping Inc. it has completed the acquisition of two of the three drybulk carriers that it contracted to acquire using the net proceeds of its recent public offering together with bank borrowings. The third vessel remains scheduled for delivery before September 15, 2007. With the addition of these two vessels, the Company's fleet consists of four Panamax drybulk carriers, three Handymax drybulk carriers and one Supramax drybulk carrier, with an aggregate capacity of approximately 482,922 deadweight tons. The company took delivery on August 13, 2007 of the Sapphire Seas, a 53,702 dwt 2005-built Supramax vessel. The Sapphire Seas has been chartered to Korea Line Corp.

Bulk shipping operator China Shipping Development is spending $87m on another two oil tankers to boost capacity. The new tankers, each with a capacity of 46,000 deadweight tons, are due for delivery between the fourth quarter of 2007 and the first quarter of 2009. Upon delivery, the shipping operator will control a fleet of 71 oil tankers with a combined carrying capacity of 3.5 million deadweight tonnes. The purchase of the two new vessels will be financed by bank borrowings, increasing the company's gearing ratio. China Shipping said it is optimistic about demand in the oil transportation market and expects growth in the coming years.

According to reports, Sumatec Resources Bhd, through its wholly-owned subsidiary Semua Shipping Sdn Bhd, has entered into two shipbuilding contracts with Yangzhou Kejin Shipyard Co Ltd and Jiangsu Guotai International Group Co Ltd for the construction of two 8,000-ton product oil tankers. The purchase will be funded by internally generated fund and bank borrowings. Delivery of the first vessel is expected in August 2008 while the second will be delivered in October 2008.

E.A. Technique (M) Sdn Bhd (EAT) has appointed Sumber Samudra Sdn Bhd (Samudra) to design and construct two new tankers as part of its fleet expansion exercise, according to a report on www.biz.thestar.com. The company expects to take delivery of the first 4,200 dwt product tanker by the first half of 2007, followed by a 6,000 dwt chemical tanker six months after that. Perak-based Samudra has completed two harbor tugs and a security boat for EAT since 2004. The new vessels, which will be financed through bank borrowings, will increase EAT's fleet to 10 ships from the current eight. (Source: www.biz.thestar.com)

Sumatec Resources Bhd has ordered two units of 8,000 dwt double-hull product oil tanker from a Chinese shipyard for $11.6 million each. In a statement to Bursa Malaysia on May 22, Sumatec said it had entered into a letter of intent (LOI) with Yangzhou Kejin Shipyard Co Ltd and Jiangsu Guotai International Group Textile Imp & Exp Co Ltd for the purchase of the tankers to serve contracts from oil majors. The first tanker would be delivered by Dec 15, 2007 and the second would in March 2008. Funding for both vessels is from internal sources and bank borrowings. The company added that it had received a letter of intent from a Malaysian oil company to charter both vessels for up to 10 years. (Source: The Edge Daily)

SembCorp Logistics Ltd. has entered into a conditional sale and purchase agreement with Kalpin Trading and Shipping Pte Ltd. for its 30 percent stake in Auto Batam Ferries & Tours for S$2 million. Currently, SembCorp Logistics and Kalpin have equity interests of 70 percent and 30 percent, respectively, in Auto Batam. SembCorp Logistics said Auto Batam had also entered into a conditional sale and purchase agreement with Penguin Boat International Ltd. for disposal of all its assets and businesses for a total consideration of S$28.5 million. It said the second agreement was conditional upon the approval of Penguin Boat's shareholders, and the first agreement depended on conclusion of the second pact.

Hvide Marine Inc. announced approval by the United States Bankruptcy Court for the District of Delaware of the Disclosure Statement regarding the company's proposed Plan of Reorganization. The Plan, which was filed on Oct. 1 and amended on Nov. 1, has the support of the Official Committee of Unsecured Creditors in Hvide's Chapter 11 case, including representatives of the holders of approximately 63% of Hvide Marine's $300 million of 8 3/8 percent Senior Notes and nearly 50 percent of its outstanding Trust Convertible Preferred Securities. "The decision by the Court allows us to proceed with the solicitation of votes on the Plan of Reorganization," commented Jean Fitzgerald, Chairman, President and CEO.