Noble Sells Kamsarmax Bulker
Singapore-listed commodity giant Noble Group (NGL) has announced it has entered into a memorandum of agreement to sell a Kamsarmax-size dry bulk carrier to Cypriot company Ocean Liberty Marine Ltd and Transmed Shipping Ltd for US$24 million in cash. The vessel, called the Ocean Vision, is currently mortgaged to a financial institution. According to sources, part of the proceeds from the sale will go towards paying down the amount owned under the relevant facility. "The proposed disposal does not impact the proposed debt restructuring under the restructuring support agreement…
Keppel Explores Sale of Jack-up Rigs to Borr Drilling
Singapore yard Keppel Corporation is considering a sale of jack-up rigs to Norwegian offshore drilling contractor Borr Drilling, reports The Business Times. The world’s biggest builder of oil rigs is seeking to offload six jack-up rigs for up to US$960 million to the Oslo-listed drilling firm headed by Tor Olav Trøim, said the report. BT also reported that Keppel Capital has already hooked up with structured finance provider Clifford Capital to potentially extend a sale-and-lease-back arrangement for at least one jack-up contracted by Grupo R.
HSH Nordbank to Exit First Ship Lease
HSH Nordbank AG's subsidiary Godan GmbH, the controlling unitholder of First Ship Lease Trust (FSL Trust), is looking to divest all its shares in FSL Holdings, the sponsor of the trust, reported Business Times. The report quoted FSL Trust as saying that Godan GMBH is in discussion with shortlisted strategic investors for a potential sale of all of its shares in FSL Holdings. FSL Holdings also owns all shares of the trustee-manager of FSL Trust through FSL Asset Management Pte Ltd.
Cosco Shipping Bids for Cogent
Cosco Shipping International has issued formal offer documents for its S$1.02 per share bid to privatise Cogent Holdings, reported Business Times. Cosco said that acceptances of the offer must be received no later than 5.30pm on Jan 5. Cosco Shipping had announced on Nov 3 that it is acquiring and privatising Cogent for S$488.07 million. Cosco Shipping had announced on Nov 3 that it is acquiring Cogent for S$488.07 million. The report quoted Cosco Shipping as saying that the rationale for the acquisition is to acquire control in one of Singapore's leading full service…
Mercator Lines Brings Down the Curtain
Singapore-based Mercator Lines says its judicial manager (JM) has filed an application to wind up the company. "Subsequent to the termination of the Implementation Agreement (IA), the Judicial Manager (JM) held preliminary discussions with several potential investors to explore transferring the Company’s listing status and/or restructuring the Company," said a stock exchange filing. Whilst these potential investors have expressed an interest in the Company’s listing status, to date the Company has been unable to justify an application for a further extension on the Judicial Management Order.
Yangzijiang Bags Newbuild Orders Worth $133 Mln
China’s Yangzijiang Shipbuilding has won six shipbuilding contracts worth a total of $133m during the second quarter of this year, Business Times reported. Three of these orders for 1,800 TEU (twenty-foot equivalent unit) containerships were exercised from options tied to existing shipbuilding orders. Three others for 82,000-deadweight-tonne bulk carriers were new shipbuilding orders. The new ships are scheduled to be delivered in phases between 2018 to 2020. Yangzijiang Shipbuilding…
Ezra Holdings Files for Bankruptcy in US
Oilfield services firm Ezra Holdings of Singapore filed for U.S. Chapter 11 bankruptcy at the weekend, blaming a prolonged slump in the energy industry, Reuters reported. Ezra has been facing hostile actions from creditors at home and abroad as it struggles to recover from a slump in oil prices over the past three years. The company filed voluntary petitions for reorganization under Chapter 11 of the US Bankruptcy Code, according to a stock exchange filing on Sunday. Ezra will…
Swiber-Linked Vessels Seized in Singapore
Three of of Swiber Holdings vessels had been seized in an arrest moved by a syndicate of banks, reports Business Times. All three vessels were arrested at ASL Shipyard, the litigant in the arrest is United Overseas Bank (UOB), acting as security agent for the syndicate of banks that had extended financing to the vessel owner in relation to a sale and leaseback deal. The recent filing for liquidation by Swiber Holdings, an oil and gas business listed on the Singapore Stock Exchange, sent jitters through the markets.
HPH Trust Acquires Major Stake in Huizhou Terminal
Hong Kong Container port business trust Hutchison Port Holdings Trust (HPH Trust) has reached an agreement to purchase a majority stake in Huizhou International Container Terminals Limited (HICT) in Guangdong from the trust’s sponsor for about $86.26m. HPH Trust will acquire 65% and 15% of HITC equity interest, respectively through its subsidiaries, Yantian International Container Terminals (Phase III) Limited (YICT III) and Shenzhen Pingyan Multimodal Company Limited (PML). The company said that…
Rickmers Sells Vessel to Survive
Rickmers Maritime Trust has completed the sale of a vessel in connection with the settlement of senior loan facilities that German lender Commerzbank's Singapore branch extended to a unit of the trust. "The Trustee-Manager wishes to announce that the sale of the “India Rickmers” vessel has been completed. The Trustee-Manager will update its noteholders and unitholders if there are any further developments," Rickmers Trust Management Pte. Ltd., in its capacity as trustee-manager of Rickmers Maritime has announced in a statement.
PPL Yards Not for Sale: SembMarine
Sembcorp Marine has denied the rumours that it was mulling the sale of all or part of subsidiary PPL Shipyard, according to a report in the Business Times. "Neither our rig-building subsidiary PPL Shipyard nor any of the yards from which PPL is operating are up for sale," says the company. SembMarine is understood to have sought valuation for one or more of PPL Shipyard's waterfront assets, sparking market talk over its plans for its rig-building subsidiary. Asset valuations are typically done when owners are evaluating financial options, including divestment.
Cosco Sinks Further into Red in Q3
COSCO Corporation (Singapore) Limited has seen its net loss widen in the third quarter of 2016 to SGD 102.3 million (USD 72.6 million) from SGD 82.1 million (USD 58.2 million) reports Business Times. “It has been another difficult quarter for our industry. Persistent weakness in crude oil prices has taken its toll on the offshore marine industry and is showing no sign of letting up. Shipbuilding order books and contract prices are suffering under the heavy weight of the industry over-capacity amidst a weak global economy which has also depressed shipping rates…
Subsea 7 to Exit Singapore for Kuala Lumpur
Rising costs of doing business in Singapore has forced Subsea7 to switch its regional headquarters from the city to Kuala Lumpur (KL), says a report in Business Times. Against a backdrop of persistently low oil prices, fresh concerns have emerged over Singapore's competitiveness as an offshore and marine (O&M) hub, following a decision made by a fourth top-tier international subsea contractor to ship out most of its operations to KL. The Oslo and Nasdaq-listed Subsea 7 will offer only a handful of its staff in Singapore relocation options to Kuala Lumpur.
CMA CGM Ups NOL Stake to 2.32%
French container shipping group CMA CGM bought an additional 2.4 million shares in takeover target Neptune Orient Lines (NOL) from the open market on Thursday at $1.235 and $1.24 per share, says a report in the Business Times. Following the latest transaction, the Marseille-based company now owns 2.32% of its takeover target, NOL. Since CMA CGM announced its takeover plans in December 2015 the latest open market purchases were at a level below the SGD1.30 per it has offered for the Singapore company.
CMA CGM Keeps Buying NOL Shares
French liner giant CMA CGM has acquired last week a total of 2.26 million shares in Neptune Orient Lines (NOL), six months before it is scheduled to make good its S$3.4 billion takeover bid for the Singapore-listed liner, reports Business Times. It acquired 1.33 million (0.05 per cent stake) at $1.233 apiece) and 930,700 shares (0.04 per cent) at S$1.235 each on Jan 4 and Jan 5 respectively. This information was revealed by CMA CGM's financial advisers comprising the Singapore branches of BNP Paribas and The Hongkong and Shanghai Banking Corporation as well as JP Morgan.
NOL Acquisition Soon?
Neptune Orient Lines(NOL) confirmed that it is continuing in discussions with respect to a potential acquisition of the group as previously announced on Nov 7 on the local bourse, reports Business Times. This comes after the Singapore Exchange Securities Trading Limited (SGX-ST) queried about NOL's trading activity on Tuesday. On Nov. 7, NOL, which is 67% owned by Singaporean state-owned investment company Temasek Holdings, announced it was in "preliminary discussions" with the world's largest shipping company, A.P. Moeller-Maersk of Denmark, and No.
NOL in Acquisition Talks with CMA CGM, Maersk
Neptune Orient Lines Ltd (NOL) has officially confirmed that it is a takeover target of two separate companies: French shipping company CMA CGM and Danish conglomerate AP Moeller-Maersk. As per a report in the Business Times, NOL said in an announcement on Saturday evening that it was in preliminary talks with the two "with respect to a potential acquisition of NOL". "There is no assurance that any such discussions will result in any definitive agreement or transaction, or that any offer for NOL will be made or as to the terms on which any such offer might be made," it said.
Ezra Wins UK North Sea Contracts
Offshore service provider Ezra Holdings has announced that subsea division, EMAS AMC, has won global contracts values at over $115m including options, reports Business Times. These contracts include one for rigid pipe lay for the Aviat field development in the UK North Sea; engineering and offshore support work in West Africa for an oil major which will be undertaken together with Ezra's subsidiary company, EMAS Offshore Limited. Other subsea contract work includes ROV support services and High Voltage Alternate Current (HVAC) pull-ins.
Shipbuilding: Yangzijiang bags 13 New Orders
Singapore-listed Chinese shipbuilder Yangzijiang Shipbuilding (Holdings) announced that it had entered into 13 new shipbuilding orders in the fourth quarter of last year, comprising nine effective orders with a total contract value worth of US$388 million and four new options with an aggregate value of US$122 million, says a report in Business Times. These include two units of 10,000 twenty-foot equivalent units (TEU) exercised from existing options and seven new shipbuilding contracts consisting of four units of 36…
Strong Interest in Keppel DC REIT IPO
Keppel DC REIT Management Pte. Ltd., a wholly-owned subsidiary of Keppel Telecommunications & Transportation Ltd has received overwhelming demand from institutional and retail investors for its initial public offering of 261,138,000 Units. The Offering comprised an international placement of 207,375,000 Units1 to investors, including institutional and other investors in Singapore (the "Placement Tranche"), and an offering of 53,763,000 Units to the public in Singapore (the "Public Offer").
Tankship Surplus Hits Clean Tanker Rates
Clean tanker rates for refined petroleum products on top export routes soften with build up of ships pressurizing the transatlantic market. Rates for medium-range (MR) tankers for 37,000-tonne cargoes on the TC2 route from Rotterdam to New York were at W140.42, or US$13,332 a day when translated into average earnings, which compared with W141.00 or US$13,647 a day in the past week, reports the 'Business Times'. Earlier this month, earnings reached their highest since mid February, helped by firmer bookings for petrol cargoes to the US and product shipments to Argentina. Source: Business Times
Ready for the Worst
Most every company knows it should have a plan to deal with catastrophe. That’s especially true for shipyards and vessel owners who often ply their trade in hurricane zones, where weather can rip apart a lifetime of work overnight, make confetti out of assets, and leave disarray in its wake. Emergency plans can be simple or complex, depending on the needs of a specific business. There are a number of resources to help business owners create customized plans, including online templates, detailed guidelines and model documents. A company’s insurance agent and carrier can also serve as useful resources for businesses trying to determine what should be in a plan, and how to best position themselves to recover quickly if disaster strikes. A plan by itself, however, is not enough.
OSV Sector Wary of Overcrowding
THE offshore support vessel (OSV) segment - touted as the bright spot where other traditional shipping markets are suffering - may entice tanker and bulk-carrier operators to jump ship, according to a recent Singapore Business Times article. However, OSV operators and owners are wary of such a crossover, and warn that if the sector gets more crowded, it may derail a recovery in charter rates that is expected to come about in two to three years' time. There are about 3,000 OSVs that support oil and gas offshore exploration - a sliver of the 70,000 merchant ships - but it is a sector that gained attention at a time when oil companies are expected to spend about US$600 billion in exploration and production activities.