Cost Management News

23 Dec 2019

OSVs: Rising Tide Won't Lift All Boats

© corlaffra / Adobe Stock

The offshore supply vessel (OSV) industry has emerged from its 2017 trough, thanks in large part to a slight shrinkage of the active fleet, a string of debt restructurings, improved cost management, and an uptick in drilling activity in a few regions. The industry is far from healthy, though, and the climb back to financial well-being will likely be long and unsteady. Not every operator will survive. And even though we’ve seen some improvement from 2017 levels, leverage ratios remain sky-high, the supply of vessels far outstrips demand, and—most crucially—the price of oil remains volatile.

22 Aug 2019

ZIM Back in the Black

Pic: ZIM

Israeli container line ZIM Integrated Shipping Services Limited reported a total revenues of  $834.3 million in Q2 2019, reflecting an increase of 3.9% compared to $803.2 million in Q2 2018.In Q2 2019, ZIM carried 731 thousand TEUs, the second highest ever carried volume (reflecting a decrease of 5.3% compared to 772 thousand TEUs in Q2 2018, ZIM’s all-times record), said a press note.The container shipping industry is dynamic and volatile and has been marked in recent years by instability…

15 Aug 2019

Saudi Aramco, World’s Most Profitable Co, Again

Image: Saudi Aramco

Saudi Aramco announced that its net income was $46.9 billion for the first half 2019, compared to $53.0 billion for the same period last year. That easily outstripped corporate titans such as Apple Inc, Amazon.com Inc and other big oil producers, many of which suffered larger declines in profit as output and crude prices fell. Saudi Aramco President & CEO Amin H. Nasser, said: “Despite lower oil prices during the first half of 2019, we continued to deliver solid earnings and strong free cash flow underpinned by our consistent operational performance…

18 Feb 2019

Hapag-Lloyd Gets Ratings Upgrade from Moody's

Pic: Hapag-Lloyd

The international rating agency Moody’s has upgraded the German cargo container shipping line, Hapag-Lloyd AG's corporate family rating (CFR) to B1 from B2 and its senior unsecured bond rating to B3 from Caa1. The outlook remains stable.According to Moody's release, the improved rating acknowledges Hapag-Lloyd’s progress in integrating United Arab Shipping Company Limited (UASC) while reducing leverage and generating positive free cash flow on the back of tight cost management and increased efficiencies…

21 Nov 2018

Hapag-Lloyd unveils "Strategy 2023"

Image: Hapag-Lloyd

As the liner industry has come to a turning point following a period of consolidation, Hapag-Lloyd unveiled its five-year strategy, prioritizing profitability, service, and cost savings in a container shippingLarge-scale acquisitions is not one of the objectives in German carrier's new strategy will characterize everything the shipping company does in the next five years, said its CEO Rolf Habben Jansen.Hapag-Lloyd is more than two times larger than it was in 2014 in terms of transport capacity.

24 Oct 2018

Oil and Gas Demand to Peak in 2023 and 2034: DNV GL

Pic: DNV GL

The oil and gas demand will peak in 2023 and 2034, respectively, according to DNV GL’s 2018 Energy Transition Outlook, an independent forecast of the world energy mix in the lead-up to 2050However, new oil fields will be needed until at least the 2040s, while new gas developments will be required beyond 2050. DNV GL’s Outlook predicts that operators will favour production from a greater number of smaller reservoirs with shorter lifespans, lower break-even costs and reduced social impact compared to those currently in operation.“Most easy-to-produce…

10 Jul 2018

Hapag-Lloyd AGM Okays All Proposed Resolutions

Image: Hapag-Lloyd

Hapag-Lloyd AG shareholders approved with the required majority all items on the agenda put to a vote at the Annual General Meeting in Hamburg. This included an agreement upon the use of the net profit (item 2) and thereby the payment of a dividend of EUR 0.57 per share. Shareholders also formally approved the actions of the sitting members of the Executive Board for the financial year 2017 (item 3) and also the actions of the sitting members of the Supervisory Board (item 4) for that period.

10 Jul 2018

Hapag-Lloyd Cutting Costs as Fuel Prices Rise

(Photo: Hapag-Lloyd)

German shipping company Hapag-Lloyd is cutting costs to cope with a rise in fuel prices that led it to slash full year earnings forecasts last month, its chief executive told shareholders on Tuesday."Major cost positions have risen more than initially expected and are pressuring operating margins," CEO Rolf Habben Jansen said in Hamburg."We are responding short-term to this development through forceful cost management and will keep Hapag-Lloyd competitive this way," he added.Among the measures being taken are accepting more valuable cargo…

07 Mar 2018

Kongsberg Digital Advances ‘Simulation as a Service’ with BCIT

Kongsberg Digital has signed the British Columbia Institute of Technology (BCIT) as a pilot-customer for the cloud-based application of the sophisticated K-Sim simulation technology. BCIT will be among the first to offer simulation as a service by integrating K-Sim with the new Kognifai digital platform, to enable its students to train anytime and anywhere. Initially, Kongsberg Digital will focus on enabling students at BCIT’s School of Energy to use the K-Sim Engine Thermal Power Plant (TPP) simulator for industrial/utilities engineers, by giving them access to the simulator on their own devices. However, the train anytime and anywhere strategy is already set to improve and extend the use of simulation in power engineering training.

10 Jan 2018

De Poli Tankers Extends VSAT Deal with Marlink

(Photo: De Poli Tankers)

Dutch ship owner De Poli Tankers BV has extended its contract with Marlink, securing high-bandwidth global communication using the Sealink Plus service for its fleet of eight chemical tankers and two gas tankers. De Poli Tankers' in-house ITC company, Maritime Performances BV, chose to retain the Sealink Plus service for the future as it combines high-bandwidth VSAT with unlimited L-band back-up in a single easy to manage bundle, Marlink said. De Poli Tankers first migrated to Marlink VSAT from L-band only communications in 2013…

07 Nov 2017

Shell Trading, Harvey Gulf ink LNG Transport Contract

An artist's depiction of a Q-LNG transport vessel (CREDIT: Harvey Gulf)

Harvey Gulf International Marine’s CEO Shane Guidry announced today the formation of new marine transportation company, Quality Liquefied Natural Gas Transport, LLC (“Q-LNG”), owned 70% by Shane Guidry and 30% by Harvey Gulf. Q-LNG will own and operate assets providing marine transportation of liquefied natural gas (“LNG”), a critical component of U.S. LNG infrastructure, commencing with a long-term contract with Shell Trading (U.S.) Company (“Shell”) to deliver LNG as a fuel source to various ports in Florida and the Caribbean. Mr.

20 Apr 2017

The Future (of Maritime) Care

© XtravaganT  / Adobe Stock

For more than 15 years Christina Desimone has driven Future Care to be a transcendent maritime medical care enterprise. While the company fully embraces technology and the advent of telemedicine, it ventures far beyond traditional maritime medical solution providers, managing the logistics of effective and efficient mariner care from the beginning of the incident to its medical conclusion. As many global maritime sectors struggle to regain profitable footing, medical care for crews at sea is not exactly on top of the list discussion…

19 Apr 2017

IMO 2020: The Future of Fuel

Shell’s gas-to-liquid (GTL) Technology is used to produce high-performance lubricants: pictured is the company’s production facility in Qatar. (Photo: Shell)

There has been little reaction by way of statements or position papers from marine fuel lubricant manufacturers to the IMO MEPC70 proposals for a global fuel sulfur content cap of 0.5 percent by 2020 but they are fully aware of the implications of the proposed regulations and are taking what could be termed a ‘pragmatic approach’ to fuel regulation compliance. Marine lubricant suppliers have avoided getting involved in the debate as to whether the IMO MEPC70 proposals to reduce permissible marine fuel sulfur content to 0.5 percent or less is good…

06 Feb 2017

China Overview: Gas Expansion to Secure Sustainable Growth

Yi Wolfgang Wu, Regional Business Development Manager, DNV GL - Oil & Gas, Greater China, Korea & Japan. Photo: DNV GL

New research by DNV GL, the technical advisor to the oil and gas industry, reveals that confidence in oil and gas sector growth in China in 2017 has fallen sharply from 61% last year to 23% - lower than global opinion (32%). Chinese respondents are also less confident about their organization’s prospects, profits and revenue. However, the research also shows that Chinese companies are rebalancing business portfolios and reorganizing for a new era where gas will be an important part of the energy mix.

23 Jan 2017

ASL Marine gets approval to delay redeeming $105m bonds

Headquartered and listed in Singapore since 17 March 2003, ASL Marine owns and operates shipyards in Singapore, Batam (Indonesia) and Guangdong (China) Photo ASL Marine

Singapore, 20 January 2017– ASL Marine Holdings Ltd. respectively. This means the maturity dates of Series 006 Notes and Series 007 Notes will each be extended for three years to March 2020 and October 2021 respectively. By giving approval to the Consent Solicitation, Noteholders will receive a coupon step-up, with coupon rates of 5.50% p.a. and 5.85% p.a. for Series 006 Notes and Series 007 Notes, commencing on 28 March 2017 and 1 April 2017 respectively, and which are to be increased by 0.5% p.a. thereafter.

30 Nov 2016

CMA CGM on APL Integration

Photo: CMA CGM

APL improved its performance in the first three months under the ownership of CMA CGM Group in a challenging market. APL’s 3Q 2016 volume rose almost 9.9% to 1.3 million TEUs (vs. 3Q 2015). This organic growth was driven by more than 20 co-operations on new and enhanced services with CMA CGM. APL has expanded its global network to better serve its customers, and increased its book of business. In 3Q 2016, APL saw its operating margin improve by 40.2% per FEU from the same period in the previous year. In addition, APL’s costs decreased by 15.7% per FEU year-on-year.

02 Nov 2016

Seaspan Declares Q3 Results

Photo: Seaspan Corporation

Seaspan Corporation announced its financial results for the three and nine months ended September 30, 2016. Revenue edged up thanks to new additions to its fleet, including the delivery of one newbuild vessel during the quarter. GAAP earnings plunged into the red with the company reporting a loss of $184 million, or $1.86 per share, as a result of $202.9 million in non-cash impairment charges it took after writing down the value of some of its smaller vessels. It has raised over $1.5 billion from capital markets…

28 Oct 2016

Polarcus Achieves High Utilization at Low Costs

Rod Starr - CEO, Photo Polarcus

Polarcus Limited announced release of its third quarter 2016 financial statements. The third quarter financial results reflect a continued competitive market in which Polarcus was successful in maintaining high fleet utilization. Revenues of USD 64.6 million were recorded, down USD 3.3 million (5%) compared to the second quarter 2016. Contract revenues increased by USD 12.7 million (31%) to USD 54.1 million, driven by a shift of vessel capacity to contract from Multi-Client as well as higher achieved contract day rates.

30 Aug 2016

Doing Business Differently to Meet Sustainability Targets: DNV GL

Picture by DNV GL

Pressure is mounting on the global oil and gas industry to reduce environmental footprint at the same time as the industry is under significant cost pressure. Since business as usual is not an option, DNV GL has launched two papers to advise the industry on how and where to make impactful changes within financial constraints. The paper, ‘A cost-efficient approach to reducing environmental impact’ provides a framework for the industry on how to improve environmental sustainability by identifying the most cost-efficient mitigating measures.

06 May 2016

NOL Posts Q1 Net Loss of $105 Mln

Photo: NOL Group

NOL Group reported a first quarter 2016 net loss after tax of $105 million. Core EBIT (Earnings before Interest, Taxes and Non-Recurring Items) for the period was a loss of $84 million, while core EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) remained positive at $18 million. “Worsening overcapacity of shipping tonnage in 2015 hit the industry well into first quarter 2016. Freight rates which declined across major trade lanes to historic low are expected to remain weak in the face of slower demand growth,” said NOL Group President and CEO Ng Yat Chung.

05 May 2016

DNV GL 7 JIPs in North America

New research from DNV GL has revealed that cost management has become an even higher priority for senior oil and gas professionals  Courtesy DNV

In a concerted drive to find smart solutions to safely reduce complexities and cost in the North American oil and gas industry, DNV GL is leading seven new joint industry projects (JIP) from the region in 2016. The initiatives will support overall efficiency efforts in the pipelines, wells and subsea, umbilicals, risers, and flowlines (SURF) sectors. Key focus areas for DNV GL in 2016 will be centered around solving challenges around standardization, operations (OPEX services), safety, environment, regulations and performance.

03 May 2016

WSS Offers ‘One Stop Shop’ Approach to Bunkering

(Photo: WSS)

Ship operators who rely on a myriad of companies for their global bunkering needs are wasting time, money and energy, with no guarantee of standardized quality of products and services, says Wilhelmsen Ships Service (WSS). In an industry defined by tight margins and cost constraints this approach, WSS believes, is ultimately bad for business. The global provider of maritime products and services WSS says it offers an alternative, with its global Bunker Service Agreements. These provide shipping firms with peace of mind and uniform quality…

21 Apr 2016

Hamburg Süd Boosted by CCNI Takeover

Photo: Hamburg Süd

German shipping company  Hamburg Süd raised its revenue last year due to the acquisition of  Chilean line Compañía Chilena de Navegación Interoceánica (CCNI), yet the container business still performed weaker than expected. The company reported an increase in total turnover by 16.8 percent to EUR 6.05 billion (USD 6.8bn). Shipment volume in the liner business rose on the previous year by 21.5 percent to 4,101 million TEU. Despite the weakness of the South American economies (especially Brazil…

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