Tankers: Euronav Signals Strong Start to 2019
Belgian crude oil shipper Euronav NV said on Thursday it saw the return of a strong freight rate market during the fourth quarter, signalling a strong start to 2019.The company's core earnings (EBITDA) rose by 16.5 percent to $102.3 million in the last quarter of 2018."VLCC (very large crude carriers) freight rates trading at rates not seen in the last two years demonstrate an already tight balance between tanker demand and supply," Chief Executive Paddy Rodgers said in a statement.Though…
Euronav Freight Rates Slide, but Q4 Results Beat Street
Belgian crude oil shipper Euronav's freight rates in the fourth quarter hit their lowest level since 2012, hurt by excess available tonnage, the company said on Thursday. However, rates were still higher than many analysts had expected, pushing Euronav's shares up 1.4 percent by 0847 GMT. The world tanker fleet expanded by 4.8 percent in 2017 as a large wave of new deliveries offset scrapping, while an agreement in November between OPEC and non-OPEC oil producers to extend output cuts until the end of 2018 has added to pressures on tanker companies. "The typical seasonal rate pattern for the fourth quarter was not observed," Euronav Chief Executive Paddy Rodgers said in a statement. The fourth quarter is typically the strongest for tanker companies because of seasonal oil demand.
Joe Pyne Joins DHT Holdings’ Board of Directors
Crude oil shipper DHT Holdings, Inc. announced today that it has appointed Joseph H. Pyne to its board of directors, expanding the board from three to four independent directors. Erik Lind, Chairman of DHT said, “We are very pleased to have Joe join the DHT board of directors. His commercial and operational experience and longstanding insight into the U.S. Pyne is the Executive Chairman of Kirby Corporation, a U.S. tank barge operator, and served as the Chief Executive Officer of the company from 1995 to April 29, 2014.
DHT Holdings Changes Dividend Policy
Crude oil shipper DHT Holdings, Inc. announced it has changed its policy regarding dividend and capital allocation. As a result of the current tanker market, DHT’s new plan will see the company return at least 60 percent of its ordinary net income (adjusted for extraordinary items) to shareholders. Further, DHT intends to use a significant amount of surplus cash flow after returning such capital to shareholders to deliver its balance sheet. The company said it will commence its new capital allocation policy starting with the second quarter of 2015.
Gulf Navigation Cuts Capital, Focus on Turnaround
United Arab Emirates shipper Gulf Navigation said on Wednesday it had cut its capital by two-thirds and written off accumulated losses worth 1.1 billion dirhams ($300 million), key parts of a turnaround plan designed to solve its debt problems. The company's capital has been reduced to 551 million dirhams from 1.66 billion dirhams, it said in a statement on the Dubai bourse, with the reverse stock split effectively creating one share for every three existing shares. The accounting technique allows the firm to use its own capital base to expunge its debts. Dubai's only listed crude oil shipper has been in talks with creditors for months after an ambitious expansion plan at the end of the last decade crippled the company…
Top Tankers 3Q Loss Widens
Shares of Top Tankers (NASDAQ:TOPT) Inc. fell after the company said its third-quarter loss widened from the previous year. The Athens, Greece-based crude-oil shipper posted a net loss of $18.4m, or 50 cents a share. Voyage revenue fell to $51.2m. The company said revenue fell on weakness in its crude oil division. In the year-ago period, the company posted a net loss of $11.4m, or 35 cents a share, on voyage revenue of $70.6m. Shares of Top Tankers fell 7.7% to $4.65. [Source: Thomson Financial]
TOP Tankers Sells 13 Vessels
Crude oil shipper TOP Tankers Inc. said it has sold 13 vessels for $550 million -- which will be immediately leased back under five- to seven-year contracts -- and declared a special $5 dividend. TOP shares surged on the news, gaining $3.08, or 22.3 percent, to $16.90 in premarket activity. The stock, which has traded in a 52-week spread of $11.80 to $19.79, closed at $13.82 March 10 on the Nasdaq. TOP said it expects cash proceeds of about $240 million from the deal. The company plans to use the proceeds to pay the dividend, to be distributed on March 27 to shareholders of record March 22. Another special dividend of $2.50 is expected near the end of the month, TOP said. TOP sold nine Suezmax carriers and four Handymax carriers.
TOP Tankers Sells 13 Vessels for $550M
Crude oil shipper TOP Tankers Inc. on Monday said it has sold for $550 million 13 vessels -- which will be immediately leased back under five- to seven-year contracts -- and declared a special $5 dividend. TOP shares surged on the news, gaining $3.08, or 22.3 percent, to $16.90 in premarket activity. The stock, which has traded in a 52-week spread of $11.80 to $19.79, closed at $13.82 Friday on the Nasdaq. Athens, Greece-based TOP said it expects cash proceeds of about $240 million from the deal. The company plans to use the proceeds to pay the dividend, to be distributed on March 27 to shareholders of record March 22. Another special dividend of $2.50 is expected near the end of the month, TOP said. TOP sold nine Suezmax carriers and four Handymax carriers.
