Marine Link
Thursday, April 26, 2018

Finance Lease News

Scorpio Bulkers Refinances Ultramax Vessel

Photo: Scorpio Bulkers Inc.

Monaco-based Scorpio Bulkers announced that the Company has entered into a financing transaction in respect of one of the Company’s Ultramax vessels with an unaffiliated third party in Japan. As part of the transaction, the Company will sell a 2015 Japanese built Ultramax dry bulk vessel, SBI Tango, for a consideration of $19.0 million and then lease it back from the buyer through a five-year bareboat charter agreement at a rate of $5,400 per day. If converted to floating interest rates…

Scorpio Bulkers Gets Loan for Kamsarmax

Image: Scorpio Bulkers

Monaco-based international shipping company Scorpio Bulkers said it has received a commitment for a loan facility of up to $12.75 million from a leading European financial institution to finance the Company’s Kamsarmax bulk carrier. The bulker will be delivered from Jiangsu New Yangzijiang Shipbuilding in China in the third quarter of 2018. The loan facility has a final maturity date of five years from delivery and bears interest at LIBOR plus a margin of 2.40% per annum. The terms and conditions are similar to those set forth in the Company's existing credit facilities.

ADNL, NPCC Ink $110m Vessel Deal

 The Abu Dhabi National Leasing Company (ADNL) has signed a $110m deal with the National Petroleum Construction Company (NPCC) for financing the construction and lease of its new vessel. The proposed financing structure is a two-plus-five year finance lease to partially finance one new Derrick Lay Ship DLS-4200 for NPCC.    (Source: Khaleej Times)  

Tonnage Tax Regime Tightens

The Inland Revenue issued new anti-avoidance legislation in December, which will have a significant impact on tonnage tax companies that lease vessels. "These changes will particularly affect the financing of expensive ships such as gas carriers or large cruise ships, as capital allowances will be restricted where a ship costs more than £40 million. regime. to a UK company which has not made a tonnage tax election. companies. capital allowances. being finance leases. * restricted where a ship costs more than £40 million. * denied in the case of certain sale and leasebacks. exchange for a lump sum payment. does not exceed three years. particularly for expensive ships. other tonnage tax regimes, has been reduced. companies looking to raise finance by using sale and leaseback arrangements.

Maritime Faces New Lease Accounting Standards

Michael Simms (Photo: Moore Stephens)

A new international accounting standard dealing with leases could have major implications for companies in the shipping and offshore maritime sectors, and particularly for time charterers, according to international accountant and shipping adviser Moore Stephens. The new standard, IFRS 16, is effective for periods beginning on or after January 1, 2019, although early adoption is allowed. It covers all leases, whether the company acts as a lessor or a lessee. Michael Simms, a partner in the shipping and transport group at Moore Stephens…

US Lease Accounting Standard Updated

Michael Simms (Photo: Moore Stephens)

Shipping and offshore maritime sectors must be alert to implications of new U.S. The Financial Accounting Standards Board (FASB) in the United States has issued a lease accounting standard update following the release in January 2016 of an International Financial Reporting Standard (IFRS) dealing with the same subject. Although it had been expected that the FASB and IFRS standards would be identical, there are instead now two standards which, although similar in many respects, contain significant differences.

IASB Discussion Paper

International accountant and shipping consultant Moore Stephens has reminded the shipping industry that it has until July 17 this year to respond to an International Accounting Standards Board (IASB) discussion paper on the accounting treatment of leases. “Although it is likely to be at least two years before any new standard comes into effect, the big decisions on what will constitute that standard will be made now,” says Richard Greiner, a partner with the Moore Stephens shipping group. The discussion paper, which deals primarily with leases from the perspective of the lessee, has been prompted by the IASB view that operating leases, using the existing definition, give rise to assets and liabilities which are not currently reflected in financial statements.

First Ship Lease Closes $100m Mezzanine Financing

First Ship Lease Ltd., a commercial finance company focused on diverse shipping assets, today announced the successful completion of a $100 million mezzanine financing facility. The mezzanine facility, combined with previous equity financing and senior debt to be raised on a transactional basis, allows First Ship Lease to provide in excess of $500 million in operating and finance leases to shipping and industrial companies that meet its credit criteria. The mezzanine financing was fully underwritten by BTM Capital Corporation of Boston, a subsidiary of Japan's premier bank, The Bank of Tokyo-Mitsubishi, Ltd.; Germany-based HSH Nordbank AG, the world's largest ship mortgage lender; and Vereins -und Westbank Group, a subsidiary of Germany's second-largest bank, HypoVereinsbank.

Joe Pitch Joins Marine-Finance.Com

Marine-Finance.Com announced that Joe Pitch has signed on as Managing Director for Marine-Finance.Com LLC. Pitch joins former CitiCapital Commercial Marine Finance colleague Robert Girard, SVP, who, along with CEO Richard Paine, constituted the core of the CitiBank- affiliated marine group. Pitch is a 30-year veteran of the equipment leasing/finance industry he has financed more than $1b in equipment. Based in Dallas, Texas, Pitch is a graduate of Seton Hall University with a Bachelor of Business Administration with a concentration in Finance. He is a past member of the American Waterway Operators (AWO), the Offshore Marine Services Association (OMSA) and an affiliate member of the Passenger Vessel Association (PVA).

Ship Finance Posts Third Quarter Results

Ship Finance International Limited announced its preliminary financial results for the quarter ended September 30, 2013, reporting preliminary 3Q 2013 results and quarterly dividend of $0.39 per share Hamilton. The Board of Directors has declared a quarterly cash dividend of $0.39 per share, and Ship Finance has now declared dividends for 39 consecutive quarters. The dividend will be paid on or about December 30, 2013 to shareholders of record as of December 12, 2013. The ex-dividend date will be December 10, 2013. The company reported total U.S. GAAP operating revenues on a consolidated basis of $68.1 million, or $0.73 per share, in the third quarter of 2013.

COSCO Shipping Development Reports Higher Revenue

Photo: COSCO Shipping Development Co., Ltd

China-based ship leasing and transportation businesses company COSCO Shipping Development announced its 2017 performance and stated that the company realized revenue of RMB 16.34bln (USD 2.59bln) in 2017, up 2.4% compared with that of 2016. The net profit attributable to equity holders of the parent company is RMB 1.46bln (USD 230mln), up 296.6% compared with that of 2016. Over the past year, the Company continuously improved its management level, increased its asset size and economic benefits and achieved collaborative development in its three business sectors…

Scorpio Tankers Signs Sale-Leaseback with Bocomm

Photo: Scorpio Tankers

Scorpio Tankers has agreed to sell and leaseback five 2012 built MR product tankers (STI Amber, STI Topaz, STI Ruby, STI Garnet, and STI Onyx) to Bank of Communications Financial Leasing  (Bocomm Leasing). As of today, three of the five transactions have been completed, which has increased the Company’s liquidity by approximately $21 million in aggregate after the repayment of the outstanding debt. The sales price for each vessel is $27.5 million, and the Company will bareboat charter-in the vessels for a period of seven years at $9,025 per day per vessel.

Singapore Budget Sops for Maritime

Image: Singapore’s Maritime & Port Authority

With a focus on improving maritime business sectors through a series of incentives to raise productivity, innovation, and internationalization the government of Singapore extended a number of its maritime incentives in its 2015 budget. "I will extend the Maritime Sector Incentive (MSI) which promotes the growth of Singapore as an International Maritime Centre," said Tharman Shanmugaratnam Deputy Prime Minister and Finance Minister in his 2015 budget speech on Monday. Shanmugaratnam…

Scorpio Bulkers Opts New Loan Facility to Acquire Ultramax

Image: Scorpio Bulkers Inc.

Scorpio Bulkers announced that the Company has received a commitment from a leading European financial institution for a loan facility of up to $38.7 million. The loan facility will be used to finance up to 60% of the market value of the three Ultramax dry bulk vessels the Company has recently agreed to acquire. The loan facility will have a final maturity of five years from the signing date and bears interest at LIBOR plus a margin of 2.85% per annum. The terms and conditions will be similar to those set forth in the Company's existing credit facilities.

SFL First Quarter 2011 Results

Hamilton, Bermuda, May 23, 2011. Ship Finance International Limited ("Ship Finance" or the "Company") today announced its preliminary financial results for the quarter ended March 31, 2011. •    The Board of Directors declared an increased quarterly dividend of $0.39 per share. •    Net income for the quarter was $32.1 million, or $0.41 per share, including an accrued profit share in the first quarter of $2.3 million, or $0.03 per share. •    In February 2011, the Company acquired a 2007-built jack-up drilling rig in combination with a seven-year bareboat charter back to the seller.

Scorpio Bulkers Acquires Four Vessels

Image: Scorpio Bulkers Inc.

Scorpio Bulkers, announced that it has entered into two separate agreements with unaffiliated third parties to acquire three Ultramax dry bulk vessels and one Kamsarmax dry bulk vessel. The deal was for an aggregate of $90 million, of which $77.1 million is payable in cash and the remaining consideration is in the form of approximately 1.592 million common shares of the Company to be issued to one of the sellers. All of the Ultramax vessels were built at Chengxi Shipyard Co Ltd in China, of which two were delivered in 2014 and one was delivered in 2015.

Euronav Reports Earnings; Pushes Fuel Economy

Belgium's Euronav reported a net loss of US$ 31-million in its Q4 2012 financial report. The result of the fourth quarter is affected positively by the revaluation at marked-to-market levels of non cash items (unrealized) such as hedge instruments on interest rates for a total of US$ 600,000. After successfully implementing a strict slow and super slow steaming policy whenever possible, Euronav continues to apply measures to reduce fuel consumption across its spot fleet. The company has already retrofitted a VLCC, with a Mewis Duct, improving propeller efficiency, which demonstrated to be the most efficient energy saving device. The same retrofitting will be done on at least 4 Suezmax vessels this year.

Euronav Records Good 3Q Results

The executive committee of Euronav NV reported its provisional financial results for the three months ended 30th September 2006. The company had net income of $53.8m (2005: $5.8m) or $1.02 (2005: $0.11) per share, for the three months ended September 30, 2006. EBITDA was $110.5m (2005: $56.9m). Euronav owned VLCCs operated through the Tankers International (TI) Pool earned a time charter equivalent, in average for the quarter, of $69,500 (2005: $35,858). The time charter earnings of the Suezmax fleet which is fixed on long term time charters, was $35,860/day for the third quarter. The freight market for seaborne transportation of crude…

Scorpio Tankers Merges with Navig8 Product Tankers

Photo: Scorpio Tankers Inc

Scorpio Tankers has entered into definitive agreements to merge with Navig8 Product Tankers  and acquire Navig8’s 27 operating product tankers. Subject to the terms and conditions of these agreements, Scorpio will acquire four LR1 tankers prior to the closing of the Merger (the LR1 Vessel Acquisitions) and the remaining 23 tankers upon the closing of the merger in exchange for the issuance of 55 million shares of Scorpio common stock to the Navig8 shareholders. In connection with the LR1 vessel acquisitions, Scorpio will pay cash consideration of $42.2 million, which is net of assumed debt.

Scorpio Closes Merger with Navig8

Photo: Scorpio Tankers Inc.

Scorpio Tankers Inc. announced that it has closed the previously announced merger with Navig8 Product Tankers Inc. (NPTI). As consideration, Scorpio has issued 55 million shares of its common stock to the holders of NPTI’s common shares or 19.7% of the current 279,663,300 Scorpio common shares issued and outstanding. Through the Merger and related transactions, Scorpio has acquired an operating fleet of 27 eco-design product tankers, comprised of 15 LR2s and 12 LR1s with a weighted average of 1.2 years and an aggregate carrying capacity of approximately 2.6 million dwt.

Ince Promotes Three New Partners

Sami Chowdhury

International law firm Ince & Co. announced the imminent promotion of three lawyers to the partnership. Rania Tadros – Rania has experience in commercial arbitration and litigation within the shipping and energy and offshore markets. She has had experience handling a range of matters for clients in the offshore support and oilfield services sector. Rania has also advised on a number of shipping disputes concerning the Middle East and has a particular focus on construction disputes and claims relating to refund guarantees. Rania will relocate from London to Dubai this summer.

Floating Production Expenditure set to Double

Latin America to account for 29% of installations 2013-2017; FPSOs remain by far the largest segment of the market; Deepwater driving growth, with FPS supply affected by financing, leasing and local content. DW forecast that between 2013 and 2017 $91bn will be spent on floating production systems (FPS) – an increase of 100% over the preceding five-year period. In Douglas-Westwood’s new World Floating Production Market Forecast 2013-2017, a total of 121 floating production units are forecast - a 37% increase. This growth is driven by multiple factors, such as a larger proportion of newbuilds and conversions compared to redeployments, a greater degree of local content resulting in increased costs and general offshore industry cost inflation.

QGEP to Acquire FPSO from Teekay

Teekay Offshore Partners L.P. has entered into an agreement with a consortium led by Queiroz Galvão Exploração e Produção SA (QGEP) to provide a floating production, storage and offloading (FPSO) unit for the Atlanta field located in the Santos Basin offshore Brazil. In connection with the contract with QGEP, the partnership has agreed to acquire the Petrojarl I FPSO from Teekay Corporation for $57 million. Subsequent to the acquisition, the FPSO will undergo upgrades at the Damen Shipyard Group's DSR Schiedam Shipyard in the Netherlands for a fully built-up cost of approximately $240 million, which includes the cost of acquiring the Petrojarl I. The FPSO is scheduled to commence operations in the first half of 2016 under a five-year charter contract with QGEP.

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