Tankship Operators Frontline Warn of Restructuring
Oil tanker firm Frontline reported first quarter earnings below expectations on Tuesday and said that unless markets improve, it may need to restructure to repay debt. Frontline, the tanker arm of shipping tycoon John Fredriksen, said it made a net loss of $12.1 million in the first quarter, trailing expectations for a $4 million loss in a Reuters poll of analysts. (By Balazs Koranyi)
Golar 2010 AGM Results
Golar LNG Limited advised that the 2010 Annual General Meeting of the company was held on September 24, 2010 at 10:30 a.m. at the Elbow Beach Hotel, 60 South Shore Road, Paget PG04, Bermuda. 1) To re-elect John Fredriksen as a Director of the company. 2) To re-elect Kate Blankenship as a Director of the company. 3) To re-elect Hans Petter Aas as a Director of the company. 4) To re-elect Kathrine Fredriksen as a Director of the company. 5) To re-appoint PricewaterhouseCoopers of London, England as auditors and to authorize the Directors to determine their remuneration. 6) That the remuneration payable to the Company's Board of Directors of a total amount of fees not to exceed $450,000.00 be approved for the year ended December 31, 2010.
Osprey Maritime Sells 10 Ships
Osprey Maritime Ltd. agreed to sell 10 product tankers to Greek shipping company Stelmar Shipping Ltd. for $216 million. Osprey said that this is in line with its revised strategy of focusing on the ownership and operation of LNG carriers. Athens-based Stelmar was set up in 1992 by Haji-Ioannou, owner of cutprice airline easyJet. Separately, Osprey said it had also agreed to sell another tanker to U.S. OMI Corp. for $14 million. OMI will fund the purchase via cash of $7.7 million and an issue of 900,000 OMI shares at $7.00 each, which amounts to $6.3 million, Osprey said. Shipping magnate John Fredriksen, whose World Shipholding Group now holds a 91 percent stake in Osprey…
World Shipholding Ups Osprey Stake
World Shipholding Ltd has acquired another 0.11 percent of Osprey Maritime Ltd, bringing its total stake in the Singapore group to 73.74 percent, Reuters reported. World, a private company controlled by Norweigian shipping magnate John Fredriksen, sweetened its offer price for Osprey two weeks ago from S$1.00 to S$1.125 per share. Osprey shares were steady at S$1.12 on thin volume at midday on Tuesday. World said in a statement to the Singapore Exchange it had bought 389,000 Osprey shares in the open market on Monday at S$1.12 per share.
Osprey Reports Strong Profits
Osprey Maritime Ltd., in the middle of being taken over by Norwegian shipping magnate John Fredriksen, reported a sharp earnings turnaround on Wednesday, suggesting to analysts that Fredriksen had got a good bargain. The Singaporean energy transportation firm, which used to be controlled by a group of Indonesians including Bambang Trihatmodjo, son of former President Suharto, said it expected to report group attributable net profit for the whole year of at least $ 37 million. Last year it lost $191 million, mainly due to a hefty write-down in the value of its fleet of vessels at the bottom of the tanker cycle. Analysts said the profit forecast beat their expectations and showed that Osprey was enjoying a strong turnaround on the back of a rapid rise in tanker rates this year.
Golden Ocean Plans to Raise $200 Mln in Restructuring
Billionaire investor John Fredriksen's dry bulk shipping firm Golden Ocean plans to raise $200 million in fresh equity as it continues to face weak markets for its vessels, the company said on Thursday. Fredriksen's investment vehicle Hemen Holding, which owns 43.1 percent of Golden Ocean, will invest an amount that is at least equal to its current stake, and other leading shareholders plan to do the same, Golden Ocean added. In return, the company's banks have agreed to defer loan repayments of $165 million until September 2018.
Golden Ocean and Knightsbridge Complete Merger
The merger between Knightsbridge Shipping Limited and Golden Ocean Group Limited was approved today at special meetings of both companies' shareholders. The new company, which will be called Golden Ocean Group Limited, will be one of the largest dry bulk shippers in the world, operating a fleet of 72 vessels, 34 of which are new buildings. The merger was first announced in October and will allow John Fredriksen, the Norwegian shipping magnate and owner of Golden Ocean, to keep the name of the struggling Golden Ocean Group on the market.
Frozen Gas Market Heats Up
While seemingly miniscule in terms of deadweight tons ordered and delivered per year as compared to the shipbuilding business as a whole, the production of gas tankers, LNG and LPG, are high-value, high prestige orders that are likely to rise significantly in the coming years. Consistently high oil prices have effectively forced the production and processing of gas, and the current trend is towards increased usage of this valuable commodity. Late last month, the gas and power division of Royal Dutch/Shell ordered two additional liquefied natural gas (LNG) carriers to support its growing global LNG business. Shell International Gas Limited…
LNG Company To Be Listed
Norwegian shipping magnate John Fredriksen's Liquefied Natural Gas (LNG) transport company Golar LNG said on Friday it raised $280 million in a private placement and planned to list in Oslo and later this year in New York. The company, which will become the first pure LNG transport company to be listed, said it had issued 56 million shares at $5 each in the placement and that Fredriksen had taken a 50 percent stake in the firm. "We sold 140 (million dollars worth) externally and John took 140 (million dollars worth)," Golar LNG director Tor Olav Troim said. Oslo investment banks Fearnleys and Orkla managed the placement of the 28 million shares with private investors.
Offshore Brazil PLSV's: Huge Petrobas Contract for SNM
Seadrill & SapuraKencana Petroleum Berhad joint entity Sapura Navegação Marítima S.A., Brazil (SNM) awarded US$2.7-billion Petrobas contract to charter & operated 3 newbuild Pipe Laying Support Vessels (PLSV's). The contract is for a period of eight years with an extension option for an additional eight years and is expected to commence by the second quarter of 2016. Total revenue potential for the contract is expected to be US$2.7 billion. The three vessels will be constructed in Holland with IHC Caland and will have the same specifications as SNM's existing orders with the yard.
Osprey to be De-listed from Singapore Exchange
Marine and chartering services provider Osprey Maritime Ltd said on Friday it will be de-listed from the Singapore Exchange on May 15 following its acquisition by World Shipholding Group owned by Norwegian magnate John Fredriksen. Company officials said that after a public tender, World Shipholding now owned about 98.6 percent of the firm's existing share capital and a de-listing was necessitated as it was not feasible to restore a minimal free float.
Court Rejects Frontline's Complaint against DHT-BW Group Deal
A court in the Marshall Islands rejected tanker operator Frontline's complaint against DHT Holdings over a rival deal with BW Group. Frontline, controlled by shipping tycoon John Fredriksen, owns around 14.5 percent of DHT. Frontline has been trying for the past year to take over its New York-listed rival. (Reporting by Ahmed Farhatha; Editing by Maju Samuel)
ExxonMobil Terminates Seadrill Contract
Exxon Mobil terminates earlier the West Capella working in Nigeria in the Usan Field. John Fredriksen-backed drilling firm Seadrill Partners LLC has received a notice of termination from Exxon Mobil. In accordance with the cancellation for convenience provisions in the West Capella contract, Seadrill Partners will receive a payment of approximately $125 million in two equal installments, the first in the second quarter of 2016 and the second in the first quarter of 2017, plus other direct costs incurred as a result of the early termination.
Court: Frontline Colluded On Tanker Purchase
According to a Bloomburg report published in The Royal Gazette, an Indonesia Supreme Court upheld a ruling that Frontline Ltd. colluded with officials at the state oil company and Goldman Sachs Group Inc. to buy two tankers for below-market prices in 2004. Pertamina hired Goldman in 2004 to help it sell the two tankers. Frontline, controlled by Norwegian billionaire John Fredriksen, bought the two ships for $184 million, according to the report. The Supreme Court upheld the agency’s allegation that the ships were worth $240 million.
ABG Shipyard Wins Orders from Sea Tankers
ABG Shipyard Ltd has bagged a repeat order for construction projects from Sea Tankers Management Company Ltd. The company would construct six anchor handling tug vessels each for a price of $9.99m aggregating $59.94m, for Sea Tankers, a part of John Fredriksen's Group. The six vessels will be delivered at an interval of three months each beginning from December 2007, and ending March 2009. With this repeat order for six more vessels the company has an order for total 12 vessels from Sea Tankers Management Company Ltd. (Source: Hindu Business Line)
Frontline appoints Macleod as new CEO
Crude oil tanker firm Frontline, part of shipping tycoon John Fredriksen's business empire, appointed Robert Hvide Macleod as chief executive to replace Jens Martin Jensen, the firm said on Monday. Jensen, who was elected to the Frontline board last month, will stay on as the firm's chief for the sale and purchase, newbuilding and other maritime related projects, frontline said. "Combined with his (Macleod's) outstanding network throughout the tanker industry, we believe this will ensure that the Company remains the driving force in the industry," Fredriksen said in a statement. "With Jens Martin Jensen's continuation with the Group and his extensive experience and knowledge I am confident this will continue to help drive the Company forward," Fredriksen added.
Fredriksen eyes Takeover of Flex LNG
Shipping tycoon John Fredriksen is aiming to take control of Oslo-listed Flex LNG following his purchase of 12.7 million shares that brought his stake in the firm to 43.3 percent, his firm Geveran said on Friday. "Geveran will make a mandatory offer for the remaining shares in Flex LNG within four weeks," Geveran said in a statement. Flex LNG is awaiting the delivery of two liquefied natural gas carriers due in 2017. (Reuters)
Shipping Magnate John Fredriksen Concerned about China
The turmoil spreading from China is certainly not good for the shipping market, says billionaire John Fredriksen to Bloomberg News. John, the billionaire who made his fortune investing in crude tankers, said he’s “very worried” on global shipping markets. Rigg is also very difficult due to oil prices and overcapacity, he said. Oil touched the lowest levels since 2009 on Monday. “For our situation it’s good for our tankers,” he said. The drilling rig market is facing lower demand from oil producers after crude prices collapsed last year.
Fredriksen Raises Stake in Debt Collector Axactor
Shipping and seafood billionaire John Fredriksen consolidated his position as the top shareholder in debt collector Axactor by buying more stock in the firm on Thursday, lifting the firm's share price. Through his family firm Geveran Trading, Fredriksen acquired 22.9 million shares in Axactor at a price of 2.65 crowns per share. Following the deal, Geveran will own 11.47 percent of the stock and remain the company's top shareholder, up from 9.96 percent. Fredriksen's business empire range from transporting oil with Frontline, dry bulk with Golden Ocean to salmon farming with Marine Harvest, among other interests. Shares in Axactor jumped on the news as much as much as six percent before retreating somewhat and closed up 2.6 percent at 2.75 crowns on the Oslo bourse.
Golden Ocean Sees Dry Bulk Market Upswing
Reuters - Dry bulk shipping firm Golden Ocean reported fourth-quarter earnings broadly in line with expectations on Tuesday and said it expects the market to continue recovering as Chinese demand remains strong. Golden Ocean, part of shipping tycoon John Fredriksen's business empire, said its operating profit rose percent to $21.9 million, just ahead of expectations for $21 million. (Reporting by Balazs Koranyi)
Fredriksen Joins Rival for New Capesize Firm
Shipping tycoon John Fredriksen is joining one of its shipping firms with rival Knighsbridge Tankers Ltd to create the largest U.S. listed Capesize firm, which will compete with Fredriksen's own dry bulk company Golden Ocean. Fredriksen's Frontline 2012 and Knightsbridge Tankers will together own a fleet of 39 modern vessels, the firms said on Thursday. "(This) is in line with our strategic plan of creating pure plays in different shipping segments through consolidation, divestments and spin offs," Fredriksen said in a statement. Reporting by Ole Petter Skonnord and Gwladys Fouche
Dry Bulk Shippers to Coordinate Chartering
Five dry bulk shipping firms, including shipping tycoon John Fredriksen's Golden Ocean will form a new venture to coordinate chartering services, hoping to reduce costs in a fragmented market, the firms said in a joint statement. The firms, including Golden Ocean, Bocimar International, CTM, Golden Union Shipping and Star Bulk Carriers will form Capesize Chartering Ltd., aiming to start up operations by the second half of February. "The parties operate in the highly competitive and fragmented capesize industry, and neither party owns, controls or manages sufficient capesize vessels to provide competitively priced bids and efficient trading and operations to serve its customers," the firms said.
CEO Will Not Return: Fredriksen
Norwegian-born billionaire John Fredriksen said Jo Lunder, who has been on leave as chief executive of his Fredriksen Group since November, would not come back, business paper Dagens Naeringsliv wrote on Friday. Fredriksen Group controls rig firm Seadrill, fish farmer Marine Harvest, tanker company Frontline, dry bulker Golden Ocean and property company Norwegian Property, among others. Lunder was put on leave in November due to an ongoing police probe at telecoms firm Vimpelcom, the firm he headed before he joined the Fredriksen Group. "No, he will not come back here. We have clarified this between us in an orderly manner. Jo Lunder has to use his time on what he is involved in now. I wish him good luck," Fredriksen told Dagens Naeringsliv. Norwegian, Dutch, Swiss and U.S.