Marine Link
Monday, January 22, 2018

Offshore Business News

G E Shipping Sells Supramax

Photo: The Great Eastern Shipping Co. Ltd.

India’s largest private sector shipping company  Great Eastern Shipping Company Limited (G E Shipping) has contracted to sell its 2003 built Supramax Dry Bulk Carrier Jag Rahul of about 52,364 dwt. G E Shipping said that the vessel will be delivered to the new buyer in Q4 FY 2017-18. The Company’s current fleet (including Jag Rahul) stands at 48 vessels, comprising 32 tankers (12crude carriers, 17 product tankers, 3 LPG carrier) and 16 dry bulk carriers (1 Capesize, 8 Kamsarmax, 7 Supramax) with an average age of 10.24 years aggregating 3.93 mn dwt.

MOL CEO Optimistic on 2018

 Junichiro Ikeda. Photo: MOL Group

President & CEO of Mitsui O.S.K. Lines Junichiro Ikeda says that his company is  strongly determined to shape the future of the industry. Looking at the shipping market, conditions were mixed across businesses, with firm conditions in dry bulkers but weaker trends in tankers, for example. A full-scale recovery is still in the making. "Amid suboptimal shipping market conditions, we expect to finish fiscal 2017 with results largely in line with our initial forecasts, as steady operational enhancements and efforts on the sales frontline come to fruition," he said.

Keppel Hitachi, Fels May Merge Offshore Business

Shipbuilder Keppel Hitachi Zosen Ltd. reportedly is in discussions to merge its offshore business with sister company Keppel Fels Energy Infrastructure Ltd., a maker of oil rigs and ships. The activity is presumably spurred by the market reality of increasingly cheaper ship and rig building options available.

Bureau Veritas Publishes Annual Report and Business Review

Photo: Bureau Veritas

International classification society Bureau Veritas has issued its annual group global Activity Report and its separate Marine and Offshore Business Review. The Bureau Veritas 2012 Activity Report provides a global picture of the group's performance and key achievements in 2012 and highlights the diversity of services delivered. The group revenues grew strongly in 2012 to Euro 3.9bn, up 16%. The group is active globally in eight major sectors: marine, industry, in-service inspection, construction, certification, commodities, consumer products and government services.

NYK to Buy Into Emas Chiyoda

From left:  Shogo Shibuya, President & CEO of Chiyoda Corporation, Lionel Lee, Group CEO & Managing Director of Ezra and Tadaaki Naito, president of NYK. Photo by NYK Line.

Japanese shipping giant Nippon Yusen Kabushiki Kaisha (NYK) has agreed to invest in EMAS Chiyoda, a subsea services joint venture between oilfield services firm Ezra Holdings Ltd and Chiyoda Corp. NYK has reached an agreement with Ezra Holdings Limited (Ezra) and Chiyoda Corporation (Chiyoda) to acquire a 25 percent share of EMAS Chiyoda Subsea Limited (ECS). After NYK’s participation, the shareholding structure of ECS will change to Ezra 40%, Chiyoda 35%, and NYK 25%. ECS is a global player in the engineering…

New Senior VP for Cargotec's Offshore Business

Pasi Lehtonen has been appointed as Senior Vice President of Cargotec's Offshore business segment, effective from the beginning of January. Lehtonen has worked with Cargotec since 1995, his most recent position being Senior Vice President of Finance for Cargotec's Marine business. He will continue as a member of Marine's management group. In an earlier announcement, Cargotec confirmed the appointment of Tom Svennevig as Vice President for its Offshore segment's advanced load-handling business, and Ilpo Heikkilä as Vice President for its Offshore segment's winch business.  

Michelsson to Join Evac

Tomas Michelsson (Photo: Evac)

Waste, wastewater and water management systems provider Evac has appointed Tomas Michelsson as the President, Offshore and Merchant business area, effective January 8, 2018.   Michelsson will replace the former President, Claes Rudling, who has retired during the summer.    Michelsson previously worked as the Vessel Type Responsible (VTR) Global Sales Manager, Ro-Pax and Yachts, ABB Marine, and as the Director, Marine and Offshore business unit, Marioff.

MOL Invests in Self-Elevating Platform Vessel Operator

One of the world’s largest Self-Elevating Platform vessels, the Seajacks Scylla, owned and operated by Seajacks Photo MOL

Mitsui O.S.K. Lines, Ltd. today announced a plan to acquire a 5% share in Seajacks International Limited (Seajacks) Group, which owns and operates five Self-Elevating Platform vessels(*1), from Marubeni Corporation. This is a new offshore business for MOL, following FPSO(*2), FSRU (*3), shuttle tanker (*4), and subsea support vessel (*5). It is also the first step to move into the renewable energy business field through involvement in installation of offshore wind power generation systems, which is expanding in Europe and other areas around the world.

MISC Reports Higher Profit Despite Revenue Loss

Yee Yang Chien, PRESIDENT & CEO, MISC BHD

* Group revenue for the quarter and the 6 months period ended 30 June 2016, were lower than the corresponding quarter and 6 months period ended 30 June 2015. * Group profit before tax for the quarter and the 6 months period ended 30 June 2016, were higher than the corresponding quarter and 6 months period ended 30 June 2015. MISC Group announces its financial results for the financial year ended 30 June 2016. Group revenue for the quarter ended 30 June 2016 of RM2,392.4 million was 8.0% lower than the RM2,600.5 million revenue for the corresponding quarter.

MOL to Invest in Seajacks International

One of the world's largest Self-Elevating Platform vessels, the Seajacks Scylla, owned and operated by Seajacks. Photo: Seajacks Ltd

Mitsui O.S.K. Lines is investing in self-elevating platform vessel operator Seajacks International Limited (Seajacks) to move into offshore business following FPSO, FSRU, Shuttle Tanker, and Subsea Support Vessel. MOL has announced a plan to acquire a 5% share in Seajacks, which owns and operates five Self-Elevating Platform vessels, from Marubeni Corporation. This is a new offshore business for MOL, following FPSO, FSRU, shuttle tanker, and subsea support vessel. It is also the…

MISC Profit Down 29%

MISC Bhd reported that first quarter net profit dropped 29 percent on lower freight rates for its liner and petroleum divisions. The industry is expected to be either stable or soft because there are more ships in supply than what the market demands and the delay in scrapping old tonnage. Still, MISC's earnings should remain stable on long-term charters from the LNG, petroleum, offshore businesses and the turnaround of its heavy engineering activities.

Wilson Sons 3Q, 9Mo Report

Wilson Sons Limited reported results for third quarter 2008 and 9 months 2008. Through its subsidiaries, the company (Bovespa: "WSON11 BZ") is one of Brazil's providers of integrated port and maritime logistics and supply chain solutions. With a business track record of over 170 years, the company has developed a national network and provides a set of services related to domestic and international trade, as well as to the oil and gas industry. Its principal activities are divided into the following business segments: port terminals, towage, logistics, shipping agency, offshore, and non-segmented activities. 3Q08 net revenues were up by 26.9% over 3Q07, reaching USD 132.4 million. Year-to-date, net revenues improved by 32.7%, reaching USD 380.8 million.

Seabulk Appoints New Head Of Offshore Division

Seabulk International, Inc. announced the appointment of Larry D. Francois as President of Seabulk Offshore, the Company's offshore marine services subsidiary, effective immediately. Mr. Francois, who most recently served as Area Manager of domestic offshore marine operations for Tidewater Inc., will also become a corporate Senior Vice President, reporting directly to Chairman, President and Chief Executive Officer Gerhard E. Kurz. In his new positions, Mr. Francois will have executive responsibility for the Company's worldwide offshore operations. "We are pleased to welcome Larry to the Seabulk management team," commented Mr. Kurz. "He is a well-known figure within the maritime industry and has extensive experience in all phases of the offshore business, both domestic and international.

Fincantieri & Norway's NLI to Collaborate in Mobile Offshore Rig Sector

The agreement includes the development of an innovative high quality drilling tower. For NLI the partnership is a milestone. In 1974 they delivered the first derrick to the Norwegian offshore industry. Most recently they have developed a drill tower solution new to the global market. From now on the Fincantieri and NLE will include each other when approaching the market and present their projects to the various contractors and operators / oil companies. This agreement follows the recent creation of the new Fincantieri Offshore Business Unit, dedicated to the commercialization and production of high valued offshore vessels such as Drill ships, Semisubmersibles Drilling Rigs, Pipe Layers, Construction Vessels and Non Standard Supply Vessels.

Bourbon Sets Course for Massive Expansion

Bourbon plans to invest more than $1.7 billion in new vessel construction through 2010, according to the company’s CEO Jacques de Chateauvieux, who held a conference call from his Paris office this morning. The company, which has been on a major newbuild spending spree in its transformation to a maritime powerhouse, at the end of 2006 will own a fleet of 264 vessels, including 192 in its Offshore division, 66 tugs in its Towage and Salvage division, and six bulk carriers in its bulk division. The company is particularly bullish on prospects for the offshore business, as nearly $1.46 billion of its investment through 2010 will focus on the offshore market.

UK Subsea Equipment Firm Sells US Instruments Business

Allan Pirie, CEO: Photo credit Ashtead Technology

Ashtead Technology, announces the sale of its North American Instruments business. The Instruments business, which specialises in the rental of onshore environmental monitoring, non-destructive testing and visual inspection equipment, has been acquired by New Jersey-headquartered Pine Environmental Services LLC. Allan Pirie, CEO at Ashtead Technology, said: "The divestment of the North American Instruments business is a key step in our long-term growth strategy to focus on our Offshore business, which has significant growth potential in the coming years.

Seabulk International Reports First Quarter Results

Seabulk International, Inc. reported net income of $1.6 million or $0.07 per diluted common share for the quarter ended March 31, 2003. In the year-earlier period, the Company had a net loss of $2.3 million or $0.22 per diluted common share. Revenues totaled $77.2 million compared with $83.2 million a year ago. Operating income was $10.0 million in the current quarter compared with $12.0 million in the prior year. "Lower interest costs, together with strong performances from our tanker and towing businesses, enabled us to post a profit for the quarter," commented Chairman, President and Chief Executive Officer Gerhard E. Kurz. "The lower interest costs are a direct result of our recapitalization last September.

Greatship Sells AHTS Vessel

Greatship Akhila. Image by Greatship (India) Limited

Indian shipping company Great Eastern Shipping has announced that its wholly owned subsidiary, Greatship, has sold and delivered anchor handling tug supply (AHTS) vessel Greatship Akhila (7,080 bhp, built 2009) to unnamed buyers. "Greatship (India) Ltd (GIL), a wholly-owned subsidiary of Great Eastern Shipping Company Ltd, has sold and delivered the 2009-built 80T Anchor Handling Tug cum supply vessel 'Greatship Akhila', to the buyers," the company said in a filing to BSE. However, it did not specify the buyers.

Kvaerner Sells Fabrication Yard, Changes North Sea Strategy

Kvaerner is selling its U.K. Teesside fabrication yard and reducing its reliance on North Sea offshore business, a company official said. The decision to sell the 36-acre facility was a result of the company's shifting strategy, as U.K. and European construction yards faced bleak prospects from dwindling North Sea orders, the official said. A handful of workers remain at the yard, which once employed 3,000, to help in the clear-up operations. The sale is expected to take at least three months. Kvaerner, which was badly burned last year after posting a record pre-tax loss, will be looking at subsea technology activities while expanding its business in the Gulf of Mexico and offshore Africa.

KNOT Purchases 3 Shuttle Tankers from J. Lauritzen

Shuttle Tanker

Knutsen NYK Offshore Tankers AS (KNOT; headquarters: Haugesund, Norway), of which NYK has a 50 percent share, has officially reached an agreement with J. After delivery to NYK, Dan Eagle is assigned to a five-year time-charter for Petróleo Brasileiro S.A. Since their respective deliveries from the shipyard in 2011 and 2012, Dan Cisne and Dan Sabia have each been engaged in a 12-year time-charter for Petrobras Transporte S.A., a wholly owned subsidiary of Petrobras SA., and these two shuttle tankers will continue to provide this service.

GE Shipping Buys New Vessel

Photo: The Great Eastern Shipping Co. Ltd

The Great Eastern Shipping Company Limited (G E Shipping) signed a contract to buy a Supramax Dry Bulk Carrier of about 52,450 dwt. The 2006 built vessel is expected to join the Company’s fleet in Q1 FY18. The Company’s current fleet stands at 43 vessels, comprising 28 tankers (11 crude carriers, 15 product tankers, 2 LPG carrier) and 15 dry bulk carriers (1 Capesize, 8 Kamsarmax, 6 Supramax) with an average age of 9.56 years aggregating 3.54 mn dwt. The company has also committed to purchase 1 Secondhand Suezmax Crude Carrier.

HHI Capitalizes on Offshore Business

The name Hyundai Heavy Industries (HHI) usually comes up with a name tag of the worlds largest shipbuilder. But the Ulsan-based company is now dreaming of becoming more than just a shipbuilder, as they have found out that selling offshore oil drilling facilities and industrial plants can be lucrative businesses especially with the soaring oil price, according to a report in the Korea Times. Earlier this month, the company won a $1.3-billion contract from Kuwait Oil Company in upgrading their crude oil export facilities by beating a consortium led by Spanish and Italian companies. It was the largest overseas construction deal won by a South Korea company this year, amounting more than 80 percent of the company’s total sales of such products last year.

Statoil Invests $1.5b in US Offshore Project

U.S. Gulf of Mexico

Statoil together with co-owners in the Stampede development in the Gulf of Mexicohas sanctioned the Stampede project in the U.S. Gulf of Mexico. Statoil said it will invest $1.5 billion in the Stampede development, which is expected to begin production in 2018. Statoil owns 25% of Stampede, which is operated by Hess. Stampede, a new project named from unitizing the former discoveries of Knotty Head and Pony, is located approximately 350 kilometers (215 miles) from New Orleans, Louisiana at a water depth of more than 1,000 meters (3,500 feet). The reservoir depth is 9,100 meters (30,000 feet).

Maritime Reporter Magazine Cover Dec 2017 - The Great Ships of 2017

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