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Pareto News

04 Aug 2023

From Telford Offshore to KNOT Offshore: Derek Lowe Named New CEO and CFO

Shuttle tanker owner KNOT Offshore Partners will appoint Derek Lowe as new Chief Executive Officer and Chief Financial Officer with effect from the week of September 11, 2023.The new appointment comes following the decision of Gary Chapman to step down as the Partnership’s CEO/CFO announced on April 10, 2023. Lowe will join the KNOT Offshore Partners from Telford Offshore, a provider of accommodation, construction, and pipelaying in the global offshore energy services industry. He has served as the Group Company Secretary of Telford Offshore since its formation in 2018, having provided consultancy services to its predecessor since 2015. He worked from 2011 to 2015 for the debt capital markets group of Pareto Securities, and from 1994 to 2010 for the equity capital markets group of UBS. Mr.

16 Aug 2022

Battery-Electric Surge: ESS Scales Up in Maritime

Battery friendly: the DC set-up aboard an ESS-equipped VARD vessel. Image courtesy Vard

Ask the right government department in any G7 state and you’ll find funding to put battery power for your vessel. Beyond funds, new battery makers and system integrators are ironing out safety issues, and a growing number of giga-sized cell factories offer hope that costs will fall for marine energy storage, as ESS choice grows. Efforts are also underway to recycle rare earth elements and to augment or greenify staggeringly high plant electricity inputs. Apart from funding, the drivers of change include constraints on shipping in Emissions Free Areas like the fjords of Norway…

08 Dec 2019

Offshore: OSV Market Report

Photo courtesy Ulstein Group/Marius Beck Dahle

The environment in oil patches onshore and offshore alike has been challenging throughout 2019; worries about an economic slowdown – whether cyclical or induced by a trade war – have weighed heavily on oil prices, even in the face of reduced production by the big producers. Though storm clouds persist, there appears a clearing on the horizon.The fate of Offshore Service Vessels (OSVs) is, naturally, closely tied to the price of oil. Seacor Marine’s John Gellert, in reviewing its Q2 results, said: “Activity levels in the U.S.

27 Jun 2019

Exmar Repays its 2014 Bond

Exmar Netherlands,  a fully owned subsidiary of Belgium’s Exmar and a manager of specialized floating assets, has completed the bond repayment issued in 2014, extended in July 2017 and maturing in July 2019.According to a press note from the Nicolas Saverys-led shipowner,  the outstanding senior unsecured bond was issued in 2014.This repayment has been funded partially with the new, unsecured NOK 650 million ($75 million) bond issued by Exmar on May 16, 2019, with final maturity in May 2022, and partially with own resources, the company said in its statement.Exmar Netherlands had completed the unsecured bond with a coupon of 3 months NIBOR plus 8.75% p.a.

16 Jun 2019

Credit Agricole Finances Landbridge VLCCs

London-based international law firm Watson Farley & Williams (WFW) has advised Credit Agricole Asia Shipfinance Limited as facility agent on a US$91m term loan facility to a subsidiary of investment firm Sole Shipping Group (advised by Nordisk Legal Services) for the financing of two VLCCs (and scrubbers).According to WFW, the ships will be bareboat chartered to Hong Kong-based Landbridge group, with the leases arranged by Pareto Securities.The lenders were Crédit Agricole Corporate and Investment Bank and BNP Paribas, it said.The WFW Hong Kong Maritime team advising on the transaction was led by Partner and Office Head Madeline Leong…

17 May 2019

DNO Completes $400mln Bond Placement

The Norwegian oil and gas operator focused on the Middle East and the North Sea, DNO ASA said it has completed the private placement of USD 400 million of new, five-year senior unsecured bonds with a coupon rate of 8.375 percent.The bond placement received strong investor demand across international markets and was oversubscribed, said a press release from Norway's oldest oil company. The bond issue is expected to be settled on or about 29 May 2019, subject to customary conditions precedent.An application will be made for the bonds to be listed on the Oslo Stock Exchange. In connection with the bond placement, the Company has agreed…

10 May 2019

Varde Buys VLCC from Landbridge

Global alternative investment firm Värde Partners and Landbridge VLCC International, a Hong Kong-based subsidiary of Chinese industrial company Landbridge Group, announced a sale and lease back transaction of a very large crude carrier (VLCC).The vessel, Landbridge Prosperity, is a modern, fuel-efficient tanker built in 2016. Landbridge will continue to operate the vessel under a bareboat charter, before repurchasing the vessel at the conclusion of the charter period.“We are pleased to begin a financing relationship with Värde, a firm with diverse expertise and a long history in shipping. We look forward to developing further areas of collaboration with Värde and Pareto.” said Vincent Lai…

01 May 2019

VLCC Sector Resilient, Says Euronav

First quarter 2019 proved to be an unusual and largely resilient one for the large crude tanker sector, said Euronav NV, the largest NYSE listed independent crude oil tanker company in the world.The OPEC production cuts of 1.2m bpd announced in Q4 2018 impacted Q1 trading and represents around 3% of the crude which is seaborne each day.Nearly 30  very large crude carriers (VLCC) equivalents were delivered to the global fleet during the same period – an increase of 3% in fleet supply.Despite this demand reduction and increase in supply – the “level” or freight rates in VLCC terms were resilient posting USD 35,000 per day – equivalent to that delivered in Q4 2018.

18 Nov 2018

Shearwater Completes Acquisition of Schlumberger's Seismic Fleet

Norway-based provider of marine geophysical services Shearwater GeoServices Holding  announced the completion of the acquisition of the marine seismic acquisition assets and operations of WesternGeco, the geophysical services product line of Schlumberger.The owner of world’s largest fleet of high-end seismic vessels said in a release that the transaction was completed following receipt of relevant regulatory approvals and satisfaction of customary closing conditions.“We are now an industry-leading full-range geophysical services company with a solid financial and strategic platform. We are eager to move ahead as one strong combined business with global reach…

01 Nov 2018

TGS Remains Upbeat as Shares Drop

TGS CEO Kristian Johansen (Photo: TGS)

Oslo-listed seismic surveyor TGS fell more than 10 percent after reporting disappointing third-quarter results on Thursday, as oil firms were still too cautious to spend despite a raft of upbeat earnings.TGS, which maps the seabed in search of hydrocarbon deposits for oil firms, reported quarterly operating profit of $24 million, down from $26 million a year ago and missing a forecast of $37 million returned by a Reuters poll.While oil companies like Shell, BP and Total are reporting bumper profits in the third quarter…

11 Oct 2018

Fredriksen's Flex Raises $300 Mln for LNG Newbuilds

Flex LNG, controlled by Norwegian-born billionaire John Fredriksen, has raised $300 million in a private placement of shares to help pay for five new vessels costing $918 million, it said on Thursday.Fredriksen's companies typically add high-yield bond issues and bank loans at a later time to pay the cost not covered by share sales.When the vessels are delivered from the yards of South Korea's Daewoo (DSME) and Hyundai (HHI) in 2020 and 2021, Flex LNG will have a fleet of 13 ships, Flex said.Fredriksen himself bought shares for $100 million, cutting his overall stake in the firm to 44.6 percent following the placement from 49.9 percent.The new shares of Oslo-listed Flex were sold at 14.25 Norwegian crowns each, a five percent discount to Wednesday's closing price of 15 crowns, and the plac

25 Sep 2018

Lundin Petroleum Says Arctic Oil Test Points to Bigger Reservoir

(Photo: Lundin Petroleum)

Swedish oil firm Lundin Petroleum expects to increase its resource estimate for the Alta discovery in Norway's Arctic region following a successful two-month production test.Finding significant oil reserves in the Norwegian Arctic has been challenging for oil firms, but Alta is among the exceptions along with ENI's Goliat field and Equinor's Johan Castberg discovery.Lundin and its partners are considering developing the discovery as a subsea field connected to a floating production and storage vessel…

22 Aug 2018

Shearwater to Buy Schlumberger’s Seismic Business

Norwegian marine geophysical services company Shearwater GeoServices Holding AS has entered into a definitive agreement to acquire the marine seismic acquisition assets and operations of Schlumberger’s geophysical services product line, WesternGeco.The transaction, which remains subject to regulatory approvals and other customary closing conditions, is expected to close in the fourth quarter of 2018.Houston based Schlumberger will receive cash consideration based on an enterprise value of $600 million plus a 15 percent post-closing equity interest in Shearwater. For a limited period, Schlumberger  will be entitled to payments under an earn-out agreement linked to future vessel usage over and above specific thresholds.

09 Aug 2018

Ship Performance Has a 80/20 Rule

Photo: StratumFive

The shipping industry risks investing billions of dollars on vessel optimization services that fail to deliver on overall operational efficiency and performance due to a lack of understanding and appreciation of weather which accounts for 80 percent of the impact on vessel performance warns voyage intelligence and insight specialist StratumFive.As vessel performance optimization becomes increasingly more sophisticated, ship owners and operators have access to a far broader range of technologies, datasets and potential avenues for optimization than ever before.

19 Jun 2018

GoodBulk Launches USD 140 Million IPO

GoodBulk, incorporated in Bermuda and headquartered in Monaco, announced that it has launched its initial public offering of 8,500,000 common shares at an anticipated initial offering price between $15.50 to $17.50 per common share. In connection with the Offering, the Company intends to grant the underwriters the option to purchase up to 1,275,000 additional common shares. The Company intends to use the net proceeds of the Offering, together with cash on hand and additional borrowings under the Company’s credit facilities, to fund the cash portion of the purchase price for the acquisition of up to five secondhand Capesize dry bulk vessels and for general corporate purposes.

04 Jun 2018

GoodBulk Files for a $100 Mln IPO

GoodBulk, an owner and operator of dry bulk vessels, announced that it has filed a registration statement on Form F-1 with the United States Securities and Exchange Commission (SEC) relating to a proposed initial public offering (IPO) of its common shares.Morgan Stanley and Credit Suisse are acting as lead book-runners, Clarksons Platou Securities, Evercore ISI, Pareto Securities and UBS Investment Bank are also acting as book-runners, and ABN AMRO is acting as co-manager for the proposed offering.A registration statement relating to these securities has been filed with the SEC but has not yet become effective.GoodBulk, incorporated in Bermuda and headquartered in Monaco…

04 Oct 2017

Offshore Rig Firms See End to Historic Downturn

Aker BP recently awarded a contract worth up to $68 million to Odfjell Drilling for the lease of the semi-submersible drilling rig Deepsea Stavanger in the Norwegian Sea and the Barnts Sea (Photo: Aker BP)

Demand for offshore rig rental globally is starting to recover from its worst ever downturn, led by oil firms' growing demand for harsh-environment exploration and triggering multi-billion dollar tie-ups among drillers hoping to profit, executives said. While the 2014-2016 oil price crash caused firms to cut exploration budgets, ending a boom in rig demand and bankrupting many owners, energy companies are now seeking to replenish their hydrocarbon reserves. The nascent demand for harsh-environment rigs…

05 Jan 2017

Eruonav: Sale and Leaseback of Four VLCCs

Euronav NV (NYSE: EURN) entered into a five-year sale and leaseback agreement for four VLCC vessels  with investment vehicles advised by Wafra Capital Partners Inc., a private equity partnership. The four VLCCs are the Nautilus (2006), Navarin (2007), Neptun (2007) and Nucleus (2007). The transaction assumes a net en-bloc purchase price of $186 million. The transaction produced a capital gain of about $37 million and the transaction should be booked as an operating lease under IFRS. As per Euronav dividend policy, this capital gain will not be eligible for dividend distribution. After repayment of the existing debt, the transaction generated in excess of $100 million free cash. The vessels were delivered to their new owners, the investment vehicles advised by Wafra Capital Partners Inc.

10 Aug 2016

Grosland Joins NAT as VP

Carl Fredrik Grosland has joined Nordic American Tankers as Vice President, working on analyses, projects and business development. Reporting to Chairman & CEO Herbjørn Hansson in a staff position, he will also work closely with others both in NAT and NAO (Nordic American Offshore Ltd.). Grosland has 12 years of international banking experience as an analyst and broker, focusing mainly on the energy/offshore and the shipping sector. Working from out of New York at the time, he has played a key role in a number of major equity and debt transactions. For several years he was a partner and board member of the investment banking firm of Pareto Securities Inc. (New York). Going forward, he will focus on the U.S., the Far East and Europe with base in NAT's Oslo office.

23 Dec 2015

Conflicting Objectives in Ship Design

Figure 1: Detailed geometry for STAR-CCM+ simulation of ship self-propulsion

“ABS is first and foremost a safety company,” says Richard Korpus, “but safety can arise on many different fronts. Dr. Korpus is Chief Scientist, Computational Fluid Dynamics (CFD) for the American Bureau of Shipping. In this role Korpus supports the Chief Technology Officer (CTO) and underlying organizations through a focus on developing and applying CFD technology. He believes CFD has the potential to change how some of the most challenging problems in marine and offshore classification are solved in the future.

09 Jun 2015

Ocean Rig UDW Announces Closing

DryShips Inc. a global provider of marine transportation services for drybulk and petroleum cargoes, and through its majority owned subsidiary, Ocean Rig UDW Inc. of offshore deepwater drilling services, announced today that  Ocean Rig closed the previously announced offering of 28,571,428 shares of its common stock par value $0.01 per share, at a price of $7.00 per share. As part of the offering, George Economou, Ocean Rig’s Chairman, President and Chief Executive Officer, purchased $10 million, or 1,428,571 shares, of common stock in the offering at the public offering price, a number of common shares that maintains his direct ownership in Ocean Rig, representing approximately five percent of its common stock. Clarksons Platou Securities, Inc., Pareto Securities Inc.

03 Jun 2015

Ocean Rig to Float Common Stock

Ocean Rig UDW Inc has launched an offering of its common stock, par value $0.01 per share. As part of this offering, George Economou, our Chairman, President and Chief Executive Officer, has indicated his intention to purchase, at the public offering price, a number of common shares that maintains his direct ownership in Ocean Rig, representing approximately five percent of its common stock. The NASDAQ-traded currently has 132.32m shares of common stock outstanding, which are currently trading at $8.09 per share. Economou will buy his shares at the public offering price in order to maintain his direct ownership in Ocean Rig. Clarksons Platou Securities, Inc., Pareto Securities Inc.

29 May 2015

Hoegh LNG's Bond Issue

Hoegh LNG (HLNG) has successfully completed the issuance of a USD 130 million senior unsecured bond in the Nordic bond market with maturity date expected to be 5 June 2020. The bond issue will be swapped from floating to fixed interest rate. The bond issue was oversubscribed. The net proceeds from the bond issue shall be used for general corporate purposes. An application will be made for the bonds to be listed on Oslo Børs. Danske Bank Markets, DNB Markets, Nordea Markets, Pareto Securites and Swedbank Norway have acted as Joint Lead Managers for the bond issue. The company said yesterday it had signed a 20-year floating storage and regasification unit (FSRU) contract in Chile, with EBITDA value of USD36 million per year.