Marine Link
Tuesday, January 16, 2018

Shares Drop News

CNOOC Falls as China-Japan Undersea Oil & Gas Dispute

According to a Sept. 20 report from Bloomberg, Cnooc Ltd., China’s biggest offshore energy producer, fell in Hong Kong trading as a growing territorial dispute between China and Japan in the East China Sea threatens to disrupt oil and gas development in the area. The shares dropped 0.4%, compared with the less than 0.1% gain in the benchmark Hang Seng index. China Oilfield Services Ltd., which counts CNOOC as its largest customer, declined 0.7%. (Source: Bloomberg)  

Superior Offshore Shares Plunge

Shares of Superior Offshore International Inc., plunged after the company delayed filing its third-quarter financial statement. Superior Offshore shares dropped 77 cents, or 9 percent, to close at $7.83, after plunging 24 percent to $6.56 earlier in the session. The stock has dropped more than 40 percent since its initial public offering priced at $15 in April. In a Securities and Exchange Commission filing, Superior Offshore said the third-quarter filing was delayed as the company determines whether it is required to reclassify long-term debt as current debt. Superior Offshore said the reclassification may be necessary under the terms of a waiver from a lender related to defaults on the company's senior secured term loan facility.

A Second Look: Defense

The Associated Press reported that the Street gave a motley review of defense titans Lockheed Martin Corp.'s and Northrop Grumman Corp.'s outlook for the year, a day after both companies posted higher fourth-quarter earnings. Market observers warned that despite solid growth by Lockheed and Northrop in 2006, performance expectations for 2007 appear to be uncertain due to ambiguous budget requests. The Defense Department submits its fiscal 2008 budget request to Congress for approval next month. Initial estimates suggest the defense budget could reach more than $600 billion for 2008 in addition to the $100 billion supplemental request for war spending for the remainder of 2007. CIBC World Markets Corp. research analysts noted that Los Angeles-based Northrop, considered to be one of the U.S.

NOL Shares Drop On Re-Rating Rumor

Shares of Neptune Orient Lines (NOL) fell almost seven percent in heavy trade on talk there was some re-rating of the stock following changes in the Morgan Stanley Capital International (MSCi) index. The shipping group was down 15 cents or six percent at S$2.28 after hitting a low of S$2.26 earlier. Aside from the index news, there is reportedly concern that the group could be affected by rising bunkering charges. Put in perspective, the drop is minimal considering that NOL has been a top performer on the Singapore bourse this year, up nearly 350 percent.

Bouygues Shares Drop; Analysts Not Concerned

Shares in Bouygues Offshore fell more than three percent in early Wednesday trade after the French oil services firm posted a 42 percent fall in first half net profit to 18.6 million euros from 32.3 million. But analysts, not concerned by the slump in profits that was in line or better than expectations, said they remained positive on the stock amid signs that BOS' orders were picking up. They attributed the share price slide to a knee-jerk reaction from the market at seeing profits slump but said it was not serious given the stock had risen 91 percent since a year low of 35.10 euros hit on January 5. "The figures are not catastrophic…

STX Shipbuilding Shares Falls

STX Shipbuilding Co., the world's fifth-largest shipyard, fell the most in two months in Seoul trading after six executives at a unit were indicted for stealing technology from a rival. The shipbuilder's shares dropped 7.3 percent to 53,000 won at the close. The stock has fallen about a third since Nov. 8, the day before prosecutors detained two of the six executives. The six executives took files with them when they left Doosan Heavy Industries & Construction Co. to join STX Heavy Industries Co., said the official in charge of the case at the prosecutors' office in Seoul. STX Corp., the shipbuilder's biggest shareholder, declined 7.2 percent to 88,200 won. Doosan Heavy gained 0.7 percent to 139,000 won after falling as much as 9.1 percent. Source: Bloomberg

NOL Shares Drop Amid Rumors Of Rating Revision

Shares of Neptune Orient Lines (NOL) fell almost seven percent in heavy trade last Thursday on talk there was some re-rating of the stock following changes in the MSCi index. The shipping group was down 15 cents or six percent at S$2.28 after hitting a low of S$2.26 earlier. Volume was a heavy 12.19 million shares. NOL had lost 10 percent of its value since the start of last week where it stood at S$2.54. "The selling has been very heavy since the start of the week. There is also an earnings downgrade by houses like Salomon Smith Barney," a broker said. A few houses have been downgrading the stock on concerns over higher bunker charges, but some analysts said it might be too early to state the actual impact on NOL.

Friede Goldman Shares Drop 63 Percent on Bankruptcy Fears

Shares of Friede Goldman Halter, which manufactures offshore equipment for the energy industry, plummeted on Tuesday after the company said it may have to seek bankruptcy protection and canceled a scheduled conference call with investors. Friede Goldman, whose problems stem from cost overruns on a number of oil rigs it is building, said it plans to reschedule the call. Shares of the Gulfport, Miss.-based company fell $1.52, or almost 63 percent, to $.90 on the New York Stock Exchange the day after it disclosed it was carrying $107.7 million in overdue debt. The company also canceled a conference call originally scheduled for Tuesday…

Norway to Retain Statoil Stake

Prime Minister Erna Solberg (Photo: http://www.regjeringen.no)

Norway's right wing government will retain its current holding in oil and gas firm Statoil , backing off a pre-election proposal to cut the stake to about 50 percent from the current two thirds of the shares. The government led by the Conservative Prime Minister Erna Solberg has pledged to reduce the state's role in the economy to give the private sector more breathing space and shrink what it considers a bloated public sector. The government owns about a third of shares listed…

Fitch Affirms Carnival's A-Ratings

Fitch Ratings affirmed Carnival Corp.'s issuer default rating, bank credit facility and senior unsecured debt at an investment grade of "A-," due to its strong liquidity position. The rating service also affirmed the Miami-based company's short-term debt at "F2," which indicates a relatively low credit risk. Fitch said possible negative influences include cyclical softness in Caribbean demand, Carnival's shareholder-friendly capital allocation decisions, a potential consumer-driven economic slowdown, and volatile fuel prices. Fitch said that the company's recent joint venture agreements with European tour operator TUI AG and Spanish travel company Iberojet, as well as its proposed sale of the Windstar Cruises brand, are unlikely to affect its ratings.

CMA CGM Slowed by Rates, Sees 2016 Recovery

The containership CMA CGM Marco Polo underway (file image)

France's CMA CGM, the world's third-largest container shipping firm, said freight rates should recover next year after a market downturn led to a sharp fall in its third-quarter profits. The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry bulk commodities, hit a new all-time low on Friday, pulled down by a vessel glut and slowing industrial demand from China. "Freight rates are expected to remain weak in the fourth quarter of 2015. The market should rebalance during 2016," family-owned CMA CGM said in its third-quarter results statement on Friday.

Adsteam Shares Drop 15%

Shares in Adsteam Marine Ltd fell 15 percent on Thursday after it forecast growth in earnings in the year to end-June 2001, but said activity levels in some Australian ports were down in May and June. Consistent with the slowdown in the Australian economy, coal and grain traffic had eased and containerized trade was weaker, but U.S. earnings would boost the bottom line, Adsteam said. "Compared with last year, we now expect EBITDA to increase by approximately 40 percent and EBIT to increase by approximately 25 percent," Adsteam said. "We expect the full year's operational result to reflect the benefit of a full year's contribution from Northland in the U.S. and a small contribution from the recently acquired Howard Smith Towage business," it said.

Konecranes-Terex Deal to Proceed as Zoomlion Drops Rival Bid

Photo: Terex Corp

China's Zoomlion Heavy Industry Science and Technology Co Ltd has abandoned its $3.4 billion bid for U.S. crane maker Terex Corp , clearing the way for a smaller deal between Terex and Finland's Konecranes. The decision comes after six months of merger talks between Terex and Zoomlion, and marks the latest setback to corporate China's ambitions to acquire U.S. assets. In March, Anbang Insurance Group Co unexpectedly withdrew its $14 billion offer to buy Starwood Hotels & Resorts Worldwide Inc.

Shipping Outperforming Offshore In October

Higher oil prices have helped the Oslo Stock Exchange's shipping index, which features maritime and offshore shares, to rise by 33.7 percent so far this year - outperforming the exchange's other indexes. Share prices of offshore shares have decreased for two months now, resisting the influence of continued buoyant oil prices. The value of shares on the Main List dropped 5.6 percent in September and 13.6 percent in October. The 19.6 percent price fall recorded by the seismic company Petroleum Geo-Services (PGS), the biggest offshore company on the Exchange, was the main contributor. The SMB-listed offshore company Ocean Rig (OCR) tops the losers list for the second month running, having sliced almost 30 percent off its share price in October. Big players such as Fred.

Shipping And Offshore Beating The Market

While the All Share Index dropped 2.1 percent during January, maritime shares were the best performing sector at the Oslo Stock Exchange as the Shipping Index rose 3.6 percent. Shares worth of NOK 54.2 billion changed hands in 196,710 trades in January. On average, 9,367 trades to a value of 2,582 million were transacted daily, compared with last year's figures of 5,292 trades and NOK 1,770 million respectively. As much as 90.3 percent of all trades were automatically matched in the now one year-old trading system. Royal Caribbean Cruises (RCL) and NCL Holding (NCL), the two cruise operators listed at the Exchange, experienced a good month as they climbed 12.3 and 11 percent respectively. Competitive bidding made NCL Holding the second most active share in Oslo.

Sea Containers Posts Loss

Marine transport company Sea Containers Ltd. posted a fourth-quarter loss, versus a profit a year earlier, citing a bigger fuel bill and a drop in demand for container rentals. The company posted a net loss of $15.8 million, or 85 cents per share, compared with a profit of $8.0 million, or 43 cents per share, a year earlier. Shares of Sea Containers closed on Tuesday at $19.90 on the New York stock Exchange, above a 52-week low of $18.50 and off a year high of $29.69. - (Reuters)

Hedge Funds' Big Bets on Energy Companies Pummeled

Some of the hedge fund industry's most respected firms made bigger bets on a wide swatch of energy companies during the third quarter only to watch the stocks get pummeled by falling crude oil prices. Robert Citrone's Discovery Capital Management raised its holding in Texas oil driller Diamondback Energy by 20 percent to own 1.4 million shares at the end of the third quarter, according to a regulatory filing made with the Securities and Exchange Commission. Diamondback's stock price fell 16 percent over the quarter. The fund manager also raised its bet on oil and gas exploration and production company Cimarex Energy by 37 percent. The stock dropped 11 percent over the quarter.

Rhine in Germany Reopens as Water Levels Recede

File Image: A cargo vessel underway on inland German waters. CREDIT: Adobestock / (c) digitalstock

The river Rhine in Germany was reopened to shipping on Wednesday after a fall in water levels, the German inland navigation authority said. The river was closed to inland shipping at the beginning of the week after rain and melting snow raised water levels. High water means vessels do not have enough space to sail under bridges, but drier weather means water levels have dropped enough to enable navigation to resume, an official said. The Rhine is an important shipping route for commodities including minerals, coal and oil products such as heating oil, grains and animal feed.

Offshore Shares Are Leading The Way

Offshore shares on the Oslo Stock Exchange continued to rise in November, buoyed by the continuing high oil price and expectations of increased level of activities from oil companies in the year 2000. After a few dismal months, offshore shares regained the positive position they have occupied for most of the year. Other maritime shares fell during November so it was offshore and cruise that carried the Shipping Index to a 1.9 percent rise for the month and the rise of 36.2 percent for the year so far. TGS Nopec Geophysical Company (TGS), a seismic operator with a market cap of about NOK 2 billion, was up 33 percent in November. TGS, one of the most heavily traded shares in Oslo, both within the offshore sector on the exchange and throughout, is up 164 percent so far this year.

Litton Reports Good 3Q Results

Litton Industries, after seeing its shares drop more than 60 percent over the past 12 months (see chart, page 2), caught in a bearish defense industry down draft, reported great third quarter results last week. Litton Industries reported that diluted earnings per share rose 23% to $1.35 for the third quarter, compared with diluted earnings per share of $1.10 for the third quarter of fiscal 1999. Excluding a one-time gain on sale of businesses, third quarter diluted earnings per share increased 21% to $1.33. Net earnings for the third quarter were $61.8 million versus $50.9 million for the same period last year. Revenue for the third quarter increased 11% to $1.4 billion, compared with $1.26 billion for the comparable period of the prior year.

Maritime Stocks Take A Dive On Oslo Bourse

The All Share Index in Oslo lost a further 4.2 percent in April, and as in March the main reason for the fall was international repricing of technology stocks. However, shipping and offshore companies were not providing any help for the market, as the Shipping Index fell a solid 5.8 percent during the month. Det Søndenfjeldske (SFJ), Ocean Rig (OCR) and Stolt Comex Seaway (SCS and SCSA) all fell between 14 and 19 percent, leading the way down for offshore stocks. The share price of Det Søndenfjeldske has dropped almost 25 percent during the last two months. Also Smedvig A (SME), Petroleum Geo-Services (PGS) and TGS Nopec (TGS) saw their market values fall in April. The three stocks fell 1.1, 5.4 and 5.7 percent respectively.

South Korean Shipbuilders' Order Book Shrinks

South Korean shipbuilding orders drop 58.6 percent through September 2012. South Korean shipbuilding orders dropped 58.6 percent for the first nine months of this year due to the persistent recession in the global shipbuilding industry, a government report reveals. The drop was attributed to the recession in the global shipbuilding industry. Global shipbuilding orders declined 48 percent to 14.34 CGT over the cited period due to an oversupply of ships and the prolonged global eaconomic slowdown, the report adds that demand for container ships and bulk carriers contracted sharply, informs Xinhua. Despite the global slump, South Korea kept its position as the world's No.1 shipbuilding country with the market share of 36.3 percent.

Eidesvik Scores Work for Two Vessels

Photo: Eidesvik Offshore ASA

Norwegian shipping company Eidesvik Offshore ASA  has signed a letter of intent (LoI) with Seabed Geosolution for the use of  two vessels. Contract commencement are ultimo January to primo February and the duration is expected to last for the remaining part of 2018. The LoI is for the use of the multi-purpose support vessel Subsea Viking and for the use of the seismic vessel Vantage. Recently, Eidesvik Invest AS, together with some of the largest shareholders in Eidesvik Offshore, have undertaken to subscribe new equity in a private placement of NOK 120 million at a price of NOK 5 per share.

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

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