Articles

Shipping stocks lost momentum last week, moving sideways with a slight overall increase of 0.2 percent. The most significant correction occurred in the oil tanker sectors. The crude tankers saw a sharper drop of 3.6 percent compared to a 2.2 percent decline in the product tanker sector.

After a century of ups and downs, the ship finance industry appears to be enjoying a state of remarkable calm these days; owners and operators are making lots of money, equity values are up, portfolios are performing well, restructuring is almost non-existent, and memories of write-offs are fading.

At the Marine Money Panama event held in March this year, the audience had the pleasure of listening to JR Zambrotta, a Managing Director on the Hudson Northern Shipping team of Hudson Structured Capital Management Ltd. (“HSCM”), present his views on the current maritime credit market.

Shipping investment and ship finance have gone through several powerful phases that serve to reshape the market. In the 1990s it was high yield bonds. Companies: Adnoc L&S, Navig8, Magellan Group, Danish Ship Finance, STAR Capital and Ackermans & van Haaren, V.Group , Advent international, Veson, VesselsValue, Braemar , Southport Maritime

Capital formation isn’t the only form of dealmaking in the offshore sector. Last week, Noble Corporation announced their acquisition of Diamond Offshore, utilizing a share plus cash consideration. Companies: Noble Corporation, Diamond Offshore, Morgan Stanley & Co. LLC, Wells Fargo , SB1 Markets, Paul, Weiss, Rifkind, Wharton & Garrison LLP, Guggenheim Securities, LLC , TPH&Co., Perella Weinberg Partners, Kirkland & Ellis LLP, Moreld, Ocean Installer , HitecVision, McIntyre Partners , Velocity Partners

M&A is everywhere - all the time. From weekly strategic acquisitions between shipowners and offshore owners, to service providers like commercial and technical managers and technology services, business combinations are in vogue in 2024. Companies: Hanwha, Kvaerner Shipyard, U.S. Maritime Administration

Outsourcing business functions has increased significantly recently, and this trend continues within banking. Outsourcing is no longer limited to certain IT services, but also includes critical payment and administrative services.

The human body has a remarkable ability to handle changes in external conditions. In Egypt today, the Bedouin population is estimated at 300,000 to 400,000.

On the greener side of offshore, North Star Shipping announced that it has secured approximately $450 million in debt investment to accelerate their ambition to become a leading player in Europe’s offshore wind sector. Companies: North Star Shipping, IFM Investors, ABN AMRO, AIB, NAB, Royal Bank of Scotland, RBC

As we noted in our analysis of “Take Private” transactions, it is getting more difficult to find companies that are “cheap” based on valuation alone. That is why recent transactions, like an MSC-affiliate buying Gram Carriers and Saltchuk buying OSG, are more focused on achieving strategic goals and less on capturing a quick discount. Companies: Abu Dhabi National Oil Company Logistics & Services , Navig8, Dorian LPG , Jefferies LLC, SEB, Oaktree, TORM, ZIM, Citigroup, Kenon Holdings, BW Group, Navigator Gas, DNB Markets, Ultranav

Diana Shipping (“Diana”) can’t seem to stay away from capital markets as a source of funding! This past December, the company completed a creative, and untraditional financing mechanism utilizing warrants in the form of dividends to raise non-dilutive equity capital. Companies: Diana Shipping , Nordea, Fearnley Securities, Advokatfirmaet Thommessen AS , Wikborg Rein Advokatfirma AS , OceanPal

The Chinese lessors remained very active in 2023 and achieved a strong finish to the year.

It doesn’t happen often, but it is beautiful thing to watch when the capital markets align with the shipping and/or offshore markets, allowing a company to raise capital at a cost that allows them to use that capital to make accretive investments and refinancings. Rinse and repeat. Companies: Yinson Production, Citigroup, Santander, HSBC, ING, J.P. Morgan, Natixis, Mizuho, Ramirez & Co, Standard Chartered, Bladex, Norton Rose Fulbright, Petrobras, Yinson Boronia Production B.V., Sumitomo Corporation, Moody, Fitch

Lomar Shipping has a knack for making money in shipping. Part of the Libra Group, Lomar has not only been “monetizing” during this upcycle but growing aspects of their diversified fleet of bulkers, tankers and container vessels too. Companies: Libra Group, Macquarie Group

Last year, in our 2Q23 “Credit Issue”, George Weltman, our previous Editor in Chief, noted that amongst the institutions experiencing portfolio growth was largely Chinese Lessors, such as BOCOMMFL, CITICL, CMBFL, and SPDFL, “reflecting their importance as capital providers.” He also noted that in the year 2023 we might expect the numbers to tell a different story… Why?

From June 24th through the 26th, over 850 delegates joined us in the financial capital New York City at the Pierre Hotel with our Partner Sponsor, Jefferies. Our longest, and largest yearly event was jam packed with deal making and discussions on the state of the industry, where to invest, and where it is heading (maybe).

Each year Marine Money publishes the Portfolio League Tables, which are undoubtedly some of the most important and sought-after data which we produce.

What a week! Shipping stocks declined by an average of 4.8%. Every sector contributed to this downturn, with losses ranging from -8.4% in the LPG sector to -0.6% in the LNG sector.

There is just no other way to put it: dealmaking in the Offshore market is feeling hot, hot, hot! From bond issuance to loans to M&A to equity investment, the sector is ripping.

After several slow years, the pace of maritime mergers and acquisitions has become a hot spot of capital market activity. Companies: Abu Dhabi National Oil Company Logistics & Services, Navig8, Evercore, Saltchuk, Overseas Shipholding Group , Totem Ocean Trailer Express, EnTrust Global Blue Ocean Funds, Offshore Merchant Partners