Articles

Our initial reaction was that Stainless Tankers (“STST”) went overboard. With the shares of the company starting to trade on April 28, 2023, Stainless Tankers’ fleet was owned for 58% of the quarter’s available days. Moreover, the seven vessels comprising the fleet were delivered to the company between April 12 and June 29 further reducing availability, although this was offset by a payment of $2.2 million of purchase price discounts.

In the event you have not noticed your Inbox filled with corporate earnings, we can confirm that the earnings season is beginning to wind down. Given our bent, we ignore the numbers in favor of the analysts and instead hone in on the balance sheets of the reporting companies. Nevertheless, keep in mind that it is a strong balance sheet which makes all things possible. Companies: International Seaways Inc., Danaos Corporation, Scorpio Tankers Inc., DekaBank, Euronav, DNB, ING, Taylor Maritime Investments

Recently, First Citizens Bank (“FCB”) acquired a $123 million portfolio of 11 shipping loans formerly held by HSBC Bank PLC (“HSBC”), a longstanding leader to the Greek maritime community. Companies: First Citizens Bank, HSBC Bank PLC

For those readers who were unable to attend Marine Money Week or have not yet been informed of a must-see highlight, we encourage you to take the time to view the interview of George Logothetis of Libra Group conducted by Jefferies’ Doug Mavrinac.

Klaveness Combination Carriers ASA (“KCC”) signed its first sustainability-linked bank loan in mid-2020, making it the first sustainability-linked bank debt facility in Norwegian shipping. Committed to doing its part to avert climate change, the company continues to use this financing structure. Company: Klaveness Combination Carriers ASA (“KCC”), DNB, Skandinaviska Enskilda Banken, Sparebank 1 SR-Bank, Sparebanken Vest

For Odfjell SE, strong operating cash flows are driving accelerated deleveraging in line with its financial strategy of reducing cash break-even rates and cost of capital. Nominal interest-bearing debt was $943 million at quarter end and is projected to decrease to $881 million at year-end 2023 with a further reduction to $618 million by year-end 2025.

To truly grow and compete, global companies cannot simply think locally. A case in point is Hafnia Ltd. A leading tanker owner, Hafnia was listed on the Oslo stock exchange in April 2020, the culmination of its merger with BW Group. Companies: Hafnia Ltd, BW Group, Skandinaviska Enskilda Banken

What do Euronav, International Seaways, and Eagle Bulk all have in common? They are all under attack by unwanted suitors. If there is a downside to being a public company, this is it. Shares are accumulated by a third party who purports, sometimes correctly, that things can be better and demands changes. Companies: Euronav, International Seaways, Eagle Bulk, Castor Maritime, Performance Shipping, Top Ships

Undoubtedly, Scorpio Tankers Inc. has used its cash judiciously in both returning capital to its shareholders and, more importantly from our perspective, in improving its balance sheet through deleveraging and optimization. Company: Scorpio Tankers Inc., DekaBank Deutsche Girozentrale

Late last month, Tidewater Inc. successfully placed its offering of $250 million of senior unsecured bonds in the Nordic bond market. Companies: Tidewater Inc, Solstad Offshore ASA

For the many years we have followed the industry, private equity funds have been highly active and stealthy investors in both shipping’s public and private companies as well as in steel itself.

The maritime industry continues to make progress, albeit slowly, towards achieving its decarbonization goals. This week we were fortunate to receive the following progress report from Societe Generale’s Paul Taylor and Elodie Tarby. While tweaks are being made, success is solely tied to finding the magic bullet, which, in this instance, is the most efficient and economical alternative fuel. Company: Societe Generale

Last week, Dorian LPG Ltd. announced that it took delivery of the 2023-built dual-fuel 86,000 cbm LPG carrier Cristobal, which is the third dual-fuel LPG carrier to join the Dorian LPG fleet on a long-term time charter. Company: Dorian LPG Ltd.

Last week, Okeanis Eco Tankers Corp. (“OET”) announced the closing of a new $113 million senior secured credit facility, provided by ABN AMRO, to refinance existing indebtedness at significantly improved terms, in line with the Company’s strategy towards capital structure optimization. Companies: Okeanis Eco Tankers Corp. (“OET”), ABN AMRO

Last week’s actions and reactions taken by Eagle Bulk Shipping and Danaos Corporation made for fertile material for discussion, raising questions of strategy, capital allocation and a company’s duty of care to its shareholders. Companies: Eagle Bulk Shipping, Danaos Corporation, Pareto

Last week, Ocean Yield AS announced that it has agreed to purchase four LR1 product tankers, to be constructed at Guangzhou Shipyard International in China with delivery in 2026 and 2027. Companies: Ocean Yield AS, Braskem S.A.

Earlier this month, Gram Car Carriers ASA (“GCC”) acquired a 20% equity ownership in Gram Car AS (“Gram Car”), a single-purpose company owning the Mediterranean Sea, a 4,900-CEU Pure Car Truck Carrier (“PCTC”), built at Xiamen Shipbuilding in 2010, for total consideration of $4.75 million. Companies: Gram Car Carriers ASA, Gram Car AS, NRP Project Finance

Earlier this month, Seanergy Maritime Holdings Corp. announced that it had entered into a 12-month bareboat charter agreement with an unaffiliated third party in Japan for a 2011-built Newcastlemax dry bulk carrier of 207,855 dwt built at Nantong COSCO KHI Ship Engineering. Company: Seanergy Maritime Holdings Corp.

Also, at the end of last month, Diana Shipping Inc. announced that it had drawn $100 million under a new term loan facility with DNB maturing up to December 2029, subject to mutually agreed margin reset at the end of the fourth year. Companies: Diana Shipping Inc., DNB, Nordea

We certainly did not have long to wait for Eagle Bulk Shipping’s response to John Coustas’ open letter to the shareholders of Eagle Bulk. Companies: Eagle Bulk Shipping, Danaos, Oaktree Capital