Press release from Oetker Group, parent of Hamburg Süd
Dec. 1, 2016
Oetker Group divesting the shipping division Dr. August Oetker KG announces that, after more than 80 years, it is divesting its shipping business and will be selling Hamburg Süd with all activities, subsidiaries and principal assets. Following intensive talks with several interested parties, an agreement has been signed with Maersk Line A/S, Copenhagen, Denmark, which is subject to proper due diligence and the negotiation of a Sale and Purchase Agreement as well as the notification to various regulatory authorities. It is to be assumed that the transaction will be closed in late 2017 at the earliest, once the necessary approvals have been obtained. Global container liner shipping has been generating losses for years in the face of rising overcapacity. Nevertheless, Hamburg Süd has performed well compared with its competitors. It has grown clearly in excess of the market and has financed the expansion of its network as well as the ship and container fleet largely from its own cash flow. The owners and management of Hamburg Süd must, however, recognize that active participation in the consolidation process of the sector currently taking place would entail an even higher capital requirement. This would, in addition, make the balancing of risk within the Oetker Group business portfolio more cumbersome.
The owners of the Oetker Group have therefore decided to put Hamburg Süd in the hands of new owners. The global market leader Maersk is, in their view, the ideal partner to preserve and further develop the shipping company’s successful business model. With a carrying volume of around 4.1 million TEU (twenty-foot equivalent units) and a slot capacity of approximately 625,000 TEU Hamburg Süd ranks among the world’s ten largest container shipping companies. The tramp, product tanker and other operations make up some 7 percent of the total turnover. The shipping company has roughly 6,000 employees and, with revenues of around 6.1 billion euros, contributes just under 50 percent to the total sales of the Oetker Group (all figures refer to the 2015 financial year).
CMA CGM announced their 3rd quarter 2015 results. The operating profit for 3rd quarter 2015 is
less than the 3rd quarter of 2014. Here are some details from their web-site.
MD&A 30th of September 2015 versus 30th of September 2014
Operating revenue General:
Consolidated operating revenue decreased by USD 408.5 million, or 3.3% from USD 12,509.1 million in the first 9 months of 2014 to USD 12,100.6 million in the first 9 months of 2015 primarily due to a 3.9% decrease in shipping revenue and a 5.3% increase in other activities. Transported volumes increased by 6.5% or 593 thousand TEU, from 9,110 thousand TEU in the first 9 months of 2014 to 9,703 thousand TEU in the first 9 months of 2015. click here
for link to complete summary
And, from the finance report
OPERATING PROFIT BEFORE GAINS ON DISPOSAL OF PROPERTY AND EQUIPMENT AND SUBSIDIARIES, DEPRECIATION & AMORTIZATION, etc.
For the nine-month period ended For the three-month period ended
2015 2014 2015 2014
1,137.8 876.4 243.7 325.1
As you can see, the first 9 months the profit increased, but for the 3rd quarter is decreased compared\
to 2014. This does not bode well for end year 2015 results.click here
for link to finance report
Press Release from Scorpio Bulkers
Scorpio Bulkers Inc. Announces Reverse Stock Split to Be Effective December 31, 2015
MONACO--(Marketwired - Dec 30, 2015) - Scorpio Bulkers Inc. (NYSE: SALT) (the "Company" or "Scorpio Bulkers") announced today that its board of directors (the "Board") has determined to effect a one-for-twelve reverse stock split of the Company's common shares, par value $0.01 per share, and a reduction in the total number of authorized common shares to 56,250,000 shares. The Company's shareholders approved the reverse stock split and change in authorized common shares at the Company's special meeting of shareholders held on December 23, 2015.
The reverse stock split will take effect, and the Company's common shares will begin trading on a split-adjusted basis on the New York Stock Exchange ("NYSE") as of the opening of trading on December 31, 2015. A new CUSIP number will be assigned to the Company's common shares when the reverse stock split becomes effective.
When the reverse stock split becomes effective, every twelve of the Company's issued and outstanding common shares will be combined into one issued and outstanding common share, without any change to the par value per share. This will reduce the number of outstanding common shares from approximately 344.2 million shares to approximately 28.7 million shares.
No fractional shares will be issued in connection with the reverse stock split. Shareholders who would otherwise hold a fraction of a common share of the Company will receive a cash payment in lieu thereof at a price equal to that fraction of a shares to which the shareholder would otherwise be entitled, multiplied by the closing price of the Company's common shares on the NYSE on December 30, 2015.
Shareholders with shares held in book-entry form or through a bank, broker, or other nominee are not required to take any action and will see the impact of the reverse stock split reflected in their accounts on or after December 31, 2015. Such beneficial holders may contact their bank, broker, or nominee for more information.
On December 17, 2015, the Company received notice from the NYSE that the Company was no longer in compliance with the NYSE's continued listing standards because the average closing share price of its common shares over a consecutive 30 trading-day period ending December 15, 2015 has fallen below the requirement to be at least $1.00 per share. The purpose for seeking shareholder approval to effect the reverse stock split was to increase the market price of the Company's common shares. The Compapany believes that the increased market price for its common shares that is expected as a result of implementing the reverse stock split will cure this deficiency.
In a separate release, Scorpio announced the sale of 5 vessels, 2 of which are still being built.
It appears the management is doing everything they can to hang on. The question is, will it be enough?
As from July 1, 2016 the International Maritime Organization (IMO) amendments to the Safety of Life at Sea (SOLAS) Convention requires the shipper of a packed container to provide the container`s verified gross mass (VGM) prior to stowage aboard ship.
This is VERY IMPORTANT. Beginning July 1, 2016, shippers will be required to VERIFY the
weight of the contents and packaging inside the container they deliver to be shipped.
Here is a link to the brochure published by The World Shipping Council.http://www.worldshipping.org/industry-issues/safety/faqs/SOLAS_VGM__Industry_FAQs_Dec_2015_US_letter_WEB.pdf
Now that CMA CGM will purchase NOL (APL), and China Shipping and COSCO are set to merge,
what will be the next mergers?
Hapag Lloyd was looking to buy NOL, but lost out to CMA CGM, so will Hapag Lloyd be looking for another line to acquire?
Who are the likely candidates?
A merger between the two Korean companies, Hyundai Merchant Marine and Hanjin Shipping is possible. Even though the stock of each company is traded on the Korean stock exchange, somehow I think the government would not let either company be sold to a non-Korean company.
OOCL is listed on the Hong Kong stock exchange. I don't know if there is a majority owner who could possibly block a sale. According to published data they are making money. If I were looking to buy a shipping company, this one has possibilities.
Yang Ming's stock is listed on the Taiwan Exchange. According to Bloomberg, this company has negative earnings of around 1.00, with the stock trading around 8.00. This company is leasing newbuilds (ships) from Seaspan, and I don't know how many of their fleet might be owned. The fundamentals of this company look problematic. They might be purchased cheaply, but if the industry continues in it's downward trend this company might not make it.
That's it for now.
Peter Frederiksen, Hamburg Süd (front row r.), was presented with the award by Dominique von Orelli, DHL Global Forwarding (front row l.).
On 9th December, DHL Global Forwarding presented Hamburg Süd with the ‘Carrier of the Year 2015’ award. DHL is one of the leading global logistics enterprises and, with this honour, is underscoring the outstanding working relationship with Hamburg Süd, which ranks among the ten largest container shipping companies worldwide.
“We are happy to award Hamburg Süd as the Ocean Carrier of the Year for outstanding customer service, schedule reliability and rate competitiveness. The company has proven to be a trustworthy partner and shown great commitment to supporting DHL Global Forwarding’s business needs over the last couple of years,” explains Dominique von Orelli, Head of FCL Product & Capacity Management, DHL Global Forwarding. “Hamburg Süd has improved its value proposition for us on many key trade lanes, such as Asia to Latin America or Asia to the US. This allows us to offer high-quality, increasingly competitive service to our customers globally.”
The award was received by Peter Frederiksen, Member of the Executive Board of Hamburg Süd, at the annual DHL Carrier Meeting in Bonn: “Hamburg Süd sees itself as a quality carrier. Our aim is to offer the best possible solution for every logistical challenge. The excellent collaboration with DHL is aspiration and motivation in equal measure. The award confirms our belief that, in an extremely competitive market, it is possible to score successes with customer orientation and operational excellence. And it reflects the strong commitment of the entire Hamburg Süd team globally.”
This is the basis listed by the TSA for the bunker charge
|TSA Fuel Price-Bunker Charge Conversion Table|
|Average||Bunker Charge for Next Quarter (US$)|
|Weighted Fuel Price|
800.01 - 820
780.01 - 800
760.01 - 780
740.01 - 760
720.01 - 740
700.01 - 720
680-01 - 700
660.01 - 680
640.01 - 660
620.01 - 640
600.01 - 620
580.01 - 600
560.01 - 580
540.01 - 560
520.01 - 540
500.01 - 520
480-01 - 500
460.01 - 480
440.01 - 460
420.01 - 440
400.01 - 420
380.01 - 400
360.01 - 380
340.01 - 360
320.01 - 340
300.01 - 320
280.01 - 300
260.01 - 280
240.01 - 260
220.01 - 240
200.01 - 220
180.01 - 200
And this is what the TSA has stated is the recent costs for bunker fuel
|Weekly Average Price Differentials|
0.1% MGO Low-Sulfur vs. Standard Bunker Fuel
Jan 04 2016
Reminder: Figures denote difference in price; as example, “100” means that at the load port in question, low-sulfur fuel cost $100/MT more than standard bunker fuel.
I guess if the bunker prices drop below 180 they will have to update their chart.
Hapag Lloyd issued an IPO (initial public offering of stock) back in November.
From Bloomberg news (at the time of issue). The stock ticker symbol is HLAG and trades on Xetra exchange.
Hapag-Lloyd shares were sold at 20 euros ($21.92) apiece, the German shipping company said on Tuesday, confirming an earlier Reuters report.
The company had originally targeted a market cap of more than 5 billion euros, but in wobbly markets offered shares for 23-29 euros each.
Weak demand later prompted it to postpone the IPO, trim the number of shares on offer and lower the price range to 20-22 euros.
Several large investors had cancelled share orders after a profit warning from peer Maersk rocked already jittery markets.
Read more at Reutershttp://www.reuters.com/article/hapag-lloyd-ipo-idUSL8N12Y3Q820151103#gVW9QRZjDioSPTrl.99