We take a look at what was said in the market in the past week.
Ship financier Kevin O’Hara identifies a key strength of his new shop, AMA Capital Partners.
So deals with "hair on" are not confined to cattle auctions but at least it makes a refreshing change from talk of haircuts. But maybe the real solution is for bankers to pay a visit to Sweeney Todd to see what he could do for them.
(Restructuring expert O’Hara back at AMA)
“It is kind of a dangerous stock to be involved with right now. Because there are large short positions in the stock, any strength in rates could bring a big spike because of short-covering. On the other hand, it is also dangerous for long positions because their update on financing could bring negative news. We are quite comfortable remaining on the sidelines.”
Evercore Partners analyst Jonathan Chappell takes a cautious stance on Overseas Shipholding Group.
(Dividend axe ‘par for the course’)
“We are very tempted to go out and buy ships but we need to make sure that it makes sense from both the commercial and financial point of view.”
Ahmed Buhari of the Coal & Oil chartering operation is keeping a close eye on bulk carrier asset values before making a move.
(Brokers speak highly of solid charterer as shipping team switches to Singapore)
“From a more intermediate-term perspective, while the tanker market remains oversupplied, the orderbook continues to dwindle (now at 17% of the global fleet, down from a peak of 49% in 2008), potentially reaching a 15-year low by the end of 2012 (8%), which we believe could help eventually (Q4/2013) anchor an inflection point in the tanker market.”
(Wells lifts TNK to 'outperform')
“Yes, I suppose the rates are a bit surprising but I would not say I am disappointed. But it does show what we often see and that is how some owners can get their minds set for pushing up rates and then all it takes is for one owner to come in and just ruin it.”
An anonymous shipbroker explains the volatility of the offshore vessel market.
(AHTS rates slip in latest Brazil round)
“In 2010, we said wow, the market is really on the way back, and 2011 started well, but all the economic turmoil in the Eurozone was not so good in the second half.”
But Wartsila chief executive Bjorn Rosengren is still optimistic he can avoid slow steaming.
“It is very difficult to increase marine premiums even in circumstances where it is logical this should happen.”
Alexey Timofeev get to the heart of why Reso-Garantia is retreating from providing insurance cover for shipowners.
“We are using him to research one or two areas we might expand into but you shouldn’t draw any conclusions at this stage.”
Britannia Club manager Tony Gosden takes a cautious line on expectations that he is preparing a move into the small ship P&I market.
