Pacific Shipping Trust  ‘s trustee-manager, PST Management Pte Ltd announced that it has secured bilateral financing commitments for a total of US$132 million from Oversea-Chinese Banking Corporation Limited, Standard Chartered Bank and ING Bank N.V. to fund its purchase, announced on 26 November 2010, of five new 57,000 DWT Supramax Bulk Carriers. These new vessels have been time-chartered to Glovis Co., Ltd, Korea for periods of 8 and 10 years respectively.

 

sgx

 

PCV is the portion of CV that is utilised for earnings.

ICV is the portion of CV that is left Idle without earnings.

E.g.  UNsold Empty seats in a flight contribute to ICV for airlines.

        Sold seats in a flight contribute to PCV for airlines.

my understanding:

COST = Full Purchase Price

Carrying Value [CV] = Book Cost net of Depreciation

Valuation = Official Assessment

Value In Use [VIU] = portion of Carrying Value utilised under CHARTER;

i call it Productive Carrying Value [PCV], which is Carrying Value [CV] LESS Idle Carrying Value  [ICV].

Maersk raises full-year earnings forecast

COPENHAGEN

Net income in the first six months of the year was 13.4 billion kroner ($3.1 billion) compared with a 3.67 billion-kroner loss a year earlier, the company said yesterday. Sales rose 20 per cent to 154 billion kroner.

Maersk is recovering from its first annual loss in at least half a century after the shipping market contracted last year for the first time since containers became the world’s standard means of carrying freight in the ’70s.

Maersk said that net income before minority interests this year will exceed US$4 billion ($5.4 billion).

“The strong momentum of the container-shipping industry helped freight rates to rise sharply in the second quarter,” said Mr Bertrand Kuentzler, an analyst at ING Commercial Banking in Brussels.

— A P Moeller-Maersk, the owner of the world’s largest container-shipping line, raised its full-year earnings forecast after increases in freight rates and global trade helped the company restore first-half profit.BLOOMBERG

Rickmers said that even as the container market continues to recover, prevailing uncertainties like the Eurozone could trigger the introduction of tough austerity measures.

Pacific Shipping Trust to distribute 0.79 US cents for Q2
By Jonathan Peeris | Posted: 21 July 2010

	Photos 1 of 1 Pacific Shipping Trust

SINGAPORE : Pacific Shipping Trust (PST) has said it will distribute 0.79 US cents per unit for the second quarter ended June 30.

This is approximately 20 per cent lower than the same period a year earlier.

PST said the lower distribution was due to additional cash retention which started in the third quarter of last year, of which 30 per cent of distributable income was retained as compared to 10 per cent previously.

The trust said the policy of preserving cash has enabled PST to acquire two new 180,000 Dead Weight Tonne Capesize Bulk Carriers as was announced last month.

Gross revenue for the second quarter slid 2 per cent to US$15.1 million.

For the first six months of this year, gross revenue edged down one per cent to US$30.3 million.

Going forward, PST expects to add additional contracted revenue of about US$194 million in late 2011.

That is when the 10-year time charter contracts for its two new Capesize Bulk Carriers to Chinese steel firm Shagang become effective.

- CNA/al

SGX-ST Announcement

The board of directors of PST Management Pte. Ltd. ("PSTM" or "Trustee-Manager"), the trustee-manager of Pacific Shipping Trust ("PST"), is pleased to announce that it has on 25^{th June 2010, entered into:}

PST TO ACQUIRE TWO NEW 180,000 DWT CAPESIZE BULK CARRIERS

PST DIVERSIFIES INTO NEW ASSET CLASS AND WIDENS CHARTERER BASE

- PST’s first non-container vessel acquisition

- Deal worth US$123.2 million for two 180,000 DWT Capesize Bulk Carriers

- Vessels to be built in Hyundai Heavy Industries Co., Ltd., Korea ("HHI"), deliveries expected in September 2011

- 10-year time charter at US$27,000 per day with Jiangsu Shagang Group Co., Ltd. ("Shagang"), China’s largest private steel enterprise

SINGAPORE, JUNE 28, 2010

Shagang, was founded in 1975 and is headquartered in Zhangjiagang City, Jiangsu Province. It prides itself as China’s largest private steel enterprise, with more than 35,000 employees and an annual production capacity of 29 million tons of iron, 35 million tons of steel and 33 million tons of steel rolled products. In 2009, the Group recorded revenue of RMB146.3 billion with pre-tax profit of RMB7.3 billion and reported total assets exceeding RMB130 billion.^{1 Shagang Group was the only private enterprise from PRC to be included in the Fortune Global 500 list in 2009.}

1 – PST Management Pte. Ltd. ("PSTM"), trustee-manager of Pacific Shipping Trust ("PST"), announced today that it has diversified into the non-container sector by contracting to acquire two new 180,000 DWT Capesize Bulk Carriers (Hulls No. 2408 and 2409 (the "New Vessels") from Mitsubishi Corporation, Japan ("Mitsubishi"), for a total consideration of US$123.2 million. At the same time, it has entered into two time charter agreements for the 10 year time charter of each of the new vessels to Jiangsu Shagang Group Co., Ltd., China ("Shagang"), or its nominee, at US$27,000 per day for each vessel. Source : Website of Shagang at www.sha-steel.com/eng

Mr Teo Choo Wee, Acting CEO of PSTM commented: "This marks a major milestone for the Trust with the diversification into the non-container segment, a new asset class for PST and the enlargement of our charterer base. Shagang Group is an esteemed counterparty with whom we look forward to building a long-lasting and meaningful relationship."

BENEFITS AND ADVANTAGES

The New Vessels, which represent a new asset class for the Trust, are expected to be accretive to PST’s distributable cashflow.

This transaction should lead to additional charter revenue of approximately US$194 million for the duration of the charters, which will add to the stability of the charter income for the Trust.

"The addition of Shagang, a well-established and global name in the steel industry, as a new charterer will also improve PST’s income diversification. For the last few quarters we have been communicating our intentions to expand our existing fleet and charterer base and we are indeed pleased that we have managed to deliver on our plans," said Mr. Teo.

With this latest development, PST’s fleet portfolio will be increased from 12 to 14 vessels. All vessels will be leased out on long-term, fixed-rate charters to well-established charterers, namely, PIL, CSAV and now Shagang. With long-term leases stretching into 2021, PST will enjoy stable income of close to US$500 million over the next 10 years.

The Trustee-Manager believes that investing in quality vessels constructed in highly reputable shipyards such as HHI will enhance their durability and support their value in the secondary market, thereby commanding a price premium.

The increase in demand for Chinese imports of iron ore and coal has boosted shipping demand for Capesize bulk carriers. This trend should continue as end-users seek to better manage their long-term raw material supply requirements, and to have better control of their logistics chain by locking in long-term charters for their shipping needs.

OUTLOOK

Mr Teo added: "This acquisition demonstrates PST’s commitment to deliver value accretive growth to unitholders. Our trust is built on a sustainable business model of predictable income and cashflow stream generated by quality vessels on long-term charters to reputable customers. We will continue to pursue this strategy and explore further opportunities for meaningful acquisitions."

ABOUT PACIFIC SHIPPING TRUST

Pacific Shipping Trust is the first business trust listed on the SGX-ST. It provides structured financing solutions to established shipping companies, thereby generating visible and stable cashflow stream through long-term charters. By acquiring vessels and leasing them to reputable charterers on long-term bareboat or time charters, PST seeks to generate a steady stream of high-yielding income for its Unitholders.

The trustee-manager of PST is PST Management Pte. Ltd., a wholly-owned subsidiary of Pacific International Lines (Private) Limited, one of the largest private shipowner and operator in South East Asia.

For further information, please contact:

Citigate Dewe Rogerson, i.MAGE Pte Ltd

1 Raffles Place #26-02 OUB Centre SINGAPORE 048616

CONTACT : Ms Dolores Phua / Mr Daniel Hoo at telephone

DURING OFFICE HOURS : 6534-5122 (Office)

AFTER OFFICE HOURS : 9750-8237 / 9827-5226 (Handphone)

Mr Teo added: "We believe that this is the right timing to enter into a dry bulk acquisition. PST has acquired the vessels at an attractive price that is substantially lower than the prices contracted in 2007 and 2008 for comparable ships."

Global Container Index reaches new high

Macquarie’s Global Container Index, constructed from the aggregation of volumes from almost 200 container ports in 58 countries, suggests that global container volumes reached a record high in May 2010, exceeding the previous peak seen in July 2008 by around 1%. In terms of the YoY growth rate, we estimate that global throughput increased by 19% in April and 18% in May, illustrating that the growth rates seen in 1Q10 have yet to slow.