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DBSV Resport 22/07/11
http://kfc1973-stock.blogspot.com/2011/07/pst-another-stable-quarter-dbsv.html
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
Business Times - 08 Feb 2011 Pacific Shipping Trust names new CEO By JOYCE HOOI PACIFIC Shipping Trust has a new chief executive officer - Lim Sim Keat - who will take over the position in March, its trustee-manager, PST Management Pte Ltd (PSTM), announced yesterday. Mr Lim, a permanent resident of Singapore, has almost 20 years of experience in the shipping industry and has worked for Nova Shipping and Logistics Pte Ltd, Austral Asia Line and two of the Kuok Group's shipping agencies - Newship Agencies Pte Ltd in Singapore and PT New- ship Nusabersama in Jakarta. 'My fellow directors and I are delighted to welcome SK on board. With his strong shipping credentials and regional exposure, we are confident that he is well-positioned to maintain PST's strong growth momentum and bring the firm to new heights,' said Ben Kwek, the chairman of PSTM. The trust's acting CEO, Teo Choo Wee, will return to the trust's sponsor - Pacific International Lines Private Limited - and will stay on as a director on the board at PSTM. 'We would like to thank Choo Wee for his significant contributions in the past year as he led PSTM to complete three major accretive acquisitions which have more than tripled PST's total contracted revenue from US$250 million to about US$800 million up to the year 2023, and almost doubled its portfolio of vessels from 12 to 21 vessels,' added Mr Kwek. Mr Teo had stepped up as acting CEO after the surprise resignation of the trust's CEO, Alvin Cheng, in 2009. Mr Cheng had been in the position for barely more than one-and-a-half years and had resigned to pursue his personal aspirations, according to PSTM. |
Business Times - 27 Nov 2010
PST buys five bulk carriers for US$150m
By LYNN KAN
MOVING further from its purely container ship holdings past, Pacific Shipping Trust (PST) has acquired five 57,000 deadweight-tonne (dwt) supramax bulk carriers for US$150 million.
This is the third such acquisition of non-container ship vessels made by PST in five months.
Now, one-third of PST's 21 vessels are bulk carriers, up from the two 180,000-dwt capesize bulk carriers it bought in June, PST's first diversification move.
Last month, it bought two 24,000-dwt multi-purpose vessels (MPPs) to add to its fleet of 12 container ships.
The five supramax bulkers will be built by Tianjing Xingang Shipbuilding Industry.
After delivery between October 2012 and April 2013, they will be leased to Korean-based logistics company Glovis on time charter agreements.
The agreements with Glovis add US$250 million to PST's total contracted revenue, bringing that figure to US$800 million, an increase of 45 per cent.
The tenor of the Glovis charters will last eight and 10 years, and will provide PST charter income stretching into 2023.
PST would not reveal the daily charter hire rate secured from Glovis due to non-disclosure terms from the latter.
However, going by PST's comments that charter rates are the same for all five vessels, this pegs the rate at about US$15,500 per day.
While its latest buys have been strictly non-container ships, Teo Choo Wee, acting CEO of PST Management, the trustee-manager of PST, told BT that the company would consider diving back into the vessel class now that charter rates have risen sharply since last year.
London shipbroker Clarkson said in September that charter rates for a gearless panamax ship of 3,500 TEUs (twenty-foot equivalent units) rose to US$18,250 a day from an average US$6,575 a day throughout 2009.
'The charter rates to the price of the vessels didn't make sense at all to buy more. But now it seems it's different,' said Mr Teo. 'We've also heard that a number of good operators are out there looking for financing, so if there's a good deal out there, we'd definitely consider it.'
PST has slowly decreased income reliance on its parent company, Pacific International Lines (PIL).
Glovis is now its majority contributor to total contracted revenue, making up 31 per cent of PST's total.
PIL makes up 24 per cent of total charter revenue, down from 35 per cent; Jiangsu Shagang 24 per cent from its previous 34 per cent; and Cosco Xiamen 14 per cent, down from 19 per cent. CSAV takes up 7 per cent, down from 12 per cent.
Separately, PST announced that it has secured financing worth US$150 million from Bangkok Bank, DBS Bank and Malayan Banking that will pay for about 81.9 per cent of its MPPs and capesize bulkers, costing about US$183 million in total.
The remaining 20 per cent of the vessels' cost considerations are drawn from 'funds made available from PST's existing cash retention programme'.
Mr Teo said the securing of the bank financing should make it unnecessary for PST to raise new equity to fund these acquisitions.
The loan-to-value (LTV) ratio of PST is now at 46 per cent for its 12 container ships.
When the two capesize bulkers are delivered in September 2011, it will increase to 52 per cent.
After all nine new vessels are delivered in 2013, LTV ratio will reach 55 per cent.
PIL will be providing pre-delivery down payment for the five new supramax bulk carriers.
PST closed trading in the market yesterday 1.5 cents higher at 36 US cents.
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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.
tonylim2 ( Date: 26-Aug-2010 10:07) Posted:
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pharoah88 ( Date: 26-Aug-2010 09:55) Posted:
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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].
tonylim2 ( Date: 26-Aug-2010 09:39) Posted:
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I find this is rather interesting as believe many including me also want to be educated.
From CNA forum :
Just read thru the AR, and found there are few valuations on the vessels.
There are;
1)COST , 2)CARRYING VALUE , 3)VALUATION , 4)VALUE IN USE .
1) COST : Presume this is cost of purchase ?
2) Carrying value : What is this ?
3) Valuation : Understood.
4)Valuein use : Total balance contracted rentals from the existing vessels ?
Pls help to clarify. Thanks.
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.
Rickmers to distribute DPU for Q2
Mainboard-listed business trust Rickmers Maritime says it will distribute US $0.57 ($0.77) per unit (DPU) for its second quarter ended June 30 — 5 per cent lower than the same period a year ago.
The trust’s income available for distribution also fell 9 per cent to US $17.79 million from US $19.63 million in the previous year. Likewise, charter revenue for second quarter fell from US $37.55 million to US $36.40 million on-year.
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
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 Pacific Shipping Trust |
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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
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 Shagang Group recorded revenue of RMB146.3 Billion with pre-tax profit of RMB7.3 Billion and reported total assets exceeding RMB130 billion.
SHAGANG GROUP was the only private enterprise from PRC to be included in the Fortune Global 500 list in 2009.
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 25th June 2010, entered into: (a) two ship sales contracts (the "Ship Sales Contracts") with Mitsubishi Corporation, Japan ("Mitsubishi"), for the acquisition (the "Acquisition") of two new 180,000 DWT Capesize Bulk Carriers (Hulls No. 2408 and 2409) ("the New Vessels") to be built by Hyundai Heavy Industries Co., Ltd., Korea ("HHI") and
(b) two Time Charter Agreements (the "Time Charter Agreements"), for a ten year time charter for each of the New Vessels to Jiangsu Shagang Group Co., Ltd., China ("Shagang"), or its nominee, commencing on delivery of the respective New Vessels, collectively, the "Transaction". Details of the Acquisition are as follows: DWT Price Expected Delivery Date Hull No. 2408 180,000 USD 61.6 Million 5th September 2011 Hull No. 2409 180,000 USD 61.6 Million 20th September 2011 unitholders including the following: 3.1 Yield accretion The New Vessels are expected to be accretive to PST’s distributable cashflow once they are delivered and in operation. 3.2 Growth Strategy and Income Diversification Strategy When the Acquisition is completed and the New Vessels are delivered and time chartered by end 2011, the Transaction is expected to improve the income diversification of PST. Based on current annualised proforma contracted revenue, the Transaction will increase PST’s current aggregate contracted revenue by more than 30% to approximately USD 81.0 Million per annum when the vessels are delivered and are in one full year of operation.
namely, PIL, CSAV and now Shagang. 3.3 Asset Diversification Strategy With the diversification into a non-container sector, the Transaction is expected to benefit unitholders by improving PST’s asset diversification and reducing the reliance of PST’s income stream on any single vessel type.
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.
The Trustee-Manager believes that PST has acquired the New Vessels at an attractive price of USD 61.6 Million each. This is substantially lower than the prices of comparable quality ships contracted in 2007 / 2008. 3.4 Stable Charter income The New Vessels, when delivered, will be time chartered to Shagang at USD 27,000 per day for ten years which the Board of PSTM believes will underpin the stability of the charter income for PST.
With the addition of another top-quality partner, PST’s long-term leases will stretch into 2021, providing the trust with stable income of close to USD 500 Million over the next 10
years. 3.5 Acquisition Fit the Trustee-Manager’s Investment Strategy The Trustee-Manager believes that the Acquisition is in line with the Trustee-Manager’s principal investment strategy to invest in quality income-producing vessels which will provide overall yield accretion and value creation opportunities so as to deliver stable distributions and sustainable total returns to the unitholders. 3.6 Competitive Strengths of the New Vessels The competitive strengths of the New Vessels are as follows:
(i) The New Vessels are constructed by a reputable shipyard
The New Vessels were designed and are being constructed by HHI, a highly reputable shipyard in the world. The Trustee-Manager believes that investing in quality vessels constructed in reputable shipyards will enhance their durability and support their value in the secondary market by commanding a price premium.
(ii) The New Vessels are built with the latest technical specifications
financing and equity financing, although the final financing methods and mix will be subject to further evaluation by the Trustee-Manager. 5. FINANCIAL EFFECTS OF THE TRANSACTION Based on assumption that the Transaction had been effected on 1 January 2009, the proforma financial impact on the earnings per unit is not material. Based on the assumption that the Transaction had been effected on 31 December 2009, the proforma financial impact on the net tangible asset per unit is not material. ___________________
Notes: (1) There are no net profits attributable to the Acquisition as the New Vessels are in the process of construction.
(2) Based on the market capitalisation of PST as at 25 June 2010. Although the relative figure of the consideration payable when compared with the market capitalisation of PST as at 25 June 2010 would exceed 20.0%, the Board of Directors of PSTM is of the opinion that the Acquisition is the ordinary course of business of PST for the following reasons: a. it is consistent with PST’s business objectives and strategy;
b. the commitment to purchase the New Vessels was done concurrently with the commitment to charter out the New Vessels which fits PST’s business objectives and strategy;
c. the Acquisition would not result in any significant adverse change in PST’s risk profile,
2 and the Acquisition therefore does not require unitholders’ approval for purposes of Chapter 10 of the SGX-ST Listing Manual. 7. OTHER INFORMATION A copy of each of the Ship Sales Contracts and the Time Charter Agreements will be available for inspection
No director or controlling shareholder of PSTM or controlling unitholder of PST has any interest, direct or indirect, in the Transaction and no director is proposed to be appointed to the board of PSTM in connection with the Transaction.
6. RELATIVE FIGURES COMPUTED ON THE BASIS OF RULE 1006 OF LISTING MANUAL Based on the criteria set out in Rule 1006 of the Listing Manual of Singapore Exchange Securities Trading Limited (the "SGX-ST"), the relative figures for the Acquisition under Rules 1006 (a) to (d) are as follows: PST
(US$’million)
(FY 2009 Audited) Acquisition
(US$’million) Relative Figures (a) The net asset value of the assets to be disposed of, compared with the group's net asset value. This basis is not applicable to an acquisition of assets Not
applicable Not
applicable Not applicable
The chart below shows the percentage of contracted revenue receivable from each of PST’s charterers.
Annualised Proforma Revenue (US$81m) Breakdown by Charterer
The New Vessels are built in compliance based on HHI’s latest design for the modern Capesize Bulk Carriers. The New Vessels are powered by MAN B&W 6S70MC-C8 engines and the new International Maritime Organisation ("IMO") adopted Performance Standard for Protective Coatings ("PSPC") is also applied to the New Vessels. This coating standard will improve safety at sea by reducing the corrosion encountered in steel ships, thus enhancing the structural quality of the New Vessels.
28 June 2010
PIL53%CSAV23%Shagang24
PST TO ACQUIRE TWO NEW 180,000 DWT CAPESIZE BULK CARRIERS
1. INTRODUCTION
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 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 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)
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."
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."
AFTER OFFICE HOURS : 9750-8237 / 9827-5226 (Handphone)
Macquarie Equities Research says: “Record-breaking container volumes in May”
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.
The ONLY Shipping REIT
that KEEPS its PROMiSE
on INVESTMENT for GROWTH
Pacific Shipping Trust has added a news release to its Investor Relations website.
Title: PST To Acquire Two New 180,000 DWT Capesize Bulk Carriers
Date: 28/06/2010
For a complete listing of our news releases, please click here