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Yinson raises $100m through perpetual bond

Yinson Holdings has raised $100m from a perpetual bond issue through its Yinson Juniper unit under its $500m multi-currency perpetual securities programme, the FPSO player said in a stock market announcement.

The bonds were issued with a coupon rate of 7.85%  and are listed on the Singapore Exchange (SGX). They have a perpetual tenure with a call option on the fifth anniversary of the issuance.

“The issuance marks the group’s third capital market transaction since its inaugural capital market issuance in September 2015,” Yinson said in a press release.

Proceeds from the issuance would be for the group’s general corporate purpose and, in particular, future capital investments.

Yinson executive chairman Lim Han Weng said the successful issuance “demonstrates investors’ continued confidence towards the group and our business prospects.

“We look forward to deploying capital raised towards new investments and, armed with our proud project execution track record, we are confident of rewarding our investors for their trust and support,” he said.

 
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Maersk Drilling reactivates semi-submersible for Southeast Asia job

Maersk Drilling has reactivated a semi-submersible for work in Southeast Asia following a new contract awarded by JX Nippon for a duration of an estimated 30 days.

The contract will utilise the deepwater semi-submersible Maersk Deliverer to work on a well located in offshore Malaysia 160 km northwest of Kota Kinabalu at a water depth of 1,200 m. The contract is set to start in the fourth quarter of 2017.

“We see an increase in demand for deepwater rigs in the Southeast Asian market, and this is a great opportunity to get closer to deepwater customers in the region, like JX Nippon, and thereby enable them to fulfil their business objectives safely and efficiently,” said Lars Ostergaard, chief commercial officer of Maersk Drilling.

Since April 2016, Maersk Deliverer has been warmed stacked in Namibia.

The reactivation of the rig has already commenced, and the main work scopes will be carried out during its voyage to Malaysia, saving valuable time. Maersk Deliverer is the fifth rig that Maersk Drilling has successfully reactivated from warm stacking within the past eight months.

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Saudi Arabia – key to Gulf offshore recovery

Exploration and production (E&P) spending by the world’s largest energy firm, Saudi Aramco, increased five-fold between January 2016 and August 2017, according to experts.

It is understood that the state-owned company is also planning to expand its network of “long term agreement” (LTA) service providers from the current five to as many as ten or more. If this strategy goes ahead, it could result in a significant upturn for a number of currently over-tonnaged offshore service vessel companies operating in the region.

No details are available from the energy major but Koh Chen Tien, chairman of Makamin Offshore Saudi, told delegates at Seatrade Offshore Marine Workboat Middle East in Abu Dhabi last week that Saudi Aramco is thought to be doubling the current number of its five LTA partners, with new contractors possibly including Aker Solutions, Lamprell, Subsea 7, Sapura Energy and Technip.

If successful, these companies would join the exclusive club of existing LTA members – Dynamic Industries of the US, a partnership of India’s Larsen & Toubro and Emas of Singapore, McDermott, also of the US, UAE-based National Petroleum Construction Company, and Italy’s Saipem.

Market intelligence suggests that the Saudi energy giant is planning to expand offshore production capacity at the Marjan, Berri, and Zuluf offshore fields which could boost capacity by as much as one million barrels a day. In recent months, Koh said, Saudi Aramco has awarded contracts on both the Marjan and Berri field expansion projects.

Part of Saudi Aramco’s drive is to expand capacity, but part is also to offset declining production in some existing fields, according to experts. The strategy is likely also to be related to the company’s plans to list five per cent of its stock on one or more stock exchanges, yet to be announced, within the next two to three years.

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Singapore and Malacca Straits coastal nations agree phase two hydrographic survey

The littoral nations of Singapore and Malacca Straits (SOMS) have signed an agreement for phase two of a hydrographic survey of the busy waterway.

A Memorandum of Understanding (MoU) was signed by Malaysia, Singapore and Indonesia at the 10th Cooperative Forum in East Malaysia this week. The survey will also be supported by the Malacca Straits Council of Japan.

Continuing from phase one of the survey the second phase will cover areas of the Traffic Separation Scheme in the Straits that are lower than 30 m in depth. The data will be used to create large scale, up-to-date navigational charts of the Straits.

“The Joint Hydrographic Survey for the SOMS will allow navigational charts to be updated with the latest nautical information and help improve navigational safety in one of the world’s most well-used waterways,” said Andrew Tan, chief executive of the MPA.

One of the world’s busiest waterways the SOMS saw close to 84,000 vessel transits in 2016.

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Where next for FSL Trust as Navios Maritime deal falls through

Navios Maritime Holdings’ planned deal to acquire a majority stake in First Ship Lease Trust (FSL Trust) has fallen through.

Under a term sheet signed in April Navios had been going to buy HSH Nordbank’s 24.23% controlling stake in FSL Trust, and grant a secondary convertible mortgage loan to the Trust that would take its holdings to over 50.1% once converted.

Singapore-listed FSL Trust Management said in a statement to the Singapore Exchange: “The Trustee-Manager wishes to announce that definitive agreements for the proposed transaction were not agreed by 30 September 2017 and the term sheet has been automatically terminated in accordance with the terms thereof.”

The Trust said the termination of the term sheet was not expected to have any financial impact on the group.

“As previously stated, the Trustee-Manager will continue to be proactive in achieving refinancing to ensure the long-term stability of the Trust amid the volatility and reduction in vessel values,” it said.

The Trust’s existing financing facilities were set to expire at the end of September this year.

 
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Hapag-Lloyd receives last UASC newbuild, raises share capital

Hapag-Lloyd has taken delivery of the 15,000 teu Al Jemilyah, the last of a series 17 newbuilds ordered from the Hyundai Samho yard by UASC in the summer of 2013.

The move follows completion of the merger between Hapag-Lloyd and UASC in late May this year, creating the fifth largest liner shipping company with a fleet of 219 modern containerships of 1.6m teu capacity.

“Our fleet, one of the youngest and most modern in the industry with an average age of just 7.1 years, is now complete,” commented Hapag-Lloyd coo Anthony Firmin after the delivery. “We have no plans to order any more newbuilds in the foreseeable future.”

Like predecessor Afif delivered in July, Al Jmeliyah (‘beautiful one’ in Arabic), will operate on the FE4 service of THE Alliance between Asia and Northern Europe. The newbuild was part of a UASC order for 11 ships of 15,000 teu and six of 19,900 teu.

With its fleet expansion complete, Hapag-Lloyd will now carry out the capital increase agreed as part of the UASC merger. Some 11.7m new shares with subscription price of EUR30 will be issued, underwritten by primary shareholders CSAV Germany Container Holding GmbH, Kuehne Maritime GmbH, Qatar Holding Germany GmbH and the Public Investment Fund of the Kingdom of Saudi Arabia.

The expected capital of EUR352m ($414m) raised will be used primarily for the repayment of debt as well as general corporate purposes.

“Following the successful merger with UASC, we will use the capital increase to strengthen our capital structure and to use the proceeds to reduce the leverage of the company,” said Hapag-Lloyd ceo Rolf Habben Jansen. “This enables us to focus on enhancing our strategic and operating objectives.” 

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China Merchants and CIMC offshore businesses likely to complete merger in Q4

China Merchants Heavy Industry (CMHI) and China International Marine Container (CIMC) are expected to complete a merger of their offshore yard businesses during the fourth quarter of this year, reports said.

The merger is likely to involve CIMC Offshore Engineering and the offshore construction business of CMHI for the purpose of streamlining operations and optimising resources against the backdrop of the sluggish offshore market.

The local media reported that talks between CMHI and CIMC started more than a year ago and the merger plan has been making progress.

In April 2017, China Merchants Port Holdings agreed to transfer its entire 24.53% equity share in CIMC to its subsidiary CMHI, a move that is made to facilitate the merger.

The merger has received strong support from the Municipal Government of Shenzhen, the city where both companies are headquartered, reports said.

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Cosco Shipping Holdings benefits from $78m state subsidy

Cosco Shipping Holdings announced that it has benefited from a government subsidy in the amount of RMB510m ($78.3m) under a scrap-and-build policy.

The subsidy was passed down to Cosco Shipping Holdings from its indirect controlling shareholding of the company, China Cosco Shipping Corporation (Cosco Shipping), for the decommissioning and upgrading of vessels

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RCL launches new Singapore – Indonesia – Malaysia service

Regional Container Lines (RCL) is launching a new service linking Belawan, Indonesia with Penang, Malaysia.

The service called RCL Malaysia Singapore 9 (RMS9) will call Singapore (Tuesday) – Belawan (Thursday), Penang (Friday), Port Klang (Sunday) before returning to Singapore. It adds to RCL’s existing RCL Malaysia Singapore (RMS) and RCL Thailand Belawan (RTB) services.

“This second sailing is a response from RCL to our main line customers (MLO) in providing a second sailing ex Penang preferably on an end week position for their mother vessel connections in both Port Klang and Singapore,” said Charlie Chu, evp business for RCL.

The first voyage starts from Singapore on 3 October with the vessel Nawata Bhum

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East Malaysian lines tie up with Northport in strategic alliance

Perhaps stung into action by the imminent lifting of Malaysian cabotage restrictions, domestic-focussed lines Shin Yang Shipping and Harbour-Link have teamed up with MMC Ports unit and major west coast hub port operator Northport to form a strategic alliance.

The East Malaysia Network or TEAM Network is aimed at achieving economies of scale through sharing of resources such as vessels, terminals arrangements and networks, the companies said in a press release.

The MoU to seal the agreement was signed by Northport ceo Azman Shah Mohd Yusof, Shin Yang Shipping ceo Ting Hien Liong and Harbour-Link group md Francis Yong.

The deal is expected to increase shipping service frequency through schedule alignment between Miri-based Shin Yang and Bintulu-based Harbour-Link.

The consolidation of vessel capacity will also bring greater economies of scale with optimised deployment of vessels and a wider port coverage,  resulting in a reduction of operating expenses as well as optimisation of capital expenditure for both shipping lines, while Northport’s high terminal productivity will provide efficient and effective port services to serve the lines.

“The strengths of Northport, Shin Yang and Harbour-Link will be consolidated to jointly and effectively manage the shipping industry demands through strategic planning of our resources,” said Azman.

“Under the TEAM Network strategic alliance, Northport is expected to provide an efficient and effective port service to the shipping lines. The alliance is expected to benefit significantly from the synergies derived from within the MMC Ports’ group through its integrated logistics value proposition” added Azman.

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