Ship Finance Review (4 July 2019)

Wall StreetAnalyst J Mintzmyer of Seeking Alpha has identified Star Bulk Carriers [SBLK] as a “dry bulk pure play” due to its current value at around US$ 8.4 being a “massive” 35% discount to its NAV (net asset value) and the company’s well-positioned, modern fleet which is set to be 100% fitted with scrubbers before the IMO 2020 regulations come into play. Mintz­myer also sees great potential in SBLK due to the current rally in Capesize rates (with day rates up to US$19,000 this week vs. US$4-7,000 three months ago) and Vale’s resuming iron ore output at its mines that were closed until recently following January’s mine disaster. The analyst has accordingly raised his fair value estimate for SBLK to US$ 14 per share.

Japanese shipping company K Line this week con­firmed earlier reports that it is entering into a new joint venture with utility company Taipower (Tai­wan Power Company) and two Taiwan-based own­ers, U-Ming and Kuang Ming. The so-far unnamed venture, valued at US$ 32.3m, plans to begin opera­tions in October 2020. The new company will oper­ate a fleet of LNG and coal carriers with K Line hold­ing a minority share of 7.5% and Taipower holding a majority share of 40%. The Taiwanese shipowners will control shares of 32.5% and 20%, respectively.

Athanasios Feidakis’s Globus Maritime has finalized its refinancing of its five-vessel fleet via its term loan facility in the Blue Ocean Fund from alternative asset manager EnTrust Global. The Globus fleet compris­es one Panamax and four Supramaxes. Two months ago, the hedge fund and asset manager, EnTrust Glo­bal, with offices in London and NY, observed that its total investment capital exceeded US$ 1.1 billion in funding for its Blue Ocean Strategy programme.

To read shipbroking and investment analysis like this every day, subscribe to the BMTI Daily Report.

Comments are closed.