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  • Euronav Is Heading In The Right Direction And Is Now A Cash Cow [View article]
    Well, it's at the end of the 10-page press release, together with balance sheet and p&l
    May 21, 2015. 10:48 AM | Likes Like |Link to Comment
  • Euronav Is Heading In The Right Direction And Is Now A Cash Cow [View article]
    In fact the Q1 press release does contain a cash flow statement. There's a lot of noise with working capital and the joint ventures but I'd say the normalized quarterly operating cashflow after interest is more than $100m and will keep growing. Assuming rates hold, which is currently the case. Q2 seems as good as q1, and there are already fixtures at above $60k well into q3. Very promising.
    May 21, 2015. 10:15 AM | Likes Like |Link to Comment
  • StealthGas: Forget The Dividends, Buy The Dip In This Misunderstood LPG Shipping Company [View article]
    Thank you for the comment. First of all, the article doesn't discuss prospects for the LPG market. Unfortunately it is too complicated for anyone, or at least for me, to provide a real assessment of the impact of oil pricing on the economy, let alone any link to gas or LPG. Cheap oil is good for the consumer, bad for the banks and investment. Demand growth for oil and derivatives is steady, even if not the one wished for.

    The article makes the point that returns in the small pressurized LPG shipping market are low and will probably remain low through 2015. This has not been a secret and is confirmed in fact by H. Vafias in the Q4 conference call and a recent article in Lloyds List: Other segments in LPG enjoy spectacular returns for the moment.

    Stealthgas is a conservatively run, low cost and low-gearing company, able to withstand a sustained depressed market, using also the oil tanker fleet for liquidity. They have been scrapping older LPG vessels already and the market should rebalance in 2016. The levels reached this year ($5.50) were an excellent entry point (re-entry for me). A buyback programme seems to sustain the stock above $6 but the liquidity is very low. I would be cautious at current levels and rather wait for the 2015 Q1 results to get a better price.
    Apr 17, 2015. 09:09 AM | Likes Like |Link to Comment
  • Capital Product Partners LP: A Dividend Investor's Dream (>10% Yield) At A Deep Value Price [View article]
    To Darren McCammon, as unfortunately the author is really nowhere near the ballpark.

    There is no "convoluted incorporation". Most, if not all, shipping companies incorporated outside the U.S. are not subject to income tax in their place of incorporation. At most, they are subject to a token tonnage tax. CPLP is a nothing more than a synthetic shipping MLP like many others.

    Depreciation is a real expense by the way. Depreciation in an industry doesn't change because you call yourself an MLP. There is simply a high-yield market to be exploited.

    CPLP is run smarter than most, recently structuring their acquisitions at below market value to create headroom. Doesn't cost the sponsor entity nothing, as the vehicle is gold to them. Still, lots of units to feed.

    Good luck
    Apr 8, 2015. 03:19 PM | 1 Like Like |Link to Comment
  • The NYFEX Report: Dryships Sells Its Suezmax And Aframax Fleets [View article]
    "What prompted such stunning reversal is anyone's guess, particularly since the transaction is between related-parties".

    Let me guess that Tankships could not be sold even to the gullible U.S. market. Management fees of >$2000 per vessel per day, plus 1.25% on revenue for commercial management plus another 1.25% on revenue for charter sourcing, and the dynamic duo of gorgeous George and nephew Tony at the helm - combined value destructed/shifted to private interest in excess of 1B. DRYS shareholders start from a bottom but putting fresh money at IPO valuations in a George venture is simply crazy.
    Apr 1, 2015. 12:19 PM | 4 Likes Like |Link to Comment
  • Farstad Shipping - My Pick In The Offshore Sector Carnage [View instapost]
    Thanks for reading this post, instanton. It's good to see Farstad picking some commercial talent - they will need all the long-term contracts they can get.

    Unfortunately I don't have much to add. Q4 was a loss due to some small impairments and a large exchange rate impact on the company's debt. 2015 will be "challenging" to say the least, across the industry. But I will hold, for the reasons stated in the post above.
    Mar 15, 2015. 06:11 PM | 1 Like Like |Link to Comment
  • Navios Maritime Partners L.P Announces Acquisition of an Option to Acquire One 13,100 TEU Container Vessel With 12 Years of Employment [View article]
    Feb 26, 2015. 05:34 PM | Likes Like |Link to Comment
  • StealthGas: Forget The Dividends, Buy The Dip In This Misunderstood LPG Shipping Company [View article]
    These are good questions. Of course I'm in favour of stock buybacks, at the current price, and these are already happening, supporting the price. I guess they can add some $10m to the authorization when they announce at the end of the month.

    In fact I propose the preferred to continue funding such buybacks while maintaining compliance with any debt/equity covenants, newbuilding funding taken into account. A $50m issue at 7% is $3.5m annually (earnings and cash), which is much cheaper than even a 5c quarterly common.

    But I'm against any idea of a substantial tender at $8 per share, which is in fact what Hillson Financial - you perhaps? - proposes, which is bad capital management in light of newbuilding and debt commitments and the fact that the money was raised at $10 per share.

    I hope that makes sense. Finally, yes, I conclude by saying that those looking for income will indeed swap out, leaving the common to other types of investors.
    Feb 16, 2015. 01:57 PM | Likes Like |Link to Comment
  • StealthGas: Forget The Dividends, Buy The Dip In This Misunderstood LPG Shipping Company [View article]
    Thank you.

    I thought that Navigator got extremely good pricing in its IPO but it is a good, responsible company. Their segment of the market remains strong but the 20-22k cbm segment will also see high deliveries in the future. I will read your article.
    Feb 16, 2015. 12:14 PM | 2 Likes Like |Link to Comment
  • StealthGas: Forget The Dividends, Buy The Dip In This Misunderstood LPG Shipping Company [View article]
    They did, up until Q1 2009.
    Feb 16, 2015. 12:09 PM | Likes Like |Link to Comment
  • Euronav Could Benefit From The Return Of The Oil Contango [View article]
    Check Euronav's SEC registration statements at for extensive reporting of 9M 2014 and previous years in accordance with U.S. requirements and more. Presumably they will update them immediately after Q4 announcement in February and continue to pursue the listing.

    As the author notes, breakeven numbers include a very heavy depreciation load (as Euronav has a unique depreciation schedule 20 years with zero residual value). I must say that the U.S. public simply doesn't care about depreciation and Euronav's numbers will suffer compared to the publicists at say NAT or the Navios entities (DHT sobered up some time ago and uses 20 years to scrap value).

    To the Investment Doctor - as the comment above says, you may be double counting the effect of lower bunker prices: use of Time Charter Equivalents is a matter of convenience, lower bunker prices simply increase the TCE, as indeed they decrease the voyage costs (spot voyages are paid lump sum on the basis of Worldscale rates). On the other hand, Euronav will indeed save some $10m in opex compared to last year due to the USDEUR rate.

    But yes, I also look forward to all cylinders firing, a U.S. listing and hopefully another 40% - keep up the good work!
    Jan 14, 2015. 04:13 PM | 1 Like Like |Link to Comment
  • Farstad Shipping - My Pick In The Offshore Sector Carnage [View instapost]
    Well, it is only fair to comment on bad picks, rather than let them discreetly go into that good night.

    Oil continued falling, offshore budgets are cut, shareholders exit in an illiquid market and Farstad ended up below NOK40. Book and market values for its assets are meaningless if the assets can't find work. They are in a better position that most, if not all, Norwegian OSV owners, with relatively limited newbuilding exposure and again, relatively OK gearing ratios. Unfortunately, one doesn't make any profits from investing in the safest in a sector that sucks. Is it still my pick in the carnage? Probably yes.
    Dec 20, 2014. 05:58 AM | 1 Like Like |Link to Comment
  • The NYFEX Report: The IPO Of Navios Maritime Midstream Partners [View article]
    Will be nice to read your articles. Floating NAP at whatever price was a triumph for NNA which despite the fanfare was (and probably still is) going nowhere, crippled with huge finance costs and a bloated share count. They will trumpet the deal tomorrow.

    It just shows that the U.S. markets will even accept an MLP owning widgets, as long as you declare that the widgets will be subject to backstopped service contacts with guaranteed revenue. People like them, banks too, so why not.
    Nov 19, 2014. 05:01 PM | 1 Like Like |Link to Comment
  • The Case For Navios Maritime Partners' Stock Buybacks [View article]
    Author, you base your adapted "intrinsic value" calculation on a theory one should disregard EPS in favour of "operating surplus" (a fabricated metric only MLPs use) because EPS includes "tax" depreciation. Someone tells you that this is illogical since there is no tax depreciation but GAAP depreciation (and in fact at 25-years straight line what NMM uses is quite lower than real economic depreciation) and tries to make the point that it is even more absurd as NMM operations do not pay any taxes in the first place. Instead of reconsidering you say it's not important anymore, and want to use discounted cashflows. Just try it then using current and projected cashflows (and scrap the vessels at the end).

    Intrinsic value and MLP-type financing vehicles are incompatible concepts in my view.

    As to NMM itself, it barely covers its distribution, parent NM is currently forced to subsidize the charters when they roll off in order to keep the show running and perhaps people are catching up to those facts. But this is besides the point.
    Nov 19, 2014. 04:52 PM | Likes Like |Link to Comment
  • Frontline Ltd.: Investors Need To Prepare Now For Bankruptcy [View article]
    To clarify, some of ITCL's subsidiaries (Windsor) are in Ch11, with a $5m loss to Frontline, some others (CalPetro) are in negotiations to liquidate with zero equity to FRO as best case scenario, and the remaining ones (Golden State) are done for after the sale of the Ulriken, with another $13m loss. Total, a minimum $20-25m hit to Frontline's Q3 right out of the block, adding to the current $60m equity hole. This is before operation and possible further impairment losses, as the leased-in fleet ages badly.

    Why would anyone buy hoping that a restructuring would attribute value to current shareholders? What IS that value knowing that the only purpose of continued listing is to access the market via the ATM and further support SFL?
    Aug 31, 2014. 07:33 AM | 1 Like Like |Link to Comment