mai hien


ONE first-quarter losses impact partners
Friday, 24 August 2018 01:43

Japanese-owned carriers say the operational problems during the start-up period and high bunker costs are the main reasons behind the deficits

Ocean Network Express, the container shipping joint venture set up by NYK, MOL and K Line, posted $120m net loss in its first quarter since starting operation in April.

 

The loss was mainly attributed to lower lifting volume caused by “teething problems that affected service quality during the operation start-up period”, ONE said in a briefing material.

The Japanese-owned, Singapore-based carrier was earlier hit by booking system issues owing to insufficient manpower and preparation of the administrative processes.

The partner companies all reported quarterly losses attributable to the launch of ONE, which start-up service was described by K Line as “clumsy”.

ONE’s revenue in the first quarter stood at $2.1bn, while combined liftings on transpacific and Asia-Europe westbound trades amounted to 842,000 teu.

The company forecast a gradual recovery in performance for the fiscal year to March 31, 2019.

“Considering that service quality has already stabilised, overall business is expected to be back to normal situation from the [second quarter] onwards.” it said.

The company estimated a net profit of $82m and $147m net in the second quarter and second half of the year.

It also expected utilisation in the two main trade lanes to improve to 90% and above from just 73% in the first quarter.

Forecast for a full-year net profit of $110m remained unchanged from the previous level, underpinned by steady realisation of integration synergy and change in accounting from financial lease to operating lease for some chartered vessels, according to the release.

ONE said the synergies of $1.1bn a year — reduction in overhead and operation costs, among others — were expected to emerge to 80% against the original forecast of 60% for the first operating year.

But it warned that higher bunker prices would have negative impact.

Separately, K Line moved into the red in the three months to June 30 because of rising fuel prices and costs associated with the transfer of its container business into ONE.

It posted an operating loss of $121m, compared with an operating income of ¥3.9bn in the year-earlier period.

Aside from its container interests, K Line said its dry bulk carrier operations had benefited from a better supply-demand balance “due to a recovery in cargo movements” and fewer newbuilding deliveries.

It also said its energy transport business had benefited from an upturn in the liquefied natural gas spot market in the quarter, but tanker and offshore support vessel markets “remained weak”.

NYK saw consolidated revenues slump to $4.2bn in the quarter to June 30. The company said in astatement it had incurred “significant” one-time costs from the termination of its container shipping business, which has now been incorporated into ONE.

MOL said the transfer of the container business to ONE resulted in a loss of revenue.

“ONE’s business performance was less than forecasted in the first quarter, as lifting was below the projection largely due to disorder in the services to customers during the start-up period, and higher fuel prices negatively impacted operating costs,” the shipping line said in its earnings statement.

 
Cosco Completes Ooil Acquisition
Wednesday, 22 August 2018 01:15

COSCO SHIPPING Holdings Co., Ltd. has completed its acquisition of shares in Orient Overseas (International) Limited from controlling shareholders.

As a result, COSCO SHIPPING Holdings becomes the controlling shareholder of OOIL, mother company of OOCL.

According to COSCO SHIPPING Holdings, COSCO SHIPPING Lines and OOCL will complement each other and jointly develop products and services for customers.

Upon completion of the transaction, the two liner companies will jointly operate 409 shipping routes around the world, with a total capacity of 2.77 million TEUs. With 19 vessels with a total capacity of about 330,000 TEUs on order, the two shipping lines will have a fleet of over 400 ships with a combined capacity of 2.93 million TEUs by the end of 2018.

COSCO SHIPPING Holdings becomes the third-largest container shipping company. It said that it would work to implement four major strategic initiatives to realize new growth: optimization of the global and regional network, digital transformation, end-to-end services enhancement and a dual-brand model.

As part of the acquisition, Xu Lirong has been appointed as an executive director, the chairman of the board and the chairman of the executive and nomination committees of OOIL. Xu is currently the chairman of the board and the secretary of the party committee at China COSCO Shipping Corporation Limited.

Huang Xiaowen has been appointed as an executive director and the new chief executive officer of OOIL. Huang is currently the deputy general manager and a party committee member of China COSCO Shipping Corporation Limited. He is also an executive director and the vice chairman of COSCO SHIPPING Holdings, the chairman of the board of directors and a non-executive director of COSCO SHIPPING Ports Limited, the chairman of the board at COSCO SHIPPING Lines, the chairman of the board at COSCO SHIPPING Energy Transportation Co., Ltd., the chairman of the board at COSCO SHIPPING Bulk Co., Ltd., and a director of several other China COSCO Shipping subsidiaries.

COSCO SHIPPING Holdings Co. Ltd. and Shanghai International Port (Group) Co., Ltd. announced in July 2017 that they had made a pre-conditional voluntary general offer to acquire all issued shares in OOIL, with COSCO SHIPPING Holdings to hold a 90.1% stake and SIPG to hold 9.9%.

 
Vinalines to conduct IPO on September 5
Monday, 20 August 2018 02:30

Vietnam National Shipping Lines (Vinalines) will conduct its initial public offering (IPO) to divest 488.818 million shares via a bid with the starting price of VND10,000 per share. The auction is expected to be organised on September 5.

Pursuant to Decision No.751/QD-TTg dated June 20, 2018 by the prime minister approving the plan on the equitisation of the parent company, Vietnam National Shipping Lines (Vinalines);

As well as Decision No.1659/QD-BGTVT dated August 3, 2018 approving the results of the selection of strategic shareholders and the amendment of the number of shares put up for initial public offering of the parent company (Vinalines);

And the Shares Auction Regulation for the parent company (Vinalines) dated August 7, 2018 issued by Hanoi Stock Exchange.

1. General information of the equitised company:

  • Name: Vietnam National Shipping Lines-One member limited company;
  • Address: Ocean Park building, 1 Dao Duy Anh, Phuong Mai ward, Dong Da District, Hanoi.

2. Expected charter capital after equitisation:

  • VND14.04 trillion ($621.23 million), equalling 1.404 billion shares (calculated as per face value).

3. Location:

  • State ownership: 912.993 million shares;
  • Offered shares for staff and employees: 2.293 million shares;
  • Offered shares for staff based on the number of years working in the public sector: 1.599 million shares;
  • Offered shares for staff based on number of years working for the joint stock company: 694,900 shares;
  • Offered shares for the Union: 500,000 shares;
  • Shares put up for IPO: 488.818 million shares.

4. Starting bid price: VND10,000 per share.

5. Address and name of the auction organisation:

  • Organisation: Hanoi Stock Exchange;
  • Address: 2 Phan Chu Trinh, Hoan Kiem, Hanoi.

6. Conditions for participation: Institutions and individuals who meet the standards stated in the Shares Auction Regulation of the Hanoi Stock Exchange on August 7, 2018.

7. Date and location to receive bid forms:

  • Date: from 8 AM, August 8, 2018 to 3.30 PM, August 28, 2018 (working hours);
  • Location: public auction agents, as stated in Shares Auction Regulation of the Hanoi Stock Exchange on August 7, 2018.

8. Date and location to submit bid forms and deposits:

  • Date: from 8 AM, August 8 to 3.30 PM, August 28, 2018 (working hours);
  • Location: public auction agents as stated in Shares Auction Regulation of the Hanoi Stock Exchange on August 7, 2018.

9. Date and location to submit attendance forms:

  • Date: Until 4 PM on August 31, 2018;
  • Location: public auction agents as stated in Shares Auction Regulation of the Hanoi Stock Exchange on August 7, 2018.

10. Date and location of the auction:

  • Date: 8.30 AM, September 5, 2018;
  • Location: Hanoi Stock Exchange, 2 Phan Chu Trinh, Hoan Kiem, Hanoi.

11. Date to return deposits to investors who do not win the auction: September 7-9, 2018.

12. Date for successful investors to pay for the shares: From September 6 to 4 PM, September 15, 2018.

Source: vir

 
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