Greek Shipping News Cuts
Week 46 - 2010


Greeks pour $6.4bn into newbuild contracts in 10 months

---Greek shipowners have ordered 231 ships of just under 26m dwt so far this year according to research by shipbroker Golden Destiny. The Piraeus-based broker estimates that Greek owners have invested $6.4bn in newbuilding projects in the first 10 months of the year, in the face of repeated warnings of oversupply.
However, perhaps the summer gave owners time to reflect, and the Michael Kokkinis-run brokerage notes that ordering is cooling off and since summer ordering has slowed down. Or it is the upcoming Novemver G20 meetings and what they may produce, that caused a re-think, for in September, 11 ships were ordered while 13 were booked in October, with container ships the vessel of choice.
Bulk carriers and tankers were the main choice of Greeks though more recently there has been a growing interest in container ships. Reefers, passenger ships, roros have been almost entirely ignored.
Golden Destiny says "bulk carriers are holding the lion's share of Greek investors' newbuilding activity as 61.5% of their total volume of transactions is centered on the bulk carrier sector". The broker calculated 142 bulkers of 12.4m dwt have been booked. Just on half the ships, 71 are kamsarmaxes -- and the number is growing -- see 'Newbuildings' --, 63.3% of them in South Korea.
Twenty-five handyzise bulkers have been ordered, just ahead of the 21 capers. Chinese builders grabbed 14 of the handies and 14 of the capers and overall China secured 72 of the drybulk ships ordered, seven more than South Korea.
The second choice, tankers has also shown a preference for large ships, VLCC and suezmax, with 68.5% of the orders going to South Korea, more than double secured by China. So far 70 tankers have been contracted, 48 of the projects going to South Korea.
The container ships sector has stirred a little in recent months, with the lion's share of the business going to China, 17 of the 19 ships ordered will be commissioned from Chinese yards.
Overall, it again appears ordering is outstripping deliveries. In the period an average of five vessels a week were delivered to Greek interests.
-- Filed: 2010-11-19

Dalnave makes first newbuild move with two kamsarmaxes
---Dalnave Navigation of Greece looks to be taking its first plunge into the newbuilding market.
The company is said to have booked a pair of kamsarmax bulkers at Daewoo-Mangalia Heavy Industries in Romania for delivery in 2010. The vessels are understood to be costing $37m each.
Dalnave managing director Dimitris Sficas declines to comment on the reports and it was not possible to obtain confirmation from the yard.
The order, if confirmed, would be a major shift for Dalnave.
Last year, Dalnave disposed of three older ships. The 63,700-dwt Anassa (built 1983) was sold for further trading for a reported $6.95m, the 28,700-dwt DS Pioneer (built 1978) went for $1.75m and 27,200-dwt Winner 2 (built 1975) was sold for demolition.
By Gillian Whittaker Athens
Published: 23:01 GMT, 18 Nov 10 | updated: 20:13 GMT, 17 Nov 10

Paragon CEO sees new S&P openings
---Sale and purchase opportunities in the dry market are highlighted
Delegates heard that lingering global uncertainty increases risks and, while there is plenty of money around, there are fewer loans on offer as banks remain cautious. Bodouroglou showed a (northern autumn) Petrofin Bank Research graph of top-20 ship finance banks, six of which accounted for 40% of shipping loans. Total loans by the leading banks amounted to $437Bn.
The Bank of China was 12th on the list, lending $12.2Bn, followed by three other Chinese banks. Delegates were told that the ambitious Chinese banks are eager to become bigger players in international ship finance.
Greece was the largest investor in newbuildings. In 2008, Greek shipowners invested $21Bn, followed by Germany with $18.8Bn, and Japan, which invested $13.7Bn. This year Greece invested $7.8Bn.
Source: Fairplay - Technical 18 Nov 2010

TOP Ships moves into the black
--- * Thursday 18 November 2010 * by Nigel Lowry
Company nets $5m from Dauntless sale and posts $1.1m net income for third quarter
TOPShips has moved into the black for the first three-quarters of 2010 and has banked $5m on the sale of one of its handymax product tankers.
The Evangelos Pistiolis-led tanker and bulk carrier owner finally confirmed the sale of the 11-year-old Dauntless, which was reported in the market a few weeks ago as set to leave the fleet.
But TOP revealed a $20m sale price, larger than reported by some brokers, that leaves the Nasdaq-listed owner with a $5m gain which will be included in its fourth quarter results.
The company posted net income of $1.1m for the third quarter on revenues of $23.3m, compared with a $329,000 profit in the same three months of last year.
For the first nine months, the result lifted TOP marginally into the black whereas last year it reported a $14.3m loss at the same stage.
The operator of eight tankers and five bulkers has been in lengthy discussions with its banks on loan covenant breaches.
So far it has obtained waivers from Emporiki Bank for all covenant breaches until June 30, 2011, and from DVB Bank until the end of this year.

Euroseas Reports Encouraging Results for Latest Periods
---Thursday, November 18th, 2010
Euroseas Ltd. (NASDAQ: ESEA), an owner and operator of drybulk and container carrier vessels and provider of seaborne transportation for drybulk and containerized cargoes, announced today its results for the three and nine month periods ended September 30, 2010.
Third Quarter 2010 Highlights:
- Net loss of $3.2 million or $0.10 loss per share basic and diluted on total net revenues of $12.2 million. Excluding the effect of unrealized gain and realized loss on derivatives and unrealized loss on trading securities and amortization of the fair value of charters acquired, the net loss for the period would have been $1.4 million, or $0.04 loss per share basic and diluted.
- Adjusted EBITDA was $3.5 million. Please refer to a subsequent section of the Press Release for a reconciliation of adjusted EBITDA to net income.
- An average of 16.00 vessels were owned and operated during the third quarter of 2010 earning an average time charter equivalent rate of $10,623 per day.
- Declared a quarterly dividend of $0.06 per share for the third quarter of 2010 payable on December 7, 2010 to shareholders of record on November 26, 2010. This is the 21st consecutive quarterly dividend declared.
First Nine Month 2010 Highlights:
- Net loss of $5.7 million or $0.18 loss per share basic and diluted on total net revenues of $39.7 million. Excluding the effect of unrealized gain and realized loss on derivatives and unrealized loss on trading securities and amortization of the fair value of charters acquired, the net loss for the period would have been $0.5 million, or $0.02 loss per share basic and diluted.
- Adjusted EBITDA was $13.4 million. Please refer to a subsequent section of the Press Release for a reconciliation of adjusted EBITDA to net income.
- An average of 15.37 vessels were owned and operated during the first nine months of 2010 earning an average time charter equivalent rate of $11,645 per day.
- Declared three quarterly dividends for a total of $0.17 per share during the first nine months of 2010.
Euromar Joint Venture
- Purchased 6 vessels since June 2010 investing almost half of its committed capital of $175 million. Euroseas has committed $25 million to the venture.
Aristides Pittas, Chairman and CEO of Euroseas commented: "During the third quarter, October and first half of November 2010, we have continued to capitalize on the strengthening of the containership market by re-activating and chartering our two laid-up containerships at rates positively contributing to our cash flow. All our containership vessels are now operating. The reactivation of the above vessels and an increased number of vessels going through drydock affected the results of the third quarter. As our containership charters are rolled over from the existing lower levels to rates reflecting the current market rates over the next 2 quarters, we expect to see a significant contribution to our earnings in 2011 and beyond. Our drybulk fleet continues to be fully covered for the remainder of 2010 either via physical charters or via FFA contracts and we expect to see little influence on our earnings from the developments in the dry bulk market. For 2011, we have 60% secured cover at profitable rates through a combination of physical charters and FFA contracts.
"Our Euromar joint venture has invested decisively in the containership sector in line with our original investment thesis by purchasing or agreeing to purchase - and take delivery within 2010 ? a total of 6 containerships, four in the 2,500-2,800 teu range and 2 in the 1,700- 1,800 teu range. All 6 vessels are geared and built post 2000 with an average age of approximately 7 years.
"We plan to exploit other attractive investment opportunities either through our Euromar joint venture, as described above, or, by investing our own funds as we did with the purchase of M/V Aggeliki P in June 2010.
"Our Board decided to maintain our quarterly dividend of $0.06 per share which represents an annual yield of about 6% on the basis of our stock price on November 12, 2010."
To learn more about Euroseas, visit

Goldenport Holdings Inc., CEO Statement:
---Athens, 17 November 2010
Captain Paris Dragnis, Founder and Chief Executive Officer of the Company commented:
"During the period, we continued with the consistent implementation of our strategy, focusing upon prudent growth without sacrificing the health of our balance sheet, while seeking stable cash flows with upside potential through the employment of our fleet under period time charters.
"Within the context of our continued fleet expansion, we are very pleased to have taken delivery of our new-build Supramax bulk carrier vessels 'Milos' and 'Sifnos' which commenced their pre-arranged time charter employment. We look forward to our imminent delivery of our new-build Supramax bulk carrier 'Eleni D' which will also commence its agreed three year time charter immediately following the delivery from the yard. Two out of these three vessels are chartered with a floor rate and profit sharing structure over a three year period allowing us to benefit from any improvement of the dry-bulk market while protecting our downside. These additions to our fleet will significantly expand the revenue, profit and cash flow generation of our Company.
"Our organic growth will continue in the first half of 2011, when we expect the deliveries from the shipyards of our four remaining contracted new-build vessels and the delivery from the seller of the recently acquired container vessel 'Clifton-Bridge'.
"We have secured strong forward period employment for the majority of our extended operational fleet of containers and dry bulk carriers with 98% of the fleet available days for 2010 and 77% for 2011 fixed under time charter employment, assuming earliest charter expiration. This translates into strong and visible cash flows.
"Our Company is in a strong financial condition as of 30 September 2010 with net debt of only US$ 142.5 million and net debt to book capitalisation of 34%, a moderate figure for our industry. Cash balance as of 30 September 2010 was US$ 54.3 million not including the US$10.1 million held as restricted cash which we expect to utilise to finance the remaining portion of the acquisition of the vessel 'Clifton-Bridge'.
"Our strong cash balance and extensive cash flow visibility based on the forward time charter coverage in both segments in which we operate, allows us to be confident in proceeding with our planned growth. Our fully financed new-building program which progresses on track will increase our profile with our major customers creating a solid platform for further growth.
"Our versatile and modern fleet combined with strong ties to major trading and liner companies allows us to be more visible in the market and enhances access to a wider variety of new and accretive investment projects.
"We continue to closely monitor the developments in the container market in order to take advantage of opportunities that arise. We aim to simultaneously expand our fleet and customer base by acquiring appropriate tonnage that will meet the needs of our existing and target customers, while ensuring value creation for our shareholders. Our focus continues to be on the medium size segment of the container market.
"We believe that we are well positioned to further expand our fleet as we support the evolving transportation requirements of our key customers."

Best Relative Performance in the Marine Industry Detected in Shares of Dryships, Diana, Genco, Excell and Eagle
---Nov 19, 2010 (SmarTrend(R) News Watch via COMTEX) -- Below are the top five companies in the Marine industry as measured by relative performance. This analysis was compiled based on yesterday's trading activity as we search for stocks that have the potential to outperform.
DryShips (NASDAQ:DRYS) ranks first with a gain of 7.71%; Diana Shipping (NYSE:DSX) ranks second with a gain of 1.69%; and Genco Shipping & Trading (NYSE:GNK) ranks third with a gain of 1.37%.
Excel Maritime Carriers (NYSE:EXM) follows with a gain of 1.18% and Eagle Bulk Shipping (NASDAQ:EGLE) rounds out the top five with a gain of 0.76%.
SmarTrend currently has shares of Eagle Bulk Shipping in an Uptrend and issued the Uptrend alert on July 23, 2010 at $4.70. The stock has risen 12.8% since the Uptrend alert was issued.

Greece: Motor Oil Sees Flat 2010 Sales About 9.5 mln Tonnes
Reuters. Wednesday, November 17, 2010
Motor Oil, Greece's second biggest refiner, said on Tuesday group sales volume would be flat this year compared to 2009 as a new distillation unit helps reverse a sales drop posted in the first half.
"Sales volume will be at the same level as last year," Chief Financial Officer Petros Tzanetakis told reporters.
Motor Oil's sales volume reached 9.5 million metric tonnes last year. But the reading declined at a 8.5 percent annual pace to 4,417 tonnes in the first half, primarily affected by lower trading of petroleum products across southern Europe.
A new crude distillation unit completed in May is already boosting sales, particularly in Turkey and Libya, Tzannetakis said.
"Exports are going splendidly," he said. Foreign sales account for about half of Motor Oil's sales volume.
Motor Oil's new distillation unit, which cost about 180 million euros ($251.5 million) to build, was designed to boost refinery capacity by 25 percent.
The company last year bought the Greek service stations of Royal Dutch Shell (RDSa.L: Quote) to diversify operations and lessen dependence on its sole refinery near Athens.

Potential for new generation of nuclear powered commercial tankers
British, American and Greek consortium will investigate the practical maritime applications for small modular reactors.
A consortium of British, American and Greek interests have agreed to investigate the practical maritime applications for small modular reactors as commercial tanker-owners search for new designs that could deliver safer, cleaner and commercially viable forms of propulsion for the global fleet.
The Strategic Research Group at Lloyd's Register, Hyperion Power Generation Inc, British designer BMT Nigel Gee and Greek ship operator Enterprises Shipping and Trading SA are to lead the research into nuclear propulsion, which they believe is technically feasible and has the potential to drastically reduce the CO2 emissions caused by commercial shipping.
For more details on this story read the press release: LR/35/10 at >

Greek reward for BofA Merrill shipping star
---Matt Turner. 19 Nov 2010
The head of shipping investment banking in Europe at Bank of America Merrill Lynch has been promoted to country head for Greece and Cyprus, having helped turn the bank into one of the top advisers in the sector since during his three years in charge.
The bank has appointed Philippe Chryssicopoulos as head of Greece and Cyprus investment banking, alongside his role leading the shipping team in Europe and central and eastern Europe, the Middle East and Africa.
He will report to Maurizio Tamagnini, head of southern Europe corporate and investment banking. Chryssicopoulos joined Merrill Lynch in 1998, and for the past three years has worked within the multi-industries team in London, with a focus on shipping and transportation infrastructure.
His promotion follows a period of sustained success for the US bank in the sector. In 2006, the bank was ranked outside the top 10 in European investment banking revenues from the shipping sector, according to data provider Dealogic, but ranked eighth in 2007 when Chryssicopoulos started focusing on the sector.
In 2008, the bank broke into the top five, and last year it ranked third behind Citigroup and Deutsche Bank, with an 8.3% market share.
The US bank is now ranked second for the year to date behind JP Morgan, with a 10.2% market share, having worked on 21 deals.
Recent transactions include the $160m initial public offering of Costamare, where the US bank worked alongside Morgan Stanley, and a $112m follow-on offering for Navios Maritime Partners, where Bank of America Merrill Lynch worked with JP Morgan and Citigroup.
Globally, Bank of America Merrill Lynch is third for the year to date, the same position it held for the equivalent period in 2009.

Azerbaijan, Greece agree on draft agreement on sea transport
---Fri 19 November 2010 13:38 GMT | 15:38 Local Time
Azerbaijan, Greece agreed on the ease of port clearance and shipping, as well as the free navigation of vessels.
Azerbaijan State Maritime Administration and the Department of Navigation, islands and fishing of Greece have agreed on the final version of the draft intergovernmental agreement on sea transport.
According to the Maritime Administration of Azerbaijan, a similar agreement was reached during the visit of the delegation of the Maritime Administration of Azerbaijan in Athens.
The parties agreed on the ease of port clearance and shipping, as well as the free navigation of vessels.
Besides, the sides discussed the issues to prevent unnecessary delays of ships under the laws of both states and port regulations and obligations emanating from the international law.
The parties also agreed on the need to maintain cooperation while respecting free and fair competition in the sphere of international law.