Capital Link Shipping Forum Analyst & Investor Day
Capital Link Shipping Forum Analyst & Investor Day
Capital Link Shipping Forum Analyst & Investor Day
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<strong>Capital</strong> <strong>Link</strong><br />
<strong>Shipping</strong> <strong>Forum</strong><br />
2<br />
nd<br />
Posidonia<br />
<strong>Analyst</strong> & <strong>Investor</strong> <strong>Day</strong><br />
Monday, June 7,<br />
7, 2010<br />
Astir Palace Hotel, Hotel el Vouliagmeni<br />
Athens, Greece
Moving your<br />
business<br />
At Fortis Bank Nederland we have been serving companies active in shipping and container transport for years. We<br />
have become a prominent player in financing, advising and investing in shipping companies. As your partner in this<br />
rapidly changing and highly competitive market, we will put our expertise and understanding of the shipping industry<br />
and its trade flows to work for you.<br />
With specialists dedicated to the shipping, offshore, liquefied natural gas and intermodal sectors, Fortis Bank<br />
Nederland delivers innovative solutions that are tailored to your strategic requirements.<br />
For more information please visit www.merchant-banking.nl or send us an email to ectmarketing@nl.fortis.com<br />
Fortis Bank Nederland and ABN AMRO are combining forces this year under the ABN AMRO brand name.
PROGRAM<br />
9:50 AM - 9:55 AM<br />
9:55 AM – 10:00 AM<br />
10:00 AM – 10:40 AM<br />
10:45 AM – 11:30 AM<br />
11:30 PM – 12:10 PM<br />
12:10 PM – 12:25 PM<br />
12:25 PM – 12:30 PM<br />
12:35 PM – 1: 15 PM<br />
1:20 PM – 2:00 PM<br />
2:00 PM – 3:00 PM<br />
Welcome Remarks<br />
Mr. Nicolas Bornozis, President - <strong>Capital</strong> <strong>Link</strong><br />
Opening Remarks<br />
Mr. Stefan Jekel, Managing Director, International Listings, Global Corporate Client Group -<br />
NYSE Euronext<br />
Dry Bulk <strong>Shipping</strong>: Supply and Demand Challenges<br />
Moderator: Mr. Emil Yiannopoulos, Partner, Assurance Leader - PricewaterhouseCoopers<br />
Panelists: Excel Maritime Carriers - Mr. Thomas Kaas Christensen, Chief Commercial Officer<br />
Hellenic Carriers – Mrs. Fotini Karamanlis, CEO<br />
Navios Corporation – Mr. Ted Petrone, President<br />
Seanergy Maritime Holdings – Mr. Dale Ploughman, CEO<br />
Dry Bulk <strong>Shipping</strong>: Growth & Consolidation Opportunities<br />
Moderator: Mr. Harris Antoniou, Global Head Energy, Commodities & Transportation - Fortis<br />
Bank Nederland<br />
Panelists: DryShips - Mr. Pankaj Khanna, COO<br />
Globus Maritime – Mr. George Karageorgiou, CEO<br />
Safe Bulkers – Mr. Polys Hajioannou, CEO<br />
Star Bulk Carriers – Mr. Akis Tsirigakis, CEO<br />
Paragon <strong>Shipping</strong> – Mr. Michael Bodouroglou, CEO<br />
Containers: Sector Developments & Outlook<br />
Moderator: Mr. Gust Biesbroeck, Managing Director of Transportation - Fortis Bank Nederland<br />
Panelists: Danaos Corporation – Mr. Dimitri Andritsoyannis, CFO<br />
Euroseas – Mr. Aristides Pittas, CEO<br />
Goldenport Holdings – Mr. John Dragnis, Commercial Director<br />
COFFEE BREAK Sponsored by Tsakos Energy Navigation LTD<br />
Introductory Remarks<br />
Mrs. Isabella Schidrich, Managing Director - NASDAQ OMX<br />
Tankers (Crude & Products): Sector Developments & Outlook<br />
Moderator: Mr. George Cambanis, Senior Partner, Global <strong>Shipping</strong> Leader - Deloitte,<br />
Hadjipavlou, Sofianos & Cambanis<br />
Panelists: <strong>Capital</strong> Product Partners – Mr. Ioannis Lazaridis, CEO<br />
Crude Carriers Corp. – Mr. Evangelos Marinakis, CEO<br />
Omega Navigation Enterprises – Mr. George Kassiotis, CEO<br />
Tsakos Energy Navigation – Mr. Nikolas Tsakos, CEO<br />
Capturing Opportunities Across <strong>Shipping</strong> Sectors<br />
Moderator: Mr. Bruce McDonald, Managing Director, Transportation & Logistics Group -<br />
Houlihan Lokey / Knight <strong>Capital</strong> Group<br />
Panelists: Euroseas – Dr. Tasos Aslidis, CFO<br />
Goldenport Holdings – Mr. John Dragnis, Commercial Director<br />
OceanFreight – Mr. Demetris Nenes, President & COO<br />
TopShips – Mr. Alexander Tsirikos, CFO<br />
LIGHT BUFFET LUNCHEON<br />
<strong>Capital</strong> <strong>Link</strong> <strong>Shipping</strong> <strong>Forum</strong><br />
nd<br />
2 Posidonia<br />
A<strong>Analyst</strong> l & <strong>Investor</strong> <strong>Day</strong><br />
Page 2
<strong>Capital</strong> <strong>Link</strong> <strong>Shipping</strong> <strong>Forum</strong><br />
nd<br />
2 Posidonia<br />
A<strong>Analyst</strong> l & <strong>Investor</strong> <strong>Day</strong><br />
Greek <strong>Shipping</strong> a Global Leader<br />
����� By Nicolas Bornozis<br />
President of <strong>Capital</strong> <strong>Link</strong>, Inc.<br />
Posidonia is the world's largest and most prestigious shipping<br />
trade event and it takes place in Greece every two years attracting<br />
a significant number of visitors from all over the world.<br />
According to industry sources, Posidonia 2010, to be held from<br />
June 7-11, 2010 is expected to attract nearly 1,800 exhibitors<br />
from 86 countries and to be visited by more than 17,000 Greek<br />
and foreign industry professionals and government officials, of<br />
which 10,000 are expected from abroad.<br />
Greek shipowners are a major force in global shipping<br />
controlling more than 20% of the world's merchant fleet by<br />
tonnage and Greece itself has a long tradition as a maritime<br />
nation. Greek shipowners who compete on a global scale have a<br />
track record as astute operators and asset traders. The global<br />
shipping and investment community continue to look at the<br />
behavior of Greek shipowners during peaks and troughs, as they<br />
have been able to prove their success in one of the most<br />
significant, difficult and unpredictable professions of the world.<br />
Greek owned shipping is not related to the development of the<br />
Greek economy itself but depends on trends in the global<br />
commodity and energy markets. Still, shipping is a significant<br />
contributor to the Greek economy mainly through the foreign<br />
currency inflows it generates and the employment it provides.<br />
Piraeus is a major hub for the global shipping business and the<br />
industries that service it.<br />
Given the significant number of international investors, analysts<br />
and financiers visiting Greece for Posidonia, <strong>Capital</strong> <strong>Link</strong> has<br />
initiated the tradition to organize an <strong>Investor</strong> & <strong>Analyst</strong> <strong>Day</strong> at<br />
the beginning of the Posidonia Week, during which the senior<br />
<strong>Capital</strong> <strong>Link</strong> - <strong>Link</strong>ing <strong>Shipping</strong> and <strong>Investor</strong>s Across the Globe<br />
<strong>Capital</strong> <strong>Link</strong><br />
management of listed shipping companies provides an update<br />
and an interactive discussion on the developments and outlook<br />
of the various shipping sectors, as well as on topics of common<br />
interest among shipowners, investors and financiers.<br />
We are delighted with the response that this initiative has<br />
received both from listed companies and the investment and<br />
financial community. <strong>Capital</strong> <strong>Link</strong> has made a strategic<br />
commitment to working with listed shipping companies and we<br />
have developed a series of industry initiatives that go well<br />
beyond our core business of <strong>Investor</strong> Relations, Advisory and<br />
Financial Communications. These include our <strong>Shipping</strong> Website<br />
dedicated to listed shipping companies, our webinars, the<br />
industry <strong>Forum</strong>s in Athens, London and New York, our Weekly<br />
Newsletter and our Maritime Indices. I believe we have built a<br />
global interactive and truly effective link between listed<br />
shipping companies on one hand and investors and financer on<br />
the other.<br />
Concluding, I would like to thank the listed companies, the<br />
investors, bankers and financers, as well as NYSE Euronext and<br />
NASDAQ OMX and our Global Sponsors, Fortis Bank, Knight<br />
<strong>Capital</strong> Group, Deloitte, The Marshal Islands Registry and<br />
PricewaterhouseCoopers, for their support and participation. We<br />
wish everyone a pleasant and productive Posidonia Week.<br />
Excellence in <strong>Investor</strong> Relations and Financial Communications<br />
www.capitallink.com www.capitallinkforum.com www.capitallinkfunds.com<br />
New York – London - Athens<br />
Page 3
<strong>Capital</strong> <strong>Link</strong> <strong>Forum</strong><br />
...your link with the global investment community<br />
Greek IR Awards<br />
Monday, May 31, 2010 - Athens, Greece<br />
The IR Awards, which <strong>Capital</strong> <strong>Link</strong> introduced in Greece in 2003, are organized annually with the support of major domestic and international capital<br />
markets related organizations. The objective is to identify and acknowledge companies and individuals who follow high standards of Corporate Governance,<br />
Financial Disclosure and <strong>Investor</strong> Relations. Also, to raise the profile of the function of <strong>Investor</strong> Relations and contribute to its development in Greece. The<br />
Awards are based on nominations and voting by a Committee of 34 market participants from different segments of the market. (<strong>Capital</strong> <strong>Link</strong> is not part of the<br />
Committee). The collection and tabulation of the nominations is conducted by DELOITTE and the Law Office of Dr. Tsibanoulis & Partners.<br />
2nd Posidonia <strong>Forum</strong><br />
<strong>Analyst</strong> & <strong>Investor</strong> <strong>Day</strong><br />
Greek <strong>Shipping</strong> <strong>Forum</strong><br />
Monday, June 7, 2010 - Athens, Greece<br />
This <strong>Forum</strong>, held with the occasion of the Possidonia Event in Greece, aims to update foreign analysts, investors and bankers on the outlook of the shipping<br />
markets. Also, to enable listed shipping companies and investors exchange views on the financial and capital markets and investor attitudes.<br />
2<br />
Global Derivatives <strong>Forum</strong><br />
Thursday, September 9, 2010 - New York City<br />
Today’s global derivatives markets are growing increasingly complex and sophisticated making it more important than ever to keep informed about trends<br />
and developments. The <strong>Capital</strong> <strong>Link</strong> Global Derivatives <strong>Forum</strong> provides a comprehensive review on the development, risk management, utilization and<br />
outlook of energy, commodities, credit , foreign exchange and equity derivatives.<br />
3<br />
th Annual<br />
10Closed-End Funds and Global ETFs <strong>Forum</strong><br />
Wednesday, April 27, 2011 - New York City<br />
Now in its 10th year, the <strong>Capital</strong> <strong>Link</strong> Closed-End Funds & Global ETFs Conference has become a "must go" event for registered investment advisors, fund<br />
managers, private bankers, retail and institutional brokers, financial media and closed-end funds and ETF sponsors. Created for financial advisors and other<br />
wealth management professionals who want access to sophisticated strategies that suit their high-end clientele. The <strong>Forum</strong> also provides excellent<br />
opportunities for quality interaction and networking with a highly targeted audience of wealth management professionals.<br />
<strong>Capital</strong> <strong>Link</strong> - New York - London - Athens<br />
New York - 230 Park Avenue, Suite 1536, New York, NY, 10169 Tel.: +1 212 661 7566 Fax: +1 212 661 7526<br />
London - Longcroft House,2-8 Victoria Avenue, London, EC2M 4NS, U.K Tel. +44(0) 203 206 1320 Fax. +44(0) 203 206 1321<br />
Athens - 40, Agiou Konstantinou Str, Suite A 5, 151-24 Athens, Greece Tel. +30 210 6109 800 Fax +30 210 6109 801<br />
Calendar of Events<br />
Tuesday, October 12, 2010 - London<br />
The <strong>Forum</strong>, which is organized in cooperation with the London Stock Exchange, aims to provide investors with a comprehensive review and outlook of the<br />
various shipping markets and to raise the profile of shipping among the UK and wider-European investment communities. The <strong>Forum</strong>’s target audience<br />
includes institutional investors and analysts, financial media, financial advisors, financial planners and stock brokers.<br />
th Annual 12Invest in Greece <strong>Forum</strong><br />
Reforming Greece: Opportunities & Challenges<br />
Thursday, December 2, 2010 - New York City<br />
The Invest in Greece <strong>Forum</strong>, has been established as the main event that updates US investors on the developments, trends and outlook of the Greek<br />
economy, capital markets, stock market and its listed companies and presents the latest business and investment opportunities in Greece and the wider<br />
region. The <strong>Forum</strong> is organized under the auspices of the Ministry of Economy, Competitiveness and <strong>Shipping</strong> of Greece and in cooperation with the New<br />
York Stock Exchange, which also hosts the ‘Greek <strong>Day</strong>' at NYSE with the Minister and the CEOs of the NYSE listed companies ringing the Closing Bell.<br />
2<br />
nd Annual<br />
rd Annual<br />
Invest in International <strong>Shipping</strong> & Marine Services <strong>Forum</strong> - London<br />
nd Annual<br />
Greek <strong>Shipping</strong> <strong>Forum</strong><br />
Accessing <strong>Capital</strong> in Today's Markets<br />
Tuesday, February 22, 2011 - Athens, Greece<br />
The <strong>Forum</strong> discusses the current trends in the shipping, financial and capital markets and focuses on the various alternatives for capital raising among<br />
public and private shipowners. Also, how to manage risk in today's global and highly volatile market environment. The target audience is the Greek shipping<br />
community, with listed and private companies, as well as members of the financial and investment communities.<br />
th Annual<br />
5Invest in International <strong>Shipping</strong> <strong>Forum</strong> - New York<br />
Thursday, March 24, 2011 - New York City<br />
This is an investor focused event held annually in New York where the world’s most influential CEO level executives of US and Foreign listed shipping<br />
companies gather and examine the macroeconomic issues that are shaping international shipping and further provide investors with a comprehensive<br />
review and outlook of the various shipping markets right after the companies’ annual results. It aims to enhance the information flow between investors and<br />
shipping companies and increase the awareness of shipping to a wide investor audience.<br />
www.capitallink.com<br />
www.capitallinkforum.com
CAPITAL LINK SHIPPING FORUMS<br />
<strong>Link</strong>ing <strong>Shipping</strong> and <strong>Investor</strong>s<br />
Across the Globe…<br />
New York City, United States<br />
London, United Kingdom<br />
Athens, Greece<br />
<strong>Capital</strong> <strong>Link</strong> – New York – London - Athens<br />
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www.capitallink.com - www.capitallinkforum.com - www.capitallinkshipping.com<br />
������
NYSE EURONEXT<br />
Spotlight<br />
on <strong>Shipping</strong><br />
The World’s<br />
Leading <strong>Shipping</strong><br />
Companies Choose<br />
NYSE Euronext<br />
40 shipping companies are<br />
listed on NYSE Euronext<br />
representing all segments of<br />
the market with a combined<br />
market capitalization<br />
of $38.4 billion. Leading Liquidity Provider<br />
NYSE Euronext is the World’s Leading and Most Liquid Exchange Group<br />
The aggregate market capitalization of listed issuers on NYSE Euronext is $15.2 / €11.3<br />
trillion, greater than the next four exchanges combined (London Stock Exchange, Tokyo Stock<br />
Exchange, Nasdaq OMX, SIX Swiss Exchanges). It is the first truly global marketplace – listing<br />
more than 8,500 issues in total, including 72 of the world’s 100 largest companies.<br />
Premier Market for <strong>Shipping</strong><br />
Companies<br />
• Since 2002, every qualified<br />
shipping IPO in the U.S. has listed<br />
on the NYSE.<br />
• Paragon <strong>Shipping</strong> transferred<br />
to NYSE on March 24th , 2010.<br />
This constitutes the fifth<br />
shipping company transfer<br />
from Nasdaq since 2000.<br />
• Baltic Trading, Crude Carriers<br />
and Scorpio Tankers listed on<br />
the NYSE YTD 2010.<br />
• NYSE Euronext trading volume<br />
in shipping companies has<br />
increased at an annual rate<br />
of 38.2% since 2003 – a 6.7-fold<br />
increase over 6 years.<br />
Total Market <strong>Capital</strong>ization ($ Billion)<br />
40<br />
35<br />
30<br />
25<br />
20<br />
15<br />
10<br />
5<br />
0<br />
As of April 15 th , 2010<br />
250<br />
200<br />
150<br />
100<br />
50<br />
0<br />
$38.4<br />
Average Daily Value ($ Million)<br />
$234<br />
November 15 th , 2009 - April 15 th , 2010<br />
$6.1<br />
NYSE Euronext Nasdaq LSE<br />
$148<br />
DRYS<br />
$113<br />
$5.0<br />
$1.7<br />
NYSE Euronext Nasdaq LSE<br />
www.nyx.com<br />
© NYSE Euronext<br />
All Rights Reserved<br />
TR/5986/100423
NYSE Euronext is Home to the World’s Leading <strong>Shipping</strong> Companies<br />
Company Name Ticker Listing Venue Market <strong>Capital</strong>ization<br />
($ Million)<br />
Koninklijke Vopak NV VPK NYSE Euronext $5,307<br />
Frontline Ltd FRO NYSE $2,829<br />
Tidewater Inc TDW NYSE $2,570<br />
Kirby Corp KEX NYSE $2,151<br />
Teekay Corp TK NYSE $1,882<br />
Ship Finance International Ltd SFL NYSE $1,638<br />
Teekay LNG Partners LP TGP NYSE $1,550<br />
Smit Internationale NV SMIT NYSE Euronext $1,500<br />
Nordic American Tanker <strong>Shipping</strong> NAT NYSE $1,485<br />
Overseas Shipholding Group Inc OSG NYSE $1,470<br />
Alexander & Baldwin Inc AXB NYSE $1,448<br />
Euronav NV EURN NYSE Euronext $1,295<br />
Cie Maritime Belge SA CMB NYSE Euronext $1,254<br />
Diana <strong>Shipping</strong> Inc DSX NYSE $1,233<br />
Teekay Offshore Partners LP TOO NYSE $1,058<br />
Seaspan Corp SSW NYSE $789<br />
Gulfmark Offshore Inc GLF NYSE $748<br />
Navios Maritime Partners LP NMM NYSE $711<br />
Navios Maritime Holdings Inc NM NYSE $710<br />
Genco <strong>Shipping</strong> & Trading Ltd GNK NYSE $707<br />
Tsakos Energy Navigation Ltd TNP NYSE $610<br />
Safe Bulkers Inc SB NYSE $536<br />
Excel Maritime Carriers Ltd EXM NYSE $534<br />
Teekay Tankers Ltd TNK NYSE $506<br />
Exmar NV EXM NYSE Euronext $473<br />
General Maritime Corp GMR NYSE $467<br />
Societe de Gerance & D'armement SAGA NYSE Euronext $343<br />
Navios Maritime Acquisition Corp NNA NYSE $314<br />
Danaos Corp DAC NYSE $275<br />
Crude Carriers CRU NYSE $236<br />
Scorpio Tankers STNG NYSE $232<br />
CAI International Inc CAP NYSE $231<br />
Baltic Trading BALT NYSE $230<br />
International Shipholding Corp ISH NYSE $226<br />
DHT Maritime Inc DHT NYSE $219<br />
K-Sea Transportation Partners LP KSP NYSE $192<br />
Horizon Lines Inc HRZ NYSE $175<br />
Global Ship Lease Inc GSL NYSE $152<br />
Grupo TMM SA TMM NYSE $60<br />
B+H Ocean Carriers Ltd BHO NYSE $35<br />
As of April 15 th , 2010<br />
NYSE EURONEXT<br />
Spotlight<br />
on <strong>Shipping</strong><br />
“Trading on the New York Stock Exchange<br />
is an important step forward for us, as<br />
continue to seek new ways and new places<br />
to expand our operations, and as we<br />
create sustained, long-term value for our<br />
shareholders.”<br />
–Allen Doane, Chairman & CEO,<br />
Alexander & Baldwin (NYSE: AXB)<br />
“The New York Stock Exchange is the<br />
dominant market of choice for leading<br />
companies from all over the world and we<br />
are particularly pleased to join its ranks.”<br />
– Dr. John Coustas, CEO<br />
Danaos Corporation (NYSE: DAC)<br />
“The New York Stock Exchange is home<br />
to many international shipping companies<br />
and we believe that by joining them,<br />
we will increase Paragon’s visibility within<br />
the investment community.”<br />
– Michael Bodouroglou, Chairman & CEO<br />
Paragon <strong>Shipping</strong> Inc (NYSE: PRGN)<br />
“We are proud to list Genco on the New<br />
York Stock Exchange. With a business at the<br />
center of global trade and a focus on growth,<br />
Genco <strong>Shipping</strong> & Trading is well suited for<br />
a New York Stock Exchange listing.”<br />
– Peter Georgiopoulos, Chairman & CEO,<br />
General Maritime Corporation (NYSE: GMR),<br />
Chairman Genco <strong>Shipping</strong> & Trading Limited<br />
(NYSE: GNK), Aegean Marine Petroleum<br />
Network Inc. (NYSE: ANW) and Baltic Trading<br />
Limited (NYSE: BALT)<br />
“We are extremely pleased to list our<br />
shares and warrants on the NYSE, the most<br />
recognized stock exchange in the world.<br />
We look forward to a long and mutually<br />
beneficial relationship with the NYSE.”<br />
– Angeliki Frangou, Chairman & CEO Navios<br />
Maritime Holdings Inc. (NYSE: NM), Navios<br />
Maritimos Partners L.P. (NYSE: NMM) and<br />
Navios Maritime Acquisition Corp (NYSE: NNA)<br />
For more information, please contact:<br />
Stefan Jekel<br />
sjekel@nyx.com<br />
+1 212 656 5773
<strong>Capital</strong> <strong>Link</strong> <strong>Shipping</strong> <strong>Forum</strong><br />
nd<br />
2 Posidonia<br />
A<strong>Analyst</strong> l & <strong>Investor</strong> <strong>Day</strong><br />
Greeks are seriously devoted to shipping<br />
����� By Nigel Lowry, Lloyd's List<br />
PUBLIC markets have become much more acquainted in the last few years with<br />
what was once considered an exotic and rarely-seen species: Greek shipowners.<br />
Greeks have been the dominant force in a relatively recent expansion of the<br />
industry's presence on the stock markets of New York and London. But this has not<br />
been a cookie-cutter revolution. The Greek entrepreneurs and executives helming<br />
about 25 of the new crop of companies that have listed since 2004 vary in<br />
personality as do their companies in scope, goals and strategies.<br />
Only a decade ago, few thought that Greek shipowners would ever be minded to<br />
cosy up to the capital markets in such numbers. The prevailing view was that their<br />
private culture and family management style were all wrong for public markets.<br />
The likelihood of any match-up receded further considering that shipping per se<br />
was barely on the radar of investors.<br />
The truth is that we should have known better. Over a long period of time Greek<br />
shipowners have proved themselves resilient and highly adaptable to a<br />
fast-changing shipping environment. Finally, financial markets thawed to the<br />
industry, magnetised by the historic boom in ships' earnings during the<br />
mid-noughties. When they did, inevitably Greek shipowners were first in the queue<br />
to jump on the opportunity.<br />
Greek shipping has a nourishing story that goes all the way back to the day of<br />
Homer and beyond. But the manner in which the nation's maritime entrepreneurs<br />
have sustained their leading role in the modern era is what really catches the eye.<br />
It's a global game, now.<br />
It was no foregone conclusion that a century or so ago they would collectively<br />
make the hop from sail to steam, or manage the transition from local traders to<br />
regional operators in the Mediterranean and then a prominent force on the Atlantic<br />
grain run. Left after both World Wars with a shattered fleet, on both occasions<br />
Greeks rebuilt to grow more successful than before.<br />
World War II introduced many Greeks to the US, and in industry folklore<br />
Washington's allocation of '100 Libertys' to Greek owners was the critical act<br />
allowing the fleet to be revived during the lucrative post-war era. There were never<br />
exactly 100 Liberty vessels, the American-built standard wartime freighter. In view<br />
of the sacrifice of Greek tonnage during the conflict, various Greek families were<br />
allotted a total of 98 Liberty ships, two smaller C1-M-AVI cargo ships, and seven<br />
T-2 tankers.<br />
In Greek hands this tonnage, made available on favourable terms, was the<br />
equivalent of a well-timed IPO on the NYSE or Nasdaq today. But to say that the<br />
transfer of these 100-plus vessels at war's end guaranteed that Greeks would<br />
become a world-beating power in merchant shipping would be an exaggeration.<br />
There were more than 1,000 other Liberty freighters that were distributed to<br />
shipowners of another 32 nationalities. But none has had the impact on modern<br />
shipping that Greeks have.<br />
To underline the point: one of many applicants frustrated to find they were not on<br />
the list of recipients was a certain Aristotle Onassis. It did not hold him back, and<br />
the same could be said for a host of other owners who either failed to secure one of<br />
the original 98 Libertys or initially spurned the opportunity through an<br />
old-fashioned suspicion of the welded vessels' new method of assembly. Others<br />
missed out as they were too circumspect about post-war recovery prospects.<br />
The energy and shrewd eye for shipping that Greeks had was encapsulated by the<br />
Onassis story, which has no doubt inspired a good number of Greeks down the<br />
years to take their first steps in shipping. But for every Onassis and Niarchos,<br />
personalities that even the shipping industry was barely sufficient to contain, there<br />
was a host of other Greeks dedicatedly plying their trade or pursuing a quieter path<br />
to the accumulation of wealth.<br />
Page 8<br />
'The Greek shipping miracle', as many Greeks have referred to it since the late<br />
1970s when Greece first hit the No.1 spot in shipowning, was a miracle mainly in<br />
light of the fact that Greece itself was a tiny country, generating virtually no cargo<br />
of its own. Greek shipowners had ascended to the first rank of a global industry as<br />
cross-traders, in thorough independence, almost as a nomadic tribe.<br />
A significant slice of the Greek community spent the war in the US and New York<br />
later became the seat of a nascent Greek tanker industry. The curtain only truly<br />
came down on the Big Apple's role as a home away from home for Greek owners<br />
in 1963 when new tax laws drove away many foreign shipowners. Many switched<br />
their head office to London, where a strong Greek community dated from the early<br />
years of the 20th century.<br />
London remained the unofficial capital of Greek shipping until well into the 1970s.<br />
But Greek legislation that protected the tax-free status of shipping, and the<br />
emergence of a new generation of successful seafarers-turned-shipowners typified<br />
by Tsakos and Constantacopoulos, steadily established Piraeus as the industry's<br />
home. The 1990s, when Greece at last came to enjoy modern infrastructure, saw it<br />
become the epicentre for the growing industry.<br />
However the cosmopolitan nature of the industry remained intact. Greeks have<br />
become ever more plugged into global business streams and engaged in the<br />
rank-and-file - and leadership - of the various industry fora that work for the<br />
industry's benefit worldwide.<br />
Why have Greeks been so successful in such a demanding arena? The story of<br />
Greek shipping's rise is a multi-faceted one and any short answer can only be glib.<br />
However, their success must be linked to the fact that Greeks take shipping<br />
seriously, while their sea-bordered country historically has presented few<br />
comparable opportunities ashore.<br />
Their seriousness, though, takes many forms. One example: the wealth retention<br />
for which the shipping clans of Chios and Oinnouses islands are legend. Others are<br />
marked out by their commitment to reinvest in ships, coupled with the patience to<br />
wait out the more expensive phases in the market cycle in order to do so. Some<br />
such owners have returned from virtual obscurity to order ships this year. In other,<br />
more extrovert, cases it is the empire-building ambition that burns bright.<br />
As even a brief tour of the history suggests, the Greek shipowning phenomenon is<br />
sustained by a culture in which individualism, clannishness, and a certain amount<br />
of national pride all play their part. While the club of listed companies is<br />
expanding, they are only the tip of the iceberg. There are an estimated 800 Greek<br />
shipping companies, of which 80% are privately owned small-to-medium-sized<br />
entities with fleets of no more than eight vessels.<br />
With such a dynamic background, it can be hard to spot tomorrow's<br />
mega-shipowner or the next crop of owners readying their IPOs. But there should<br />
be confidence that Greek shipping will continue to replenish itself as it has done for<br />
the last century. After being mauled by the dark crisis of the early 1980s, a<br />
generation Greek owners shunned newbuildings and acquired a reputation for<br />
running cheap, old ships adroitly.<br />
But they have swiftly adapted, adjusting to more policing of management and ship.<br />
At the same time, they have recovered their faith in newbuildings. The age of the<br />
fleet has almost halved from 10 years ago.<br />
If the transition to steam and the explosion of the industry after World War II were<br />
the first two key eras in the development of Greek shipping, we may be witnessing<br />
a third as Greek owners embrace both a more modern, higher-quality fleet, while<br />
they use public equity to replace part of their need for bank debt.
<strong>Capital</strong> <strong>Link</strong> <strong>Shipping</strong> <strong>Forum</strong><br />
nd<br />
2 Posidonia<br />
A<strong>Analyst</strong> l & <strong>Investor</strong> <strong>Day</strong><br />
GREEK SALE and PURCHASE TRENDS and HABITS<br />
����� By John Cotzias,<br />
N. COTZIAS SHIPPING CONSULTANTS<br />
Last year Greeks spent a hefty $4.5 billion dollars for the acquisitions<br />
of 229 vessels Vs 4.2billion dollars for 306 units that the Chinese<br />
purchased. This year only in 5 months, until end of May 2010, Greeks<br />
have already spent more than $2.87billion US Dollars for a total of 106<br />
units. These include both dry cargo and tanker vessels.<br />
It is true that values of vessels have increased by as much as 40% from<br />
this time last year, but this on its own is not enough to justify the large<br />
capital outlay Greeks & Chinese have forked-out. Increased market<br />
expectations, good sustained freight levels, positive world economic<br />
outlook especially from developing countries, have lead the seaborne<br />
trade to adequate levels that have pushed secondhand vessel prices<br />
constantly up from March 2009 until today.<br />
It is interesting to note that during 2009 for the period January-May<br />
2009, in both Tanker and Dry Bulk sectors, Greeks and Chinese were<br />
nearly on par having both bought around 110 units each. In 2009 as a<br />
whole we have seen that Greeks bought 229 units while the Chinese<br />
306. However in terms of carrying capacity the Chinese had clearly<br />
out-performed the Greek buyers with 19milion tones Vs 12milion tones<br />
for the Greek buyers. In terms of capital outlay Greeks got the lead<br />
with 4.5bilion usd while Chinese spent 4.2bilion usd.<br />
In 2010 Greeks have already got 106 units vs 125 units for the Chinese.<br />
In total deadweight, the Chinese have added 8.7milion tones while<br />
Greeks less but still a good 7milion tones. In money terms, mainly cash<br />
spent, Greeks are the undisputed leader as they have spent more than<br />
2.9bilion while Chinese have paid 2.2bilion for their new acquisitions.<br />
Top of the Pick for the Greek buyers are the Dry Bulk units where they<br />
have gone for 74 ships out of which 62 are Bulk Carriers ($1.6bilion),<br />
while 14 are Containers and MPP ships ($258milion) and 3 Reefers and<br />
2 Roro ships worth ($30milion).<br />
The average deadweight for these 62 Bulkers is 64,197 tones while the<br />
average age of these units is 9 years.<br />
On the other hand Chinese have gone for 88 Bulkers ($1.9bil), 20<br />
Containers ($107mil), 1 Multipurpose vessel & 1Tween decker, 1 Roro<br />
& 1 Anchor Handling tug all worth ($53mil)<br />
The average deadweight for the 88 bulkers is 81,615 tones of<br />
deadweight while the average age of these units is roughly 15.8 years.<br />
This comparison shows that Chinese go for larger, older and cheaper<br />
units, while Greeks opt for the modernization of their fleet as at the<br />
same time Greek sellers are topping the tables of the scrap sellers<br />
comparison chart, clearly getting rid of older units. Greeks sellers have<br />
sold 82 of 512 units (16%) that have been scrapped for the period<br />
Jan-May 2010.<br />
Page 9<br />
In the Tanker WET secondhand Sector, Greeks have gone for 25 Tanker<br />
and Gas vessels spending 957 milion USD. Greeks have got 2 VLCC's<br />
for $192milion, 3 Suezmax worth $147mil, 6 Aframax Tankers worth<br />
$334milion, 11 MR and LR tankers worth $267milion, 1 Chemical<br />
tanker worth $7milion and 2 Gas carriers worth $10milion. Average age<br />
of the tanker acquisitions is only 6.6 years.<br />
Chinese on the wet/tanker sector have got 2 VLCC's worth $73milion,<br />
3 Aframax Tankers worth $23.5milion and 3 Chemical tankers worth<br />
$18milion and one Gas carrier for $7.5milion. Average age of the tanker<br />
acquisitions is 14.8 years.
Knight Corporate Access is an unbiased service for issuers to<br />
connect with institutional investors. Through a combination of<br />
strategic investor introductions, thought leadership initiatives<br />
and market insight, Knight can help strengthen and diversify a<br />
company’s investor base.<br />
Knight is the leading source of off-exchange liquidity in U.S.<br />
equities and has a greater share volume than any U.S. exchange.<br />
To learn about Knight <strong>Capital</strong> Group, Inc. (Nasdaq: NITE) go to knight.com.<br />
© February 2010 Knight <strong>Capital</strong> Group, Inc. All rights reserved.<br />
Knight Equity Markets, L.P. and Knight <strong>Capital</strong> Markets LLC are off-exchange liquidity providers and members of FINRA and SIPC.<br />
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<strong>Capital</strong> <strong>Link</strong> <strong>Shipping</strong> <strong>Forum</strong><br />
nd<br />
2 Posidonia<br />
A<strong>Analyst</strong> l & <strong>Investor</strong> <strong>Day</strong><br />
Raising Equity <strong>Capital</strong> in the New Decade<br />
- Encountering Some Storms Along the Way<br />
June 2010<br />
����� By Harry Wong<br />
Managing Director, Head of Transportation Banking, Knight <strong>Capital</strong> Markets LLC<br />
At <strong>Capital</strong> <strong>Link</strong>'s winter conferences, we shared our thoughts on "Raising Equity<br />
<strong>Capital</strong> in the New Decade." At that time, institutional investors were taking on risk<br />
again and looking for an option on economic recovery, thus increasing allocations to<br />
transportation assets. Though concerns remained, many investors were looking for<br />
economic, production and trade levels to recover, benefiting seaborne transport and<br />
shipping rates which had declined 90 percent from their peak. As freight rates and<br />
asset values continued to experience recovery and firming this year, the <strong>Capital</strong> <strong>Link</strong><br />
Maritime Index outperformed the S&P 500 Index. Indeed, the markets appeared to<br />
be providing an open window for maritime shipping companies seeking to raise new<br />
equity capital.<br />
Well, we encountered some headwinds and turbulent storms along the way!<br />
Although there were warnings, when those storms did arrive, investors were<br />
surprised to encounter the crosswinds of the sovereign debt crisis, China's tightening<br />
measures and the U.S. markets intraday crash on May 6.<br />
Market Volatility<br />
As a result, market volatility has increased dramatically. In late May, the three<br />
major market indices conceded some of their gains with the S&P 500 falling 12.0%,<br />
the DJIA shedding 10.1% and Nasdaq dropping 12.9% from their April peaks.<br />
Volatility as measured by the VIX reached a high of almost 46 after spending most<br />
of this year in the range that averaged below 20 before the current surge in<br />
volatility(source: Bloomberg). It is 43 at the time of writing of this note (source:<br />
Bloomberg). The VIX is a measure of the market's expectation of volatility. A high<br />
value indicates near-term market volatility, earning the name the fear index.<br />
Investment Case for Maritime <strong>Shipping</strong> Companies<br />
In spite of the concerns that are being expressed in the markets reactions to global<br />
economic news, some investors are selectively taking on risk. As previously noted,<br />
a common investment thesis has been developing and shared among certain<br />
institutional investors and shipping industry executives: The next few years offer a<br />
once-in-a-decade opportunity to acquire assets at deep values, with the potential for<br />
significant returns on capital. Regardless of the type of investor - mutual fund,<br />
private investment fund or hedge fund - the reasons for their interest are similar.<br />
There is an opportunity over the next several years to realize above-average and<br />
possibly outsized capital gains. The investment case for maritime shipping<br />
companies is still compelling, even if some investors wait for more settled markets<br />
before taking or adding to positions.<br />
In fact, the equity markets outlook provides a positive backdrop. Expected<br />
long-term market returns from investing in the broad market are modest. With risk<br />
appetite returning, strategic, growth and value funds are looking for cyclical plays.<br />
This should include the maritime shipping industry, which has experienced steep<br />
declines in revenues, cash flow and asset values. As the global economy recovers<br />
from recent recession, economic activity, production and trade should eventually<br />
recover. <strong>Shipping</strong>-related assets should benefit, presenting strong capital<br />
appreciation opportunities. Strong, seasoned executive management teams will<br />
attract investment capital to participate in the market opportunity.<br />
As we have said before, no one can be certain how far we are into any recovery and<br />
what the strength of that recovery will be. We also don't know when economic,<br />
production and trade activity will raise demand for seaborne transport and<br />
corresponding freight rates to levels that will restore normal profit margins, thereby<br />
producing operating earnings, free cash flow and, for some, the return of<br />
dividend-paying capability. A company that pays dividends substantially increases<br />
Page 11<br />
the number of funds that can invest in that company's shares. But as economic<br />
recovery outlook clears, risk capital will return to maritime shipping in<br />
anticipation of an economic upturn.<br />
Bob Lyons, Head of <strong>Capital</strong> Markets at Knight, on a capital markets panel at a<br />
Global Industries Conference in New York, remarked that "companies that<br />
want to raise capital should do so in low-volatility markets and stay on the<br />
sidelines in high-volatility markets."<br />
Recent <strong>Capital</strong> Markets Activity<br />
The US markets provided a positive environment for equity capital in which<br />
$64.4 billion of gross proceeds were raised through mid-May. IPO proceeds<br />
were $8.4 billion, follow-on offerings accounted for $44.5 billion, and<br />
convertible offerings accounted for $11.5 billion. For maritime shipping<br />
companies, total proceeds raised were $1.8 billion. (Source: IPREO) Three<br />
companies successfully completed their initial public offerings, all on the<br />
NYSE: Baltic Trading Ltd. [NYSE:BALT], Crude Carriers Corp. [NYSE:<br />
CRU] and Scorpio Tankers [NYSE: STNG]. Nine companies completed<br />
follow-on offerings with the last before the current capital markets window<br />
began to close. One was Navios Maritime Partners [NYSE: NMM], which<br />
completed pricing of a follow-on offering, its second this year, in an accelerated<br />
market offering on the last day of April.<br />
Looking Ahead<br />
Windows for raising equity capital open and close as investor sentiment and<br />
appetite for risk-taking move with the ebb and flow of the global markets.<br />
There should be another opportunity for maritime shipping companies with<br />
sound businesses, track records of delivering economic returns, reasonable<br />
dividend strategies and transparent business models to raise equity capital later<br />
this year - if, that is, the seedlings of global economic recovery finally begin to<br />
take hold. There are positive events, just not enough yet, to overcome the<br />
current market volatility.<br />
There have also been non-market related events such as the deepwater drill rig<br />
disaster in the Gulf of Mexico that affects companies with these assets, notably<br />
Tsakos Energy Navigation [NYSE:TNP], which announced it would not go<br />
forward with the planned acquisition of two deepwater drilling rigs for $1<br />
billion in its public company. Meanwhile, DryShips' [Nasdaq GS: DRYS]<br />
planned spin-off of its drilling business Ocean Rig through an IPO is likely to<br />
continue to experience delay due to market concerns about deepwater drilling<br />
operations.<br />
Access to capital is one of the most important strategic strengths that any<br />
industrial company possesses, and there are very few businesses as capital<br />
intensive and with funding needs as great as those in maritime shipping.<br />
<strong>Investor</strong>s want to invest in companies with sound businesses, track records of<br />
delivering economic returns, transparent business models and reasonable<br />
dividend strategies. These companies have earned the privilege of access to the<br />
capital markets. They should continue to do what they are doing, maintaining<br />
the trust and confidence of their investors, others looking to access the capital<br />
markets should look to them as guiding examples.<br />
Meanwhile, we at Knight hope that everyone attending and participating in the<br />
Posidonia <strong>Investor</strong> & <strong>Analyst</strong> <strong>Forum</strong> enjoys the conference, related events and<br />
activities, and leave with a stronger appreciation for the shipping industry.
�����<br />
<strong>Capital</strong> <strong>Link</strong> <strong>Shipping</strong> <strong>Forum</strong><br />
nd<br />
2 Posidonia<br />
A<strong>Analyst</strong> l & <strong>Investor</strong> <strong>Day</strong><br />
Full Steam Ahead for Greek <strong>Shipping</strong><br />
By Barry Parker<br />
Greek owners have played an integral role in international shipping.<br />
An earlier generation of owners (some from the merchant mariner<br />
ranks, others from trading backgrounds) made great private fortunes,<br />
as world trade mushroomed from the 1950's through the early 1970s.<br />
Now, a new generation of Greek owners has come to prominence.<br />
Unlike their predecessors, this new crop of shipowners (more likely<br />
to have a finance degree than sea-going experience) has used the<br />
capital markets to build their fleets, while offering investors an<br />
opportunity to share in their fortunes.<br />
<strong>Shipping</strong> economists have pointed to China's entry into the World<br />
Trade Organization (WTO) in 2003 as the catalyst for another<br />
shipping boom- this one lasting until the sharp correction of late<br />
2008. Shortly thereafter, starting in late 2004, shipping companies<br />
began to tap the equity markets, through initial public offerings (or,<br />
for those prescient companies already listed, follow-on offerings).<br />
Many of these companies, launching IPOs (or secondaries) are<br />
Athens-based Greeks, or offshoots with agency businesses in<br />
London or New York.<br />
<strong>Shipping</strong> suffered along with other businesses after the Credit Crisis<br />
of unprecedented proportions- with its numbing effects on economic<br />
activity. Clearly, "utilization" (the interaction of vessel supply with<br />
cargo-driven demand for transport) is down from 2007- 2008 levels,<br />
resulting from a vessel ordering binge across industry sectors, during<br />
2007- 2008 boom. Yet, the drybulk and tanker sectors have<br />
performed substantially above the dire expectations expressed by<br />
forecasters a year ago, in mid 2009. The container business, through<br />
better management of capacity, has moved closer to sustainable<br />
earnings levels.<br />
The pullback of shipping banks, primarily from Europe, is an impact<br />
of the Credit Crisis that may linger way beyond the ongoing<br />
recovery. <strong>Capital</strong> market money sources, such as high yield bonds,<br />
debt or preference stock convertible into shares, and equity sold "At<br />
the Market" (rather than through traditional underwritings) have<br />
partially filled the banking vacuum. Yet reduced bank funding has,<br />
paradoxically, constricted new ship orders (and stifled the birth of<br />
inchoate "greenfield" shipyards) that would have contributed further<br />
to oversupply.<br />
The Greek owners have adapted to the new situation in a variety of<br />
ways. Evangelos Marinakis (who studied International Relations<br />
before going into the family-owned <strong>Capital</strong> Ship Management) has<br />
Page 12<br />
now launched Crude Carriers Corp, listed on the NYSE with symbol<br />
"CRU", his second listed shipping company. CRU's financial<br />
template (analogous to Peter Georgiopoulos's newly launched dry<br />
side business- Baltic International Trading, also listed on the NYSE,<br />
as "BALT") centers on minimal financial leverage and a full<br />
dividend payout. Coupled with the acquisition of tonnage at or near<br />
a cyclical bottom, this new model sidesteps potential banking<br />
entrapments, while offering investors cash payouts fuelled by<br />
increasingly prevalent freight market spikes. Buying ships at or near<br />
"distress" prices offers equity holders the possibility to participate in<br />
out-sized returns from vessel sales.<br />
The Navios group of companies took advantage of the 2009<br />
downturn to secure a half dozen attractively priced Capesize vessels<br />
ordered by another owner, taking advantage of lengthy finance terms<br />
offered by the original lender. Navios also used a novel form of<br />
preferred stock, issued to the Asian yard, as part of its payment<br />
package. In 2010, another company under the Navios umbrella is set<br />
to purchase more than a dozen chemical and product tankers, with<br />
Navios betting on cyclical rebound in this sector.<br />
In 2010, both Safebulkers ("SBLK" on Nasdaq) and Globus<br />
Maritime ("GLBS" on London AIM) announced acquisitions of<br />
newbuild tonnage from Chinese yards. Paragon <strong>Shipping</strong> ("PRGN"<br />
on NYSE) has announced an eight vessel building program (with<br />
ships delivering in 2011-2012) and Diana <strong>Shipping</strong> ("DSX" on<br />
NYSE) is building two ore carriers in China for 2012 delivery. Now,<br />
as in previous cycles, purchasing attractively priced assets is a theme<br />
running across the spectrum of Greek companies.<br />
Barry Parker<br />
Barry Parker is a financial writer and analyst. His articles appear in a<br />
number of prominent maritime periodicals including Fairplay,<br />
Seatrade, Lloyds <strong>Shipping</strong> Economist and Janes Transport Finance<br />
and <strong>Capital</strong> <strong>Link</strong> <strong>Shipping</strong>.
<strong>Capital</strong> <strong>Link</strong> <strong>Shipping</strong> <strong>Forum</strong><br />
nd<br />
2 Posidonia<br />
A<strong>Analyst</strong> l & <strong>Investor</strong> <strong>Day</strong><br />
WHY CHOOSE THE MARSHALL ISLANDS?<br />
����� By Clay Maitland,<br />
Managing Partner, International Registries, Inc.<br />
Marshall Islands companies are legally structured to be particularly<br />
well-suited to the management of shipowning enterprises, and are easily<br />
adapted to the world's diverse commercial systems. Since the mid-1900s,<br />
the number of shipping and offshore oil and gas companies that have gone<br />
public has grown rapidly. In addition, with the changes in the markets and<br />
in asset values, institutional investors have expressed considerable interest<br />
in private equity transactions in the shipping industry. Moreover, the rights<br />
and benefits of an investor, like the ownership of a vessel, depend upon<br />
local as well as international recognition of their validity. Gary Wolfe,<br />
Esq. the head of the <strong>Capital</strong> Markets Group at Seward & Kissel LLP has<br />
had years of experience in the shipping and offshore oil and gas drilling<br />
areas. He notes that:<br />
"We have found that the Marshall Islands is the premier jurisdiction for<br />
these types of companies for a number of reasons:<br />
The Marshall Islands has a close relationship with the United States<br />
with which it has a Compact of Free Association.<br />
The Marshall Islands corporate, limited partnership and limited<br />
liability company laws are based on similar laws of leading U.S.<br />
jurisdictions such as Delaware and New York. For that reason,<br />
investors can easily understand how such Marshall Islands entities<br />
function and how their constitutive documents are likely to be<br />
interpreted.<br />
The Marshall Islands corporate and maritime registries are top<br />
notch. They are managed from Reston, Virginia, and New York<br />
City. It is as easy and quick to form a Marshall Islands corporation<br />
as it is to establish a Delaware corporation.<br />
Marshall Islands entities are efficient from a tax point of view. The<br />
Marshall Islands imposes no income tax on nonresident<br />
corporations. The U.S. Internal Revenue Service includes Marshall<br />
Islands corporations, limited partnerships and limited liability<br />
companies as foreign entities that can “check the box”.<br />
The staff of the Marshall Islands corporate and maritime registries<br />
understand the industries on which they are focused.”<br />
���<br />
���<br />
���<br />
���<br />
���<br />
The most important thing to remember about Marshall Islands<br />
corporations, partnerships, and limited liability companies (LLCs) is that<br />
the underlying legal system developed over a long period of time in the<br />
hands of lawyers in New York and London. Based upon their experience,<br />
the Marshall Islands legal framework is specifically tailored to the needs<br />
of companies that own and operate ships, although many non-maritime<br />
Page 13<br />
clients have found them equally useful. I am often asked whether or<br />
why the Marshal Islands is preferable to, for example, Delaware as a<br />
domicile. Although the two jurisdictions have quite a lot in common,<br />
the presence of Marshall Islands representative offices in many<br />
locations throughout the world makes for a more speedy and effective<br />
processing of time-sensitive documentation. In addition, a great many<br />
of the services provided by the Marshall Islands corporate registry are<br />
cost-free to the user. When the Marshall Islands corporate laws were<br />
developed, the use of tried-and-true United States and British legal<br />
and financial terminology, and the fact that the Marshall Islands is an<br />
independent nation closely aligned with the United States, has made<br />
this form of corporation highly popular with existing publicly held<br />
corporations, or corporations going public for the first time.<br />
As Mr. Wolfe, an experienced lawyer, puts it, "All in all, for us and our<br />
clients in the shipping and offshore oil and gas industries, the Marshall<br />
Islands is a top choice."<br />
www.register-iri.com<br />
THE MARSHALL ISLANDS<br />
THE WORLD'S THIRD LARGEST SHIP REGISTRY<br />
SETTING THE STANDARD FOR EXCELLENCE
A REVIEW OF THE GLOBAL SHIPPING MARKETS<br />
Greek <strong>Shipping</strong> A Global Leader<br />
By Nicolas Bornozis, President, <strong>Capital</strong> <strong>Link</strong>*<br />
MARITIME SHIPPING: THE LIFELINE OF<br />
INTERNATIONAL TRADE<br />
The maritime shipping industry is essential to international<br />
trade as it is a practical and cost-effective means of<br />
transporting large volumes of commodities. <strong>Shipping</strong> is<br />
the lifeline of global trade. Indeed, world trade is about<br />
$14 trillion annually with 90% carried by the shipping<br />
industry contributing $380 billion in freight rates to the<br />
global economy.<br />
Yet, maritime shipping is often understated in its relative size and effect on the<br />
global economy as most people are more familiar with other forms of transportation<br />
such as airlines, trucking and railroads.<br />
“The total value of all cargo transported on ships annually is roughly the same<br />
as the GDP of the United States, nearly 12 trillion dollars” says Nikolas Tsakos,<br />
CEO of Tsakos Energy Navigation (TEN) (NYSE: TNP), one of the largest<br />
transporters of energy in the world. And he adds “To put this in perspective just<br />
for our company, our tankers transport annually the equivalent of 45 days of oil<br />
imports to the USA”.<br />
“Maritime transportation is the only practicable and cost effective means of<br />
transporting large volumes of many essential commodities. For example, even<br />
if tanker freight rates were to double from their current levels, gasoline prices<br />
in the US would hardly be affected” adds Evangelos Marinakis, CEO of Crude<br />
Carriers (NYSE CRU).<br />
“<strong>Shipping</strong> is the artery of world trade. A disruption in shipping would have a<br />
profound impact on the day to day life of every human being”, points out<br />
George Economou, CEO of DryShips (NASDAQ DRYS), a leading operator of<br />
dry bulk carriers and offshore oil deep water drilling.<br />
Tankers, which carry liquid fuels such as oil, oil products and chemicals<br />
account for 40% of total sea borne trade, whereas dry bulk shipping which<br />
transports commodities such as iron ore, coal, grain, accounts for 38% and the<br />
rest is general cargo and containers that carry mainly finished goods.<br />
Given the cargoes carried, tanker shipping is mainly affected by developments<br />
in the global energy markets including both OECD and non-OECD economies,<br />
whereas dry bulk shipping is tied mainly to infrastructure development<br />
especially that of developing economies in the Far East, and container shipping<br />
to consumer demand mainly in the developed markets.<br />
Opportunities and Risks<br />
After a period of steady growth since the turn of 21st century, the global<br />
economy came to a standstill when the financial crisis hit in Q4 2008. The lack<br />
of financing severely diminished global trade and demolished freight rates,<br />
earnings and asset values putting the shipping industry in turmoil. But the<br />
industry did weather the storm. Since then, the market has gradually come<br />
back, albeit still far from its previous highs, creating a sleuth of new opportunities<br />
for shipping companies and investors.<br />
Overall, shipping is a cyclical, seasonal and volatile business. Global economic<br />
This article was part of a Sponsored Report on “The Global <strong>Shipping</strong> Markets” in Barron’s on May 29, 2010<br />
www.<strong>Capital</strong><strong>Link</strong><strong>Shipping</strong>.com<br />
conditions and political developments affect the demand side, while the size<br />
and availability of the global fleet affect the supply side. Imbalances between<br />
demand and supply affect asset values, freight rates and earnings.<br />
The thesis for investing in shipping is straightforward and more or less the<br />
same across all market segments. With the global economic recovery on its<br />
way, the industry is coming out from the storm, with improving freight rates<br />
and current asset values at attractive levels. But even though on the upturn,<br />
these are well below historical levels, especially if one looks at the ten-year<br />
averages.<br />
“We are in this business for the long term” states Michael Bodouroglou, CEO<br />
of Paragon <strong>Shipping</strong> (NYSE: PRGN), a global dry bulk shipping company<br />
“and weak markets can present attractive growth opportunities for strong<br />
companies like ours”. “The entry point for investing in shipping assets is a<br />
major determinant for the final returns and right now vessel prices are well<br />
below their average historical values. This is a unique opportunity to invest at<br />
the lower end of the shipping cycle” adds Evangelos Marinakis, CEO of Crude<br />
Carriers, a company focusing on the crude tanker industry.<br />
But there are risks as well. Many uncertainties can affect the demand side.<br />
Uncertainty about sovereign debts in Europe could spread and slow down the<br />
global economic recovery. The rising dollar could make commodities, which<br />
are dollar based, more expensive affecting demand. If oil gets too expensive,<br />
as it did in the past, it could affect both demand and economic growth<br />
prospects. On the fleet supply side, the boom years created large orderbooks of<br />
newbuildings that if delivered on time could create significant imbalance<br />
between supply and demand. But, with financing tight, so far only a fraction of<br />
the scheduled deliveries materialized.<br />
Baltic Dry Index 2001-2010<br />
Source: Bloomberg<br />
* Nicolas Bornozis is the President of <strong>Capital</strong> <strong>Link</strong>, Inc., a New York based<br />
<strong>Investor</strong> Relations and Financial Communications firm specializing, among<br />
other, in shipping. <strong>Capital</strong> <strong>Link</strong> works with several listed companies, including<br />
companies featured in this report.
Greek <strong>Shipping</strong> a Global Leader<br />
A REVIEW OF THE GLOBAL SHIPPING MARKETS<br />
Despite the cyclical character of shipping, Greek shipowners have managed to<br />
survive in weak freight markets and turn losses into profits when markets<br />
improved. The global shipping and investment communities continue to look<br />
at the behavior of Greek shipowners during peaks and troughs, as they have<br />
been consistently able to prove their success in one of the most significant,<br />
difficult and unpredictable professions of the world.<br />
Greece, a country of about 11 million people, controls by far the biggest share,<br />
between 15% and 20%, of the world's shipping fleet in terms of carrying capacity<br />
measure in deadweight tonnage (dwt) making the country a top player in<br />
world trade. It controls 20.5% of the tanker fleet, 19.5% of the dry bulk fleet,<br />
13.5% chemical tankers, and 5.9% of containerships.<br />
After pouring $4.5 billion in 2009 buying 229 vessels, in 2010, Greek<br />
shipowners topped the global list ahead of the Chinese as the most aggressive<br />
buyers of second hand and newbuilding vessels. According to John Cotzias of<br />
N. Cotzias <strong>Shipping</strong> Consultants, until the end of April 2010, Greek shipowners<br />
committed to buy 98 vessels investing $2.6 billion, with the Chinese<br />
coming second with 111 vessels and $1.75 billion. This included 55 dry bulk<br />
vessels ($1.44 billion), 24 tankers ($919 million) and 14 containers ($260<br />
million).<br />
<strong>Shipping</strong> A Global Business<br />
The shipping sector is the second largest pillar of Greece’s 240 billion Euro<br />
<strong>Capital</strong> <strong>Link</strong> Dry Bulk vs. S&P 500 and Baltic Dry Index<br />
Source: Bloomberg, <strong>Capital</strong> <strong>Link</strong> Research<br />
($312 billion) economy, following tourism. There are about 1,400 shipping<br />
companies in Greece employing close to 250,000 people, generating significant<br />
currency inflows and contributing annually about $20 billion to the Greek<br />
economy. But shipping is a global business conducted outside Greece. “Even<br />
though we have our executives offices in Greece, our business is affected by<br />
trends in the global energy and commodity markets and not by developments<br />
in the domestic economy” states John Dragnis, COO of Goldenport Holdings<br />
(LSE:GPRT), an owner of dry bulk and container vessels. “Actually, the<br />
current situation with domestic unemployment about to rise, may steer a higher<br />
number of Greeks to the maritime profession, making up for the shortages we<br />
experienced in skilled personnel in previous years” states Nikolas Tsakos,<br />
CEO of TEN.<br />
Greek shipping is a unique success story on a global scale. It brings to mind<br />
legendary names like Onassis, Niarchos, Livanos and many others. The ranks<br />
of Greek shipowners today include the scions of families with a long tradition<br />
in shipping but also several self made entrepreneurs. Among the listed companies,<br />
Euroseas (NASDAQ: ESEA), an owner of dry bulk and container vessels,<br />
boasts the Pittas shipping family tradition of 136 years.<br />
Behind every major shipping company is a charismatic CEO. <strong>Shipping</strong> has<br />
always been a family business not only in Greece but everywhere, with the<br />
founder and CEO making all decisions. But as companies grew larger and the<br />
younger generation took over, corporate procedures and governance guidelines<br />
were put in place opening up shipping to the public capital markets and<br />
spurring it to a new growth era.<br />
<strong>Shipping</strong> and the <strong>Capital</strong> Markets<br />
<strong>Shipping</strong> is a capital intensive business and as the availability of bank financing<br />
declined, publicly listed shipping companies have a competitive advantage<br />
over their private peers in terms of access to capital. But public shipping<br />
companies today represent only about 5-7% of the global fleet, indicating the<br />
potential of shipping for the capital markets.<br />
The U.S. capital markets have become the destination of choice for shipping<br />
companies from all over the world. Today, the U.S. has the largest group of<br />
listed shipping companies, with significant analyst follow up and a large and<br />
growing institutional and retail investor base. From 2005 to 2009 over $13.3<br />
billion of equity was raised by shipping companies through public offerings<br />
with IPOs accounting for $5.7 billion. In 2010, until the end of April, another<br />
$1.4 billion was raised, of which $650 million was in IPOs bringing three new<br />
companies to the market, two tanker companies (Crude Carriers –NYSE: CRU<br />
and Scorpio Tankers – NYSE:STNG) and one dry bulk company (Baltic<br />
Trading, NYSE: BALT).<br />
About half of the 44 U.S. listed shipping companies today claim a Greek link.<br />
<strong>Shipping</strong> is a well defined sector in the U.S. capital markets – 44 companies in<br />
<strong>Capital</strong> <strong>Link</strong> Tanker vs. S&P 500 and Baltic Dirty Tanker Index<br />
Source: Bloomberg, <strong>Capital</strong> <strong>Link</strong> Research
<strong>Capital</strong> <strong>Link</strong> Maritime Indices Yearly Comparison<br />
A REVIEW OF THE GLOBAL SHIPPING MARKETS<br />
total with a market cap of $28.4 billion. This includes 15 dry bulk ($7.5<br />
billion), 19 tanker ($14 billion), 6 container ($3 billion) and 3 LNG/LPG<br />
companies ($2.5 billion). The group also includes 6 mixed fleet companies ($3<br />
billion) and 4 MLPs ($3.6 billion).<br />
Tracking U.S. Listed <strong>Shipping</strong> Companies<br />
<strong>Capital</strong> <strong>Link</strong>’s Maritime Indices enable investors to track the performance of<br />
U.S. listed shipping companies and compare them against each other, their<br />
sector, freight indices and the broader stock market. The indices cover the<br />
whole maritime sector and each segment, dry bulk, tankers, containers, mixed<br />
fleet, LNG/LPG and shipping MLPs. They are market cap weighted, include<br />
all U.S. listed shipping companies, are updated daily and can be found on<br />
<strong>Capital</strong> <strong>Link</strong>’s <strong>Shipping</strong> website www.<strong>Capital</strong><strong>Link</strong><strong>Shipping</strong>.com, dedicated<br />
to providing free information on listed shipping companies and the shipping<br />
industry. The site aggregates news, SEC filings, blogs, stock data, earnings and<br />
conference call information on all US listed shipping companies and covers all<br />
major stock market and freight indices.<br />
DRY BULK SHIPPING<br />
Source: <strong>Capital</strong> <strong>Link</strong> Research<br />
Iron ore and coal, which are carried<br />
on the larger Capesize and<br />
Panamax vessels, drive the trade<br />
accounting for 26% and 27% of the<br />
trade respectively, with grain at<br />
14% and the remaining 33%<br />
related to minor bulks such as are<br />
fertilizers, steels, sugars, cement<br />
etc. The Baltic Dry Index (BDI) of<br />
the Baltic Exchange tracks the<br />
sector’s spot market freight rate<br />
developments.<br />
“The developing economies have<br />
been and will continue to be the<br />
main drivers of the dry bulk trade<br />
and especially those of China and<br />
more recently India” states Akis<br />
Tsirigakis, CEO of Star Bulk, a global dry bulk company. “Asia today, presents<br />
growth opportunities for the shipping industry equivalent to the growth<br />
realized in the U.S., during the industrial revolution at the turn of the 20th<br />
century, and that in Europe following World War II” adds George Economou<br />
of DryShips.<br />
“The demand for core commodities such as iron ore and steel is related to the<br />
continued infrastructure development of these countries, and as such, it is<br />
relatively inelastic. Even if these economies are to slow down temporarily, the<br />
trend towards urbanization and industrialization is irreversible” says Michael<br />
Bodouroglou, CEO of Paragon <strong>Shipping</strong>.<br />
Demand for dry bulk carriers in 2009 was dependent on China, while Europe<br />
and the United States remained handcuffed as a result of the world recession<br />
but now there is a gradual recovery in both developed and developing economies.<br />
“In April 2010, the IMF increased its forecast for economic growth” adds<br />
Dale Ploughman, CEO of Seanergy, “expecting world growth of 4.2% for<br />
2010, with advanced economies to grow at 2.3% and emerging and developing<br />
economies to grow at 6.3%. China’s economy is expected to grow by 10% in<br />
2010 and overtake Japan as the world’s second largest economy, while India’s<br />
growth is expected at 8.8%.”<br />
China’s GDP grew by 11.9% in Q1 2010, the fastest quarterly growth rate for<br />
three years. Despite a 43% decline in Chinese lending, its industrial production<br />
rose 19.6% during the quarter, highlighted by an increase in quarterly car sales<br />
of 73% year-on-year to 4.6 million cars, making China the world’s largest car<br />
manufacturer. China imported 155 million tons of iron ore in Q1 2010, up 18%<br />
year-on-year, to keep pace with high steel production and demand driven by<br />
major new infrastructure projects and domestic consumption. Crude steel<br />
production in China for Q1 2010 was 158 million tons, up 24% year-on-year.<br />
But at the same time, global steel production rose 29%, with strong increases<br />
in Japan at 51%, South Korea at 29%, the EU at 37% and Brazil at 59%.<br />
According to industry experts, the iron ore and coal trades are expected to<br />
remain the catalysts for dry bulk shipping. China, which was a coal exporter,<br />
Chinese Iron Ore Imports (2005-2010)<br />
In Million Tonnes<br />
Source: Clarksons March 2010
A REVIEW OF THE GLOBAL SHIPPING MARKETS<br />
has become a net importer since 2009. Against most expectations Chinese coal<br />
imports in Q1 2010 were up over 200% year-on-year to 44 million tons and the<br />
trend is expected to continue due to increased demand and the effect of the<br />
drought in South West China, which led to a 5% year-on-year reduction in<br />
hydropower generation in Q1. This compares to a 24% increase in thermal<br />
power generation in the same period. And if we look at India, Indian coal<br />
imports have increased dramatically at a 21% compounded annual growth rate<br />
since 2006. According to the Central Electricity Authority of India, this<br />
demand will continue to substantially grow as the majority of planned new<br />
power generators will be coal fired.<br />
Supply Side – The Wild Card<br />
With this demand outlook as a backdrop the big question centers on fleet<br />
supply given the size of the newbuilding orderbook. At the end of March 2010,<br />
the world dry bulk fleet consisted of 7,488 vessels or 475.6 million dwt in<br />
capacity, with the orderbook at about 285.7 million dwt, equivalent to 62.4<br />
percent of the existing fleet. Using Clarkson’s data, 109.5 million dwt is scheduled<br />
for delivery in 2010, 104.3 million dwt in 2011 and 74.4 million dwt in<br />
2012.<br />
There is significant slippage between scheduled and actual deliveries reflecting<br />
the lack of available financing for owners and yards, and the fact that several<br />
Greenfield shipyards never materialized. Orders were cancelled, delayed or<br />
restructured. In 2009, the slippage was 40% and in Q1 2010 it was 41%. And<br />
for 2010, the slippage is expected to be around 48% with the actual deliveries<br />
projected at 65 million dwt, but still a record year for newbuildings.<br />
Scrapping, new trade routes requiring ships to travel longer distances and port<br />
congestion can also impact fleet supply positively. Scrapping jumped with the<br />
collapse of the freight market in Q4 2008. The average annual scrapping rate<br />
over a 4-year period (2004-2007) was 0.25% of the fleet; in 2008 it jumped to<br />
1% (all of it in Q4) and in 2009 it reached a record of 10 million dwt or 2.4%<br />
of the fleet. As the freight market improved, scrapping slowed to 1.2 million<br />
dwt to date, equivalent to 5 million dwt on an annualized basis. “With 16% of<br />
the fleet older than 25 years of age and 26% of the fleet over 20 years old, this<br />
provides over 120 million dwt scrapping potential” notes Anthony Kandylidis,<br />
CEO of OceanFreight, an operator of dry bulk and tanker vessels.<br />
Dry bulk vessel demand is driven by demand for natural resources and by the<br />
distance these cargoes are transported. China becoming a net coal importer,<br />
coal supply disruptions in Australia and an increasing demand from India are<br />
the reason behind an increase in Atlantic and Pacific coal trades. Coal movements<br />
have begun from Colombia to China for the first time recently. Also, as<br />
India uses more of its iron ore domestically, its exports to China decline, with<br />
the gap filed with imports from Australia and Brazil, increasing not only the<br />
overall seaborne demand but also the ton-miles travelled to transport the<br />
cargoes.<br />
Dry Bulk Demolition Units vs. Avg Scrap 2008-2010<br />
Source: N. Cotzias <strong>Shipping</strong> Consultants<br />
“Port congestion remains a major characteristic of the industry” says John<br />
Dragnis, COO of Goldenport. “At the end of April, about 11% of the entire dry<br />
bulk fleet was waiting to berth at home ports worldwide, with the biggest<br />
concentration in Capesize vessels, and this limits the supply of available<br />
vessels.”<br />
Freight Rates Gradually Recover<br />
After rising to a high of 11,793 on May 2008, the BDI dropped 95% to a low<br />
of 663 in December 2008. It has since gradually recovered hitting a new high<br />
of 3,608 by May 7, 2010.<br />
Freight rates have gradually but consistently recovered, but they are still low.<br />
For example, the daily spot hire for a 5-year old Panamax just crossed its<br />
10-year average”, said Aristides Pittas, CEO of Euroseas (NASDAQ: ESEA),<br />
an operator of dry bulk and container vessels. In May 2010, the one-year daily<br />
time charter rate rose to $36,000 for Capesize vessels, $29,000 for Panamaxes<br />
and $24,000 for Supramaxes. The average rates for 2009 were $33,300,<br />
$18,200 and $14,700 respectively and for 2008, $111,500, $55,600 and<br />
$45,500. With daily vessel operating expenses at around $8,000 for a Capesize<br />
and $7,000 for a Panamax, at current freight levels, this leaves a healthy<br />
EBITDA margin.<br />
Asset Values at Low Levels<br />
Asset values are modestly turning up but they are also at historical lows both<br />
for newbuildings and second hand vessels. Using Clarkson’s data, the year end<br />
Capesize T/C Rate vs. Capesize Spot Rate 2008-2010<br />
T/C = Time Charter Source: N. Cotzias <strong>Shipping</strong> Consultants
A REVIEW OF THE GLOBAL SHIPPING MARKETS<br />
cost for a 5-year 150,000 dwt Capesize vessel was $150 million in 2007, $45<br />
million in 2009, $55 million in 2009 and $62 million in April 2010. The<br />
year-end cost for a 5-year old 76,000 dwt Panamax was $88.5 million in 2007,<br />
$26 million in 2008, $36 million in 2009 and rose to $39.5 million in April<br />
2010.<br />
In this environment, shipping companies rush to grab opportunities. After<br />
almost doubling its controlled fleet in its first year of operations in 2009, in<br />
May 2010, Seanergy announced another agreement to acquire a controlling<br />
interest in a fleet of nine 10-year old Handysize vessels expanding its fleet to<br />
20 vessels. In the newbuilding market, companies can place new orders<br />
directly with the shipyards, or buy a resale contract from another owner, bank<br />
or yard when the initial contract could not be fulfilled, in most cases due to lack<br />
of financing. “We resisted the temptation to place newbuilding orders at the<br />
height of the market” says Akis Tsirigakis, CEO of Star Bulk “but now<br />
newbuilding prices are very attractive, about half of what they were a few years<br />
ago.” “The attractive prices for newbuldings enable us to pursue a fleet renewal<br />
and expansion plan that is optimal in terms of cost, time horizon given the<br />
delivery schedule of the vessels and the terms we negotiate with the yards and<br />
banks” said Michael Bodouroglou, CEO of Paragon.<br />
In 2010, Star Bulk placed an order for two Capesize vessels with delivery in<br />
2011, Paragon for four Chinese built Handysize vessels and four Kamsarmax<br />
vessels (large Panamaxes) with deliveries in 2011 and 2012, DryShips for 2<br />
Panamax vessels with deliveries in 2011 and 2012 and Goldenport swapped a<br />
container newbuilding contract for a Panamax newbuilding with delivery in<br />
2011.<br />
OceanFreight placed an order for three Very Large Ore Carriers (VLOCs) of<br />
260,000 dwt each with deliveries in 2012 and 2013 and fixed them already<br />
under medium term time charters upon their deliveries. “These high specification<br />
bulk carriers were ordered at the behest of our customers and are specifically<br />
designed to serve the long-haul Brazil to China iron ore trade” states<br />
Anthony Kandylidis, OceanFreight’s CEO.<br />
Euroseas took another route. It will invest $25 million into a joint venture with<br />
two private equity firms putting in $75 million each for a total equity of $175<br />
million. Euroseas will run the joint venture, which look for opportunities<br />
across all shipping markets. DryShips boasts a cash position of about $1 billion<br />
giving it the opportunity to go hunting for deals.<br />
TANKER SHIPPING<br />
The tanker sector is much more consolidated compared to the dry bulk sector.<br />
Oil companies acting as charterers, terminal operators, shippers and receivers<br />
are increasingly selective and rigorous in their inspection, vetting and acceptance<br />
of vessels and operators. Operational efficiencies, safety and environ-<br />
mental protection have been a major focus of the tanker industry over the past<br />
years causing tanker owners to take extra care in the quality and maintenance<br />
of their vessels.<br />
The Very Large Crude Carriers (VLCCs), Suezmax and Aframax vessels<br />
(above 100,000 dwt) transport crude oil, whereas smaller vessels can be<br />
specially outfitted to also carry refined petroleum products. A 300,000 dwt<br />
VLCC can carry 2 million barrels of crude oil, a Suezmax 1million and an<br />
Aframax about 800,000 barrels.<br />
Demand for tankers is influenced by world oil demand and supply, which in<br />
turn is affected by factors such as international economic stability, geographic<br />
changes in oil production and consumption, price levels of oil, inventory<br />
policies of major oil trading companies and strategic policies of countries.<br />
Oil is one of the most important energy sources and the tanker industry plays a<br />
vital role in the supply chain. From 2000 to 2008, global oil demand grew by<br />
13% from 76.6 million barrels per day to 86.3 mbpd. The decline in oil demand<br />
from the second half of 2008 was mainly driven by a weaker demand in the<br />
OECD countries and the US due to the financial and economic crisis. The<br />
reduction of demand increased inventory buildup, which in turn contributed to<br />
OPEC’s production cuts, which further depressed tanker demand. According to<br />
the International Energy Agency (IEA), in 2009 global oil demand declined by<br />
1.29 million bpd to 85 mbpd, the largest decline since 1982. However, fueled<br />
by the Chinese government’s economic stimulus, Chinese oil demand<br />
increased by 0.61 mbpd the largest increase since 2004 and that in India by<br />
0.17 mbpd.<br />
World Oil Demand (2008-2010)<br />
In Million Barrels Per <strong>Day</strong><br />
Positive Long Term Demand Outlook<br />
Source: N. Cotzias <strong>Shipping</strong> Consultants, IEA<br />
Nikolas Tsakos, CEO of TEN commented “As the IMF data indicate, world<br />
GDP in 2010 is expected to grow, both in OECD and mainly in non-OECD<br />
countries. And the IEA expects oil demand to recover by 1.8% to 86.6 mbpd.<br />
Our optimism for the positive sector fundamentals is not based just on demand<br />
expectations for 2010, but well beyond. The IEA estimates global oil demand<br />
to reach 90 mbpd by 2013 mainly on the back of demand from non-OECD<br />
countries. OECD countries remain a very significant factor in oil demand. But<br />
the potential of China and India for oil consumption is enormous. Their total<br />
population is 2.5 billion in a world of 6.5 billion and their per capita consumption<br />
is now at very low levels. These countries embarked on an aggressive<br />
industrialization program and the development of a middle class auto owner.”<br />
He concluded “If just China reaches the same levels of per capita consumption<br />
as for example Thailand, its oil demand would rise to 18 mbpd, an increase of<br />
10 mbpd from current levels.”<br />
How the oil industry can meet this increased demand remains to be seen.<br />
OPEC production increases may be in store with Iraq being a major wild card.<br />
According to industry consensus, it may have around 100 billion barrels of
A REVIEW OF THE GLOBAL SHIPPING MARKETS<br />
recoverable oil and its current production is at the low level of 2.5 mbpd.<br />
Furthermore, the Obama Administration recently permitted the first offshore<br />
drilling outside the Gulf of Mexico for more than 20 years, but the recent<br />
drillship accident with the huge oil spill may slow down the progress in this<br />
direction. “Ultra Deepwater (UDW) acreage is the new frontier for the oil<br />
industry. The easy oil on land and in shallow offshore areas either is already<br />
being produced or is in the hands of National Oil Companies. International Oil<br />
Companies have no option but to drill in the UDW acreage to replace produced<br />
reserves and meet anticipated demand.” states George Economou, CEO of<br />
DryShips. By early 2012, DryShips will have completed a 6-UDW drillship<br />
business unit, one of the youngest in the industry.<br />
Supply Side Also The Wild Card<br />
Against this positive demand outlook, the uncertainly comes mainly from the<br />
sizeable newbuilding orderbook. At the end of March 2010, the world tanker<br />
fleet (vessels above 10,000 dwt) consisted of 5,348 vessels or 441.4 million<br />
dwt in capacity, with the orderbook standing at approximately 1,310 vessels or<br />
128.6 dwt, equivalent to about 29.1% percent of the existing fleet. According<br />
to Clarkson’s data, 50.4 million dwt is scheduled for delivery in 2010, 57.3<br />
million dwt in 2011 and 21 million dwt in 2012.<br />
But the same factors that impacted the dry bulk sector, also affect tankers. Low<br />
freight rates in 2009, declining asset values, several Green field yards never<br />
coming on line and lack of financing caused order cancellations and delays.<br />
“About 25% of the orderbook in 2009 was delayed or cancelled” stated<br />
Evangelos Marinakis, CEO of Crude Carriers “and 2010 year-to-date tanker<br />
deliveries are so far 33% behind schedule. And most of the remaining orders do<br />
not have financing yet. For example, for VLCCs and Suezmaxes alone industry<br />
analysts estimate that an additional $10.5 billion in equity will need to be<br />
injected over the next two years to sustain the current orderbook. This money<br />
is simply not there.”<br />
Another critical factor reducing tanker supply is the International Maritime<br />
Organization (IMO) phase out requirement of single hull crude tankers in 2011<br />
for international voyages. “With approximately 10% of the world’s tanker fleet<br />
still single hull, the phase out can offset a good part of newbuildings coming<br />
into the market and sustain a healthy freight market” added Evangelos Marinakis.<br />
“And, on top, 12% of the world tanker fleet is over 20 years old and are<br />
prime candidates for scrapping. In our business, which is highly regulated due<br />
to safety concerns, the age and quality of our fleet is a competitive advantage.<br />
Old ships are very restricted in their trading capability and profitability, as most<br />
oil majors will not use them.”<br />
Changing trading patterns require that ships travel longer distances to transport<br />
crude oil and products and therefore affect tanker supply, and thus freight rates.<br />
Tanker Demolition Units vs. Avg Scrap Price 2008-2010<br />
“Incremental crude oil demand originates further away from supply and<br />
impacts the ton-mile multiplier” stated Anthony Kandylidis, CEO of Ocean-<br />
Freight, which operates both dry bulk and tankers. “Because of this, the global<br />
seaborne petroleum ton-mile indicator has been rising faster than the rate of the<br />
oil consumption” added Nikolas Tsakos of TEN. “New long-haul routes are<br />
emerging from Venezuela, Brazil and West Africa towards the Far East. For<br />
example, the roundtrip Venezuela to China takes 87 days thus taking the vessel<br />
out of the available fleet for a long time.”<br />
The same trend happens with oil products. “There is a shortage of refining<br />
capacity in oil consuming nations and a dislocation between refining capacity<br />
and demand” continues Nikolas Tsakos. “Global refinery capacity is expected<br />
to expand by 15% by the end of 2010 and 80% of the new refineries are<br />
constructed in Middle East and India” adds Ioannis Lazaridis, CEO, of <strong>Capital</strong><br />
Product Partners (NASDAQ: CPLP), a global product tanker company.<br />
Freight Rates on the Road to Recovery<br />
Source: N. Cotzias <strong>Shipping</strong> Consultants<br />
The Baltic Dirty Tanker Index (BDTI) and the Baltic Clean Tanker Index<br />
(BCTI) track the spot freight rates for moving crude oil and oil products. The<br />
strong volatility over the past two years in the BDTI and BCTI correlated with<br />
the credit crisis. Following a record year for tanker earnings in 2008, at one<br />
point VLCC earnings peaked at $171,267 per day, rates fell significantly in<br />
2009, with VLCC spot earnings averaging 63% lower than the 2008 average.<br />
“2009 was one of the most challenging years the tanker market has experienced<br />
in recent memory” said Nikolas Tsakos of TEN. “The unprecedented<br />
global economic recession lead to a second consecutive year of decreased
A REVIEW OF THE GLOBAL SHIPPING MARKETS<br />
world oil demand, which, coupled with considerable OPEC production cuts<br />
and large newbuilding inflows, created an air of uncertainty that pushed spot<br />
rates to levels near or below vessels’ operating expenses.”<br />
After rising to a high of 2,347 on June 23, 2008, the BDTI fell to a low of 453<br />
on April 16, 2009. The BCTI achieved a high of 1,509 on June 19, 2008 and a<br />
low of 345 on April 15, 2009. On May 7, 2010, the BDTI was at 992 and the<br />
BCTI at 724.<br />
In 2010, freight rates recovered on the back of stronger demand due to the<br />
global economic recovery, lower oil stocks, and inclement weather, but they<br />
are still below their historic averages. The spot market is the most volatile<br />
particularly for the larger vessels. In May 2010, the one-year time charter daily<br />
rate rose to $43,000 for VLCCs, $25,000 for Suezmaxes and $18,500 for<br />
Aframaxes. The average rates for 2009 were $39,600, $30,600 and $20,100<br />
respectively and for 2008, $73,400, $47,200 and $35,800. The inflation<br />
adjusted 10-year average rates for these vessels are $52,500, $39,300 and<br />
$29,900 respectively. With daily vessel operating expenses at around $9,500<br />
for a modern VLCC and $8,500 for modern Suezmaxes and $7,500 for modern<br />
Aframaxes, even at current freight levels, this leaves a healthy EBITDA<br />
margin.<br />
“The crude tanker spot market has shown considerable strength in 2010<br />
compared to 2009, as the world economy recovers and increased oil demand<br />
from China and India is being met by long haul exporters such as West African<br />
countries, Brazil and Venezuela” said Evangelos Marinakis of Crude Carriers.<br />
“We are primarily a time charter operator” said Ioannis Lazaridis of <strong>Capital</strong><br />
Product Partners “and in this environment, we plan to recharter our vessels<br />
coming open for shorter periods, as we believe rates will become stronger.”<br />
VLCC T/C Rate vs. VLCC Spot Rate 2008-2010<br />
T/C = Time Charter<br />
Attractive Asset Values Below Historic Levels<br />
Source: N. Cotzias <strong>Shipping</strong> Consultants<br />
Using Clarkson’s data, the year end cost for a 5-year 310,000 dwt VLCC was<br />
$155 million in 2007, $104 million in 2009, $79 million in 2009 and it was $82<br />
million in April 2010. The year-end cost for a 5-year old 160,000 dwt Suezmax<br />
was $92 million in 2007, $78 million in 2008, $56.5 million in 2009 and rose<br />
to $63 million in April 2010.<br />
Most of the opportunities though are in the newbuilding market, as second<br />
hand vessel prices fell less than freight rates. Yards are eager to accept new<br />
orders at lower prices and there are several resale contracts for newbuildings,<br />
when the original owner cannot take delivery usually due to lack of financing.<br />
“Vessel prices have dropped from their peak well below their 5-year average<br />
prices” stated Evangelos Marinakis of Crude Carriers. “Historically, a key in<br />
determining returns in shipping has been at what point of the cycle you invest.<br />
Since we purchased our IPO fleet in March 2010, crude tanker asset prices<br />
have increased by 10-15%. So, we believe this is an optimal time to invest as<br />
the market begins to turn.” Crude Carriers became public on March 18, 2010<br />
raising $256.5 million in addition to a $40 million personal investment from<br />
Marinakis himself.<br />
“Our four newbuldings to be delivered in 2010 and 2011 were ordered prior to<br />
the peak of the market” stated Nikolas Tsakos of TEN. “In addition, asset<br />
trading is an integral part of our business. Annually, we generate capital gains<br />
which are roughly 25% of our operating income, as we have a sales and<br />
purchase activity consistently taking advantage of asset trading opportunities.”<br />
Interestingly, two of the three IPOs in 2010 were tanker companies, Crude<br />
Carriers and Scorpio Tankers. <strong>Capital</strong> Product Partners resumed its fleet<br />
growth in Q1 2010 acquiring a 47,000 dwt 2007 built product tanker after<br />
raising $54 million from a follow on offering on February 23, 2010 . And on<br />
April 8, 2010, Navios Acquisition Corp. (NYSE: NNA) announced a definitive<br />
agreement to acquire for $457.7 million a 13-vessel fleet comprised of 11<br />
product and two chemical tankers. Citing the strong sector long term fundamentals<br />
and vessel prices being near their inflation adjusted historical lows,<br />
NNA announced that Navios Holdings would consummate the transaction for<br />
its own account if NNA’s shareholders would not approve it.<br />
CONTAINER SHIPPING<br />
An ever-increasing proportion of the world’s manufactured and other dry cargo<br />
goods are shipped in containers. Today, about 90% of non-bulk cargo worldwide<br />
moves in containers stacked on transport ships; 26% of all containers<br />
originate from China.<br />
Participants in the container shipping industry include "liner" companies,<br />
which operate the container shipping services, containership owners, often<br />
known as charter owners, who own containerships and charter them out to the<br />
liner companies, and shippers who require the seaborne movement of containerized<br />
goods.<br />
About 25 large liner companies dominate the container industry controlling<br />
about 85 percent of the container capacity. The liner companies own and<br />
operate containerships themselves but since the last decade they have been<br />
increasingly chartering-in vessels from third owners, who also operate them<br />
for the liner companies along their prescribed trading routes. “Liner companies<br />
are quite demanding in selecting their counterparties” said John Coustas, CEO<br />
of Danaos Corporation (NYSE: DAC), one of the largest owners and operators<br />
of containerships in the world “as the performance of vessel operators is vital<br />
to ensure the quality and efficiency of the overall service liner companies<br />
provide.”<br />
Vessel capacity is measured by the number of container boxes a vessel can<br />
carry, with the 20-foot equivalent (TEU) being a standard box size. Larger
A REVIEW OF THE GLOBAL SHIPPING MARKETS<br />
“Deep Sea” container vessels can carry more than 3,000 TEUs and serve<br />
long-haul East-West trade routes, mainly from China to the US and Europe.<br />
Smaller "intermediate" vessels 1,000 to 2,999 TEUs generally serve North-<br />
South and intra-regional trade routes. “Feeder” ships below 1,000 TEUs<br />
operate on an intra-regional basis, relaying or "feeding" cargo within a region<br />
from or to main port hubs served by main lane trade routes. Most of the growth<br />
in containership capacity in recent years has been in the larger "Deep Sea"<br />
segments, with ships becoming bigger reaching 8,000 even 13,000 TEUs.<br />
Ownership of the Panamax (5,000+ TEUs) and above sized sector is less<br />
fragmented than of smaller vessels.<br />
For the last decade, container shipping grew at an annual rate of 10%, with<br />
freight rates and asset values on the rise and shipowners placing significant<br />
newbuilding orders to accommodate the growing needs of their charterers, the<br />
liner companies.<br />
Given the dynamics of container shipping, there is almost no spot market.<br />
There is a two-tier market between large and smaller vessels. Large vessels are<br />
typically chartered out to liner companies for long periods, usually ten years or<br />
more. Danaos Corporation, for example, claims 9+ year forward time charter<br />
coverage for its fleet. Owners placed orders for new containerships after<br />
securing long-term charters from liner companies commencing upon vessel<br />
delivery. “Almost all of the orderbook in large containerships is already<br />
pre-chartered” said John Coustas, CEO of Danaos. Smaller vessels are usually<br />
chartered for periods averaging three to five years or less, and their orderbook<br />
is much smaller. Euroseas has 43% coverage for its container fleet in 2010 and<br />
17% for 2011 and Goldenport 99% and 88% respectively.<br />
At the start of April 2010, the global container fleet comprised of 1,630 larger<br />
vessels (3,000 TEUs and above) with a total capacity of 8,830,000 TEUs and<br />
3,210 smaller vessel (below 3,000 TEUs) with a total capacity of 4,319,500<br />
TEUs. The total orderbook was for 4,394,000 TEUs, or 33% of the existing<br />
fleet, of which 91% was for the larger and 9% for the smaller vessels. The<br />
nominal delivery schedule calls for 1,847,000 TEUs in 2010, 1,627,000 in<br />
2011 and 918,000 in 2012+. 6.5% of the fleet is older than 20 years.<br />
A Bloody 2009<br />
The global recession that hit in Q4 2008 impacted container shipping the<br />
hardest. As containers carry mainly finished goods, it is mainly consumer<br />
demand from developed countries that drives the industry. And consumer<br />
demand was the first to evaporate in the crisis and its resumption usually lags<br />
the overall economic recovery.<br />
In 2009 the industry found itself in a sudden vacuum. As trade volumes continued<br />
shrinking and the global fleet kept expanding in double digits honoring<br />
pre-existing commitments, liner companies, who were the first ones on the<br />
hook, took drastic steps. They implemented substantive cost-cutting measures,<br />
laying up vessels, scrapping older owned tonnage, slow steaming in select<br />
routes, reducing administrative costs and as a last resort renegotiating charters<br />
with shipowners in many cases lowering the daily hire but extending the time<br />
charter duration. With slow steaming, as vessels moved with slower speed,<br />
liner companies added more ships to keep the same throughput in trade loops,<br />
thus alleviating some supply issues. Fuel savings because of the slower speed<br />
more than made up for the additional vessel hires.<br />
Charter owners faced their own challenges. Vessels coming out of hire were<br />
returned to them and rechartering, if available, was usually at or below operating<br />
costs. This pushed them to scrap older tonnage or lay-up vessels. The<br />
percentage of the world containership fleet in lay-up peaked in March 2009 at<br />
12%. Asset prices declined but less than freight rates and with little activity in<br />
the second hand market, putting, however, owners in jeopardy with their bank<br />
covenants. And, particularly for the larger vessels, owners were on the hook<br />
with shipyards, as based on chartering commitments from liner companies they<br />
had placed significant orders, many of which did not have financing. A classic<br />
case for a potential domino effect, with liner companies, shipowners, shipyards<br />
and banks tightly interwoven.<br />
To put things in perspective, a 6,500 TEU 5-years old vessel commanded a<br />
daily hire of about $40,000 if fixed in 2007 for 3 years and only $10-12,000 in<br />
2009 for about one year, as no owner was willing to charter his vessel for a<br />
longer period. That vessel would cost in excess of $100 million in 2007 and<br />
around $42-43 million in 2009. Operating expenses are in the region of<br />
$7-8,000 per day for such a ship. In May 2010, the daily hire for a one year<br />
charter would be in excess of $24,000.<br />
For smaller vessels, a 2,500 TEU 6-year old vessel commanded an about<br />
$27-28,000 daily hire if fixed in 2007 for two years and only $5,000 in 2009<br />
for the same employment. That vessel would cost in excess of $50 million in<br />
2007 and around $16 million in 2009. Operating expenses are in the region of<br />
$6,000 per day for such a ship. In May 2010, the daily hire for a one year<br />
charter would be about $7,500 to $8,000.<br />
But the industry held. Liner companies absorbed significant losses, but<br />
survived. The awaited avalanche of distressed sellers or bankruptcies did not<br />
materialize except in isolated cases. Shipyards cooperated with owners<br />
rescheduling delivery dates of newbuildings or converting them to other ship<br />
types. Banks cooperated with owners granting waivers, rescheduling debt<br />
repayments and in some cases extending new financing.<br />
Total Loads Through the Ports of Los Angeles and Long Beach<br />
2010 Gives First Glimmer of Hope<br />
Source: FBR <strong>Capital</strong> Markets<br />
Year-to-date in 2010, the container industry experienced modest improvement<br />
but not to the same extent as other sectors. On the demand side, there has been<br />
improvement month to month across all major trade routes, essentially the long<br />
haul ones from China to the United States and Europe. According to statistics,
A REVIEW OF THE GLOBAL SHIPPING MARKETS<br />
total container imports to the US in Q1 2010 were up 10% measured in TEU,<br />
with a similar trend in Europe.<br />
On the supply side, in Q1 2010 only about 17% of scheduled deliveries materialized,<br />
which, if replicated for the rest of the year, suggests that only 60-70%<br />
of scheduled deliveries will actually happen in 2010. This slippage is primarily<br />
realized in the larger vessel category as smaller vessels have a smaller<br />
orderbook anyway.<br />
So far, it is the larger vessels that have benefited from the market rebound and<br />
several were called out of lay up. “The smaller size classes we operate have<br />
benefited less from rate increases and our containerships continue to face<br />
significant challenges in securing profitable employment contracts; however,<br />
we believe that our ships will soon benefit from the improving market environment<br />
and we consider it probable to re-activate our two vessels currently<br />
laid-up before the end of the year” said Aristides Pittas, CEO of Euroseas.<br />
“Only 15% of this year’s deliveries are for ships smaller than 4,000 TEUs”<br />
added John Dragnis of Goldenport “and these vessels target trades representing<br />
about 60-70% of total demand. This means, that if demand continues to<br />
improve, it can draw down on surplus capacity and lead to a shortage of small<br />
ships.”<br />
For 2010, industry experts place fleet utilization at 75-80% without significant<br />
improvements in freight rates and asset values. Looking ahead at the medium<br />
to longer term, industry experts place the recovery for late 2011 or 2012.<br />
Delayed deliveries and to a smaller extent cancellations and conversions,<br />
coupled with higher scrapping and slow steaming can considerably shrink the<br />
annual net fleet supply. And, provided global economic demand contin-ues to<br />
improve as current trends suggest, this could create a tighter supply and<br />
demand balance bringing the industry back to normal pricing levels by 2012.<br />
Great Opportunity and Risk<br />
Aristides Pittas, CEO of Euroseas said “Today’s low asset values reflect the<br />
continued turmoil in container shipping. But if you believe there are better days<br />
<strong>Capital</strong> <strong>Link</strong> 2nd Annual<br />
Global Derivatives <strong>Forum</strong><br />
Strategies and Opportunities for<br />
Trading <strong>Shipping</strong>, Commodities &<br />
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Thursday, September 9, 2010<br />
Metropolitan Club, New York City<br />
For further information please visit,<br />
www.capitallink.com or call +1 (212) 661-7566<br />
for the word economy ahead, as I do, it is a matter of time for the container<br />
trade to improve following the overall trend. So, it may be advantageous to buy<br />
containerships today at prices well below their historic levels and, if necessary,<br />
even lay them up temporarily. The payoff can be significant when the market<br />
returns. We are in this business for the long term, and part of the game for<br />
strong companies like ours is exactly to take advantage of weak markets and<br />
invest at the right point n the cycle.”<br />
The container sector seems to present the biggest challenges and opportunities<br />
for those not faint at heart. Several public and private companies, as well as<br />
private equity funds indicated interest to commit equity and buy into the<br />
current low market levels. As mentioned, Euroseas announced a $175 million<br />
joint venture and will look for opportunities across shipping sectors.<br />
3 rd Annual<br />
International <strong>Shipping</strong> &<br />
Marine Services <strong>Forum</strong> – London<br />
IN COOPERATION WITH<br />
Latest challenges, developments<br />
and outlook in these rapidly changing global industries<br />
Tuesday, October 12, 2010<br />
London Stock Exchange<br />
10 Paternoster Square, London
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investing. © 2010, The NASDAQ OMX Group, Inc. All Rights Reserved. Q10-0459<br />
Average Daily Matched<br />
U.S. Equity Volume - April 2010<br />
1,790,185,782<br />
NASDAQ<br />
Listed Companies<br />
2,779<br />
NASDAQ<br />
32<br />
NASDAQ<br />
2010 IPOs<br />
NASDAQ OMX<br />
131 Finsbury Pavement<br />
London EC2A 1NT<br />
United Kingdom<br />
+44 20 7065 8000<br />
www.nasdaqomx.com<br />
1,217,763,999<br />
NYSE<br />
1,971<br />
NYSE<br />
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NYSE
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CAPITAL LINK FORUM<br />
GLOBAL VISIBILITY, UNMATCHED TRADING TECHNOLOGY AND LIQUIDITY. NO WONDER<br />
WE LIST MORE GLOBAL SHIPPING COMPANIES THAN ANY OTHER EXCHANGE COMPANY.<br />
With 42 shipping companies listed,<br />
representing over $50 billion in combined<br />
market capitalization, NASDAQ OMX is the<br />
leading exchange company for shipping<br />
companies globally.<br />
ACLI<br />
American Commercial<br />
Lines Inc.<br />
U.S.<br />
AMCF<br />
Andatee China Marine<br />
Fuel Services Corp.<br />
China<br />
MAERSK A<br />
A.P. Moller-Maersk-A/S<br />
Denmark<br />
AQUA<br />
Aqualife A/S<br />
Denmark<br />
CPLP<br />
<strong>Capital</strong> Product Partners L.P.<br />
Greece<br />
CGCBV<br />
Cargotec Oyj<br />
Finland<br />
CCOR B<br />
Concordia Maritime AB<br />
Sweden<br />
DFDS<br />
DFDS A/S<br />
Denmark<br />
DRYS<br />
DryShips Inc.<br />
Greece<br />
DNORD<br />
D/S Norden<br />
Denmark<br />
EGLE<br />
Eagle Bulk <strong>Shipping</strong> Inc.<br />
U.S.<br />
EITZEN<br />
Eitzen Bulk <strong>Shipping</strong> A/S<br />
Denmark<br />
ERRIA<br />
Erria A/S<br />
Denmark<br />
ESEA<br />
Euroseas Ltd.<br />
Greece<br />
FLG1S<br />
Finnlines Oyj<br />
Finland<br />
FREE<br />
FreeSeas Inc.<br />
Greece<br />
GLNG<br />
Golar LNG Ltd.<br />
Bermuda<br />
KNF1L<br />
Klaipedos Nafta AB<br />
Lithuania<br />
VLCCF<br />
Knightsbridge Tankers Ltd.<br />
Bermuda<br />
LSC1R<br />
Latvijas Kugnieciba<br />
Latvia<br />
LJL1L<br />
Lietuvos Juru Laivininkyste AB<br />
Lithuania<br />
LLK1L<br />
Limarko Laivininkystės<br />
Kompanija AB<br />
Lithuania<br />
Number of Listed<br />
<strong>Shipping</strong> Companies<br />
MMLP<br />
Martin Midstream Partners L.P.<br />
U.S.<br />
MOLS<br />
Mols-Linien A/S<br />
Denmark<br />
NEWL<br />
NewLead Holdings Ltd.<br />
Greece<br />
NORDIC<br />
Nordic Tankers A/S<br />
Denmark<br />
OCNF<br />
OceanFreight Inc.<br />
Greece<br />
ONAV<br />
Omega Navigation Enterprises Inc.<br />
Greece<br />
RLOG<br />
Rand Logistics, Inc.<br />
U.S.<br />
RABT B<br />
Rederi AB Transatlantic<br />
Sweden<br />
SHIP<br />
Seanergy Maritime Holdings Corp.<br />
Greece<br />
SINO<br />
Sino-Global <strong>Shipping</strong> America Ltd.<br />
U.S.<br />
SRAB<br />
SRAB <strong>Shipping</strong> AB<br />
Sweden<br />
Neither The NASDAQ OMX Group, Inc. nor any of its affiliates (collectively “NASDAQ OMX”) makes any recommendation to buy or<br />
sell any security or any representation about the financial condition of any company. <strong>Investor</strong>s should undertake their own due<br />
diligence and carefully evaluate companies before investing. © 2010, The NASDAQ OMX Group, Inc. All Rights Reserved. Q10-0459<br />
42<br />
39<br />
Total Market <strong>Capital</strong>ization<br />
($Billions)<br />
$50.2<br />
NASDAQ OMX NYSE Euronext NASDAQ OMX NYSE Euronext<br />
SBLK<br />
Star Bulk Carriers Corp.<br />
Greece<br />
GASS<br />
StealthGas Inc.<br />
Greece<br />
TAL1T<br />
Tallink Grupp A.S.<br />
Es tonia<br />
TBSI<br />
TBS International plc<br />
Bermuda<br />
TOPS<br />
TOP SHIPS Inc.<br />
Greece<br />
TORM<br />
Torm A/S<br />
Denmark<br />
TRBR<br />
Trailer Bridge, Inc.<br />
U.S.<br />
ULTR<br />
Ultrapetrol (Bahamas) Ltd.<br />
Bahamas<br />
VNF1R<br />
Ventspils Nafta A/S<br />
Latvia<br />
NASDAQ OMX<br />
131 Finsbury Pavement<br />
London EC2A 1NT<br />
United Kingdom<br />
+44 20 7065 8000<br />
www.nasdaqomx.com<br />
n NASDAQ<br />
$29.3<br />
n OMX
S H I P P I N G C O M P A N Y P R O F I L E S<br />
<strong>Capital</strong> Product Partners L.P.<br />
www.capitalpplp.com<br />
<strong>Capital</strong> Product Partners L.P. (NASDAQ: CPLP), a Marshall Islands Master<br />
Limited Partnership, is an international owner of modern high specification<br />
double-hull tankers that engage in the global trade of oil products such as<br />
gasoline, gas oil, diesel oil, distillates etc..<br />
<strong>Capital</strong> Product Partners L.P. owns 19 modern vessels, comprising of 16<br />
Medium Range (MR) tankers, two small product tankers and one Suezmax<br />
crude oil tanker. The 19 double-hull tankers have an average age of<br />
approximately 3.2 years - a modern fleet compared to the industry average, and<br />
a distinct competitive advantage for its business. 16 out of the 19 vessels are<br />
IMO II/III, or IMO III compliant, which allows them to carry certain chemical<br />
cargoes such as ethanol, and 10 are built to Ice Class 1A standard which allows<br />
them to trade in ice conditions. Most of the company's vessels are under<br />
medium to long-term charters with an average remaining duration of 3.6 years<br />
from today to BP <strong>Shipping</strong> Limited, Morgan Stanley <strong>Capital</strong> Group Inc.,<br />
Overseas Shipholding Group and <strong>Capital</strong> Maritime and Trading Corp, its<br />
Sponsor. At the time of the Partnership's IPO, in April 2007, the Partnership<br />
owned eight newly built Ice Class 1A MR chemical/product tankers.<br />
The Company's fleet is managed by <strong>Capital</strong> Maritime & Trading, which has<br />
significant presence in the global shipping markets and has successfully<br />
satisfied the operational, safety, environmental and technical vetting criteria of<br />
some of the world's most selective major international oil companies, and has<br />
qualified to do long term business with them, one of a handful of companies<br />
globally to do so. The Partnership benefits from <strong>Capital</strong> Maritime's commercial<br />
and technical capabilities and its relationships with oil majors and oil traders<br />
worldwide, providing it with a significant operational competitive advantage.<br />
These services are provided at a fixed rate 5-year fee.<br />
The Partnership's management has recently provided an annual distribution<br />
guidance of $0.90 per unit based on its assessment of a sustainable distribution<br />
based on the prevailing market conditions. It also allows the Partnership to<br />
pursue strategic growth opportunities which is a top priority. As a result, the<br />
Partnership continues its tradition of distributing cash to unit holders<br />
throughout the changing market environment, while also positioning for future<br />
growth and industry leadership.<br />
Page 26<br />
CEO Message<br />
Ioannis Lazaridis, Chief Executive Officer and Chief Financial Officer of the<br />
Partnership, commented, “During 2009, we kept our focus on the consistent<br />
implementation of our business strategy, despite an adverse trade environment in<br />
the global economy and the tanker industry. Our modern fleet of product tankers<br />
that are designed to the industry’s highest specifications, our charters under<br />
medium to long-term, fixed-rate charters, our profit sharing arrangements, and<br />
our agreement with <strong>Capital</strong> Maritime for the commercial and technical<br />
management of our vessels, allowed us to maintain the same base distributions<br />
throughout 2009 as in the preceding year.<br />
During the first quarter of 2010, we have observed an improvement in the<br />
product tanker market from its multi year lows. The product tanker industry has<br />
seen an overall improvement in the average spot earnings levels, and slightly<br />
higher period rates. We continue to closely examine key industry factors in order<br />
to assess the market recovery for the remainder of 2010 and 2011. These factors<br />
include changes in oil product demand, oil refinery utilization rates, the<br />
implementation of the single-hull tanker phase out, the availability of shipping<br />
finance, as well as further delays and cancellations that could reduce the number<br />
of new tanker vessel deliveries."<br />
In February 2010, we completed successfully our first public secondary equity<br />
offering raising circa $54 million for the acquisition of the M/T Atrotos, the 19th<br />
vessel of our fleet. We intend to continue to evaluate potential acquisitions of<br />
additional vessels and to take advantage of our unique relationship with <strong>Capital</strong><br />
Maritime, in order to make strategic acquisitions in the medium to long term in<br />
a prudent manner that is accretive to our unit holders and to long-term dividend<br />
growth. We aim to revisit our annual distribution guidance as the charter market<br />
further recovers, and we grow our fleet."
S H I P P I N G C O M P A N Y P R O F I L E S<br />
Crude Carriers Corp.<br />
www.crudecarrierscorp.com<br />
Crude Carriers Corp. (NYSE: CRU), incorporated in the Marshall Islands, is an<br />
international transportation company focused on the crude tanker industry.<br />
Their fleet consists of two newly built VLCCs (Very Large Crude Carriers) and<br />
three modern, high specification Suezmax tankers with a total carrying capacity<br />
of approximately 1,060,000 dwt and a weighted average age of approximately<br />
one year, compared to the industry average of 9 years. The company's dividend<br />
policy is to distribute to shareholders, on a quarterly basis, all of their net cash<br />
flow less operating reserves, as defined by the Board of Directors.<br />
Within the short period of time since its IPO in March 2010, Crude Carriers has<br />
been able to expand its initial three vessel fleet by acquiring two additional<br />
modern, high specification Suezmaxes, which were successfully employed<br />
immediately after their acquisition. Crude Carriers also recently announced that<br />
it secured a no-cost no-risk option to acquire an additional newbuilding VLCC<br />
and further expand its fleet.<br />
Crude Carriers employs its vessels primarily in the spot market transporting<br />
crude oil along global trade routes for oil majors and other well known<br />
international counterparties as the spot market has historically provided highest<br />
returns. The Company's fleet is managed by <strong>Capital</strong> Ship Management Corp.,<br />
which has significant presence in the global shipping markets and has<br />
successfully satisfied the operational, safety, environmental and technical<br />
vetting criteria of some of the world's most selective major international oil<br />
companies, including BP p.l.c., Royal Dutch Shell plc, StatoilHydro ASA,<br />
Chevron Corporation and Total S.A., and has qualified to do spot and period<br />
business with them.<br />
Crude Carriers' strategy is to manage and expand its fleet in a manner that<br />
produces strong cash flows, which, in turn, fund dividends to its shareholders.<br />
Key elements of the company's business strategy include:<br />
���Strategically<br />
deploying its vessels in order to optimize the opportunities in<br />
the charter market.<br />
���Strategically<br />
develop and grow its fleet in an accretive manner to both<br />
earnings and cash flow.<br />
���Return<br />
a substantial portion of cash flow to shareholders through<br />
quarterly dividends.<br />
���Maintain<br />
a strong balance sheet.<br />
���Operate<br />
a high-quality, modern fleet.<br />
Page 27<br />
CEO Message<br />
Evangelos Marinakis, Chairman & Chief<br />
Executive Officer of Crude Carriers,<br />
commented "I believe we have created a<br />
simple, compelling investment vehicle<br />
where our investors are able to gain an<br />
exposure to the crude spot market at the<br />
low point of the tanker cycle.<br />
First, we are buying vessels at an attractive point in the cycle at prices<br />
substantially below historical averages. The minimal debt strategy gives us<br />
financial flexibility for growth and dividends, together with our clear dividend<br />
policy of distributing all net cash flow less operating reserves.<br />
Finally, Crude Carriers will benefit from <strong>Capital</strong> Maritime's commercial and<br />
technical relationships with the oil majors going forward. We will concentrate<br />
our charter strategy in the spot market. Therefore, Crude Carriers represents a<br />
unique opportunity to invest in high quality, recently-acquired vessels at no<br />
premium vs other listed tanker companies at what we perceive to be the turning<br />
point in the shipping cycle."
S H I P P I N G C O M P A N Y P R O F I L E S<br />
Danaos Corp.<br />
www.danaos.com<br />
Danaos Corporation is an international owner of containerships, chartering<br />
its vessels to many of the world's largest liner companies. The Company's<br />
current fleet of 45 containerships aggregating 193,629 TEUs ranks Danaos<br />
among the largest containership charter owners in the world based on total<br />
TEU capacity. Furthermore, Danaos has contracted a fleet of 20 additional<br />
containerships aggregating 169,050 TEU with scheduled deliveries up to<br />
2012.<br />
The Company charters its containerships to a geographically diverse group<br />
of liner companies, including most of the largest ones globally. Such<br />
customers include Maersk, CMA-CGM, Yang Ming, China <strong>Shipping</strong>,<br />
Hanjin, ZIM, MISC, Hyundai Merchant Marine Co., Wan Hai and United<br />
Arab <strong>Shipping</strong> Co. The strength of these relationships and the company's<br />
proven track record of performance have enabled the Company to enter<br />
into multi-year charters with its customers.<br />
Danaos' containerships are deployed under multi-year, fixed-rate time<br />
charters that range from one to 18 years for vessels in its current fleet and<br />
its contracted vessels. This provides the company with stable cash flows<br />
and high utilization rates. The average age (weighted by TEU) of the 45<br />
vessels in the Company's containership fleet is approximately 9 years and,<br />
upon delivery of all of its contracted vessels as of the end of the second<br />
quarter of 2012, the average age (weighted by TEU) of the 65 vessels in the<br />
Company's containership fleet (assuming no acquisitions or dispositions)<br />
will be approximately 6 years.<br />
The company's shares trade on the New York Stock Exchange under the<br />
symbol "DAC".<br />
Page 28<br />
CEO Message<br />
Dr. John Coustas, Danaos' Chief<br />
Executive Officer, commented: "Since<br />
early 1993, we have been able to grow<br />
our fleet from three multi-purpose<br />
vessels to the current fleet of 45<br />
containerships an annual compound<br />
growth rate, in TEU capacity, of<br />
approximately 32%. In the first six<br />
months of 2010, we took delivery, as<br />
scheduled of four newbuildings, which all commenced their pre-agreed<br />
employment under long term contracts. We have also contracted for 20<br />
additional containerships with a total capacity of 169,050 TEUs, with<br />
scheduled deliveries up to mid-2012. All of our newbuildings are already<br />
time chartered as of their deliveries.<br />
The year 2009 was one of the toughest in the history of container shipping<br />
and the liner business, as demand and supply were severely imbalanced as<br />
the result of the global financial and economic crisis. In 2009, a number of<br />
impacted liner companies successfully restructured their balance sheet.<br />
Consequently, charter owners like Danaos which enjoyed long term fixed<br />
time charters were able to avoid revenue volatility insofar they had little<br />
re-chartering exposure.<br />
The gradual stabilization of the world economy has resolved a large portion<br />
of the uncertainty, and while so far there has been a jobless recovery, cargo<br />
volumes across the globe have started to show strong recovery trends also<br />
on the back of re-stocking. Recently, we are seeing an increase demand for<br />
larger versus smaller vessels which indicated that the major east-west routes<br />
are picking up and that the underlying demand is further firming up. Liner<br />
companies have been able to significantly increase box rates from their low.<br />
We continue to focus on being a high-quality, cost-efficient provider of<br />
containerships and vessel services and on maintaining a high level of service<br />
for our customers. On a positive note, our charterers continue to perform<br />
and we remain current in payments of our scheduled debt service.”
S H I P P I N G C O M P A N Y P R O F I L E S<br />
DryShips Inc.<br />
www.dryships.com<br />
DryShips Inc. is an owner and worldwide operator of drybulk carriers and<br />
offshore oil deep worldwide. DryShips owns a fleet of 39 drybulk carriers<br />
(including 2 newbuildings) comprising 7 Capesize, 30 Panamax and 2<br />
Supramax, with a combined deadweight tonnage of over 3.5 million tons, 2<br />
ultra deep water semisubmersible drilling rigs and 4 ultra deep water<br />
newbuilding drillships.<br />
DryShips strategically employs its fleet between fixed employment contracts,<br />
including time or bareboat charters, and spot charters. 100% of the ship days in<br />
2010 and 82% in 2011 are secured under time charters.<br />
DryShips owns and operates two ultra-deep water, harsh environment,<br />
semi-submersible drilling rigs, the Leiv Eiriksson and the Eirik Raude which<br />
are currently employed under time charters with Petróleo Brasileiro S.A. for<br />
exploration drilling in the Black Sea, and with Tullow Oil PLC for development<br />
drilling in offshore Ghana, respectively.<br />
In addition, Ocean Rig UDW Inc. has contracts for the construction of four<br />
newbuilding advanced capability ultra-deep water drillships which are to be<br />
delivered to the company in 2011.<br />
DryShips Inc.'s common stock is listed on the NASDAQ Global Market where<br />
its trades under the symbol "DRYS".<br />
Page 29<br />
CEO Message<br />
George Economou, Chairman and Chief<br />
Executive Officer of the Company<br />
commented:<br />
"Since our listing in February 2005, we<br />
expanded our fleet from 6 vessels with an<br />
average fleet age of 19 years to 39 vessels<br />
with an average fleet age of 8 years, as of<br />
May 2010. In addition, we positioned ourselves, in the ultra deep water<br />
("UDW") sector which we believe has strong long term fundamentals. Upon<br />
completion in late 2011, our UDW drilling unit will be among the most modern<br />
in the industry.<br />
Our combined revenue backlog from our UDW unit and our drybulk fleet is<br />
about $2 billion. In regards to the four newbuildings under construction, we<br />
remain focused on securing employment for them allowing us to move forward<br />
with a potential IPO of the drilling unit when the valuation is right.<br />
We have secured the future of our drybulk shipping business enhancing our<br />
earnings visibility. Today, we are pleased to have our drybulk fleet 100% fixed<br />
for the remainder of the 2010 at just under $34,000 per day, and 82% fixed for<br />
2011 at an average rate of $37,000 per day. Our visible cash flow generation<br />
shields us from market volatility and enables us to reduce our debt. Our<br />
excellent relationships and support from our bankers also provide us the backing<br />
for future fleet growth. With over $1 billion in cash on our balance sheet, we are<br />
one of the better positioned shipping companies to take advantage of market<br />
opportunities as they arise.<br />
We are working to release the value in the drilling business with a potential IPO,<br />
at an opportune time potentially towards the end of this year. Ultra Deepwater<br />
(UDW) acreage is the new frontier for oil industry. The easy oil on land and in<br />
shallow offshore areas either is already being produced or is in the hands of<br />
National Oil Companies. International Oil Companies have no option but to drill<br />
in the UDW acreage to replace produced reserves and meet anticipated demand.<br />
We appreciate the support and patience of our shareholders and our message is<br />
simple, we are working tirelessly to create shareholder value and highlight the<br />
attractive valuation of our Company."
S H I P P I N G C O M P A N Y P R O F I L E S<br />
Euroseas, Ltd.<br />
www.euroseas.gr<br />
Euroseas Ltd. (NASDAQ: ESEA) was formed on May 5, 2005 under the laws<br />
of the Republic of the Marshall Islands to consolidate the ship owning interests<br />
of the Pittas family of Athens, Greece, which has been in the shipping business<br />
over the past 136 years.<br />
Currently, the Company's fleet includes 16 vessels, comprised of 4 Panamax<br />
drybulk carriers and 1 Handymax drybulk carrier, 2 Intermediate<br />
containerships, 6 Handysize containerships, 2 Feeder containerships and a<br />
multipurpose dry cargo vessel. Euroseas' 5 drybulk carriers have a total cargo<br />
capacity of 331,808 dwt, its 10 containerships of 17,787 teu and its<br />
multipurpose vessel of 22,568 dwt or 950 teu.<br />
Page 30<br />
CEO Message<br />
Aristides Pittas, Chairman and CEO of<br />
Euroseas commented: "In this<br />
challenging market environment, we<br />
have been fortunate to reap the benefits of<br />
our risk management program which in<br />
2008 enabled us to avoid investing in<br />
vessels at the peak of the markets. As a<br />
result, the huge decline of the markets in<br />
2009 found us with a very strong balance<br />
sheet which enabled us to withstand the low freight rate environment and use the<br />
depressed markets as an opportunity to renew our fleet at a fraction of the cost<br />
compared to 2008. Looking forward, we will continue to closely monitor the<br />
markets for attractive opportunities to acquire vessels in any sector to further<br />
renew and expand our fleet.<br />
Aiming to optimize our ability to execute accretive transactions, we are pleased<br />
to have commenced a joint venture with Eton Park and Rhone <strong>Capital</strong>, to form<br />
Euromar LLC, as announced in March 2010, with a total equity infusion of $175<br />
million to invest across the shipping markets. Euroseas will contribute $25<br />
million and each of the other two parties $75 million. We believe that this<br />
arrangement is beneficial to our shareholders as it will give us access to a greater<br />
number and larger size of opportunities, allow our investments to be spread over<br />
a more diversified portfolio of vessels, and enable us to achieve overhead and<br />
operating costs savings. In addition, we will have the opportunity to earn<br />
incremental returns if our joint investments perform well. We are very proud to<br />
work with such well-reputed and successful partners and believe their decision<br />
to work with us is a vote of confidence for the management and strategy of our<br />
Company.<br />
Euroseas is in a strong financial condition, with about $50 million cash on our<br />
balance sheet at the end of tQ1 2010 and low debt repayments in the next few<br />
years. Our total debt is less than 40% of the market value of our fleet. In addition,<br />
we maintain excellent relationships with our banks.<br />
One of our competitive advantages is that we continue to maintain one of the<br />
lowest operating cost structures amongst the public shipping companies, without<br />
compromising on our operational excellence which is expressed by an<br />
operational fleet utilization rate in excess of 98.5% over the last five years.<br />
In regards to our fleet charter coverage, we had covered 100% of our drybulk<br />
fleet for 2010 (either via time charter contracts or Freight Forward Agreement<br />
("FFA") contracts) and recently increased our drybulk fleet coverage to 60% for<br />
2011 and to about 23% for 2012. For our containerships, currently 43% of our<br />
container available days for 2010 and 17% of our container available days for<br />
2011 are covered with time charters. As the container charter market seems to<br />
be improving, it seems probable that existing charterer options for 2010 will be<br />
exercised, bringing our 2010 coverage to 70%.<br />
Since Euroseas accessed the capital markets in August 2005, we have paid 19<br />
consecutive quarterly dividends. Despite the difficult markets, our Board<br />
confirmed its intention to continue paying dividends to our shareholders<br />
throughout the market cycles in parallel with our fleet expansion and renewal<br />
program."
C O M P A N Y P R O F I L E S<br />
Excel Maritime Carriers, Ltd.<br />
www.excelmaritime.com<br />
Excel Maritime Carriers is an owner and operator of dry bulk carriers and a<br />
provider of worldwide seaborne transportation services for dry bulk cargoes,<br />
such as iron ore, coal and grains, as well as bauxite, fertilizers and steel<br />
products. Excel Maritime was incorporated on November 2, 1988 under the<br />
laws of the Republic of Liberia.<br />
The Company's current fleet of 49 vessels consists of 6 Capesize, 14<br />
Kamsarmax, 21 Panamax, 2 Supramax and 5 Handymax in the water vessels as<br />
well as a newbuilding Capesize vessel to be delivered on the third quarter of<br />
2010. The total fleet has a carrying capacity of over 4.0 million DWT and an<br />
average age of 9.6 years, which makes Excel one of the largest dry bulk<br />
shipping companies in the industry and the largest dry bulk fleet by dwt<br />
operated by any US listed company.<br />
The fleet is managed by Excel Maritime's wholly-owned subsidiary, Maryville<br />
Maritime Inc. Maryville was established in 1982 and has managed and operated<br />
over 100 dry cargo vessels for individual owners, partnerships and Excel<br />
Maritime Carriers throughout the years. Today it manages a diverse fleet of<br />
vessels ranging from Handymax to Capesize bulk carriers. In February 1996,<br />
Maryville was the first ship management company in Greece to receive<br />
simultaneous ISM and ISO Safety and Quality Systems Certification, for the<br />
safe operation of dry cargo vessels. Both systems were successfully<br />
implemented in the course of the years and were later upgraded to the ISO<br />
9001:2000 and ISO 14001: 1996 certifications.<br />
Excel's Class A common shares have been listed since September 15, 2005 on<br />
the New York Stock Exchange (NYSE) under the symbol EXM and prior to that<br />
date, were listed on the American Stock Exchange (AMEX) since 1998, making<br />
it the oldest U.S. listed dry bulk shipping company.<br />
Page 31<br />
CFO Message<br />
Pavlos Kanellopoulos, Chief Financial Officer of Excel Maritime Carriers,<br />
stated: "For the 1st quarter ended March 31st 2010, Excel recorded a 12.3%<br />
voyage revenue growth to $104.2 million compared to $92.8 million for the<br />
same period in 2009. Adjusted EBITDA was at $62.0 million compared to $53.3<br />
million in 2009, an increase of 16.3%. Net income, adjusted for non-cash<br />
unrealized interest-rate swap gains and amortization of favorable and<br />
unfavorable time charters for the 1st quarter of 2010 amounted to $8.9 million or<br />
$0.11 per weighted average diluted share compared to an adjusted net loss for the<br />
1st quarter of 2009 of $8.1 million or $0.18 per weighted average diluted share.<br />
During the quarter, we demonstrated our ability to deliver double digit growth in<br />
operating profitability, repay bank debt, further enhance the company's capital<br />
structure and also secure the required funding for all our capital expenditure<br />
commitments for 2010.<br />
We believe that, due to its balanced fleet deployment strategy, Excel is well<br />
positioned to benefit from the improving dry bulk market conditions. For the<br />
remaining of 2010, we will continue utilizing excess cash flows for further bank<br />
repayment, while at the same time, we will be looking forward to taking<br />
advantage of attractive growth opportunities that might be presented to us."
S H I P P I N G C O M P A N Y P R O F I L E S<br />
Globus Maritime, Ltd.<br />
www.globusmaritime.gr<br />
Globus Maritime Ltd. is a dry-bulk shipping company, providing reliable and<br />
secure marine transportation services on a worldwide basis. The Company<br />
currently owns and operates a fleet of one Panamax and three Supramax<br />
vessels, with a weighted average age of approximately 4.4 years as at May 31,<br />
2010 and a total carrying capacity of 240,152 DWT.<br />
Globus is listed on the AIM Market of the London Stock Exchange, since 2007,<br />
under the ticker GLBS. The Company is incorporated in Jersey, with executive<br />
offices in Athens, Greece. They intend to increase the size of their current fleet<br />
through further vessel acquisitions and continue to focus on offering charterers<br />
the commitment and service that they require.<br />
Page 32<br />
CEO Message<br />
George Karageorgiou, Chief Executive<br />
Officer of Globus Maritime, commented:<br />
"Globus is in a strong financial condition<br />
and has successfully managed to<br />
overcome the difficulties of the past 18<br />
months which have affected the shipping<br />
markets worldwide. Even though we<br />
went through challenging times, we<br />
managed to weather the economic recession and the liquidity crunch, and we<br />
renewed our fleet having disposed some older vessels and acquired new ones, of<br />
much younger age.<br />
In particular, since the end of 2008, in the context of our strategic fleet renewal<br />
strategy we sold five vessels, all built in the mid-1990s, to unaffiliated third<br />
parties, with total cash proceeds in excess of US$80.0 million.This enabled us to<br />
drastically reduce bank debt, enhance our liquidity and strengthen the balance<br />
sheet. This strategic move has allowed us to take advantage of accretive fleet<br />
expansion opportunities during the downturn in the sector and expand the size of<br />
our fleet with younger and modern vessels at the proper time. In April 2010 we<br />
agreed to acquire, two sistership 57,000 dwt Supramaxes, one built in late 2009<br />
and one newbuilding. We took delivery of these two vessels in late May 2010<br />
and named them "Sky Globe" and "Star Globe". This decreased the weighted<br />
average age of our fleet to 4.4 years.<br />
Our latest acquisitions are expected to significantly enhance our earnings. Today,<br />
our fleet has a balanced employment profile as one vessel is trading "spot" while<br />
the other three are on T/C ranging from 6 months to 2 years. Our time charter<br />
coverage for the remaining of 2010 stands at 61% taking into consideration the<br />
earliest expiration date (or 70% at the latest). We believe that companies with<br />
modern tonnage such us ours will continue to benefit from the improving market<br />
dynamics.<br />
Our main objective since Globus became public in 2007 is to manage the fleet in<br />
a manner that allows us to maintain profitability across the shipping cycle and<br />
thereby maximize returns for our shareholders. However, given the prevailing<br />
market conditions, for the financial year 2009 we didn't pay a dividend in order<br />
to preserve the cash to reinforce our Company's liquidity and enhance our ability<br />
to proceed, as we did, with our fleet expansion plans.<br />
In an effort to deal with the balance between supply and demand, we have taken<br />
proactive initiatives and measures to optimize our fleet composition so that<br />
Globus is able to weather the storm and come out of this turmoil even stronger.<br />
Our careful and strategic decisions regarding our fleet expansion has enhanced<br />
our ability to generate revenues and profits for the longer term based on a<br />
younger and modern fleet. We currently have more than $34 million in cash<br />
while our bank debt stands at a very reasonable $75.5 million and our fleet is<br />
worth more than $130 million.<br />
We are confident that Globus has a solid performance amongst the shipping<br />
players in the market and we believe that the market will present us with many<br />
attractive opportunities, given our strong balance sheet, and we will gradually<br />
seek to take advantage of these and continue to grow the earnings capacity of<br />
Globus, and thus create further value for our shareholders."
S H I P P I N G C O M P A N Y P R O F I L E S<br />
Goldenport Holdings, Inc.<br />
www.goldenportholdings.com or www.goldenport.biz<br />
Goldenport Holdings Inc. is an international shipping company that owns<br />
and operates a fleet of 25 container and dry bulk vessels that transport<br />
cargo worldwide. Goldenport is listed on the Main Market of the London<br />
Stock Exchange, since 5 April 2006, under the ticker GPRT.<br />
The Company's fleet currently consists of 25 vessels, 11 containers and 14<br />
dry-bulk carriers, of which 7 vessels (1 container and 6 bulk-carriers) are<br />
new building orders with deliveries expected between 2010 and 2011. As<br />
of 10 May 2010, 88% of the combined fleet available days for 2010 and<br />
63% for 2011 are fixed under time charter employment, excluding the new<br />
buildings (of which the majority is already chartered).<br />
Goldenport is a customer oriented global provider of shipping services that<br />
brings added value services to its charterers and provides innovative<br />
solutions for cargo movement requirements. It operates a well diversified<br />
fleet and has been active in acquiring additional tonnage and continuously<br />
renewing its fleet with the acquisition of younger tonnage.<br />
Page 32<br />
CEO Message<br />
Captain Paris Dragnis, Founder and<br />
CEO of Goldenport, commented:<br />
“Since our IPO in April 2006, we have<br />
more than doubled the size and<br />
extended the economic life of our fleet<br />
which supports a long term quality<br />
earnings stream. In April 2006, our<br />
fleet consisted of 17 ships, 8 container<br />
and 9 dry bulk vessels. Today, it has<br />
grown to 25 vessels, 11 containers and 14 dry bulk carriers with a much<br />
younger age profile and a significant increase in capacity.<br />
“Our strategy to maintain presence in both the container and dry bulk<br />
markets enables us to take advantage of the opportunities in each segment as<br />
they develop, and translates into diversity and stability for our company. We<br />
seek to employ our vessels under medium to long term charters generating<br />
stable and visible cash flows shielding us from market volatility. As of<br />
today, for the container fleet, we have secured 99% of the available days for<br />
2010 and 89% for 2011 under period employment, and 72% and 29% for our<br />
dry bulk fleet respectively.<br />
Our new-building progresses on track. These vessels were contracted at<br />
prices in line with current market conditions, have secured finance and their<br />
deliveries in 2010 and 2011 will expand our revenue and profit generation<br />
capabilities.<br />
Our business strategy has been that of prudent growth, and while we remain<br />
focused on safeguarding the value we created for our shareholders, we are<br />
also alert to take advantage of opportunities. In 2010, we exchanged at no<br />
additional cost a container new building contract for a 93,000 dwt new<br />
building post-panamax contract with delivery in 2011, disposed of a 962<br />
TEU 1978-built container vessel realizing a $2 million book profit, and took<br />
advantage of the attractive asset values acquiring a 1991 built 2,986 TEU<br />
containership and a 1994 built 48,170 dwt Handymax dry bulk carrier,<br />
which both commenced agreed employment upon delivery.<br />
Goldenport is in a strong financial condition given that as of 31 March 2010<br />
our net debt was only US$ 126.6 million and our net debt to book<br />
capitalization was 34.2%, a moderate figure for our industry.<br />
“Our strategy has enabled us to continue to reward our shareholders with a<br />
regular dividend, which we maintained even through the more difficult year<br />
of 2009. Management maintains a significant shareholding in Goldenport<br />
thereby aligning our interest with all other shareholders.<br />
“We have taken advantage of the market opportunities and are confident<br />
about the future growth prospects of the Company, based on our strong<br />
forward time charter coverage, our new-building program that progresses<br />
on track and our strong balance sheet. We are optimistic about the long term<br />
demand outlook of both the container and dry bulk markets. We are in a<br />
strategic position with adequate bank financing to enable us to seek<br />
additional opportunities as these may occur.”
S H I P P I N G C O M P A N Y P R O F I L E S<br />
Hellenic Carriers, Ltd.<br />
www.hellenic-carriers.com<br />
Hellenic Carriers Limited (LSE: HCL.L), incorporated in Jersey, owns and<br />
operates through its subsidiaries a fleet of dry bulk vessels that transport iron<br />
ore, coal, grain, steel products, alumina and other dry bulk cargoes worldwide.<br />
The fleet currently consists of six vessels, comprising four Panamax vessels,<br />
one Supramax and one Handymax with an aggregate carrying capacity of<br />
372,742 dwt and an average age of 15 years. Hellenic Carriers is listed on the<br />
AIM of the London Stock Exchange, since November 2007, under the ticker<br />
HCL.<br />
Over the years, the Company’s senior management has demonstrated an<br />
excellent track record in vessel management and operation. They are third<br />
generation ship owners and operators with a family tradition in shipping going<br />
back to the early 1950's. They combine this tradition with the dynamic and<br />
forward-looking approach of a younger generation.<br />
Page 34<br />
CEO Message<br />
Fotini Karamanlis, Chief Executive Officer<br />
of Hellenic Carriers, commented: "Since our<br />
IPO, we have expanded our fleet from four<br />
to six vessels and have continued with the<br />
consistent implementation of our strategy<br />
seeking to strengthen our balance sheet,<br />
enhance cash flow visibility and reinforce<br />
liquidity.<br />
We successfully restructured time charters agreed prior to the market downturn<br />
in Q4 2008, preserved liquidity, reduced our breakeven levels and built up solid<br />
cash reserves.<br />
As a result, even in a challenging market environment, our Company achieved<br />
healthy profits for the financial years 2008 and 2009, whilst maintaining its<br />
dividend payments.<br />
Our intention is to continue growing by expanding and modernising the fleet<br />
through investing in high quality new building or second hand dry bulk carriers,<br />
preferably in the Panamax / Supramax sector, as we believe that these vessel<br />
types carry a wider variety of cargoes and can trade over a more extensive range<br />
of routes. We believe that market conditions are favourable to implement this<br />
strategy. We therefore look forward to continue expanding the business<br />
prudently by seeking out acquisition opportunities and in parallel, forging closer<br />
ties with existing Charterers as well as developing relationships with new<br />
counterparties for the continued profitable employment of the Company's fleet.<br />
Despite the medium term risks and uncertainties, we are optimistic regarding the<br />
longer term outlook of the dry bulk industry. Demand for core dry bulk materials<br />
continues to be strong in the Far East, especially China, and lately India. At the<br />
same time, new building deliveries continue to lag significantly behind the<br />
nominal schedule, and factors such as port congestion have a positive effect on<br />
the market.<br />
With our efficiently run fleet, visible and stable cash flows, healthy balance sheet<br />
and strong liquidity, we are confident that Hellenic is well positioned to face<br />
market challenges and maximize the long term value for our shareholders."
TBS Delivers 5 Star Soluti<br />
TBS is a valuable transportation partner to ensure that your products and materials<br />
arrive at their destination efficiently and on time.<br />
TBS operates liner, parcel and bulk services, with a fleet of 49 multipurpose tweendecker<br />
and bulk carriers that includes specialized heavy-lift vessels and newbuild tonnage.<br />
TBS offices and representatives are on five continents representing over 35 nationalities.<br />
Learn more about TBS’s worldwide “Source to Site” transportation and logistics.<br />
info@tbsship.com � www.tbsship.com � USA Tel + 1.914.961.1000 � NASDAQ “TBSI”
S H I P P I N G C O M P A N Y P R O F I L E S<br />
Navios Holdings, one of the leading global brands in seaborne shipping,<br />
specializes in the worldwide carriage, trading, storage and related logistics of<br />
international bulk cargoes. For over 50 years, raw materials producers,<br />
agricultural traders and exporters, industrial end users, ship owners, charterers,<br />
ship and derivative brokers, agents, and financial business partners have relied<br />
on Navios' expertise and innovation.<br />
Navios Holdings core controlled fleet of owned and chartered-in vessels<br />
comprises 59 dry bulk vessels of 6.4 million dwt with an average age of 4.9<br />
years. 96.0% of the fleet days in 2010 and 69.7% in 2011 are under time<br />
charters, insured by a AA+ European Union Government Agency.<br />
Navios Holdings has a 31.3% stake, including GP interest, in Navios Maritime<br />
Partners, L.P. a publicly traded MLP (NYSE: NMM) with a fleet of 14 dry bulk<br />
carriers. Also, a 65.5% stake in Navios South American Logistics formed in<br />
early 2008 to focus on South American markets leveraging the existing grain<br />
storage and transshipment facility in Uruguay. Navios Holdings also has a<br />
57.3% ownership stake in Navios Maritime Acquisition Corp. (NYSE: NNA),<br />
a company focused on the product and chemical tanker sector.<br />
Navios Maritime Holdings, Inc.<br />
www.navios.com<br />
CEO Message<br />
Ms Angeliki Frangou, Chairman and CEO<br />
of Navios Holdings stated “Since taking<br />
control of Navios Holdings in August of<br />
2005, we have grown the fleet by more than<br />
250%. We did this while also launching<br />
Navios Partners on the New York Stock<br />
Exchange toward the end of 2007 and<br />
Navios Acquisition in May of 2010. In total,<br />
the Navios group controls 72 dry bulk vessels, of 7.5 million dwt. Moreover, the<br />
Navios group has a combined enterprise value of $3.0 billion as compared to<br />
Navios Holdings' enterprise value in August 2005 of $0.6 billion, a 414%<br />
growth.”
S H I P P I N G C O M P A N Y P R O F I L E S<br />
Navios Maritime Partners, a publicly traded MLP, an international owner and<br />
operator of dry cargo vessels, was formed by Navios Maritime Holdings Inc.<br />
(NYSE: NM), a vertically integrated seaborne shipping company with 55 years<br />
of operating history in the dry bulk shipping industry.<br />
NMM’s young, modern and high quality fleet consists of 14 vessels, including<br />
ten Panamax, three Capesize and one Ultra-Handymax with an average age of<br />
about 6.3 years, significantly younger than the industry average of about 15.3<br />
years.<br />
Its vessels are chartered-out under medium to long-term time charters with an<br />
average remaining term of approximately 4.0 years to a diversified customer<br />
base with strong creditworthy counterparties. NMM’s charter-out contracts are<br />
insured by a AA+ rated European Union Governmental Agency. An agreement<br />
with NM, fixes vessel operating costs for NMM’s fleet until November 2011.<br />
The Company’s common units are listed on the New York Stock Exchange<br />
under the symbol “NMM.”<br />
Navios Maritime Partners L.P.<br />
www.navios-mlp.com<br />
Page 37<br />
CEO Message<br />
Ms. Angeliki Frangou, Chairman and Chief<br />
Executive Officer of Navios Maritime<br />
Partners, commented: “In the 18 months<br />
since we went public, we increased<br />
distributions by 18.6%, and grew our fleet<br />
by over 83.8%, from 626,100 dwt to over<br />
1.1 million dwt. We did this all while also<br />
maintaining a strong balance sheet.<br />
Our cash distribution per unit was $0.415 for Q1 2010 or $1.66 on an annualized<br />
basis, reflecting a yield of 10.1% based on the unit closing price of $16.45 on<br />
May 11, 2010.<br />
We are optimistic about the long term fundamentals of the dry bulk sector and<br />
believe NMM is well positioned to take advantage of growth opportunities in<br />
2010 and provide its unit holders with sustainable and attractive cash<br />
distributions.”
S H I P P I N G C O M P A N Y P R O F I L E S<br />
OceanFreight, Inc.<br />
www.oceanfreightinc.com<br />
OceanFreight Inc., is an owner and operator of both drybulk and tanker vessels.<br />
It owns a fleet of 11 vessels, comprising of 8 drybulk vessels (3 Capesize, 5<br />
Panamaxes) and 3 crude carrier tankers (1 Suezmax, 2 Aframaxes) with a<br />
combined deadweight tonnage of approximately 1.2 million tons and has on<br />
order three newbuilding Very Large Ore Carriers with deliveries in 2012 and<br />
2013.<br />
OceanFreight's strategy is to operate across all shipping markets, thereby<br />
minimizing dependency on any single market while taking advantage of<br />
opportunities that may occur in any market segment.<br />
The Company seeks to employ its vessels under medium to long term charters<br />
to a number of well established and reputable charterers in order to reduce<br />
counterparty risk.<br />
OceanFreight Inc. was incorporated on September 11, 2006 under the laws of<br />
the Marshall Islands. The Company's common shares are listed on the Nasdaq<br />
Global Market under the symbol "OCNF".<br />
CEO Message<br />
Anthony Kandylidis, the Company's President and Chief Executive Officer,<br />
commented: "Despite the challenging markets, we have positioned<br />
OceanFreight for continued positive developments and long term growth.<br />
Since 2009, we took several steps to restore the Company's balance sheet and<br />
operations.<br />
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Page 38<br />
We raised new equity to strengthen our balance sheet.<br />
We disposed of aged assets improving our operational efficiency.<br />
We deployed the equity raised and the available credit lines from<br />
vessel sales to invest in modern assets with accretive earnings.<br />
In 2009, we sold four aging drybulk carriers with an average age of<br />
14.5 years and replaced them with four modern Capesize vessels with<br />
an average age of 4 years while more than doubling the carrying<br />
capacity of our fleet.<br />
In 2010, we continued our fleet renewal and growth objectives,<br />
disposing of two older tankers and entering into an agreement to build<br />
three Very Large Ore Carriers, at Shanghai Waigaichao Shipyard, with<br />
a capacity of 206,000 dead weight tons each. Two of the vessels are<br />
scheduled to be delivered in the second and fourth quarters of 2012<br />
and the third vessel in the first quarter of 2013.<br />
These high specification bulk carriers were ordered at the behest of our<br />
customers and are specifically designed to serve the long-haul Brazil to China<br />
iron ore trade. They are pivotal for the long-term development of OceanFreight.<br />
Utilizing our close relationships with charterers, we have secured employment<br />
for the three vessels at favorable market rates, well in advance of their<br />
contractual delivery dates thereby locking in visible cash flows. We are also<br />
pleased to have been able to secure profit sharing arrangements for two of the<br />
vessels which can increase our revenues as we take advantage of market upsides.<br />
We remain committed to our strategy of fixed rate charters with staggered<br />
renewals and we have continued to build our relationships with existing and new<br />
customers. Our track record of sourcing modern high quality tonnage with fixed<br />
employment enhances the visibility and stability of our cash flows. As of May<br />
2010, we have secured gross revenues of $115 million until the end of 2010 with<br />
92% fleet charter coverage for the remainder of 2010 and 72% for 2011.<br />
Management, which has a significant shareholding in the Company, is<br />
committed to OceanFreight's growth and prosperity and in this context we<br />
announced on May 26, 2010 that Basset Holdings Inc., a company controlled by<br />
me, will provide an equity infusion of $20 million to the Company in exchange<br />
for 50,000,000 new common shares. The new equity, which reinforces our<br />
liquidity and capital structure, will be deployed to partly finance the purchase of<br />
the M/V Montecristo and for further acquisitions. OceanFreight is committed to<br />
its fleet renewal program with the clear target of improving long-term<br />
profitability.<br />
We believe we remain uniquely positioned to seek additional accretive growth<br />
opportunities talking advantage of the prevailing attractive asset values, thereby<br />
enhancing shareholder value over the long term."
S H I P P I N G C O M P A N Y P R O F I L E S<br />
Omega Navigation Enterprises, Inc.<br />
www.omeganavigation.com<br />
Omega Navigation Enterprises, Inc. is an international provider of global<br />
marine transportation services through the ownership and operation of double<br />
hull product tankers. The current fleet includes eleven high specification double<br />
hull product tankers (three through 50% joint ventures) with a carrying capacity<br />
of 633,358 dwt, eight of which are under time charter contracts with an average<br />
age of less than 4 years.<br />
In addition Omega Navigation, through a joint venture newbuilding program,<br />
with Glencore International, AG, is expected to acquire eight newbuilding<br />
vessels consisting of one 47.000 dwt product/ chemical tankers (MR2) and<br />
seven 75,000 dwt product/oil tankers (LR1s). Two of these product tankers are<br />
scheduled for delivery in 2010, four in 2011 and two in 2012. All vessels are<br />
being built in Huyndai Mipo Dockyard, in South Korea. With the addition of<br />
these eight vessels, Omega's fleet will expand to 19 product tankers with a total<br />
deadweight capacity of 1,252,358 dwt.<br />
The Company was incorporated in the Marshall Islands in February 2005. Its<br />
principal executive offices are located in Athens, Greece and it also maintains<br />
an office in the United States.<br />
Omega Navigation's Class A Common Shares are traded on the NASDAQ<br />
National Market under the symbol "ONAV" and are also listed on the Singapore<br />
Exchange Securities Trading Limited under the symbol "ONAV 50".<br />
CEO Message<br />
Omega President and CEO George<br />
Kassiotis commented: "Omega<br />
Navigation is focused on a business<br />
model, which has two parameters: to own<br />
a quality and young fleet, which makes<br />
our lenders very comfortable; operating<br />
the fleet with the highest possible<br />
standards and also employing the ships on<br />
long-term time charterers with high quality counterparties and vessel end users.<br />
The long-term charters offer the Company stability and certainty of revenues and<br />
together with the profit sharing arrangements that we have always opted for<br />
since inception, we take advantage of any upside of the market. For the<br />
remainder of 2010 we have already secured fixed rate time charters on five<br />
vessels, three vessels are on floating rate time charters and three on spot.<br />
Delivering on our promise of a focused fleet expansion strategy we announced<br />
in December 2009, that we formed Megacore a joint venture company with<br />
Topley Corporation, a wholly owned subsidiary of Glencore International AG.<br />
The joint venture includes nine newbuilding vessels including two 37,000 dwt<br />
product/chemical tankers (MR2s) and seven 75,000 dwt. product/oil tankers<br />
(LR1s). We have already taken delivery of the two 37,000 dwt. product/chemical<br />
carriers and the remainder will be delivered in a series to us, one in 2010, four in<br />
2011 and two in 2012. The staggered deliveries allows time for a market<br />
recovery and extends out our required cash outlays for the vessels. In addition,<br />
we also agreed to purchase of an additional newbuild product/chemical tanker<br />
(MR2) with a capacity of 47,000 dwt, through a joint venture and scheduled for<br />
delivery in the third quarter 2010. We are particularly pleased that the bank<br />
financing is already in place to fund our aggregate newbuild capital<br />
commitments.<br />
The newbuilding joint venture reinforces the already strong relationship with the<br />
Glencore group and will allow Omega to enjoy significant operating and<br />
commercial synergies with one of the largest commodities trading companies in<br />
the world. The joint venture will have access to Glencore's global trading<br />
network and system cargoes and ST <strong>Shipping</strong>'s commercial chartering<br />
experience and will enable us to deploy collectively with our partner a fleet of<br />
vessels with significant scale and geographic coverage. Coupled together with<br />
an experienced management team and board of directors with an extensive<br />
shipping industry expertise, Megacore gives both Omega and the Glencore<br />
group a very strong platform to build upon going forward."
S H I P P I N G C O M P A N Y P R O F I L E S<br />
Paragon <strong>Shipping</strong>, Inc.<br />
www.paragonship.com<br />
Paragon <strong>Shipping</strong> Inc. (NYSE:PRGN), a company incorporated in the Republic<br />
of the Marshall Islands in April 2006, is an international shipping company<br />
specializing in the transportation of drybulk cargoes globally.<br />
The Company's current fleet, including a 2009 built Panamax vessel to be<br />
delivered within June and July 2010, consists of 8 Panamax, 2 Supramax and 2<br />
Handymax drybulk carriers, a total of 12 vessels with an aggregate capacity of<br />
794,634 dwt and an average age of 7.6 years.<br />
In addition, Paragon entered into shipbuilding contracts with a Chinese<br />
shipyard for the construction of four drybulk Handysize class vessels and four<br />
Kamsarmax class vessels to be delivered to the company in the fourth quarter<br />
of 2011 thru 2012.<br />
Paragon's present chartering strategy is to employ vessels under fixed rate<br />
charters for periods ranging from one to five years<br />
Page 40<br />
CEO Message<br />
Michael Bodouroglou, Chairman and Chief<br />
Executive Officer of Paragon <strong>Shipping</strong><br />
commented, "Paragon is in a strong<br />
operational and financial condition and<br />
well positioned in the current market<br />
environment to achieve further growth. We<br />
have achieved eleven consecutive quarters<br />
of profitable results since the Company<br />
went public in August of 2007 and have regularly paid a quarterly dividend<br />
despite the challenging market conditions within the drybulk shipping industry.<br />
We attribute our results to our chartering strategy, which is to employ vessels<br />
under fixed rate charters for periods ranging from one to five years and our close<br />
attention to cost control. Our current fleet has significant protection against<br />
charter rate volatility with a remaining term for the existing charters of of 2.4<br />
years. In this context, we have 100% and 91% of our 2010 and 2011 revenue<br />
days fixed under time charters at levels that will generate free cash flow over and<br />
above all of our obligations.<br />
Our fixed revenues also allow us to comfortably continue paying a quarterly<br />
dividend which we have consistently done since our IPO in August 2007. For the<br />
first quarter 2010, our Board of Directors elected to pay a dividend of $0.05<br />
cents per common share.<br />
Pursuant to our growth strategy, 2010 has already been a very active year for<br />
Paragon. As a further diversification of our fleet within the drybulk sectors, we<br />
purchased a 2009-built Panamax drybulk carrier and newbuilding contracts for<br />
the construction of four drybulk Handysize class vessels and four Kamsarmax<br />
class vessels. The newbuildings have been contracted at extremely competitive<br />
prices when compared to the 10-year average and with advantageous terms.<br />
With the delivery of the new buildings, we will expand our operational<br />
capabilities in the drybulk segments from three to five thereby offering our<br />
charterers enhanced flexibility.<br />
Even after our latest acquisitions, we continue to maintain a solid financial<br />
position and about $ 140 million of purchasing power to further expand our<br />
fleet. In fact as a result of our actual charter rates and the use of FFA rates for<br />
open days, we expect to produce some $30 million of positive free cash flow<br />
through to the end of 2011. During this period we shall pay down a significant<br />
portion of our debt with cash flow from operations and still generate excess cash<br />
flow.<br />
In summary, we shall continue to explore the market for other higher quality<br />
vessels that we expect will further enhance cash flow and provide long-term<br />
shareholder value. As in the past, we continue to remain cautious in any<br />
investing decision and we will only invest when we believe the acquisition will<br />
create long term stockholder value."
S H I P P I N G C O M P A N Y P R O F I L E S<br />
Safe Bulkers, Inc.<br />
www.safebulkers.com<br />
Safe Bulkers, Inc. is an international provider of marine drybulk transportation<br />
services, transporting bulk cargoes, particularly coal, grain and iron ore, along<br />
worldwide shipping routes for some of the world's largest users of such<br />
services.<br />
The Company's currently owns 15 drybulk vessels, all built post 2003, with an<br />
aggregate carrying capacity of 1,346,900 deadweight tons. The average age of<br />
the fleet is 3.4 years as of April 30, 2010. Its fleet currently consists of<br />
Panamax, Kamsarmax, Post-Panamax and Capesize class vessels. Six<br />
additional drybulk newbuild vessels have been contracted to be delivered at<br />
various times through 2012. Upon delivery of the last of contracted newbuilds,<br />
the Company's fleet will be comprised of 21 vessels, having an aggregate<br />
carrying capacity of approximately 2 million tons. The Company's common<br />
stock is listed on the NYSE where it trades under the symbol "SB".<br />
CEO Message<br />
Polys Hajioannou, Chairman and Chief<br />
Executive Officer of Safe Bulkers, Inc.,<br />
commented: "On the occasion of<br />
Posidonia exhibition, a major worldwide<br />
shipping event, which demonstrates the<br />
continuous strength of the Greek shipping<br />
community, I would like to welcome here<br />
in Athens, industry key participants,<br />
yards, charterers, financial institutions<br />
and all companies who are working in shipping, as well as investment bankers,<br />
research analysts and our shareholders who have been supportive of our<br />
management team.<br />
Safe Bulkers has always been proactive and focused on operating excellence and<br />
further development for the benefit of our shareholders.<br />
In the past two years, since we went public, we have seen our fleet grow from 11<br />
to 15 vessels while further expansion to 21 vessels is contracted by 2012. We<br />
believe we have a coherent and adaptive asset management policy, acquiring or<br />
selling vessels the right time in the cycle, a balanced chartering policy which<br />
provides visibility of future cash flows, a stable dividend policy which has<br />
rewarded our shareholders since our initial public offering 2008, by paying out a<br />
portion of our free cash flows and by retaining another portion for reinvesting<br />
and grow the business.<br />
Our 2009 results were quite impressive with EPS of $3.03, while we paid out<br />
during 2009, as dividend to our shareholders $0.60 per share. We entered into<br />
2010 with a strong balance sheet which was further strengthened due to our first<br />
additional offering in March 2010, during which we raised approximately $75 in<br />
net proceeds reinforcing our liquidity and capital structure.<br />
We intend to continue to operate a young and modern fleet consisting mainly of<br />
sistership vessels, to maintain a strong charter coverage with charterers we trust<br />
resulting to operating surplus to meet our capital expenditure requirements,<br />
operating expenses, financial costs and dividend policy, to maintain our<br />
excellent relationship with our financiers and to further monitor the market for<br />
meaningful acquisition opportunities.<br />
For detailed information please visit our website www.safebulkers.com.<br />
Thanking you all I would like to reiterate that our management is focused on and<br />
fully committed to continue to grow our business profitably in the future, while<br />
expanding our reputation as a reliable and cost-efficient international provider of<br />
marine drybulk transportation services and to wish you a successful and<br />
productive stay in Greece".
S H I P P I N G C O M P A N Y P R O F I L E S<br />
Seanergy Maritime Holdings Corp.<br />
www.seanergymaritime.com<br />
Seanergy Maritime Holdings Corp.(NASDAQ:SHIP), is a Marshall Islands<br />
corporation engaged in the transportation of dry bulk cargoes worldwide<br />
through the ownership and operation of dry bulk carriers.<br />
The Company's current controlled fleet is comprised of 11 drybulk carriers<br />
including four Capesize, three Panamax, two Supramax, one Handymax and<br />
one Handysize vessels with a total carrying capacity of 1,043,296 dwt and an<br />
average age of 14.4 years. On May 3, 2010, Seanergy announced a letter of<br />
intent for the acquisition of a controlling interest in Maritime <strong>Capital</strong> <strong>Shipping</strong><br />
Limited, which owns a fleet of 9 Handysize bulk carriers, with a capacity of<br />
249,248 dwt and an average age of 10.6 years, which is expected to close by<br />
June 1st, 2010.<br />
The Company's common stock and warrants trade on the NASDAQ Global<br />
Market under the symbols SHIP and SHIP.W, respectively.<br />
Page 42<br />
CEO Message<br />
Dale Ploughman, the Company's Chief<br />
Executive Officer, stated: "Within the<br />
first year of our operations in 2009, we<br />
doubled our controlled fleet from 6 to 11<br />
vessels with the acquisition of Bulk<br />
Energy Transport or BET. Before our two<br />
year anniversary we believe that we have<br />
creatively added our footprint in the<br />
industry with the agreement to acquire a<br />
majority interest in Maritime <strong>Capital</strong> <strong>Shipping</strong>, which will expand our controlled<br />
fleet to 20 vessels.<br />
During our short time in the public markets; we reinforced our capital structure<br />
with the conversion into common stock of the $28.5 million promissory note,<br />
issued in our business combination and in February 2010 we raised a net amount<br />
of about $28 million for acquisition of vessels expanding our shareholder base<br />
and improving the liquidity of our shares.<br />
In line with our goal to expand our fleet with the proper acquisitions, in May<br />
2010 we entered into a Letter of Intent to acquire a 51% interest in Maritime<br />
<strong>Capital</strong> <strong>Shipping</strong> Limited ("MCS") for a purchase price of $33 million. MCS has<br />
a fleet of nine Handysize dry bulk carriers with a cargo-carrying capacity of<br />
249,248 dwt and an average age of approximately 10.6 years. Maritime <strong>Capital</strong><br />
<strong>Shipping</strong>, a company controlled by members of the Restis family, will retain a<br />
49% ownership interest in MCS. As a result of the acquisition, the size of<br />
Seanergy's controlled fleet will increase from 11 to 20 dry bulk vessels with a<br />
cargo-carrying capacity of approximately 1,292,544 dwt and an average fleet<br />
age of 12.7 years. Just like the BET acquisition, we didn't sacrifice our balance<br />
sheet in the deal with MCS but managed to expand the range of vessels offered<br />
to our clients and increase our revenue and profit generation capability.<br />
Our strong balance sheet and cash reserves, combined with secure cash flows<br />
from our charterers, allow us to comfortably service scheduled debt commitment<br />
and capital expenditures, and give us the ability to seek opportunities for further<br />
fleet expansion. Based on our current fleet, we have secured under time charter<br />
coverage 95% of our fleet days for 2010 and 51% for 2011. We will seek to take<br />
advantage of the improving freight market by expanding our charter coverage in<br />
2011.<br />
The commercial and technical management of our fleet is outsourced to Safbulk<br />
and EST; both with excellent track records. Safbulk has a strong reputation in the<br />
international shipping industry for efficiency and reliability. The Seanergy team<br />
actively monitors and controls vessel operating expenses incurred by the outside<br />
managers.<br />
Although we are a young company, the fact that we have an excellent<br />
relationship with the Restis family and its affiliates with a long and proven track<br />
record of more than 40 years in shipping, provides confidence among our lenders<br />
and enables us to benefit from economies of scale and efficiencies regarding the<br />
technical and commercial management of our fleet. Our objective is to build<br />
Seanergy further into a leading player in the global shipping industry<br />
capitalizing on its know-how, resources and network. Our prudent decisions<br />
going forward will aim to safeguard the long term interests of our shareholders.”
S H I P P I N G C O M P A N Y P R O F I L E S<br />
Star Bulk Carriers Corp.<br />
www.starbulk.com<br />
Star Bulk (NASDAQ: SBLK) is a global shipping company providing<br />
worldwide seaborne transportation solutions in the dry bulk sector. Star Bulk's<br />
vessels transport major bulks, which include iron ore, coal and grain and minor<br />
bulks such as bauxite, fertilizers and steel products. Star Bulk was incorporated<br />
in the Marshall Islands on December 13, 2006.<br />
Currently, Star Bulk has an operating fleet of eleven dry bulk carriers with<br />
definitive agreements to buy one and sell one Capesize vessel as well as<br />
contracts to build two Capesize vessels with delivery in September, November<br />
2011. The total fleet consists of six Capesize, and eight Supramax dry bulk<br />
vessels with a combined cargo carrying capacity of 1,462,377 deadweight tons.<br />
The average age of our current operating fleet is 10.3 years.<br />
CEO Message<br />
Akis Tsirigakis, President and CEO of<br />
Star Bulk, commented "We believe Star<br />
Bulk is one of the better positioned dry<br />
bulk companies with upside potential to<br />
its share value. Our key strengths include<br />
a healthy balance sheet, ample liquidity, a<br />
young and modern fleet, experienced<br />
management, efficient in-house technical and commercial fleet management,<br />
strong charter coverage and a record of quarterly dividend distribution. All these<br />
factors we believe translate into our company being well positioned for<br />
continued growth creating value for its shareholders.<br />
We enjoy a very comfortable financial position with a net debt of approximately<br />
24% of total assets, a moderate figure for our industry and a cash position of $45<br />
million. Our focus to reduce operating costs continues to show great success.<br />
During 2009, we took over the technical management of the vessels in-house<br />
enabling us to eliminate vessel management fees, optimize our costs and<br />
enhance our ability to implement our quality objectives in fleet operations.<br />
Backing this achievement with statistics, in the first quarter 2010 our overall<br />
expenses decreased by 13% over the same period 2009 while our vessel<br />
operating expenses were lower by 16%<br />
Delivering on our objective to implement fleet growth and renewal plans, we<br />
entered into contracts during the first quarter 2010 to acquire three Capesize<br />
vessels, two new building and one second-hand. This represents year to date<br />
57% increase of our current deadweight capacity or 27% in terms of number of<br />
vessels. This organic fleet development was achieved without the need to dilute<br />
our investors, through own cash and senior debt, a result of our sound financial<br />
condition. Our approach in the future will continue to be one of conservative<br />
growth by seeking value-enhancing assets, while maintaining the strength of our<br />
balance sheet.<br />
Our exposure to market volatility remains limited. As of May 2010 we have<br />
secured $280 million of contracted revenues, with long term time charters to a<br />
diversified and high quality customer base provide future earnings visibility and<br />
enhance our ability to declare a quarterly dividend. We have secured 98% of our<br />
2010 operating days and 64% of 2011 under time charters. For the first quarter<br />
2010 we declared a dividend of $0.05 cents per share. It's important to add that<br />
our dividend distributions do not impede our growth objectives.<br />
Finally, we are pleased to announce that we have gained certification for ISO<br />
14000 Environmental Management. This certification ensures that all shore side<br />
as well as seaboard operations and processes conform to strict standards in that<br />
protection the environment and as recommended verifiable and constantly<br />
improving.<br />
We actively participate along with a handful of major shipping companies in the<br />
European Union's Energy Efficiency Research Program entitled 'Targeted<br />
Advance Research for Global Efficiency of Transportation <strong>Shipping</strong>' or you<br />
might have heard it as TARGETS."
S H I P P I N G C O M P A N Y P R O F I L E S<br />
TOP Ships Inc.<br />
www.topships.org<br />
TOP Ships Inc., formerly TOP Tankers Inc, is engaged in the worldwide<br />
transportation of liquid and petroleum cargoes as well as dry bulk cargoes<br />
through the ownership of a fleet of 8 double-hull tankers and 5 dry bulk carriers.<br />
Specifically, the Company's fleet consists of 8 Handymax double hull tankers<br />
(for chemical/ petroleum products or crude oil) with average age 3.1 years with<br />
a total carrying capacity of about 0.4 million dwt, of which 76%, in terms of<br />
dwt, are sister ships and 5 dry cargo vessels with a total carrying capacity of<br />
about 0.3 million dwt and an average age 9.0 years, of which 47%, in terms of<br />
dwt, are sister ships.<br />
Page 44<br />
CEO Message<br />
Evangelos J. Pistiolis, President and<br />
Chief Executive Officer of TOP Ships<br />
Inc., commented:<br />
"We believe we have established a<br />
reputation in the international ocean<br />
transport industry for operating and<br />
maintaining our fleet with high<br />
standards of performance, reliability and safety. We have assembled a<br />
management team comprised of executives who have extensive experience<br />
operating large and diversified fleets of tankers and drybulk vessels, and who<br />
have strong ties to a number of national, regional and international oil<br />
companies, charterers and traders.<br />
We deployed our strategy of fleet renewal in 2006 with the order of 6<br />
newbuilding product tankers that were delivered to us in 2009. In addition,<br />
pursuing our balanced chartering strategy, we entered into medium to long term<br />
charters at pre-crisis rates for all our dry bulk carriers and newbuildings. Our<br />
existing charters are at rates significantly higher than the current prevailing rates.<br />
We also have a diversified charterers' base with 9 charterers for our 13 vessels.<br />
Nearly 100% of our total remaining operating days of 2010 are under fixed<br />
employment. Looking further into the future, approximately 83% of total<br />
operating days of 2011 and 60% of total operating days of 2012 are under fixed<br />
employment. The total gross contracted revenue from all of our fixed rate<br />
contracts amounts to $345 million until the end of 2019.<br />
We believe that we offer a solid growth platform as we do not have any capital<br />
commitments relating to newbuildings and we operate a very young fleet with a<br />
very valuable and diverse charter portfolio."
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CL Mixed Fleet Index<br />
CL Maritime MLP Index<br />
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TEN LTD<br />
TSAKOS ENERGY<br />
NAVIGATION LTD<br />
S H I P P I N G C O M P A N Y P R O F I L E S<br />
Tsakos Energy Navigation Ltd. (TEN) (NYSE:TNP) is one of the largest<br />
independent transporters of energy in the world and controls a versatile fleet of<br />
modern crude and product tankers with strong ice-class capabilities. TEN is the<br />
longest listed shipping company and has been profitable every year since its<br />
inception in 1993 regardless of the state of the shipping market. Also, it has<br />
been paying a cash dividend every year since its listing in New York in March<br />
2002.<br />
With a fleet of 48 double-hull vessels of 5.1 million dwt (45 operational and 3<br />
under construction), TEN provides worldwide marine transportation services to<br />
state and international oil major refineries under long, medium, and short term<br />
charters. TEN operates one of the youngest fleets in the world with an average<br />
age of 7 years compared to world's average of 9 years.<br />
Following delivery of the 4 newbuildings in 2010 and 2011, the fleet will<br />
include 24 crude tankers ranging from VLCCs to Aframaxes and 23 product<br />
carriers ranging from Aframaxes to Handysize complemented by one LNG. 22<br />
of TEN's vessels can operate in ice-class environments.<br />
TEN's total annual dividend for 2009 was $0.60, the eight consecutive year of<br />
dividend distribution. Since its NYSE listing in 2002, TEN has distributed<br />
$8.18 per share in cash dividends. The listing price at the time was $7.50 per<br />
share accounting for the 2-1 share split in November 14th 2007.<br />
TEN follows a balanced fleet deployment strategy with emphasis on short,<br />
medium and long term time charters at fixed rates and also with profit sharing<br />
arrangements above a minimum base rate enabling the Company to share into<br />
the market upside. 70% of the available ship days in 2010 and 50% for 2011<br />
have committed employment. As of April 30, 2010, TEN had 30 vessels under<br />
period employment expected to generate revenues of $293 million over the<br />
duration of their charters and assuming only the minimum rates for the profit<br />
sharing contracts.<br />
TEN Limited is incorporated in Bermuda, managed out of Athens Greece, and<br />
listed in the New York Stock Exchange (NYSE) under the symbol TNP.<br />
Tsakos Energy Navigation Ltd<br />
www.tenn.gr<br />
Page 47<br />
CEO Message<br />
Nikolas P. Tsakos, President and Chief<br />
Executive Officer of Tsakos Energy<br />
Navigation Ltd., commented: "Our<br />
objective is to seek stable and strong<br />
earnings throughout the various cycles<br />
and we aim to achieve this by employing<br />
our vessels under a mix of short, medium<br />
and long-term time charters.<br />
Despite the market volatility and worldwide economic uncertainty, we are<br />
pleased with our performance. This is due to our modern and diversified fleet,<br />
the balanced employment and our long standing relationships with first-class<br />
counterparties worldwide. These are the cornerstones of our strategy, coupled<br />
with our commitment to use debt prudently and maintain a strong balance sheet.<br />
We have a clear and focused strategy that we have executed consistently year<br />
after year. The sustainability of our dividend distributions and our strong results<br />
validate our business strategy.<br />
Over the years, we have executed a prudent fleet renewal and expansion strategy<br />
without compromising the strength of our balance sheet. In October 1993, our<br />
fleet consisted of four vessels of 0.2 dwt and today it has expanded to 48 vessels<br />
and 5.1 million dwt. Since 1997, we have invested over $3 billion in 55<br />
newbuldings. Buying and selling ships is an integral part of our operation and we<br />
have being doing this consistently year after year taking advantage of market<br />
conditions.<br />
We will continue to monitor the markets closely and align our growth and fleet<br />
employment policies accordingly, but always with an eye to the needs of our<br />
clients. With loyal charterers, financiers and equity holders coupled with a<br />
healthy balance sheet with about $300 million in cash, we remain confident that<br />
the future of our company remains bright.<br />
We remain optimistic of market prospects for the future and we believe well<br />
managed companies with modern tonnage such us ours will continue to benefit<br />
from the improving market dynamics.”
Akis Tsirigakis<br />
President & Chief Executive Officer<br />
Safe Bulkers, Inc.<br />
Akis Tsirigakis is the founder, President and Chief Executive Officer, of the<br />
Nasdaq listed company Star Bulk Carriers Corp. (NASDAQ : SBLK) and its<br />
predecessor Star Maritime Acquisition Corp., a Special Purpose Acquisition<br />
Company or SPAC since its inception in May 2005. Star Bulk provides<br />
international seaborne transportation of dry-bulk cargoes. Mr. Tsirigakis is<br />
experienced in ship management, ship ownership, ship-building. He had<br />
formerly served on the board of directors of Dryships Inc., a Nasdaq listed<br />
company.<br />
From November 2003 until December 2007, he was the Managing Director of<br />
Oceanbulk Maritime S.A., a dry cargo shipping company that has operated<br />
and managed vessels aggregating as much as 1.6 million deadweight tons of<br />
cargo capacity and which is part of the Oceanbulk Group of affiliated<br />
companies involved in the service sectors of the shipping industry.<br />
Since November 1998, Mr. Tsirigakis founded and has been the Managing<br />
Director of Combine Marine Inc. a company that provides ship management<br />
services to third parties.<br />
From 1985 to 1998, Mr. Tsirigakis was Vice-President and Technical Director<br />
of Konkar <strong>Shipping</strong> Agencies S.A. of Athens, managing at the time 16 dry<br />
bulk carriers, tanker/combination carriers and multi-purpose vessels.<br />
From 1981 to 1985, Mr. Tsirigakis was Technical Manager of Arkon <strong>Shipping</strong><br />
Agencies Inc. of New York, an affiliate of the Archirodon Construction<br />
Group.<br />
He is a member of the Technical Committee (CASTEC) of Intercargo, the<br />
International Association of Dry Cargo Shipowners, President of the Hellenic<br />
Technical Committee of RINA Classification Society and a member of the<br />
Technical Committee of Bureau Veritas.<br />
Mr. Tsirigakis in 1979 received his Masters degree (BSc 1978). in Naval<br />
Architecture from The University of Michigan, Ann Arbor and has three years<br />
of seagoing experience.<br />
Alexandros Tsirikos<br />
Chief Financial Officer<br />
TOP Ships, Inc.<br />
Alexandros Tsirikos, a UK qualified Chartered Accountant (ACA), has been<br />
the Chief Financial Officer of Top Ships Inc since the beginning of 2009. He<br />
has been with Top Ships since 2007 and prior to his current position he served<br />
as the Company's Corporate Development Officer. Prior to joining TOP<br />
Ships, Mr Tsirikos was a manager with PricewaterhouseCoopers, or PwC,<br />
where he worked as a member of the PwC Advisory team and the PwC<br />
Assurance team thereby drawing experience both from consulting as well as<br />
auditing. As a member of the Advisory team, he lead and participated in<br />
numerous projects in the public and the private sectors, involving strategic<br />
planning and business modelling, investment analysis and appraisal,<br />
feasibility studies, costing and project management.<br />
As a member of the Assurance team, Mr. Tsirikos was part of the International<br />
Financial Reporting Standards, or IFRS, technical team of PwC Greece and<br />
lead numerous IFRS conversion projects for listed companies. He holds a<br />
Master's of Science in <strong>Shipping</strong> Trade and Finance from City University of<br />
London and a Bachelor's Degree with honours in Business Administration<br />
from Boston University in the United States. He speaks English, French and<br />
Greek.<br />
S P E A K E R B I O S<br />
Page 48<br />
Aristides J. Pittas<br />
President & Chief Executive Officer<br />
Euroseas, Ltd.<br />
Aristides J. Pittas, Euroseas Ltd., has been a member of our board of directors<br />
and our Chairman and CEO since our inception on May 5, 2005. Since 1997,<br />
Mr. Pittas has also been the President of Eurochart S.A., our affiliate.<br />
Eurochart is a shipbroking company specializing in chartering and selling and<br />
purchasing ships. Since 1997, Mr. Pittas has also been the President of<br />
Eurotrade, a ship operating company and our affiliate. Since January 1995,<br />
Mr. Pittas has been the President and Managing Director of Eurobulk Ltd.,<br />
our affiliate. He resigned as Managing Director in June 2005. Eurobulk is a<br />
ship management company that provides ocean transportation services. From<br />
September 1991 to December 1994, Mr.Pittas was the Vice President of<br />
Oceanbulk Maritime SA, a ship management company. From March 1990 to<br />
August 1991, Mr. Pittas served both as the Assistant to the General Manager<br />
and the Head of the Planning Department of Varnima International SA, a<br />
shipping company operating tanker vessels.<br />
From June 1987 until February 1990, Mr. Pittas was the head of the Central<br />
Planning department of Eleusis Shipyards S.A. From January 1987 to June<br />
1987, Mr. Pittas served as Assistant to the General Manger of Chios<br />
Navigation <strong>Shipping</strong> Company in London, a company that provides ship<br />
management services. From December 1985 to January 1987, Mr. Pittas<br />
worked in the design department of Eleusis Shipyards S.A. where he focused<br />
on shipbuilding and ship repair. Mr. Pittas has a B.Sc. in Marine Engineering<br />
from University of Newcastle Upon-Tyne and a MSc in both Ocean Systems<br />
Management and Navel Architecture and Marine Engineering from the<br />
Massachusetts Institute of Technology.<br />
Bruce McDonald<br />
Managing Director<br />
Houlihan Lokey's Transportation &<br />
Logistics Group<br />
Mr. McDonald is a Managing Director and heads Houlihan Lokey's<br />
Transportation & Logistics Group based in the firm's Washington, D.C.<br />
office. Before joining Houlihan Lokey, Mr. McDonald was a Managing<br />
Director in Wachovia Securities' Transportation Investment Banking Group.<br />
Before Wachovia Securities, he worked for Deutsche Bank and its<br />
predecessors including Alex. Brown. Over the course of his career, Mr.<br />
McDonald has sourced and executed a broad range of transactions involving<br />
bank debt, private and public bonds, private and public equity, mergers and<br />
acquisitions, and general advisory services . These transactions have been<br />
focused within the Maritime sector and other sectors within the<br />
Transportation and Logistics Industry. Earlier in his career, Mr. McDonald<br />
worked for the Prudential <strong>Capital</strong> Group, where he executed private debt and<br />
mezzanine investments.<br />
Mr. McDonald earned his M.B.A. from the University of Virginia's Darden<br />
School of Business where he was a William Michael Shermet Scholar and a<br />
recipient of the Faculty Award for Academic Excellence. He earned his B.A.<br />
in economics from Emory University. He is registered with FINRA as a<br />
General Securities Representative (Series 7 and 63) and a Limited<br />
Representative - Investment Banking (Series 79).
Dale Ploughman<br />
Chief Executive Officer<br />
Seanergy Maritime Holdings Corp.<br />
Dale Ploughman, Seanergy Maritime, has served as a member of our board of<br />
directors and our chief executive officer since May 20, 2008. He has over 43<br />
years of shipping industry experience. Since 1999, Mr. Ploughman has been<br />
the chairman of South African Marine Corporation (Pty) Ltd., a dry bulk<br />
shipping company based in South Africa and affiliate to members of the<br />
Restis family, and the chairman of the Bahamas Ship Owners Association. In<br />
addition, Mr. Ploughman has served as president, chief executive officer and<br />
a director of Golden Energy Marine Corp. since February 2005. Mr.<br />
Ploughman also serves as president and chief executive officer of numerous<br />
private shipping companies controlled by members of the Restis family. From<br />
1989 to 1999, Mr. Ploughman was the president of Great White Fleet, a fleet<br />
owned by Chiquita Brands International Inc., which was one of the largest<br />
shipping carriers to and from Central America. Mr. Ploughman has previously<br />
worked as president and chief executive officer of Lauritzen Reefers A.S., a<br />
shipping company based in Denmark, the managing director of Dammers and<br />
Vander Hiede <strong>Shipping</strong> and Trading Inc., a shipping company based in the<br />
Netherlands and as the chairman of Mackay <strong>Shipping</strong>, a shipping company<br />
based in New Zealand. He holds degrees in Business Administration and<br />
Personnel Management and Master's level Sea Certificates and was educated<br />
at the Thames Nautical Training College, HMS Worcester.<br />
Demetris Nenes<br />
President & Chief Operating Officer<br />
OceanFreight, Inc.<br />
Demetris Nenes is our President and Chief Operating Officer. Mr. Nenes<br />
began his professional career working at Sikorsky Aircraft Corporation as a<br />
Design Engineer working in various posts with the most significant being<br />
Head of the Trasmission Design Team for the Navy version of the S92. Mr.<br />
Nenes began his shipping career in 2005 joining OMI Corporation's Vetting /<br />
Safety & Quality department. During his career at OMI he moved in the<br />
commercial side of the business being involved in FFA Trading and Sales and<br />
Purchase. After the sale of OMI to TK and Torm, Mr. Nenes joined Ospraie<br />
Management LLC. Ospraie is a commodity hedge fund based in New York.<br />
At Ospraie Mr. Nenes was involved in both FFA trading and Market Research<br />
and Intelligence. Mr. Nenes holds a diploma in Naval Architecture and<br />
Marine Engineer from the National Technical University of Athens and a<br />
Master's Degree in Business Administration from the University of<br />
Connecticut.<br />
Dimitri J. Andritsoyiannis<br />
Vice-President & Chief Financial<br />
Officer<br />
Danaos Corp.<br />
Dimitri Andritsoyiannis is the Vice President, Chief Financial Officer and a<br />
member of the Board of Directors of Danaos Corporation. Mr.<br />
Andritsoyiannis has over 15 years of experience in finance and banking. Prior<br />
to joining us, Dimitri served as director of investment banking and as a<br />
member of the board of Alpha Finance, the investment banking arm of<br />
ALPHA BANK. During his years with Alpha Finance, he led a variety of<br />
financings, mergers and acquisitions, restructurings, privatizations and public<br />
offerings both in Greece and abroad. He holds a degree in Economics and<br />
Political Science from the Economic University of Athens, an MBA in<br />
finance from Columbia University, as well as a post-graduate diploma in Ship<br />
Risk Management from the Massachusetts Institute of Technology.<br />
S P E A K E R B I O S<br />
Page 49<br />
Emil Yiannopoulos<br />
Partner, Assurance Leader<br />
PricewaterhouseCoopers<br />
Emil Yiannopoulos, Chartered Accountant (ICAEW), in 1994 established<br />
and, until 30 June 2009, led the Corporate Finance and Transactions Advisory<br />
team in Greece. He is the Financial Services Industry Leader of the Greek<br />
firm, coordinating the provision of both assurance, tax and performance<br />
improvement services to the major Greek financial institutions and a member<br />
of the firm's senior management team. Recently he has assumed the Greek<br />
Territory Assurance Leadership role.<br />
Emil joined PwC in 1981 in London as an auditor, where he had a wide range<br />
of experience, including the banking and insurance sectors. In 1987, he joined<br />
the firm's Corporate Finance team in London where he worked on a variety of<br />
investigative and advisory assignments, primarily acquisitions, disposals and<br />
valuation related projects.<br />
Emil is based in Athens and has worked on a wide variety of investment<br />
transactions in Greece, and in the surrounding region, on behalf of both<br />
domestic and international clients and investors with particular focus on the<br />
shipping, banking and investment industries and on Private Equity<br />
transactions.<br />
Evangelos M. Marinakis<br />
Chairman of the Board & Chief<br />
Executive Officer<br />
Crude Carriers Corp.<br />
Mr. Marinakis has served as Chairman of the Board and Chief Executive<br />
Officer of Crude Carriers Corp. since its inception in 2010, as well as the<br />
Chairman of the Board of <strong>Capital</strong> Product Partners L.P since its inception in<br />
2007. Mr. Marinakis has also served as <strong>Capital</strong> Maritime's Chief Executive<br />
Officer and as a director since its incorporation in March 2005. From 1992 to<br />
2005, Mr. Marinakis was the Commercial Manager of <strong>Capital</strong> Ship<br />
Management and oversaw the businesses of the group of companies that<br />
currently form <strong>Capital</strong> Maritime. For the past 16 years, Mr. Marinakis has also<br />
been active in various other family businesses, all related to the shipping<br />
industry.<br />
Fotini Karamanlis<br />
Chief Executive Officer<br />
Hellenic Carriers, Ltd.<br />
Ms. Karamanlis is responsible for strategy, vessel acquisitions, chartering and<br />
financing.<br />
Ms. Karamanlis has 12 years shipping experience and has been with Mantinia<br />
<strong>Shipping</strong> Company S.A. since 1999. From 1998 to 1999 Ms. Karamanlis<br />
worked in the Sale and Purchase Department of Galbraiths Shipbrokers in<br />
London and before that she practiced as a shipping lawyer with Norton Rose<br />
in London and Greece.<br />
Ms. Karamanlis is a member of the Law Society of England and Wales and
also participates in the legal committee of the Association of Greek<br />
Ship-Owners. Ms. Karamanlis is an independent Non-executive Member of<br />
the Board of Directors of Piraeus Bank, a Company listed on the Athens Stock<br />
Exchange.<br />
Ms. Karamanlis holds a Bachelor's degree in Law from the University of<br />
Athens and a LL.M (Masters in Laws) from Cambridge University.<br />
George D. Cambanis<br />
Senior Partner<br />
Global <strong>Shipping</strong> Leader<br />
George coordinates the firm's global shipping network of 460 industry<br />
professionals. He has over 30 years of experience and assisting shipping<br />
companies with US listings, secondary offers, bond issues and Sarbanes<br />
Oxley 404 Readiness. In Greece Deloitte has over 50 dedicated shipping<br />
professionals and audits 45% of the Greek companies listed in the US.<br />
Deloitte has developed industry specific templates and flowcharts to<br />
document and implement financial reporting procedures and controls for<br />
shipping companies.<br />
As global shipping leader he presents at shipping forums, meets with shipping<br />
organizations and large shipping companies globally. He regularly meets with<br />
the boards of all his listed shipping companies and serves as advisor to private<br />
shipping companies.<br />
George Kassiotis<br />
President & Chief Executive Officer<br />
Omega Navigation Enterprises, Inc.<br />
George Kassiotis has served as the President, Chief Executive Officer and<br />
Director of Omega Navigation Enterprises since the company's inception in<br />
February 2005. Prior to joining Omega Navigation, Mr. Kassiotis was the<br />
senior executive director of Target Marine S.A., where he led the<br />
development of Target's business and oversaw its growth and expansion. In<br />
this capacity, Mr. Kassiotis was responsible for vessel sales and purchases,<br />
project development, financing and other transactions effected by other<br />
shipowning affiliates of Target, including the development of Horizon<br />
Tankers Ltd., which has contracted twelve newbuilding product tankers since<br />
2002. Mr. Kassiotis comes from a shipping family, and has been involved in<br />
various sectors of the shipping industry for 15 years. Mr. Kassiotis graduated<br />
from the Universite de Paris, Pantheon - Sorbonne, France in 1993, where he<br />
studied International Business Law, and holds a Master's Degree in Law from<br />
the University of London, England.<br />
Georgios Karageorgiou<br />
Chief Executive Officer<br />
Globus Maritime, Ltd.<br />
Mr. Karageorgiou has been the Chief Executive Officer of Globus Maritime<br />
(GLBS.L) since July 2005.<br />
Mr. Karageorgiou has 18 years shipping experience (4 years experience in a<br />
public company). He worked as a projects engineer for Kassos Maritime<br />
Enterprises from 1990-1992 and as a director and corporate secretary for<br />
Stelmar <strong>Shipping</strong> Limited from 1992-2004, a shipping company that was<br />
S P E A K E R B I O S<br />
Page50<br />
listed in the NYSE in March 2001. During his time at Stelmar <strong>Shipping</strong><br />
Limited, Mr. Karageorgiou assisted with both vessel acquisitions and<br />
financings and was involved with the company's initial public offering and<br />
subsequent sale to OSG in December 2004.<br />
He was also a director of easyGroup Ltd, easyJet Holdings Ltd,<br />
easyInternetCafe Ltd, easyCruise Ltd, Stelinvest Corp. and a number of other<br />
easyGroup subsidiaries in the years 1995 - 2005.<br />
Mr. Karageorgiou holds a BE in Mechanical Engineering and an ME in Ocean<br />
Engineering from Stevens Institute of Technology and an MSC in <strong>Shipping</strong><br />
Trade and Finance from City University Business School. (CASS)<br />
Gust Biesbroeck<br />
Managing Director of Transportation<br />
Fortis Bank Nederland<br />
Gust has a global responsibility for Fortis Bank Nederland's <strong>Shipping</strong> - and<br />
Aviation activities. His international career of almost 20 year has been<br />
entirely devoted to financing the shipping- and transportation industry. Prior<br />
to becoming the Managing Director, Gust was Transportation's risk- and<br />
portfolio manager for 7 years. Prior to joining Fortis in 2001, Gust worked for<br />
over 10 years for Nedship Bank (now DVB) in various commercial-and<br />
managerial roles based in Rotterdam, Athens and Hong Kong. Gust is a<br />
graduate from Erasmus University's Economic Faculty and completed an<br />
executive General Management Program at Cedep in Fontainebleau, France<br />
in 2006<br />
Harris Antoniou<br />
Chief Executive Officer of Energy,<br />
Commodities & Transportation<br />
Fortis Bank Nederland<br />
Harris Antoniou, CEO of Energy, Commodities & Transportation Harris<br />
Antoniou is globally responsible for Energy, Commodities & Transportation<br />
(ECT), and a member of the Merchant Banking Management Team of Fortis<br />
Bank Nederland NV. Prior to that Harris was Managing Director of Fortis'<br />
Transportation group based in Rotterdam, following different positions within<br />
Fortis in Greece, the UK and the Netherlands. Before joining Fortis, Harris<br />
worked for a short period with ABN AMRO, global clients unit in<br />
Amsterdam. He is a graduate of Piraeus University in Greece, holder of a<br />
MBA from Erasmus University in the Netherlands, and has completed the<br />
General Management Program of Harvard Business School. Harris is<br />
married, has four children and lives in Amsterdam.<br />
Ioannis E. Lazaridis<br />
Chief Executive & Chief Financial Officer<br />
<strong>Capital</strong> Product Partners L.P.<br />
Mr. Lazaridis has served as Chief Executive and Chief Financial Officer of<br />
<strong>Capital</strong> Product Partners L.P, since its inception in 2007. Mr. Lazaridis has<br />
also served as President of Crude Carriers Corp. since its inception in 2010.<br />
Mr. Lazaridis also has served as <strong>Capital</strong> Maritime's Chief Financial Officer<br />
and as a director of <strong>Capital</strong> Maritime since its incorporation in March 2005.<br />
From 2004 to March 2005, Mr. Lazaridis was employed by <strong>Capital</strong> Maritime's<br />
predecessor companies in the same capacity. From 1996 to 2004, Mr.<br />
Lazaridis served in various positions in the financial industry in the UK.
Isabella Schidrich<br />
Managing Director<br />
The Nasdaq Stock Market<br />
Isabella joined NASDAQ International as Managing Director in 2001,<br />
responsible for business development and account management of The<br />
NASDAQ Stock Market in Western Europe. Following NASDAQ's<br />
acquisition of OMX, Isabella was promoted to Vice President, responsible for<br />
the listing business of NASDAQ OMX within Europe.<br />
Prior to that, Isabella gained extensive business development experience<br />
within the telecommunications industry, heading business units at British<br />
Telecommunications Plc and at Deutsche Telekom AG, and within the<br />
Services Industry.<br />
Isabella graduated from Munich University with an Honours Degree with<br />
distinction in Business Management.<br />
John Dragnis<br />
Commercial Director<br />
Goldenport Holdings, Inc.<br />
John was appointed as the Commercial Director of the Company on<br />
Admission. Prior to that John has been the Commercial Director of<br />
Goldenport Shipmanagement Ltd. for three years and has been employed by<br />
them for a total of five years. In the last five years he has also been involved<br />
in setting up and managing a yachting management and chartering business.<br />
He holds a degree in Business Administration and a Masters degree in<br />
<strong>Shipping</strong> Trade and Finance from City Business School (City University),<br />
London.<br />
Michael Bodouroglou<br />
Chairman & Chief Executive Officer<br />
Paragon <strong>Shipping</strong>, Inc.<br />
Michael Bodouroglou, the founder and Chief Executive Officer of Paragon<br />
<strong>Shipping</strong>, has been involved in the shipping industry in various capacities for<br />
more than 25 years. He has served as Paragon <strong>Shipping</strong>'s chairman and chief<br />
executive officer since the company was founded in June 2006.<br />
Mr. Bodouroglou has owned and operated tanker and drybulk vessels since<br />
1993. He is the founder of Allseas Marine Inc. which serves as the technical<br />
and commercial managing company to the Paragon fleet. Prior to 1993, Mr.<br />
Bodouroglou was employed as a technical superintendent supervising both<br />
tanker and drybulk vessels for various shipping companies.<br />
In 1977 Mr. Bodouroglou graduated with honours from the University of<br />
Newcastle-upon-Tyne in the United Kingdom with a Bachelor of Science in<br />
Marine Engineering and in 1978 he was awarded a Masters of Science in<br />
Naval Architecture. Mr. Bodouroglou is a member of the Cayman Islands<br />
Shipowners' Advisory Council and is also a member of the Board of<br />
Academic Entrepreneurship of the Free University of Varna, Bulgaria. In<br />
2007 he was appointed as a member of the Hellas Committee of the<br />
classification society, Germanischer Lloyd, which focuses on continuously<br />
improving safety at sea.<br />
S P E A K E R B I O S<br />
Page 51<br />
Nicolas Bornozis<br />
President & Chief Executive Officer<br />
<strong>Capital</strong> <strong>Link</strong>, Inc.<br />
Nicolas Bornozis has over 28 years of experience in the US and European<br />
financial and capital markets. Since 1996, he is the Founder and President of<br />
<strong>Capital</strong> <strong>Link</strong>, Inc., an international investor relations and advisory firm, which<br />
assists listed companies to develop access to European and North American<br />
investors. He also established and managed, Alexander <strong>Capital</strong>, L.P, a US<br />
broker-dealer firm, which developed securities brokerage business in North<br />
America with the Greek, Egyptian and Russian markets and sold the company<br />
at the end of 2003. Prior to <strong>Capital</strong> <strong>Link</strong> (1988-1995), he served as President<br />
and CEO of CCF International Finance Corp. (CCF IFC), the US<br />
broker/dealer subsidiary of Credit Commercial de France, now part of HSBC.<br />
Prior to CCF IFC, he worked at the International Department of Bankers Trust<br />
Company in New York and then at the Commercial Banking operation of CCF<br />
in New York where he was responsible for business development and lending<br />
to US multinationals and the Wall Street firms with focus on asset based<br />
financing - shipping and real estate. He holds an MBA from Harvard Business<br />
School (1982) and a Law Degree from the University of Athens (1979), in<br />
Greece with specialization in commercial and corporate law. For ten years he<br />
was a Visiting Lecturer on International Banking and Finance at the City<br />
University Business School in London, United Kingdom. He is a member of<br />
the Advisory Board of the Atlantic Bank of New York, a subsidiary of the<br />
New York Community Bank.<br />
Nikolas P. Tsakos<br />
President & Chief Executive Officer<br />
Tsakos Energy Navigation, Ltd.<br />
Mr. Nikolas P. Tsakos has been President, Chief Executive Officer and a<br />
director of the Company since inception. Mr. Tsakos is the sole shareholder of<br />
Tsakos Energy Management Limited. He has been involved in ship<br />
management since 1981 and has seafaring experience of 36 months. He is the<br />
former President of the Hellenic Marine Environment Protection Agency<br />
(HELMEPA). Mr. Tsakos is a member of the council of the Independent<br />
Tanker Owners Association (INTERTANKO), a board member of the UK<br />
P&I Club, a board member of the Union of Greek Shipowners (UGS), a<br />
council member of the board of the Greek <strong>Shipping</strong> Co-operation Committee<br />
(GSCC) and a council member of the American Bureau of <strong>Shipping</strong> (ABS),<br />
Bureau Veritas (BV) and of the Greek Committee of Det Norske Veritas<br />
(DNV). He graduated from Columbia University in New York in 1985 with a<br />
degree in Economics and Political Science and obtained a Masters Degree in<br />
<strong>Shipping</strong>, Trade and Finance from the City of London University Business<br />
School in 1987. Mr. Tsakos served as an officer in the Hellenic Navy in 1988.<br />
Pankaj Khanna<br />
Chief Operating Officer<br />
DryShips, Inc.<br />
Pankaj Khanna was appointed as the Chief Operating Officer of Dryships,<br />
Inc. in March 2009. Mr. Khanna has 19 years of experience in the shipping<br />
industry. Prior to joining the Company, Mr. Khanna was the Chief Strategy<br />
Officer for Excel Maritime Carriers Ltd. Mr. Khanna also previously served<br />
as Chief Operating Officer of Alba Maritime Services S.A. Prior to joining<br />
Alba Maritime Services S.A., Mr. Khanna was Vice President of Strategic<br />
Development at Teekay Corporation where he headed vessel sales & purchase<br />
activities, newbuilding ordering activities and other strategic development
projects from 2001 through 2007. Prior to this, Mr. Khanna was a Senior<br />
<strong>Analyst</strong> at SSY, a large multinational shipbroker. Mr. Khanna graduated from<br />
Blackpool and the Fylde College, Fleetwood Nautical Campus and also<br />
received a post-graduate diploma in international trade and transport from<br />
London Metropolitan University.<br />
Polys Hajioannou<br />
Chief Executive Officer<br />
Safe Bulkers, Inc.<br />
Polys Hajioannou is our Chief Executive Officer and has been Chairman of<br />
our board of directors since 2008. Mr. Hajioannou also serves with our<br />
Manager, and prior to its inception, our Manager's predecessor Alassia<br />
Steamship Co., Ltd., which he joined in 1987. Mr. Hajioannou was elected as<br />
a member of the board of directors of the Union of Greek Shipowners in 2006<br />
and served on the board until February 2009. Mr. Hajioannou is also a<br />
founding member of the Union of Cyprus Shipowners. Mr. Hajioannou holds<br />
a bachelor of science degree in nautical studies from Sunderland University.<br />
Stefan Jekel<br />
Managing Director<br />
NYSE Euronext<br />
Mr. Jekel is responsible for client service and new business of the EMEA<br />
region. This includes meetings with international listed companies' officials<br />
and prospects to increase their understanding of the strategic benefits of an<br />
NYSE Euronext listing and the NYSE Euronext's service initiatives. Stefan<br />
Jekel joined the New York Stock Exchange in March 2001.<br />
Mr. Jekel, a German national, had been employed with the New York office of<br />
PricewaterhouseCoopers LLP from 1998 through 2001. As part of Assurance<br />
and Business Advisory Services, he serviced international clients by resolving<br />
their cross-border accounting and reporting issues.<br />
Mr. Jekel is a graduate from New York University (USA) and European<br />
Business School (Germany), who participated in exchange programs with the<br />
London Business School (UK), Ecole Supérieure de Commerce in Dijon<br />
(France), and the University of California at Berkeley (USA).<br />
Ted C. Petrone<br />
President<br />
Navios Corporation<br />
S P E A K E R B I O S<br />
Mr. Ted Petrone became a director in May 2007 having become President of<br />
Navios Corporation in October 2006. He heads Navios' worldwide<br />
commercial operations. Mr. Petrone served in the Maritime Industry for 30<br />
years, of which 27 were with Navios. After joining Navios as an assistant<br />
vessel operator, Mr. Petrone worked in various operational and commercial<br />
positions. For the last fifteen years, Mr. Petrone was responsible for all the<br />
aspects of the daily commercial Panamax activity, encompassing the trading<br />
of tonnage, derivative hedge positions and cargoes. Mr. Petrone graduated<br />
from New York Maritime College at Fort Schuyler with a B.S. in Maritime<br />
Transportation. He served as a third Mate aboard U.S. Navy (Military Sealift<br />
Command) tankers for one year.<br />
Page 52<br />
Thomas Kaas Christiansen<br />
Chief Commercial Officer<br />
Excel Maritime Carriers, Ltd.<br />
Thomas Kaas Christiansen was appointed Chief Commercial Officer in<br />
January 2010. Christiansen, Danish national, joined the company from a<br />
similar position as Vice President of Athens based SwissMarine. Prior hereto<br />
he has, since the beginning of his career as a graduate of the MISE<br />
management program with AP Moller-Maersk, held various Management and<br />
Commercial positions of increasing depth within the organizations<br />
throughout Europe, South East Asia and the Mediterranean. He brings more<br />
than a decade of experience in commercial management and leadership with<br />
him and is an ICS, London chartered broker, <strong>Shipping</strong> Finance and<br />
Management Graduate and is part of the Executive Education program at<br />
Harvard Business School.<br />
Dr. Anastasios Aslidis<br />
Director<br />
Euroseas, Ltd.<br />
Dr. Anastasios Aslidis has been a partner at Marsoft, an international<br />
consulting firm focusing on investment and risk management in the maritime<br />
industry. As of August 2005, he joined us as a director and our CFO. Dr.<br />
Aslidis has more than 17 years of experience in the maritime industry. Since<br />
2003, he has been working on financial risk management methods for<br />
shipowners and banks lending to the maritime industry, especially as<br />
pertaining to compliance to the Basel II <strong>Capital</strong> Accords. He has been<br />
consultant to the Board of Directors of shipping companies (public and<br />
private) advising in strategy development, asset selection and investment<br />
timing. Between 1993 and 2003, as part of his work at Marsoft, he worked on<br />
various projects including development of portfolio and risk management<br />
methods for shipowners, establishment of investments funds and structuring<br />
private equity in the maritime industry and business development for<br />
Marsoft's services. Between 1991 and 1993, Dr. Aslidis work on the<br />
economics of the offshore drilling industry. Between 1989 and 1991,he<br />
worked on the development of a trading support system for the dry bulk<br />
shipping industry on behalf of a major European owner. Dr. Aslidis holds a<br />
diploma in Naval Architecture and Marine Engineering from the National<br />
Technical University of Athens (1983), M.S. in Ocean Systems Management<br />
(1984) and Operations Research (1987) from MIT, and a Ph.D.in Ocean<br />
Systems Management (1989) also from MIT.
IN COOPERATION WITH<br />
C O M P A N Y P R O F I L E S<br />
NYSE Euronext (NYX) is a leading global operator of financial markets and provider of innovative trading technologies. The company's<br />
exchanges in Europe and the United States trade equities, futures, options, fixed-income and exchange-traded products. With approximately<br />
8,000 listed issues (excluding European Structured Products), NYSE Euronext's equities markets – the New York Stock Exchange, NYSE<br />
Euronext, NYSE Amex, NYSE Alternext and NYSE Arca – represent one-third of the world's equities trading, the most liquidity of any global<br />
exchange group. NYSE Euronext also operates NYSE Liffe, one of the leading European derivatives businesses and the world's secondlargest<br />
derivatives business by value of trading. The company offers comprehensive commercial technology, connectivity and market data<br />
products and services through NYSE Technologies. NYSE Euronext is in the S&P 500 index, and is the only exchange operator in the S&P<br />
100 index and Fortune 500. For more information, please visit: http://www.nyx.com<br />
The NASDAQ OMX Group, Inc. is the world's largest exchange company. It delivers trading, exchange technology and public company<br />
services across six continents, with over 3,700 listed companies.<br />
NASDAQ OMX Group offers multiple capital raising solutions to companies around the globe, including its U.S. listings market; NASDAQ<br />
OMX Nordic, NASDAQ OMX Baltic, including NASDAQ OMX First North; and the U.S. 144A sector.<br />
The company offers trading across multiple asset classes including equities, derivatives, debt, commodities, structured products and ETFs.<br />
NASDAQ OMX Group technology supports the operations of over 70 exchanges, clearing organizations and central securities depositories<br />
in more than 50 countries.<br />
NASDAQ OMX Nordic and NASDAQ OMX Baltic are not legal entities but describe the common offering from NASDAQ OMX Group<br />
exchanges in Helsinki, Copenhagen, Stockholm, Iceland, Tallinn, Riga, and Vilnius.<br />
For more information about NASDAQ OMX, please visit: www.nasdaqomx.com.<br />
Page 53
GLOBAL LEAD SPONSOR<br />
Fortis Bank Nederland’s Merchant Banking provides bespoke financial solutions to corporate and institutional clients active in the Netherlands<br />
and abroad. We offer a broad spectrum of banking services, including cash and treasury management, debt, equity and structured<br />
finance, trading and financial risk hedging, financial advisory and structuring. Our clients are commodity producers, traders and distributors.<br />
We are a top player in fund administration, global custody, securities lending and clearing services.<br />
Merchant Banking combines the strength of an international presence in three time zones with local expertise and proximity to our clients.<br />
Dedicated Relationship Managers offer the full range of banking products and have access to specialists in a variety of fields.<br />
About Energy, Commodities & Transportation and Principal Finance<br />
ECT is a business line within Merchant Banking that serves a wide range of customers and prospects in the energy, commodities and transportation<br />
industries. Our extensive market knowledge have made us leaders in these industries.<br />
Energy is engaged in offshore oil and gas services, oil and gas, power and utilities, renewables (wind and solar energy) and carbon banking.<br />
Fortis Groenbank in Utrecht is a separate legal entity within Energy, providing green financing to companies that invest in sustainable projects<br />
in the Netherlands. Commodities finances the physical flow of agri, metals, steel and energy products, from the pre-production stage through<br />
to storage & delivery. The Transportation arm offers structured and innovative financing solutions to companies active in deep-sea shipping,<br />
container transport and the aviation sector.<br />
Principle Finance is responsible for all direct investment activities (where FBNL acts as Principal) in the ECT sectors PF acquires (portfolio’s<br />
of) assets at attractive valuations, provides subordinated debt or preferred equity with upside sharing and invest selectively in companies or<br />
projects of core clients of the bank, oftentimes on the basis of tangible collateral and diversified cash-flows<br />
Achievements Energy, Commodities & Transportation:<br />
����Top 3 global position in oil field services industry<br />
����Among the top 5 commodity banks worldwide<br />
����<strong>Shipping</strong> Debt Deal of the Year Award 2009 – North America by Jane’s Transport Finance<br />
����2nd Best bank for Soft Commodity Finance 2009 organised by Trade and Forfaiting Review (after having first positions in the years 2005-<br />
2008)<br />
����European Power Deal of the Year (Project Finance International, December 2008)<br />
����European Oil & Gas Deal of the Year (Project Finance International, December 2008)<br />
����Restructuring Deal of the Year 2008 (Marine Money)<br />
GLOBAL GOLD SPONSOR<br />
C O M P A N Y P R O F I L E S<br />
Knight <strong>Capital</strong> Group, Inc. (Nasdaq: NITE) is global financial services firm that provides market access and trade execution services across<br />
multiple asset classes to buy- and sell-side firms. Knight's hybrid market model features complementary electronic and voice trade execution<br />
services in global equities and fixed income as well as foreign exchange, futures and options. The firm is consistently ranked as the leading<br />
source of off-exchange liquidity in U.S. equities. Knight also provides capital markets services to corporate issuers. For additional information,<br />
please visit: www.knight.com.<br />
Page 54
GLOBAL SILVER SPONSORS<br />
A PREMIER QUALITY REGISTRY<br />
International Registries, Inc. (IRI) and its affiliates are the Maritime and Corporate Administrators of the Republic of the Marshall Islands<br />
(RMI) and have been administering maritime and corporate programs for over half a century. IRI prides itself on its high level of customer<br />
service, economical pricing and extensive experience. The Marshall Islands Maritime and Corporate Registry (Registry) is fully committed to<br />
the safety and security of personnel ashore and afloat, the Registry’s vessels and the marine environment. IRI has an excellent reputation<br />
within the international business community and will continue to be at the forefront of vessel and corporate registries.<br />
IRI is the world’s oldest and most experienced privately administered maritime and corporate registry, providing for the specialized needs of<br />
the shipping and financial services industries across a broad commercial and economic spectrum. IRI, which is headquartered in Reston,<br />
Virginia USA, with easy access to Washington, DC, has full service offices in 20 major shipping and financial centers around the world.<br />
LEADERSHIP<br />
IRI, through a legislatively endorsed joint venture agreement with the Government of the Marshall Islands, is authorized to administer the<br />
maritime and corporate programs for the Marshall Islands. The IRI Board of Managers is the executive body that is responsible for the<br />
Registry’s growth and strategic direction.<br />
WHAT IRI DOES<br />
C O M P A N Y P R O F I L E S<br />
Deloitte’s <strong>Shipping</strong> Group specialises in providing professional services to the water transportation industry including cruise lines, ferries,<br />
cargo shipping, ports and harbour authorities. Our main objective is to develop solutions to assist our clients resolve the issues affecting them<br />
and the complex industry environment in which they operate.<br />
The group comprises of a multidisciplinary network of 460 industry practitioners, of which 245 are partners, in 33 major shipping centres and<br />
continues to expand.<br />
Professionals in the member firms have worked together for many years to serve the shipping industry.<br />
The Marshall Islands ship registry program was initiated by the Government of the Marshall Islands in 1988. With the adoption of a new Maritime<br />
Act in 1990, the maritime laws of the Marshall Islands were aligned with the many changes in ship registration, financing and licensing<br />
that have taken place in the shipping industry. The Marshall Islands ship registry is the fourth largest open registry in the world. Vessel types<br />
include, but are not limited to, tankships, LNG/gas carriers, bulk carriers, offshore exploration and support vessels, container ships, passenger<br />
vessels and yachts. The Registry’s network of worldwide offices has the ability to register a vessel, record a mortgage, form a corporation and<br />
service clientele.<br />
Page 55
GLOBAL SILVER SPONSORS (cont.)<br />
At PricewaterhouseCoopers (PwC) we offer innovative ideas and practical solutions. We provide industry-focused assurance, tax and advisory<br />
services to build public trust and enhance value for its clients and their stakeholders.<br />
PwC in Greece (www.pwc.gr) is the largest professional services organisation, with more than 800 people and premises in Athens, Thessaloniki<br />
and Piraeus. It is part of the global network of member firms of PricewaterhouseCoopers International Limited (www.pwc.com), each of<br />
which is a separate legal entity. More than 163,000 people in 151 countries across our network share their thinking, experience and solutions<br />
to develop fresh perspectives and practical advice.<br />
Assurance<br />
As audit and assurance market leader, we provide services that improve corporate reporting and assurance systems that operate effectively<br />
within a well-controlled environment. Our leading edge audit approach is tailored to the nature and size of your organisation. Our deep understanding<br />
of the regulatory framework and legislation means we can help with complex business requirements, such as Sarbanes-Oxley and<br />
IFRS.<br />
Deals<br />
We assist you in transforming your businesses across the business lifecycle. We offer a full range of services around the deal for financial<br />
transactions. These include review of strategic options before the deal, due diligence, lead financial advice, valuations for strategic and financial<br />
reporting purposes, and delivering post deal value through synergies and operational improvements consequent to the deal.<br />
Consulting<br />
We are world-class transformation consultants with capabilities based on trusted relationships, deep industry knowledge and professional<br />
experience. We bring together a range of functional skills in strategy, operations, finance, people & change, risk, and technology. We assess<br />
new markets, offer new insights on how to best tackle the challenges presented by change.<br />
Tax services<br />
Our network of experienced professionals can assist you in achieving your goals across a wide spectrum of tax and accounting activities and<br />
helps you deal with the rapidly increasing complexity of the Greek tax environment. Our services include international tax planning and<br />
restructuring, mergers & acquisitions, consulting on indirect taxes and transfer pricing, tax compliance services, as well as accounting<br />
outsourcing solutions, payroll services and IFRS reporting.<br />
PwC Academy<br />
C O M P A N Y P R O F I L E S<br />
In addition to business services, we also provide professional training through the PwC Academy. Within our training programmes we focus<br />
on all business related areas such as Accounting, Strategy, Mini MBA, Marketing, Finance – Banking, Business & Financial English etc.<br />
Selected programmes leading to professional qualifications are certified by international institutions namely ACCA, CFA, ICAEW and EDI.<br />
Page 56
MEDIA PARTNERS<br />
ECONOMIC OUTLOOK <strong>Shipping</strong> Monthly Magazine<br />
The ECONOMIC OUTLOOK Magazine provides comprehensive<br />
documentation on Greek <strong>Shipping</strong> developments.<br />
Born as a maritime magazine in Piraeus in 1983 with 4,000<br />
subscribers throughout the world, ECONOMIC OUTLOOK has<br />
always met the ever growing demand for critical information and is<br />
considered a complete channel of information on shipping, and is<br />
also recognized for its exclusive interviews with highly respected<br />
personages and decision-makers in the day to day operation and the<br />
future on Greek <strong>Shipping</strong>.<br />
C O M P A N Y P R O F I L E S<br />
ELNAVI is the biggest and most respected Greek shipping magazine.<br />
It analyzes every month the most important shipping events in<br />
the Greek and global maritime industry. ELNAVI was established in<br />
1974 and today has 4,000 subscribers which is the highest readership<br />
amongst all Greek shipping magazines. Elnavi, participates in<br />
Posidonia Exhibition holding a stand of 30sq.m. promoting the latest<br />
developments and achievements of the Greek <strong>Shipping</strong> Industry. In<br />
2010 we have introduced an e-paper service which is free for our<br />
subscribers marking a new era of shipping press. For e-paper visit<br />
www.elnavi.gr<br />
Page 57<br />
Digital Ship is the commercial maritime world’s authority on<br />
satellite communications, software, navigation technology and<br />
computer based training. Established in August 2000, Digital Ship<br />
publishes a monthly full color print and electronic magazine,<br />
organizes six large conference / exhibitions every year in Cyprus,<br />
Oslo, Hamburg, USA, Singapore and Athens. We also provide an<br />
online newsletter and networking service to help executives in the<br />
maritime industry stay ahead of the very latest developments in<br />
shipping IT.<br />
NAFS shipping & economic magazine was first introduced in<br />
November 1996 and as from February 1998 is regularly published<br />
every two months, from February to December. Over 3,000 people<br />
are NAFS readers in Greece and abroad.<br />
About 50% are Greek shipping offices<br />
About 20% are ship suppliers and equipment manufacturers.<br />
About 5% are shipbrokers and shipagents<br />
About 10% are shipbuilding and shiprepair facilities<br />
The rest 15% is referring to Ports, Banks, Financial consultunts,<br />
classification societies, inspector services, marine insurance, P&I<br />
Clubs, Yachting, Salvage & Towage, Shipowning companies, non<br />
profit organizations etc.<br />
Now you can enjoy reading your hard copy, as well as surfing in our<br />
protal. Starting thinking GREEN in the marine industry begins from<br />
NAFSGREEN.<br />
All the material given (advertising, video, audio, texts, photos, etc.)<br />
will be considered property of NIKOS DOUKAS Publications, and<br />
can be used or not by the company at the discretion of the owner.<br />
The views of columnists do not always reflect the position of the<br />
owner.
MEDIA PARTNERS (cont.)<br />
SHIPPING International Monthly Review was launched in 1957!<br />
Over these six decades SHIPPING has become the leading maritime<br />
voice not only for Greek <strong>Shipping</strong>, but beyond.<br />
We pride ourselves that we dictate the news and have the largest and<br />
the top of the echelon contributors and devotees worldwide.<br />
On an unbiased and un-censored basis, we openly feature all materials<br />
which state an opinion about all aspects of the industry, including<br />
Maritime Politics, Safety and Security, Ship Finance, the Environment….<br />
you name it!<br />
We are also the only Greek medium to have a real base within the<br />
Square Mile – with our own London presence (the Water Dragon)<br />
since 1997!<br />
Last, but not least, we cover the markets and on numerous occasions<br />
have rightly forecasted their destiny as well as that of the entire<br />
industry.<br />
Our 3,000 plus subscribers are our best ambassadors!<br />
With a woman (and a proud member of WISTA) at the helm, we<br />
have proven why a ship is called a she…!<br />
C O M P A N Y P R O F I L E S<br />
Page 58<br />
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<strong>Capital</strong> <strong>Link</strong><br />
<strong>Capital</strong> <strong>Link</strong><br />
Excellence in <strong>Investor</strong> Relations and Financial Communications<br />
www.capitallink.com www.capitallinkforum.com www.capitallinkfunds.com<br />
New York – London - Athens
<strong>Capital</strong> <strong>Link</strong> <strong>Shipping</strong><br />
...<strong>Link</strong>ing <strong>Shipping</strong> and <strong>Investor</strong>s Across the Globe<br />
<strong>Capital</strong> <strong>Link</strong> is a New York-based Advisory, <strong>Investor</strong> Relations and Financial Communications firm. <strong>Capital</strong>izing on our<br />
in-depth knowledge of the shipping industry and capital markets, <strong>Capital</strong> <strong>Link</strong> has made a strategic commitment to the<br />
shipping industry becoming the largest provider of <strong>Investor</strong> Relations and Financial Communications services to<br />
international shipping companies listed on the US and European Exchanges. <strong>Capital</strong> <strong>Link</strong>'s headquarters are in New York<br />
with a presence in London and Athens.<br />
<strong>Investor</strong> Relations & Financial Advisory<br />
Operating more like a boutique investment bank rather than a traditional <strong>Investor</strong> Relations firm,<br />
our objective is to assist our clients enhance long term shareholder value and achieve proper<br />
valuation through their positioning in the investment community. We assist them to determine<br />
their objectives, establish the proper investor outreach strategies, generate a recurring<br />
information flow, identify the proper investor and analyst target groups and gather investor and<br />
analyst feedback and related market intelligence information while keeping track of their peer<br />
group. Also, to enhance their profile in the financial and trade media.<br />
In our effort to enhance the information flow to the investment community and contribute to improving investor knowledge of<br />
shipping, <strong>Capital</strong> <strong>Link</strong> has undertaken a series of initiatives beyond the traditional scope of its investor relations activity, such as:<br />
www.<strong>Capital</strong><strong>Link</strong><strong>Shipping</strong>.com<br />
A web based resource that provides information on the major shipping and stock market<br />
indices, as well as on all shipping stocks. It also features an earnings and conference call<br />
calendar, industry reports from major industry participants and interviews with CEOs, analysts<br />
and other market participants.<br />
Weekly <strong>Capital</strong> <strong>Link</strong> <strong>Shipping</strong> e-Newsletter<br />
Weekly distribution to an extensive audience in the US & European shipping, financial and<br />
investment communities with updates on the shipping markets, the stock market and listed<br />
company news.<br />
www.<strong>Capital</strong><strong>Link</strong>Webinars.com<br />
Sector <strong>Forum</strong>s & Webinars: Regularly, we organize panel discussions among CEOs, analysts,<br />
bankers and shipping industry participants on the developments in the various shipping sectors<br />
(containers, dry bulk, tankers) and on other topics of interest (such as Raising Equity in<br />
<strong>Shipping</strong> Today, Scrapping, etc).<br />
<strong>Capital</strong> <strong>Link</strong> <strong>Investor</strong> <strong>Shipping</strong> <strong>Forum</strong>s<br />
In New York, Athens and London bringing together investors, bankers, financial advisors, listed<br />
companies CEOs, analysts, and shipping industry participants.<br />
www.MaritimeIndices.com<br />
<strong>Capital</strong> <strong>Link</strong> Maritime Indices: <strong>Capital</strong> <strong>Link</strong> developed and maintains a series of stock market<br />
maritime indices which track the performance of U.S. listed shipping stocks (CL maritime Index,<br />
CL Dry Bulk Index, CL Tanker Index, CL Container Index, CL LNG/LPG Index, CL Mixed Fleet<br />
Index, CL <strong>Shipping</strong> MLP Index – Bloomberg page: CPLI. The Indices are also distributed<br />
through the Reuters Newswires and are available on Factset.<br />
<strong>Capital</strong> <strong>Link</strong> - New York - London - Athens<br />
New York - 230 Park Avenue, Suite 1536, New York, NY, 10169 Tel.: +1 212 661 7566 Fax: +1 212 661 7526<br />
London - Longcroft House,2-8 Victoria Avenue, London, EC2M 4NS, U.K Tel. +44(0) 203 206 1320 Fax. +44(0) 203 206 1321<br />
Athens - 40, Agiou Konstantinou Str, Suite A 5, 151-24 Athens, Greece Tel. +30 210 6109 800 Fax +30 210 6109 801<br />
www.capitallink.com<br />
www.capitallinkforum.com
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<strong>Capital</strong> <strong>Link</strong><br />
<strong>Shipping</strong> <strong>Forum</strong><br />
2<br />
nd<br />
Posidonia<br />
<strong>Analyst</strong> & <strong>Investor</strong> <strong>Day</strong><br />
Monday, June 7, 2010<br />
Astir A ti PPalace Palace l HHotel, Hotel, t l Vouliagmeni<br />
VVo<br />
Athens, Greece<br />
ORGANISED BY<br />
<strong>Capital</strong> <strong>Link</strong><br />
INVESTOR RELATIONS &<br />
FINANCIAL COMMUNICATIONS<br />
www.capitallink.com<br />
www.capitallinkforum.com<br />
www.capitallinkshipping.com<br />
www.capitallinkgreece.com<br />
www.capitallinkfunds.com<br />
www.irawards.gr<br />
NEW YORK, USA<br />
230 Park Avenue, Suite 1536<br />
New York, NY 10169<br />
Tel.: +1 (212) 661 7566<br />
Fax.: +1 (212) 661 7526<br />
LONDON, UK<br />
2/8 Victoria Avenue, Longcroft House<br />
London, EC2M 4NS<br />
Tel.: +44 (0) 203 206 1322<br />
Fax.: +44 (0) 203 206 1321<br />
ATHENS, GREECE<br />
Agiou Konstantinou 40, # A5<br />
151-24 Maroussi, Athens - Greece<br />
Tel.: +30 (210) 6109 800<br />
Fax.: +30 (210) 6109 801
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