Maritime news 2013, Oct.'s Third

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Dear Sirs,

Hi everybody?

Everyone be careful in cold seasons changed.

Today is October last in touch. This is because I started to climb the Alpine Route, Toyama, Japan from tomorrow.

I hope today's news will be helpful to you.

1.    Hanjin inks Capes & Boxships

Hanjin Heavy Industries & Construction announced on October 28 that the builder’s Yeongdo Shipyard had entered into newbuilding contracts to build four 180,000 dwt bulkers from owners based in Greece and Turkey for $220m in total.

In addition, another contract for four newbuildings is planned ahead that Hanjin’s Yeongdo Shipyard had accomplished winning new orders for 12 vessels for around $600m so far this year, including four bituminous coal carriers penned with Hyundai Shipping in July; thus the builder now has its Yeongdo slots filled up till 2015.

Meanwhile, its overseas corporation, Subic Shipyard, also looks to pen a contract for ten containerships with a European shipowner following the latest contract inked for five ultra large boxships of 11,000 teu and 9,000 teu.

Subic Shipyard looks to become one of global shipyards when considering its order record posted this year so far, which is 37 newbuilds worth around $2.2bn with slots scheduled for the next three years.

The new contracts penned year-to-date (totaling $2.8bn from Yeongdo and Subic) are won thanks to the efforts to reduce production costs, made by executives and staff in order to secure newbuilding competitiveness against its rivals in China and Korea, together with gradual recovery seen in shipbuilding industry.

For the upcoming year, the Korean shipbuilder set $1.2bn yearly order aim for Yeongdo Shipyard with $1.7bn for Subic Shipyard. If the builder continues its favorable order performance, the $2.9bn overall target for 2014 is expected to be accomplished together with management stabilization.

2.    HHI-Imabari to win LNGC

Hyundai Heavy Industries of Korea and Imabari Shipbuilding of Japan are expected to win a newbuilding project, each for two large LNG carriers, which is subject to a long-term charter project of Spain.

Stream LNG of Spain is planning to ink a newbuilding and lease contract for LNG carrier with Elcano and Knutsen OAS Shipping of Norway. With this, Knutsen is said to be placing an order for 174,000-176,000 cbm LNG carrier pair at Hyundai while Elcano to order two units of LNG carrier in the same range at Imabari, reported by TradeWinds.

These newbuildings are known as membrane-type for delivery in 2017.

Among the new LNG carriers, several units are seen to be put into operation for transporting LNG from Sabine Pass project of the US.

Meanwhile, it is seen to be struggling for the final contract to be inked since Spanish shipbuilding industry is claiming that the newbuilds should be constructed domestically.

3.    GSI wins eco MR octet

An emerging shipowner in Denmark, Hafnia Tankers, turned out to have released a plan to secure a fleet comprising 27 tankers.

Of the 27 tankers, 19 units will be the existing vessels with the rest eight units to be newly built ones, according to Trade Winds. The Danish operator is said to take delivery of eight eco-friendly MR tankers from Guangzhou Shipyard International (GSI) of China in 2015 to 2016.

Meanwhile, Hafnia Tankers is a company established by Mikael Skov, a former CEO of Torm, and another Danish operator.

4.    AVEVA collaborate with ETAP

Cambridge, UK – 24 October 2013: AVEVA today announced that it is collaborating with ETAP to create a complementary interface between AVEVA Electrical and ETAP’s enterprise solution for electrical power systems. The new interface will deliver industry-leading capability for the efficient design, development and production of the most complex electrical installations in all types of process and power plants, ships and offshore facilities. Plant contractors and shipbuilders will gain increased productivity, while their customers can use the same applications for increased efficiency in the lifecycle management of their electrical installations.

Electrical engineers will be able to create and manage detailed design information and production deliverables using AVEVA Electrical, and analyze their design using ETAP. The interoperability between such powerful applications reduces design effort and enables higher design quality and more accurate early confirmation of materials requirements. AVEVA’s approach to openness and inter-disciplinary design enables this integration to offer users a completely flexible approach to electrical engineering and design.

“ETAP’s reputation as the industry-leading electrical analysis tool will make this new interfaces a very popular addition to the AVEVA portfolio” said Bruce Douglas, Senior Vice President, EDS Strategy and Marketing, AVEVA. “The new interface will allow equipment created in AVEVA Electrical or ETAP to be viewed and edited within each system. Electrical engineers will enjoy the confidence that comes from combining the most user-friendly electrical design software on the market, with ETAP’s high-quality electrical engineering analysis.”

Shervin Shokooh, Chief Operating Officer of ETAP, said, “Robust integration of engineering design tools such as AVEVA Electrical with ETAP electrical system analysis solution will enhance productivity and enable a more seamless and efficient work flow for our customers. This new interface validates our open data integration and exchange approach.”

AVEVA Electrical is a feature-rich software suite for electrical engineering and design. It’s advanced graphical user interfaces, and its use of design rules and catalogues for data creation, offer maximum workflow flexibility, improving project productivity and design quality. It is part of the Integrated Engineering & Design product suite that includes AVEVA Everything3D (AVEVA E3D), which handles routing and cable segregation in the 3D model. Via a two-way interface, this seamlessly integrates 3D model to create accurate design information.

ETAP is the global market and technology leader in electrical power system modeling, design, analysis, optimization, and predictive real-time solutions. The Company’s software technologies ensure that power systems are designed for optimal reliability, safety, and energy efficiency; when deployed in real-time mode, they enable organizations to manage energy as a strategic asset, maximize system utilization, lower costs, and achieve higher levels of financial stability. Visit www.etap.com for more information.

5.    Wartsila Q3 net sales increase

Wärtsilä announced an Interim Report January-September 2013

THIRD QUARTER HIGHLIGHTS
- Order intake decreased 14% to EUR 1,097 million (1,275)
- Net sales increased 11% to EUR 1,209 million (1,087)
- Book-to-bill 0.91 (1.17)
- Operating result before non-recurring items EUR 138 million, or 11.4% of net sales (EUR 113 million or 10.4%)
- EBITA EUR 146 million, or 12.1% of net sales (EUR 122 million or 11.2%)
- Earnings per share EUR 0.48 (0.38)
- Cash flow from operating activities EUR 139 million (121)

HIGHLIGHTS OF THE REVIEW PERIOD JANUARY-SEPTEMBER 2013
- Order intake decreased 2% to EUR 3,520 million (3,583)
- Net sales increased 2% to EUR 3,243 million (3,191)
- Book-to-bill 1.09 (1.12)
- Operating result before non-recurring items EUR 319 million, or 9.8% of net sales (EUR 328 million or 10.3%)
- EBITA EUR 343 million, or 10.6% of net sales (EUR 354 million or 11.1%)
- Earnings per share EUR 1.24 (1.09)
- Cash flow from operating activities EUR 261 million (-34)
- Order book at the end of the period decreased by 3% to EUR 4,568 million (4,724)

BJÖRN ROSENGREN, PRESIDENT AND CEO:
“Our operations developed in line with our expectations during the third quarter. Net sales grew by 11% to EUR 1,209 million and profitability was 11.4%. With better visibility on net sales development, we specify our sales growth guidance to 0-5%, while our profitability estimate remains unchanged at around 11%.

Uncertainties in the global economy and fluctuations in emerging market currencies have caused power plant customers to delay decision-making, which has impacted our overall order intake development. In the marine markets, we see good activity across all the main vessel segments. The focus on fuel efficiency and competitive newbuilding prices are supporting investments in the merchant segment, while offshore markets remain active. Services net sales development was steady, which reflects the overall stability of the service market. Wärtsilä signed several long-term service agreements during the quarter, and we see further opportunities in this area.”

6.    Cameron Q3 revenue record-high

Cameron (NYSE: CAM) reported earnings per share for the third quarter of 2013 of $0.81, excluding charges.

After-tax charges for the third quarter of 2013 were $8.6 million, primarily related to the integration of One Subsea and certain other acquisitions.

The Company reported GAAP net income of $189.6 million for the quarter, or $0.78 per diluted share. This compares to GAAP net income of $223.6 million for the third quarter of 2012, or $0.90 per diluted share.

Year-over-year revenues increase
Revenues of $2.5 billion for the quarter were a record, up nearly 13 percent from $2.2 billion a year ago. Cameron Chairman and Chief Executive Officer Jack B. Moore said that the year-over-year revenue increases were due to double digit revenue gains in Drilling & Productions Systems (DPS). “Record revenues were established this quarter in each of our DPS businesses, One Subsea, surface and drilling systems,” Moore said.

Year-over-year orders increase over 32 percent; backlog at record level
Total orders were $3.0 billion for the quarter, up from $2.3 billion in the third quarter of 2012, for an increase of over 32 percent. Year-to-date subsea bookings of $2.8 billion have eclipsed the previous record of $2.7 billion established for full-year 2008.

The quarter included the delivery of the first in a series of high specification, harsh environment jack-up drilling rigs to Prospector Offshore Drilling S.A. This represents the seventh jack-up drilling package delivered by the Company’s Sense operations.

Cameron’s backlog at the end of the third quarter was $11.2 billion, up from the beginning of the year level of $8.6 billion and up from $7.6 billion a year ago.  This is a record backlog for the Company and represents almost 47 percent growth from prior year. Moore stated, “The Company is committed to continue to invest in the infrastructure required to meet our customers’ needs.”

One Subsea receives subsea processing order
Subsequent to quarter end; One Subsea received a letter of award for one of the largest dual pumping stations in its history from Total for its Moho Phase 1 bis. subsea project in the Congo, further demonstrating OneSubsea’s clear leadership in the subsea processing space. One Subsea has sold eighty-five subsea pumping units over the past seventeen years. Moore noted that One Subsea will make significant investments in R&D in 2014. “This will further advance a number of platforms like subsea processing that will allow us to achieve OneSubsea’s stated goal of maximizing reservoir recovery for its customers”, Moore said.

7.    Petrofac awarded Iraqi second phase

23 October, 2013 - Petrofac, the international oilfield service provider, has announced a contract extension from South Oil Company (SOC) for its Iraq Crude Oil Expansion Project. The 12-month extension, worth around US$99 million includes the second phase of the project and will see the Company provide an additional scope of operations and maintenance services.

The extension follows the original award made in 2012 for phase one of the project which covered operations and maintenance services on the offshore facilities including an offshore platform, metering station, two single point moorings (SPMs), subsea pipelines and tanker operations, all based 60km offshore the Al Fao Peninsula in Southern Iraq. The extension, relating to phase two, covers two additional single point moorings (SPMs) and a Central Metering and Maintenance Platform (CMMP).

Mani Rajapathy, Senior Vice President MENA/CIS, Petrofac Offshore Projects & Operations, said: “Over the past 12 months we’ve achieved some significant milestones on behalf of our customer SOC, including the export of 240 million barrels of oil and one million man-hours worked without a lost time incident (LTI). The contract is a great example of project execution including our ability to deliver work successfully and safely in a logistically complex working environment. It also further enhances our position in Iraq, a key geography for our business, and continues a collaborative relationship with a valued customer, SOC.”

Dyeyaa Jaafar Hyjam, Director General, Southern Oil Company: “When we awarded this contract in 2012 we stated that increasing the export of crude was a key driver for us and Petrofac has helped us to deliver on that. Petrofac is focused on operational excellence and safe project execution making them an attractive supplier on this strategically important project. I look forward to continuing to meet our safety and export milestones with Petrofac as our partner.”

The original contract was awarded in August 2012 for 12 months following a three month mobilization period and was worth approximately US$100 million. The extension comes into effect in November 2013 and there is a further one-year extension option available to SOC.

Thank you for taking the time to give.
Always you and your family to pray for the health of all.   

We meet again in November.

Goodbye

Lee Heun Woo

www.vinbang.com

heunwool@gmail.com