Knightsbridge says merged company to consolidate
Knightsbridge Shipping, the listed dry bulk shipping company in John Fredriksen’s business empire, has said it is in the final stages of merging with Golden Ocean, and that the new company plans to consolidate in the sector.
“The process to merge with Golden Ocean is entering into its final stage and the companies have called for special general meetings on 26 March, 2015,” Knightsbridge said in its 2014 result statement.
“The board and management are dedicated to conclude the process of creating one of the world’s leading dry bulkcompanies. After completion of the merger, the combined company will be in a position to look for further consolidation opportunities in the dry bulk market,” the statement added.
Golden Ocean is another listed dry bulk shipping company in Fredriksen’s empire. Knightsbridge was originally a tanker owner, but it later switched to dry bulk shipping and acquired the dry bulk carrier orderbook of Frontline 2012 as part of that process.
The company said a loan facility concluded in February 2015 proves the strong support the company has in the banking market. On 5 February, the company secured from various banks for a USD425.0 million senior secured post-delivery term loan facility. “The purpose of the loan is to partially finance 14 newbuilding vessels. The loan is divided into 12 tranches of USD30.0 million and two tranches of USD32.5 million,” Knightsbridge said in a statement.
“The market in the first quarter has been disappointing so far and this will affect the earnings for the first quarter. Future earnings will continue to correlate with the spot market as long as the majority of our vessels are employed in the spot market.
“Should the weak market continue it will force changes on the industry, some participants will disappear, and it will open up for consolidation and for those that have stamina to stand through this period there will be opportunities at the other end.”
Knightsbridge reported a 4Q14 net profit of USD5.1 million compared with a USD3.0 million profit in the same quarter a year earlier. Revenues rose to USD36.6 million from USD13.5 million, lifted by a bigger fleet. The full-year 2014 profit amounted to USD15.9 million compared with a loss of USD3.9 million in 2013. Revenues increased to USD96.7 million from USD37.5 million.
source:www.ihsmaritime360.com
