Lead Analyst, Credit Research, Drewry Maritime Financial Research

Konstantinos Oikonomopoulos

Lead Analyst, Credit Research

Maritime Sector, Equity & Credit Research

Drewry Maritime Financial Research

With no ties to other players in the shipping, finance or banking world, we provide a uniquely impartial view of the markets and companies we cover. Our parent organization, Drewry is a leading independent provider of research services to the maritime and shipping industry, employing over 100 professionals across an international network of offices in London, Delhi, Singapore and Shanghai. Combining our market-leading resources with seasoned sector expertise DFRS offers a highly differentiated and comprehensive range of investment and financial research services to lenders and prospective investors in publicly listed maritime and shipping companies. The full service of reports, supporting resources and sector orientated webinars provides our clients with the most complete picture of the organisations under coverage as is possible. We have been charting and analysing the world’s maritime markets for more than 40 years. This unrivalled intelligence and understanding provides the foundation of our research service. Our analysts have access to one of the most up-to-date, comprehensive and reliable sources of market insight and research data available today. We look at globally listed companies within the following sectors: Port Operators, Container Shipping, Container Manufacturing & Leasing, LNG Shipping, Dry Bulk Shipping and Tanker Shipping. Combine in-depth sector expertise with financial analysis focusing on over 50 stocks globally.

Credit

Maritime bonds performance in 2017 and YTD:<ul class="">
<li class="">Bonds issued by the companies that operate in the dry bulk and container shipping sectors have benefited the most in 2017 in line with an improvement in freight rates for the sectors.</li>
<li>The port operators segment has recognised marginal gains in 2017, in line with the industry’s throughput growth of 6%. The sector’s average return y/y, which comprises bonds from DP World, ICTSI, Navios Logistics and Global ports, stood at 3.2% in 2017. DP World’s bonds…</li>
</ul>

Maritime bonds performance in 2017 and YTD:
Bonds issued by the companies that operate in the dry bulk and container shipping sectors have benefited the most in 2017 in line with an improvement in freight rates for the sectors.
The port operators segment has recognised marginal gains in 2017, in line with the industry’s throughput growth of 6%. The sector’s average return y/y, which comprises bonds from DP World, ICTSI, Navios Logistics and Global ports, stood at 3.2% in 2017. DP World’s bonds…


Moderate Throughput Growth Y/Y, High Valuations and Interest Rate Hikes Weigh on Ports Bonds

Transport Sector, China and Asia-focused Research

Charles De Trenck

Event-Driven

Orient Overseas (International) / Event-Driven

Concerns this week resurfaced regarding the <a href="https://www.smartkarma.com/entities/286" target="_blank" data-smartkarma-citation="entities:286:1">COSCO SHIPPING Holdings Co., Ltd (H) (1919 HK)</a> acquisition of <a href="https://www.smartkarma.com/entities/801" target="_blank" data-smartkarma-citation="entities:801:1">Orient Overseas International Ltd (316 HK)</a>. Most likely they are  mild concerns at this point. However, shareholders who did not sell above the relatively rich trading price of HK$70-74 (against 2017 book NAV of HK$58 ex adjustments for off B/S items) should maintain a close watch on politics and if the US could move to slap restrictions on the acquisition of Pier E (and the older F) at the …

Concerns this week resurfaced regarding the COSCO SHIPPING Holdings Co., Ltd (H) (1919 HK) acquisition of Orient Overseas International Ltd (316 HK). Most likely they are  mild concerns at this point. However, shareholders who did not sell above the relatively rich trading price of HK$70-74 (against 2017 book NAV of HK$58 ex adjustments for off B/S items) should maintain a close watch on politics and if the US could move to slap restrictions on the acquisition of Pier E (and the older F) at the …

OOIL Drifts Below HK$70 on Inklings of Concerns Over Trump Approvals for Long Beach - COSCO Deal

Infrastructure Analyst - Ports & Terminals, Drewry Maritime Financial Research

Victor Wai, CFA

Infrastructure Analyst - Ports & Terminals

Equity Bottom-Up

Depressed earnings: Santos Brasil (STBP3 BZ Equity) is in a perilous condition, swinging to profitability only with the aid of tax refunds. Investors longing for a sale of its slumping Tecon Santos terminal, which underpins the more than 50% increase in share price over the past 3 months, are likely to be disappointed, as the company has decided to bankroll its flagship terminal by selling ancillary, but promising, assets.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/039/424/original/SB_1.JPG?1511942947" class="editor-image img-responsive" data-smartkarma-image-id="39424"></figure><div class="content-caption">Earnings deteriorate, investors don't seem to care</div>Expensive concession…

Depressed earnings: Santos Brasil (STBP3 BZ Equity) is in a perilous condition, swinging to profitability only with the aid of tax refunds. Investors longing for a sale of its slumping Tecon Santos terminal, which underpins the more than 50% increase in share price over the past 3 months, are likely to be disappointed, as the company has decided to bankroll its flagship terminal by selling ancillary, but promising, assets.Earnings deteriorate, investors don't seem to careExpensive concession…

Santos Brasil: Valuation Decouples from Fundamentals

Credit positives<ul>
<li>The group is focused in origin and destination cargo in emerging markets through long-term concessions (38 years on average while flagship Jebel Ali port concession ends in 88 years).</li>
<li>Fitch upgraded DPW and its bonds for second consecutive year by one notch to BBB+ in July 2017 following the group’s stable and growing cash flow generation. Moody’s had upgraded DPW in August 2016 to Baa2.</li>
<li>Strong management track record of expansion while keeping profitability and liquidity and…</li>
</ul>

Credit positives
The group is focused in origin and destination cargo in emerging markets through long-term concessions (38 years on average while flagship Jebel Ali port concession ends in 88 years).
Fitch upgraded DPW and its bonds for second consecutive year by one notch to BBB+ in July 2017 following the group’s stable and growing cash flow generation. Moody’s had upgraded DPW in August 2016 to Baa2.
Strong management track record of expansion while keeping profitability and liquidity and…


DP World Ltd. Credit Research - Credit Outlook Stable - Bond Valuation Neutral

Equity Research Analyst, Maritime sector, Drewry Maritime Financial Research

Ankush Kathuria CFA, FRM

Equity Research Analyst, Maritime sector

DP World Ltd (DPW DU) - Limited Upside on Current Valuation<ul><li>
Strong earnings reflected in the valuations:DP World reported a sterling set of FY16 results, beating our top line and bottom line forecasts. Revenue rose 4.9% y/y from USD 3,968m to USD 4,163m, driven mainly by non-port operations. Inorganic volumes lifted the consolidated throughput for 2016 to 29.2m teu, representing a marginal gain of 0.4% over a year ago. According to management, throughput gained traction in the first two months of…</li></ul>

DP World Ltd (DPW DU) - Limited Upside on Current Valuation
Strong earnings reflected in the valuations:DP World reported a sterling set of FY16 results, beating our top line and bottom line forecasts. Revenue rose 4.9% y/y from USD 3,968m to USD 4,163m, driven mainly by non-port operations. Inorganic volumes lifted the consolidated throughput for 2016 to 29.2m teu, representing a marginal gain of 0.4% over a year ago. According to management, throughput gained traction in the first two months of…

DP World Ltd (DPW DU) - Limited Upside on Current Valuation

United Arab Emirates

DP World Ltd is a global operator of container and marine terminals. The Company operates marine terminals across six continents, and generates its core revenues from handling cargo containers. DP World was founded in 1972, and operates out of its global headquarters in Dubai, United Arab Emirates.

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DP World (DPW DU)

Moderate Throughput Growth Y/Y, High Valuations and Interest Rate Hikes Weigh on Ports Bonds

Maritime bonds performance in 2017 and YTD: Bonds issued by the companies that operate in the dry bulk and container shipping sectors have...

Drewry Maritime Financial Research

OOIL Drifts Below HK$70 on Inklings of Concerns Over Trump Approvals for Long Beach - COSCO Deal

Concerns this week resurfaced regarding the COSCO SHIPPING Holdings Co., Ltd (H) (1919 HK) acquisition of Orient Overseas International Ltd (316...

Charles De Trenck

Santos Brasil: Valuation Decouples from Fundamentals

Depressed earnings: Santos Brasil (STBP3 BZ Equity) is in a perilous condition, swinging to profitability only with the aid of tax refunds....

Drewry Maritime Financial Research

DP World Ltd. Credit Research - Credit Outlook Stable - Bond Valuation Neutral

Credit positives The group is focused in origin and destination cargo in emerging markets through long-term concessions (38 years on average while...

Drewry Maritime Financial Research

DP World Ltd (DPW DU) - Limited Upside on Current Valuation

DP World Ltd (DPW DU) - Limited Upside on Current Valuation Strong earnings reflected in the valuations:DP World reported a sterling set of FY16...

Drewry Maritime Financial Research

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