Wello Oy has informed that Penguin wave energy converter (WEC) has now been operational 150 days since its deployment from the beginning of March.The 1MW Penguin WEC was installed at the European Marine Energy Centre’s (EMEC’s) grid-connected wave test site at Billia Croo by Orkney-based Green Marine.This is the first of three wave energy converters due to be installed at EMEC over the next three years as part of the CEFOW (Clean Energy from Ocean Waves) project, funded by the European Union’s Horizon 2020 research and innovation program.Wello’s Penguin device uses its asymmetric shape to convert the waves to electricity with continuous rotational movement.In a floating element, motion energy is directly captured by a generator, resulting in conversion from movement to electricity without hydraulics, joints or gears.Tidal Energy Today Staff
The Baa2 issuer rating and senior unsecured rating of Danish shipping and oil major Maersk have been placed on review for downgrade, according to Moody’s ratings agency.Additionally, the company’s senior unsecured medium-term note (MTN) programme’s (P)Baa2 rating was placed on review for downgrade as well.The rating action follows Maersk’s announcement that it agreed to dispose of its Maersk Oil division to Total S.A. (Aa3 stable) for an enterprise value of USD 7.45 billion. The company is to receive USD 2.5 billion in cash, which will be used to repay debt, and USD 4.95 billion in shares (97.5 million shares representing 3.76% of Total S.A. share capital).Total S.A. will take over all decommissioning obligations currently amounting to USD 2.9 billion. The divestment is in line with Maersk’s previously announced strategy of separating its energy assets from the Transport and Logistics (T&L) business.“We have placed Maersk’s ratings on review for downgrade due to significant uncertainty regarding how much, if any, of its outstanding debt it will repay using the value of the Total S.A. shares,” Maria Maslovsky, Moody’s Vice President — Senior Analyst and the lead analyst for Maersk, said.Moody’s downgraded Maersk’s issuer rating and senior unsecured rating to Baa2 from Baa1 in December 2016.At the time, the company’s medium-term note (MTN) program rating was also downgraded to (P)Baa2 from (P)Baa1 and all ratings were placed on negative outlook.
Saipem has signed a contract with Eni in relation to the West Hub Development project in Angola, which incorporates the work orders previously assigned and communicated in 2016 and 2017 and adds the scope of work for the development of the Vandumbu field in Block 15/06.The additional activities will be carried out by the Offshore E&C division and encompass the engineering, procurement, construction and installation required for the development of the Vandumbu subsea field at deepwater depths ranging from 1300 to 1500 metres.Overall the project includes the realisation of two production pipelines made of special material, and the laying of umbilicals and service lines of various diameters (subsea, umbilicals, risers & flowlines – SURF).In addition, Saipem has been awarded a new contract in the Gulf of Mexico involving the transportation and installation of the compression platform CA-KU-A1 on behalf of Dragados Offshore de Mexico S.A. de C.V. (DOMSA). Operations will be carried out by the semi-submersible vessel Saipem 7000.Furthermore, Saipem has been awarded new contracts in Offshore Drilling, in two areas of primary interest for the company. A/S Norske Shell has assigned the drilling of one well, plus an optional well, offshore Norway. Drilling works will be carried out by the semi-submersible Scarabeo 8, starting in the second quarter of 2018 and lasting 2 months.In the Arabian Gulf, Saipem will carry out drilling activities for the National Drilling Company (NDC) using the jack-up Perro Negro 8 for a period of ten months beginning in late 2017.
U.S. engineering company McDermott, whose pending merger with CB&I is due to be voted on in early May, has rejected a takeover offer from the UK-based Subsea 7.Subsea 7 confirmed on Monday that it made a proposal to the board of directors of McDermott on April 17, 2018, to acquire the entire issued share capital of McDermott. This would call for the cancellation of the merger with CB&I.Subsea 7 proposed to acquire McDermott common stock for $7 per share, payable entirely in cash or up to 50% in Subsea 7 stock and the balance in cash. This proposal represents a premium of 16% to the latest closing share price of McDermott on April 20, 2018, and a premium of 15% over the volume weighted average share price of McDermott over the previous 20 trading days.According to the New York Times, the value of the unsolicited offer by Subsea 7 is around $2 billion.The proposal letter sent by Subsea 7 to McDermott stated that Subsea 7 would consider increasing its proposed price upon further assessment of McDermott’s business through discussions with McDermott management.Additionally, for any stock consideration, Subsea 7 added it was open to discussing listing options for the shares of the combined company.Subsea 7 underlined its belief that its proposal was superior to McDermott’s proposed combination with CB&I, and the proposal was subject to the termination of McDermott’s pending transaction with CB&I.On April 20, 2018, the board of directors of McDermott rejected Subsea 7’s proposal. ‘Compelling opportunity’ Later on Monday, McDermott confirmed that its board had rejected an unsolicited, non-binding proposal received from Subsea 7.McDermott said that its board carefully reviewed and considered the proposal in consultation with its outside financial advisors and legal counsel. The board concluded that the proposal was not in the best interests of the company or its stockholders as it significantly undervalued McDermott and was not an attractive alternative to the proposed combination with CB&I. Accordingly, the company’s board rejected the proposal.Offshore Energy Today Staff Jean Cahuzac, Subsea 7’s Chief Executive Officer, stated, “Given the attributes of the proposed transaction and our stated ability to further enhance our proposed terms, we encourage the McDermott board of directors to reconsider this compelling opportunity to combine two complementary businesses.”He added: “Our proposal provides equity upside in a company with a robust financial position, as well as a meaningful premium. We see significant merit in such a transaction for all shareholders, and with our financial and legal advisors continue to be open to discussions.”Subsea 7 also believes there would be significant benefits to all pro forma shareholders from a combination of the businesses, including strengthened capabilities, growth prospects, synergies, and financial flexibility.Subsea 7’s proposed transaction would not be subject to any financing conditions or Subsea 7 shareholder approval. It would be subject to regulatory and other customary closing conditions.CB&I merger hurdles cleared It is worth reminding that McDermott’s merger with CB&I is scheduled to be completed in the second quarter of this year. All regulatory hurdles have already been cleared and shareholders from both companies will vote on the proposed merger on May 2.Ahead of the vote, the merger was challenged by a company which owns nearly 2% of McDermott, claiming that the transaction as currently structured was materially less attractive than what management negotiated.On the other hand, an independent proxy advisory firm recently recommended that McDermott stockholders vote “FOR” each of the proposals relating to the combination with CB&I, calling the industrial logic of the deal solid.The two companies have already chosen their new leadership and organizational structure with David Dickson, current CEO of McDermott, set to take that role in the new company as well. Subsea 7 ‘undervalued’ McDermott
In an effort to be able to handle next-generation ships and heavier cargoes, the US Port of Everett has embarked on the largest capital project in its history by dollar value.On August 15, the port hosted a groundbreaking to commemorate the start of construction on the South Terminal Modernization Project which is said to be the largest maritime construction project on the West Coast today.As explained, the USD 36 million project will ensure the port’s facilities are ready to support the next generation of over-dimensional cargo, including aerospace parts for the new 777X.“Completing critical infrastructure upgrades like this will better position the port and its facilities to handle the larger vessels and heavier cargoes now calling Everett, including aerospace parts for the new 777X and other opportunities on the horizon,” Glen Bachman, Port of Everett Commission President, commented.“I find it fitting that as we celebrate the Port of Everett’s centennial year in 2018, we continue to be forward thinking, preparing the Port’s infrastructure to carry us into our next 100 years.” – Port Commission President Glen Bachman pic.twitter.com/BXbwEztUEE— Port of Everett (@PortofEverett) August 15, 2018“Since 2015, the port has invested millions of dollars to adapt its facilities to support the next generation of shipping, and this major infrastructure investment is a continuation of that effort,” Lisa Lefeber, Port of Everett Acting CEO, said.The South Terminal facility is a key piece of the port’s overall seaport modernization efforts as it is the largest of the port’s docks by land footprint. However, the dock was originally built in the 1970s to support log operations, and in its current state, can only accommodate 500 pounds per square foot (psf). Modern cargo operations require a minimum of 1,000 psf.The South Terminal Modernization Project (Phase II) strengthens the remaining 560-feet of the 700-foot South Terminal dock structure (140-feet was strengthened as part of Phase I in 2015) and makes electrical upgrades at the wharf. Upon completion, the dock will be strong enough to accommodate two, 100-foot gauge rail-mounted container cranes and provide vaults for ships to plug into shorepower while at the dock.In 2017, the port completed two rail upgrade projects totaling more than USD 8 million. With the help of the port’s 2-percent for public access policy, the project is also generating USD 586,000 to the city of Everett to improve public access along the waterfront that doesn’t conflict with a vibrant working waterfront.The seaport modernization also received nearly USD 22 million in federal loans from the TIGER grant program and FAST Lane grant program as well as the Congestion Mitigation Air Quality (CMAQ) program.The Port of Everett, located 25 miles north of Seattle, is a strategic self-operating seaport that supports nearly USD 30 billion worth of US exports annually, the second largest export customs district in Washington state.
How are you going to chase opportunities of working closely together and being more flexible? A table discussion featuring both the young generation and the established will probably lead to answers.The discussion aims to give practical solutions to explore synergies between generations, inspire to thrive in new technologies and transform brain drain into brain gain.Join the Young IRO side event on October 23 from 14:30 – 17:00 during Offshore Energy Exhibition & Conference.Offshore Energy 2018Offshore Energy attracts a global audience of offshore energy professionals and features an exhibition where over 600 companies will showcase their products and services. Offshore Energy covers both the exploration and production of the conventional energy resources, oil & gas, and the renewable part of the energy mix such as offshore wind and marine energy. It is the place to find out where the future of energy is headingThis year’s Offshore Energy Exhibition & Conference will be held on (22), 23 & 24 October 2018. Last year, Young IRO looked at the future: the changing world requires us to be more flexible. This year Young IRO wants to bridge the gap between the young and the established through closer cooperation.
Norwegian shipping company Torvald Klaveness managed to improve its financial performance in 2018 after consolidating its combination carrier activities.Klaveness delivered a profit before tax (EBT) of USD 10.1 million in 2018, compared to a loss of USD 2.1 million seen a year earlier.EBITDA for 2018 was USD 37 million, up from USD 28 million in 2017. The combination carriers were the largest contributor to the EBITDA, according to the company.“The financial results of Torvald Klaveness improved in 2018 both due to somewhat improved underlying markets and a more optimal trading pattern and contract composition for the combination carriers,” Klaveness said.During the year, the company focused on consolidating combination carrier operations under one holding company, Klaveness Combination Carriers AS, and further developing its activities through raising external capital, registering the shares on N-OTC and growing the newbuilding program by three vessels.In addition, Klaveness has continued to invest in digital initiatives and maintain its position among dry bulk operators and pool managers.Gross revenues from operation of the company’s vessels ended at USD 317.5 million in 2018, compared to USD 326.6 million in 2017, while net revenue from operation of vesselsended at USD 89.7 million in 2018, against USD 78 million recorded in 2017.The combination carriers continued to deliver positive results in 2018. Earnings for the nine vessels on water, the caustic-bulk (CABU) combination carriers, strengthened in 2018, mainly due to somewhat improved dry bulk markets, a more optimal trading pattern, a higher number of caustic soda cargoes and higher bunker fuel prices.Both the dry bulk market and the container market continued to improve in 2018, however, sentiment in both markets turned negative towards the end of the year. Average container vessel earnings improved in 2018 and the vessels still achieved rates above the general market due to the vessels’ fuel efficiency.Results for the dry bulk activities were positively impacted by active long and short positions along with market development. However, weather delays and related extended port stays impacted the results negatively, the company explained.
JFD has recently completed a comprehensive submarine rescue exercise to mobilise the entire NATO Submarine Rescue System (NSRS).The exercise, titled Golden Arrow, provided hands-on training that further optimises the crew’s ability to conduct rescue operations, ensuring the capability remains ready to seamlessly respond to an incident anywhere in the world.The Golden Arrow exercise involved the full mobilisation and demobilisation of the NSRS rescue system from Glasgow’s King George V Dock, as well as operational training including the safe launch and recovery of the submarine rescue vehicle (SRV), laying the mating target, and conducting mating and hyperbaric operations, JFD explains.During the exercise, JFD also took the opportunity to formally demonstrate to the participant nations the ability to launch and recover NSRS’s submarine rescue vehicle without the use of a support boat, or deploying swimmers. The diverless launch and recovery system – known as “DLARS” – is a feature of several of JFD’s submarine rescue systems.Richard Devlin, head of operations – EMEA region, global submarine escape and rescue, JFD, said: “The Golden Arrow exercise provided JFD with the opportunity to once again demonstrate the world-class capability of NSRS. Our highly trained operational team worked around the clock to ensure the exercise was completed safely and efficiently, instilling further confidence for the participating nations of France, Norway and the UK such that, in the event of an emergency, the NSRS can mobilise quickly and effectively.”Upon completion of the exercise, the mothership (MOSHIP) transited back to the disembarkation point at King George V Dock, from where the equipment was returned to HMNB Clyde where it remains primed and ready to respond instantaneously.To date, JFD has undertaken eight successful rescue exercises throughout the course of operating NSRS, reinforcing its responsibility in assuring the operations team is fully trained in all aspects of a safe rescue.The exercise also offered the chance to demonstrate multi-national submarine rescue co-operation and provides a platform for sharing knowledge amongst participating nations.
The company’s MRs earned $19,300 per day compared to $17,700 in the prior quarter, while its chemical tankers earned $19,700 per day compared to $14,300 in the prior quarter. The fleet growth is expected to be limited in the upcoming two years staying at around 1.7 and 1.8 percent in 2020 and 2021 respectively. As a result of robust tanker demand, the rates in the second quarter have been rising even further, with MR voyages being book at $ 24,000 per day, with 55% of fixed for the quarter. Source: Ardmore “Based on these levels of oversupply, approximately 20% of the world tanker fleet could be committed to floating storage by the end of June, which is unprecedented. Floating storage is expected to rise rapidly as a practical and viable option,” Paul Tivnan, Chief Financial Officer of Ardmore Shipping, said in a conference call. The depleting on-shore oil storage capacities are expected to be capped by mid-May, according to the estimates from the International Energy Agency (IEA). IEA estimates that there are approximately 100 million barrels of available operational capacity in storage as of the end of April. A global oversupply of oil resulting from lower demand due to the COVID-19 pandemic and high production level has seen the unprecedented shortage of storage capacities translating in high rates for floating storage. “When an economic recovery does occur, oil demand would rise with it, with oil products available but in the wrong locations and a significant portion of the world tanker fleet still tied up in storage. This, we believe, could result in potentially a third round of strong rates,” he said. “In particular, if and when the oil market reaches max capacity for shore oil storage, we may enter a new and potentially more volatile phase of the tanker market, and if and when oil demand rebounds with an economic recovery sometime in the third quarter as the IEA are forecasting, we would expect more demand-driven volatility, potentially carrying into the winter. The MR order book is at an exceptionally low, with 173 product tankers on order and with around 80 MRs over 23 years old, which will be the likely candidates for scrapping. Ardmore reported a net income of $6.5. million for the first quarter of 2020, compared to a net loss of $9.2 milion in Q1, 2019 amid strong MR charter market. The net loss for the three months ended March 31, 2019, includes the loss on the sale of the Ardmore Seamaster of $6.6 million. Tanker owners have been reporting high earnings for the first quarter of this year amid soaring rates increasing by the week as demand for tanker storage shoots up. According to Ardmore’s CEO Anthony Gurnee, under such market conditions, the value of floating storage could go extraordinarily high resulting in the second round of strong tanker rates. “And most recently, we’ve booked voyages as high as $72,000 a day. So clearly, the market has been building over time. Any increase in TCE performance goes straight to the bottom line with every $10,000 a day increase in TCE performance adding $90 million to earnings and cash flow annually,” he added. Gurnee said that over the past three weeks the company’s MR voyages in progress have been earning $28,200 per day. The company has 25 vessels in operation, including 19 Eco MR tankers and six Eco-Design IMO 2 product / chemical tankers.
3 News 20 Aug 2012Loan sharks charging interest rates of up to 400 percent per annum are exploiting Maori, Pacific and low income New Zealanders, Otago University researchers say. The study by the university’s health promotion and policy research unit in Wellington says the impact of loan sharks in low income suburbs of South Auckland and other cities is affecting the health and well-being of New Zealanders. “Loan sharks target and thrive in low income communities because consumers are borrowing for everyday needs,” says lead researcher Associate Professor Louise Signal. The study recommends tighter regulation of loan sharks, including a cap on interest rates at 48 percent per annum, and introduction of responsible lending requirements. The study also says more work needs to be done to inform vulnerable communities about financial literacy and the risks involved with loan sharks and borrowing.http://www.3news.co.nz/Researchers-call-for-loan-shark-regulation/tabid/421/articleID/266067/Default.aspx