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27-01-2011, 12:47 AM
Owners warned over huge decline in ship values
by Lloyds List — last modified Jan 25, 2011 12:14 PM
http://www.lloydslistdcn.com.au/archive/...hip-values
I am posting this here to remind shipping trust unit-holders that the risk of asset devaluation remains high as long as the shipping over-supply isn't resolved. Ship Trust with VTL covenants in their loans will be directly impacted by any down-wards pressure in the vessel valuation.
PST has 5 un-financed vessel capex due to be delivered in 2H 2012 and 1Q 2013. Will this impact its ability to secure attractive financing ? Granted, the revenue to asset ratio of the 9 recently acquired vessel is superior to its current fleet ratio which implies an accretive acquisition. Either way, I expect PST to raise at least US$50 million to strengthen its balance sheet further in 2012. This makes up slightly less than 25% of its current market capitalization or NAV.
(Vested)
PS: Shipping Trust isn't a low risk-high return investment. There are risk involved so study them well before buying/selling.
by Lloyds List — last modified Jan 25, 2011 12:14 PM
http://www.lloydslistdcn.com.au/archive/...hip-values
I am posting this here to remind shipping trust unit-holders that the risk of asset devaluation remains high as long as the shipping over-supply isn't resolved. Ship Trust with VTL covenants in their loans will be directly impacted by any down-wards pressure in the vessel valuation.
PST has 5 un-financed vessel capex due to be delivered in 2H 2012 and 1Q 2013. Will this impact its ability to secure attractive financing ? Granted, the revenue to asset ratio of the 9 recently acquired vessel is superior to its current fleet ratio which implies an accretive acquisition. Either way, I expect PST to raise at least US$50 million to strengthen its balance sheet further in 2012. This makes up slightly less than 25% of its current market capitalization or NAV.
(Vested)
PS: Shipping Trust isn't a low risk-high return investment. There are risk involved so study them well before buying/selling.
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.