DRY BULK’S
BIGGEST SPENDERS
IN 1 Y EAR
THE BALTIC DRY INDEX 2015-2016
1400
Source Baltic Exchange
Fig. 1
1200
Points
1000
800
600
400
200
12/02/2016, 290
0
01/08/15
01/10/15
01/12/15
01/02/16
01/04/16
BDI
01/06/16
01/08/16
01/10/16
All-time low
In the last month, we have seen the Baltic Dry Index (BDI) recover to the
same level it was 12 months ago (see circles in fig.1). Vessel values have
started to firm, but not at the same rate and are still at historically low
levels.
In the last 12 months, contrarian owners have taken advantage of the low
values and have been buying cheap tonnage. With hindsight, this looks to
have paid off with many values having increased above the purchase price.
The purpose of this article is to look at which dry bulk owners have been
buying the most in the last year.
5 BIGGEST SPENDERS IN DRY BULK OVER LAST 12 MONTHS
Fig. 2
247
Spent USD M
246
197
181
167
F LE ET D EVE LOP M E N T
Source VesselsValue
Fig. 3
10,000,000
9,000,000
Fleet Size - DWT
8,000,000
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0
23/10/15
12/12/15
31/01/16
Anangel Maritime Services
21/03/16
Zodiac Maritime
10/05/16
29/06/16
Oldendorff Carriers
18/08/16
07/10/16
Winning Shipping
Spend USD
ANANGEL MARITIME SERVICES
Size change
Celsius Shipping
$247m
863,200 DWT
In January of this year Anangel purchased seven Capes (four resales from Star
Bulk and three 1 year old vessels from Scorpio Bulkers) at USD 247m. Current VV
market value is USD 230m.
John Angelicoussis, principal at Anangel, has a reputation at picking the bottom
of the market. For example, following the supercycle in 2007-8 he bought the
cape resale Anangel Argonaut (177,800 DWT, 2009 Blt, SWS) at USD 63.50m.
Following this he bought three more resale capes from Scorpio also at a market
bottom in April 2015. Fig. 4 illustrates the timing of these purchases Vs the
market.
Fig. 4
Anangel's timing
14000
12000
Points
10000
8000
6000
4000
2000
0
10/10/06
22/02/08
06/07/09
Source
VesselsValue
Baltic Exchange
18/11/10
01/04/12
Anangel Purchases
14/08/13
27/12/14
10/05/16
BDI
Spend USD
ZODIAC MARITIME
Size change
$246m
-91,000 DWT
Eyal Ofer's operation was buying steadily throughout 2015 and closed the year off
with a mammoth acquisition from Scorpio. Following two lone purchases in
December 2015 (PRT Future) and March 2016 (Grand Future), Zodiac began
scrapping, shedding nearly 1.5 million DWT. This brought Zodiac's fleet back to the
similar level it was at in 2015, shrinking the fleet by 57,800 DWT year-on-year.
Following a spend of USD 246m (todays equivalent price: USD 236m), new
additions to the fleet have a VV value of USD 235m.
Spend USD
WINNING SHIPPING
Size change
$197m
1,207,800 DWT
Winning begun the year scrapping some of their older tonnage as the rates and
asset prices slumped. Winning’s first purchase was the acquisition of the Golden
Hope (176,900 DWT, 2009 Blt, Namura) at USD 18.5m. Winning focused on buying
throughout the rest of 2016, also purchasing two Capes with its management arm,
Winning Alliance. Winning has grown their fleet by 49% with a spend of USD 197m.
The current value of acquisitions is USD 192m.
Spend USD
OLDENDORFF CARRIERS
Size change
$181m
1,095,500 DWT
Oldendorff has been more active in S&P in weaker markets and the last 12 months
have been very busy for the shipowner (see fig. 5). Overall fleet growth in the period
was 23% adding 1.1m DWT to the fleet. Oldendorff’s first purchase was a bank sale
of Paragon Shipping’s distressed assets. The shipowner’s purchases have
predominantly been distressed transactions and cheap Chinese ships adding
good value to the acquisitions. In the early months of 2016, a spate of scrapping
removed some of the fleet’s older assets and a further sale of a 2005 laid up
Supramax in March saw the fleet at its smallest in year. From then on Henning
Oldendorff has been active in bulker S&P. Oldendorff spent USD 181m and the
acquisitions now have a VV Value of USD 216m, a 19% increase in asset prices.
Fig. 5
Oldendorff's Volume of Transactions
Number of transactions
15
4
2
2010
5
1
2011
4
1
2012
2013
2014
2015
2016
Source
VesselsValue
CELSIUS SHIPPING
Spend USD
Size change
$167m
688,800 DWT
Prior to the dry bulk crash Celsius were exclusively in the small chemical tanker
sector. Backed by Breakwater Capital (UK) and Bayside Capital (US), Celsius
purchased an Ultramax resale at Hantong SHI in May. Their appetite was for
Chinese-built, modern ships, snapping up a number of resales, many direct from
the yards including Huangpu and Yangfan Zhoushan. Over the course of 2016 their
fleet grew by 688,000 DWT (newbuilds included) with a spend of USD 167m. They
now operate a fleet of 4 Ultramaxes and Supramaxes with 3 vessels still to be
delivered. As it stands Celsius’ fleet of bulkers now has a market value of USD 196m
which equals a rise in values of 17% from the purchase price.
WILLIAM BENNETT
Senior Analyst
[email protected]
Direct +44 (0) 20 3327 9674
26/11/16