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

Profitability shot up in 2Q17, thanks to a better freight market and benefits from NOL acquisition: CMA CGM posted higher revenues by 57% y/y at the end of the second quarter at USD 5.5bn, which translates into USD 19bn annualised (USD  15.9bn at end FY16). The group benefitted from a 33% surge y/y (4.7 mteu) in transported volumes  (NOL's contribution, along with launch of Ocean Alliance) and improved freight rates. CMA CGM achieved a price of USD 1,134 per teu (container shipping revenues only…

Profitability shot up in 2Q17, thanks to a better freight market and benefits from NOL acquisition: CMA CGM posted higher revenues by 57% y/y at the end of the second quarter at USD 5.5bn, which translates into USD 19bn annualised (USD  15.9bn at end FY16). The group benefitted from a 33% surge y/y (4.7 mteu) in transported volumes  (NOL's contribution, along with launch of Ocean Alliance) and improved freight rates. CMA CGM achieved a price of USD 1,134 per teu (container shipping revenues only…

CMA CGM Credit Research 2Q17 Results Update - Credit Outlook Stable - Bond Valuation Neutral

Equity Research Analyst, Maritime sector, Drewry Maritime Financial Research

Ankush Kathuria CFA, FRM

Equity Research Analyst, Maritime sector

Thematic (Sector/Industry)

Supply-demand balance still delicate, but better than last two years. The balance between supply and demand is still wafer-thin, which has had its impact, despite the peak season being underway. Our latest numbers suggest that the peak season freight rate growth is expected to be moderate this year. On the Asia-Europe trade, the late summer lull in shipments was a headwind, while the Transpacific still suffers the overhang of excess supply. In addition, massive factory closure in China…

Supply-demand balance still delicate, but better than last two years. The balance between supply and demand is still wafer-thin, which has had its impact, despite the peak season being underway. Our latest numbers suggest that the peak season freight rate growth is expected to be moderate this year. On the Asia-Europe trade, the late summer lull in shipments was a headwind, while the Transpacific still suffers the overhang of excess supply. In addition, massive factory closure in China…

Container Shipping - A Rising Tide Floats All Boats

Equity Bottom-Up

Profit on expected lines. Hapag-Lloyd’s (HL’s) overall revenue for 2Q17 was EUR 2.4bn, which is up 28% y/y. This figure includes EUR 199m of revenue contribution from UASC, which completed its merger with HL on 24 May. The company’s EBITDA of EUR 229m was triple the figure reported last year which helped the margin to shoot up to 10% vs. 4% in 2Q16. The EBIT on the other hand came in at EUR 84m – a reversal from the loss of EUR 45m reported last year. This lifted HL’s operating margin to a…

Profit on expected lines. Hapag-Lloyd’s (HL’s) overall revenue for 2Q17 was EUR 2.4bn, which is up 28% y/y. This figure includes EUR 199m of revenue contribution from UASC, which completed its merger with HL on 24 May. The company’s EBITDA of EUR 229m was triple the figure reported last year which helped the margin to shoot up to 10% vs. 4% in 2Q16. The EBIT on the other hand came in at EUR 84m – a reversal from the loss of EUR 45m reported last year. This lifted HL’s operating margin to a…

Hapag-Lloyd AG (HLAG GR) - On Track to Maintain Full Year Profitability; Upgrade to Attractive

Transport Sector, China and Asia-focused Research

Charles De Trenck

Event-Driven

COSCO is adding two more OOs to its name.  This was an open secret for years, given 1) repeated un-announced <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> approaches, and 2) its strong support for OOHL (Orient Overseas (Holdings) Ltd) back in the late ‘80s during the Group’s financial rescue. In fact, the late-80s rescue was not COSCO per se but the Ministry of Communications.And despite all the “reforms” in China, COSCO’s bottomless pit access to funding and good money after bad for its…

COSCO is adding two more OOs to its name.  This was an open secret for years, given 1) repeated un-announced COSCO SHIPPING Holdings Co., Ltd (H) (1919 HK) approaches, and 2) its strong support for OOHL (Orient Overseas (Holdings) Ltd) back in the late ‘80s during the Group’s financial rescue. In fact, the late-80s rescue was not COSCO per se but the Ministry of Communications.And despite all the “reforms” in China, COSCO’s bottomless pit access to funding and good money after bad for its…

COSCO – OO: A Done Deal Many, Many Years Ago …Only Price Was Debatable…On to CMA-CGM  & Hapag

4Q profit but FY16 remains in the red. Hapag-Lloyd (HL) reported another quarterly profit in 4Q16, delivering a profit of EUR 40m, stronger than DFRS’s estimated profit of EUR 6m. However, for the full year, it reported a loss of EUR 97m versus a profit of EUR 112m in FY15. Even though its revenue was weak (-13% y/y to EUR 8.5bn), lower transport costs (-13% y/y) and synergies from CSAV enabled the company to register an EBITDA margin of 8%. Liftings were marginally up by 3% to 7.6m teu but…

4Q profit but FY16 remains in the red. Hapag-Lloyd (HL) reported another quarterly profit in 4Q16, delivering a profit of EUR 40m, stronger than DFRS’s estimated profit of EUR 6m. However, for the full year, it reported a loss of EUR 97m versus a profit of EUR 112m in FY15. Even though its revenue was weak (-13% y/y to EUR 8.5bn), lower transport costs (-13% y/y) and synergies from CSAV enabled the company to register an EBITDA margin of 8%. Liftings were marginally up by 3% to 7.6m teu but…

Hapag Lloyd AG (HLAG GR, Neutral, EUR 28) - Add HL to a Long-Term Position on Any Pullback

Germany

Hapag-Lloyd AG operates as a container shipping line company. The Company offers transportation of goods by sea, road, rail, and inland waterway vessels. Hapag-Lloyd serves customers worldwide.

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Hapag-Lloyd AG (HLAG GR)

CMA CGM Credit Research 2Q17 Results Update - Credit Outlook Stable - Bond Valuation Neutral

Profitability shot up in 2Q17, thanks to a better freight market and benefits from NOL acquisition: CMA CGM posted higher revenues by 57% y/y at...

Drewry Maritime Financial Research

Container Shipping - A Rising Tide Floats All Boats

Supply-demand balance still delicate, but better than last two years. The balance between supply and demand is still wafer-thin, which has had its...

Drewry Maritime Financial Research