In the period of 2012-2013 there will be such an economic situation on the world market of hydrocarbons shipping that takeover of other companies will be profitable, Sovcomflot President & CEO Sergey Frank said yesterday during his lecture at Graduate School of Management of St. Petersburg State University, PortNews correspondent reported.
According to the head of one of the world's largest tanker companies, today about 40-50% of the loans in the shipping industry are "bad loans". He explained that such credits were extended before the crises to the shipping companies that are currently not able to fully meet its financial obligations.
"European banks, including German banks are not rushing to accept such loans," added Mr. Franc. He believes the problem is one of the two major problems in the industry: "This is the first factor that has depressive effect on the market."
Sergei Frank said that the second factor, which also has the impact on shipping, is the swelling Chinese shipbuilding market, which has huge financial resources. "They want to create their own shipbuilding market, number one in the world, and I have no doubt, they will become shipbuilders number one,” said Sergey Frank.
"This situation will persist until 2012-2013. But it gives opportunities for merger, it’s time for takeovers," Sovcomflot’s President said.
St. Petersburg-based Sovcomflot (Modern Commercial Fleet, JSC SCF) is Russia's largest shipping company, one of the world's leading energy carriers. SCF ranks among five top tanker companies in the world. The Group’s fleet of 146 vessels has a total deadweight of over 10 million tons and 10 newbuilds with a total deadweight of 0.8 million tons. The average age of the SCF's tanker fleet vessels is about 7 years.
According to the head of one of the world's largest tanker companies, today about 40-50% of the loans in the shipping industry are "bad loans". He explained that such credits were extended before the crises to the shipping companies that are currently not able to fully meet its financial obligations.
"European banks, including German banks are not rushing to accept such loans," added Mr. Franc. He believes the problem is one of the two major problems in the industry: "This is the first factor that has depressive effect on the market."
Sergei Frank said that the second factor, which also has the impact on shipping, is the swelling Chinese shipbuilding market, which has huge financial resources. "They want to create their own shipbuilding market, number one in the world, and I have no doubt, they will become shipbuilders number one,” said Sergey Frank.
"This situation will persist until 2012-2013. But it gives opportunities for merger, it’s time for takeovers," Sovcomflot’s President said.
St. Petersburg-based Sovcomflot (Modern Commercial Fleet, JSC SCF) is Russia's largest shipping company, one of the world's leading energy carriers. SCF ranks among five top tanker companies in the world. The Group’s fleet of 146 vessels has a total deadweight of over 10 million tons and 10 newbuilds with a total deadweight of 0.8 million tons. The average age of the SCF's tanker fleet vessels is about 7 years.