Seven Islands shipping Ltd, backed by Indian born Canadian businessman Prem Watsa – led Fairfax India holdings.
In 2022, U.S. crude oil exports reached a record of 3.5 million barrels per day, with boost in volumes delivered to Europe after the Russian invasion of Ukraine.
The Russian invasion of Ukraine and the subsequent reshuffling of global flows (temporarily) diverted attention away from the new international Maritime organization (IMO) and EU regulations focused on reducing emissions from the shipping industry. However, with new regulations in place, owners need to take action to remain compliant, provided the new regulations are properly enforced. As new regulations continue to be introduced and old rules are being tightened, shipping will be impacted.
“We expect a prosperous 2023 for tanker owners. However, it could be a bumpy ride,” Poten and Partners wrote in the note.
Seven Islands earn bulk of its revenue from three state-run oil firms- Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation – with whom its ships are deployed on time charter and on spot contracts.
In March 2019, Fairfax India acquired a 41.4 percent stake in Seven Islands for $71.8 million through a direct subscription of $28.9 million and a secondary acquisition from existing shareholders of $42.9 million. In September and October 2019, Fairfax India acquired an additional 7.1 percent from existing shareholders for $12.1 million, taking its total stake in Seven Islands Shipping to 48.5 percent.
Corporation, acquired a medium range (MR) oil tanker on Monday for an undisclosed amount as it continues to expand in a segment that is performing well for fleet owners, multiple sources said.
Seven Islands Shipping, India’s second biggest private oil tanker shipping company, took delivery of the tanker named ‘Victor 1’ and re-named it as ‘Bourbon’ after registering the ship under the Indian flag, a company official said. The purchase was funded through internal resources and debt.
The addition of the tanker swells Seven Island’s fleet to 25 ships comprising 18 oil product tankers, five crude tankers, one very large gas carrier and one liquefied petroleum gas (LPG) tanker.
All tanker segments will do well in 2023, predicts New York based ship brokerage Poten and Partners, Inc.
Product tankers will be the main beneficiaries of the dislocations that will result from the 5 February European Union import ban on Russian refined products, it said in a 13 January note.
“Increases in long –haul product trades (exports out of Russia and import into Europe) will drive ton-mile demand, in particular, for LR1 and LR2 (long range tankers) moves from Asia. MRs (medium range tankers) will receive a boost from increased transatlantic moves into Europe. As a result, although we project that all tanker segments will do well in 2023, we expect product carriers to outperform crude oil tankers,” Poten & Partners wrote in the note.
In 2022, U.S. crude oil exports reached a record of 3.5 million barrels per day, with a boost in volumes delivered to Europe after the Russian invasion of Ukraine.
“Growing U.S. oil exports (crude and products) will benefit all tanker segments,” the brokerage said.
The Russian invasion of Ukraine and the subsequent reshuffling of global trade flows (temporarily) diverted attention away from the new International Maritime Organization (IMO) and EU regulations focused on reducing emissions from the shipping industry.
However, with new regulations in place, owners need to take action to remain compliant, provided the new regulations are properly enforced. As new regulations continue to be introduced and old rules are being tightened, shipping will be impacted.
“We expect a prosperous 2023 for tanker owners. However, it could be a bumpy ride,” Poten & Partners wrote in the note.
Seven Islands earn bulk of its revenue from three state-run oil firms- Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation- with whom its ships are deployed on time charter and on spot contracts.
In March 2019, Fairfax India acquired a 41.4 percent stake in Seven Islands Shipping for $ 71.8 million through a direct subscription of $ 28.9 million and a secondary acquisition from existing shareholders of $ 42.9 million. In September and October 2019, Fairfax India acquired an additional 7.1 percent from existing shareholders for $12.1 million, taking its total stake in Seven Islands Shipping to 48.5 percent.
Source: Infra Economic Times
