No. of Recommendations: 8
Some minor items this week, somewhat interesting
1. Tsakos Energy Navigation (TNP) finally reported their Q4 2012 results. The company
owns tankers of various sizes and operate vessel carrying crude oil, refined products, and
an LNG tanker. Overall, the refined products side seems to be doing a lot better than the
crude oil sector. The latter really depends on the vessel category. The larger vessel categories,
i.e. Suezmax and VLCC, being the worse impacted.

2. The US-listed dry bulk shippers have been trading at levels 80-98% off their peak levels in
2008. As bad as things have been, and as overpriced as some of their fleet values have
appeared, none of the companies involved have mentioned bankruptcy protection. Until
this past week, ... when reports of Excel Maritime (EXM) surfaced as a BK possibility--

3. Speaking of overvalued fleet, the folks at Ship Finance International (SFL)
released their 20F report for 2012. This is John Fredriksen-backed entity with a mixed
fleet of vessels- tankers, dry bulk vessels, offshore vessels and rigs, and container
vessels, about 65 vessels in all. The company has a summary table for the different category
of vessels, and some included notes.

This was for a subset of vessels (number of vessels, carrying value, charter-free market value)
In 2011:
Tankers 25 1219 732
Dry bulk 12 356 308
Offshore 2 92 77
Container 13 580 455

In 2012: (I'm guessing the same vessels given the consistent vessel numbers)
Tankers 25 1177 658
Dry bulk 12 348 244
Offshore 2 82 77
Container 13 563 325

There's a comment in the notes for each year that the three Ultra Deepwater drilling
assets are at least $475M undervalued. That category is not a problem. But glancing
at the other categories, ... First, note the deviation between the carrying values and the
market values. Then, look what happened to vessel values in one year!
(Pages 41-42)

Luckily, SFL have about $260M in cash or short-term investments available.

4. A mega-ship unloads in China
A gigantic Valemax (400k DWT vessel) was allowed to unload a significant portion
of its load in a Chinese port. First time since a Jan 2012 ban was put in place.

SFL & TNP positions, but no dry bulk positions
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