Mia Jensen, Director Greece & Events Organiser, Marine Money International opened the seminar and introduced the first speakers Chara Georgousi and Matthew Harrington, Research Analysts, Allied Shipbroking Ltd.who asked Must what goes up come down? They said that dry bulk carrier fleet remains much younger than the tanker, n/b prices are unlikely to decrease even if yards utilization rates drop. Fleet renewal will be driven by aging vessels and decarbonization rules.
BEST SHIPPING STRATEGY IN THE CURRENT MARKET
A panel followed with speakers Jerry Kalogiratos, Chief Executive Officer, Capital Clean Energy Carriers Corp.
Achilleas Tasioulas, Chief Financial Officer, GasLog Ltd. & GasLog Partners LP
George Souravlas, Founder & CEO, Load Line Marine SA, Aristides Pittas, Chairman and Chief Executive Officer, Euroseas Ltd. / EuroDry Ltd. The discussion was Moderatored Resianna Zachou, Director, Shipping Industry Centre of Excellence, PwC
The speakers pointed out that there seems to be few clouds on the horizon for shipping. The mix of supply, demand, regulation and geopolitics looks set to keep shipping in a good place for the next years. The companies took advantage of the favorable conditions in the freight market to modernize their fleets with newbuilding ships selling older tonnage.
Euroseas modernized it’s fleet with 9 newbuilding feeder container vessels chartering them in long time periods.
The speakers also referred to the parameters that will influence the shipping market like geopolitical tensions, climate crisis, de globalization and decarrbonization regulations. By keeping your operating costs at the lowest and take strategic decisions regarding energy transition and digital transformation you can feel safe in a constantly changing world. The speakers also focused on the investments that may have been made in the transportation of new modes of energy like ammonia CO2 etc. The shipowners should not take too much risks in adopting new fuels since we don’t know which fuels will prevail in the future. In addition to this EUETS FuelEU must give incentives to all stakeholders to reduce carbon emissions. Finally the speakers are optimistic for the market as the fundamentals are robust although shipping is a volatile business. The only concerning issue is the supply of vessels because of the extensive newbuilding orderbook.
CURRENT INVESTMENT OPPORTUNITIES
The topic of Identifying current investment opportunities in LPG shipping was discussed by Peter Hadjipateras, Chief Information, Security and Sustainability Officer, Dorian LPG, John Theodorakis, COO, SwissChemGas Ltd., Constantine Hadjipateras, LPG Chartering, Arrow Hellas
Ahmed Bassuny, Chartering Director, Alpha Gas SA. The panel Moderatored by Nick Filippou, Managing Partner, Anfil Gas. Greek shipowners have diversified to new sectors in recent years, one being LPG. The market is strong and growing. Vessels, new and second hand, have increased in value substantially. The speakers marked that the anticipated demand growth for ammonia, with multiple tankers slated to incorporate ammonia in their cargo list. These pumps are used in specifically LPG tankers, to handle and transport ammonia (NH3) as cargo.
CAPTAIN OF INDUSTRY
In the session Captain of Industry Spyros Capralos was interviewed by Kevin Oates.
Spyros Kapralos has spent his life as a leader in sports, finance and shipping. Apart from other highlights he represented Greece at the 1980 and 1984 Olympic Games, he was Chairman and CEO of the Athens Exchange. During the last 15 years he has served the position of CEO of Star Bulk Carriers Corp., CEO of Oceanbulk Containers and now Chairman of the Board of Directors at Star Bulk Carriers Corp. He is also President of the Hellenic Olympic Committee, President of the European Olympic Committee and a Member of the International Olympic Committee.
Spyros Kapralos highlighted on his decision to be involved in shipping under the guidance of Petros Pappas managing to expand the fleet of StarBulk to the largest Stock Exchange listed bulk carrier company worldwide. Through mergers and acquisitions the company aims at significant at significant cost savings and returns for the investors.
He referred to the company’s investment to install scrubbers in all vessels and the company’s strategy to address sustainability and digital transformation.
Talking for his involvement in the Olympic Committee he said that he is always inspired by the vision of the Olympic spirit and dream for peace and stability achieving the team spirit and commitment to the shipping business.
QUALITY DATA DRIVE SUSTAINABLE TRANSITION
The next panel was involved in the topic of quality data and how can these optimise vessel performance. The following speakers were discussed this important issue:
Dimitris Theodossiou, Managing Director, Danaos Management Consultants S.A.
George Rovis, Co-Founder & CSO, Seafair
Vassiliki Georgopoulos, Partner, Watson Farley & Williams
Philip Nielsen, Co-Founder, Oriani
The discussion was moderated by Semiramis Assimakopolou, Senior Vice President of Sales, Signal Group.
Quality data must be linked to the commercial performance of a company and benchmark several indexes meeting the IMO emissions targets and technical standards.
Quality data drive the sustainable transition while securing return on investment. Lacking data quality serves as a major challenge in driving, documenting, and financing the maritime sector’s route to net zero.
M&A ACTIVITIES
M&A activity was the next topic of the conference.
Douglas Mavrinac, Global Head, Maritime Investment Banking, Jefferies LLC and Harrys Kosmatos, co-CFO, Tsakos Energy Navigation Ltd were nterviewed by Edward Horton, Partner, Capital Markets Group, Seward & Kissel.
We are seeing more M&A activity in shipping, both private and public, than for some time.
CAPITAL MARKETS AND EQUITY INVESTMENTS
The topic of Capital markets and equity investments were discussed by Stavros Gyftakis, Chief Financial Officer, Seanergy Maritime Holdings Corp.
Evangelos Chatzis, Chief Financial Officer, Danaos Corporation
Simos M. Pariaros, Chief Administrative Officer, Euroseas Ltd. / EuroDry Ltd.
Hugh B. Eden II, Managing Director, Jefferies LLC
Moderator: Sally-Ann Underhill, Co-Office Managing Partner, Athens, Reed Smith
The current environment encourages joint ventures and not raising capital from the stock exchange because existing investors have to sacrifice value. Capital markets must the engine for growth but for different other market conditions.Both public and public equity have a important role to play and will go hand in hand in the future.
Shipping is making great earnings and cash flows look as if they have a two year runway. Vessel values are high to reflect the solid market fundamentals.
Today listed shipping companies have a huge pool of capital and have access especially to international bond equity.
In such an environment the earnings are very strong so to reinvest the profits you have to examine very carefully each case to take advantage of real opportunities.
In any case public equity is a choice for companies that would like to grow and to follow a corporate model.
FINANCE TO GREEK SHIPPING
Alexis Stephanou, Chief Financial Officer, Goldenport Group of Companies
Christopher Thomas, CFO, TC Holdings
Robert Perri, Chief Executive Officer, OceanPal Inc.
Thomas Lister, Chief Executive Officer, Global Ship Lease, Inc.
Yiannis Kourkoulis, Vice President of Purchase, SPM Shipping and Peter Theochari, Partner, Maritime, Trade and Offshore Group, Stephenson Harwood LLP (London) discussed best finance options and finance to Greek shipping in 2024.
Greek banks are back with a flurry and actively financing Greek owners. Global banks have appetite for larger deals from Greeks home and abroad.
Leasing solutions from Asia and Europe abound for deals big and small. Finance is plentiful and financiers have trouble free portfolios. The financing options is so diverse from lending banks leasing houses and other ways. The speakers also commented that the low margins in the interest of lawns helps the shipping companies to have a low leverage profile.
In addition to the above the last years there is a shift from European banks to the East financial institutions providing capital in very competitive terms. A general observation is you have money when you don’t need and when the times are difficult you hardly get financing.
TRENDS AND CREDIT REQUIREMENTS
In the following session financiers discussed trends and credit requirements.
Iraklis Tsirigotis, Director of Origination, Neptune Maritime Leasing, Nicholas Petrakakos, Partner & Managing Director - Maritime & Offshore, Investment Banking, Alantra, James Stove-Lorentzen Jr, Managing Partner, NorthCape, Mathias Haugen, Sales Manager, BOCOM Leasing, Wilhelm Magelssen, Partner/Fund Manager, NRP Maritime Asset Management AS and Alexia Hatzimichalis, Partner and Head of Athens Office, Watson Farley & Williams said that not all shipowners have access to any kind of financing. It depends on the company’s credibility track record and the structure of the project.However for big and medium shipowners have more access to financing because of the favorable market conditions. The offshore segment presents excellent opportunities for investors as well as new energy transportation such as ammonia and CO2 and other green projects. There is always a difference between the pricing and the security the potential lender may require.
Hundreds of billion will be needed to renew the global fleet in the next 10-20 years so the financing options will diverse more and more to meet the capital demand of the shipping market. Western banks because of Poseidon principles are more secured than the rest financing institutions however cyclically and geopolitical events may cause scarcity of funds in the foreseeable or long/medium term future.
SIRE 2.0 Initial Experience & Commercial Implications was presented by Efthymios Louridas, General Manager, Seacon Ships Management (Europe) S.A.
GREEK SHIPPING AT THE CROSSROADS OF DECARBONIZATION
There is a huge effort being made to meet decarbonisation targets and to make the Greek fleet cleaner. In this framework experts discussed the current situation and how to reach the coming targets.
They responded to questions like What technologies are now available? Is there a premium for being first mover? Are financiers doing anything to incentivize their clients to decarbonise through sustainability-linked loans?
What is the operating reality of decarbonization and its cost, and the progress being made by the Greek fleet. The topic was delivered by Vincent Willems, Finance Manager Marine LNG, Shell, Stergios Stergiou, Sustainability Director, Capital Clean Energy Carriers Corp., Spyridon Zolotas, Senior Director, South EMEA Region – Marine, RINA, Alexandros Damianidis, Partner, Watson Farley & Williams and Alexander Prokopakis, Executive Director, International Bunker Industry Association (IBIA).
Alignment with climate change objectives and environmental scope of the program/project are accessed according to the Poseidon principles and if the targets are achieved there is a reduction in the pricing of the facility in an effort to incentivize shipping companies to proceed with decarbonization process more quickly.
Speakers are confident that will be a premium embedded to the freight for eco friendly vessels and first sustainability movers.
In addition to these availability of new fuels and cost will be major factors that will determine the future of decarbonization.
FuelEU Maritime: From Challenge to Opportunity
FuelEU's upcoming implementation is spurring negotiations on FuelEU clauses in charter parties and ship management agreements.
Ralf Garrn, Managing Director, OceanScore highlighted opportunities to cut costs and secure profits by creating compliance surpluses through alternative fuels, optimizing shore power, and strategic compliance pooling.
GREEK SHIPPING FLYING HIGH
The Greek owned fleet is growing, the average age is falling, there is more diversification into gas and offshore. Liquidity levels are high and Greek banks and others are there to finance. Greek shipping really is flying high.
George Giannakis, Managing Partner - Maritime & Offshore Investment Banking, Alantra
Charis Plakantonaki, Chief Strategy Officer, Star Bulk Carriers Corp.
Nikos Gkezepis, Chief Financial Officer, Neptune Lines Shipping and Managing Enterprises S.A.
Christina Anagnostara, Managing Director, Investment Banking Division, AΧΙΑ Ventures Group Ltd explained how to future proof their businesses at this time of high liquidity, high rates and a good outlook for the next two years.
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