Transportation Sector Review: TEN’s Tall Order from Korea, Ship Finance Halts Horizon Deal
Tsakos Energy Navigation (NYSE:TNP): Tsakos Energy Navigation Ltd, or TEN, announced the order of one plus one state-of-the-art LNG carrier for delivery Q1 2015 at a major South Korean yard. The vessel is of the new tri-fuel design enabling the ship to run on fuel oil, marine diesel/gas oil and natural gas offering attractive alternatives to charterers. Discussions for long-term contracts have commenced and management is confident that such employment will be secured well before the first delivery in early 2015. Concurrently with this order, TEN announced the commencement of the previously announced four-year charter for its LNG carrier Neo Energy to a major international entity and a repeat employer of the vessel at an accretive rate reflective of current market conditions.
The shares closed at $7.88, up $0.08, or 1.03%, on the day. Its market capitalization is $363.69 million.
Ship Finance Intl. Ltd. (NYSE:SFL): Ship Finance International Ltd. announced that it has agreed to terminate chartering agreements with Horizon Lines, LLC relating to five of its vessels. Ship Finance will receive as termination compensation $40M in second lien notes issued by Horizon Lines and warrants exercisable into 10% of the common stock of Horizon Lines, Inc. as part of the restructuring.
The shares closed at $13.05, down $1.04, or 7.38%, on the day. Its market capitalization is $1.03 billion.
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