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Monday, August 03, 2009

Lemissoler mulls $300m buying spree

Monday, 03 August 2009

Limassol-based ship owner and ship manager Lemissoler Shipping Group has $300 million to spend on the S&P markets and could start a buying spree towards the end of the year. According to company CEO Philippos Philis, Lemissoler is already scrutinising the sale and purchase markets to ensure that when it does enter the fray, it will buy the units at the best price but also at the right time.
The purchase plan is also in line with a company strategy to enter into very close relationships with its charterers that will guarantee both long term income as well as profit sharing on both sides of the fence.
“We are looking to develop projects with our charterers and we are very close now to concluding deals so we will know in advance who is our counterpart and what the business plan will be for both parties,” said Mr Philis.
The Lemissoler boss said his views on the market probably ran counter to the opinion of other owners who maybe believed the bulk market would continue to strengthen ahead of a pick up in container freight rates. “The collapse of the market is in front of us and we will see a correction in all the sectors especially bulk towards the end of the year. I expect the bulk market to drop at least 20% but I also expect a slight improvement in container volumes as stores in Europe start to fill their shelves for Xmas. But after November, we will see a drop again in the box sector.
“We will continue to focus on the container and bulk trades but the issue is timing and when we will start to buy ships. At the moment we are looking to expand with immediate effect in bulk carriers but we do not expect the market will touch bottom. We are focusing on ships between handy size, handymax and supramax,” he added.

Source: Shipmanagement International