In case you didn’t make it to Hamburg for Marine Money’s 16th Annual German Ship Finance Forum in Hamburg a few weeks ago, Blackhill was in attendance to exchange thought leadership.
Industry sentiment included:
4 Key Takeaways
Ship owners/operators must figure out a way to best position themselves in the capital markets; this is different than competing on an operational basis
There is a general optimism with the availability of capital in the shipping industry, albeit from less traditional sources than in the past
Equity is very expensive. Pricing does not fit with
either historical return profiles of most shipping assets or current cash flows for most ship types
There are 2 levels of Restructuring; the ship owners themselves and the traditional shipping banks who are going through their own internal Reorganization and capital raise process
In global markets today, where neither the borrowers nor lenders have attractive alternatives, the Restructuring process can be lengthier than otherwise necessary.
Companies who right size their balance sheets now will have a powerful advantage in a market recovery environment.