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PR Newswire
08-11-2010, 02:55 PM
CSAV released its 3Q results in the previous week and reported its second consecutive quarter of positive earnings. It earned US$179.8 million in 3Q 2010. CSAV currently leases 2 X 4,250 TEU vessels from PST on 5 year T/C. It did seek a fleet-wide rate cuts last year from shipowners (PST did not participate). Hence, it is good to see it returning back to profitability after its massive restructuring exercise in 2009.
PST has little fleet charterer diversification so the financial health of its two charterers play a key role in determining the Trust's future !!! Fortunately, the recent 4 acquisitions will further diversify the Trust charter-base to spread out its counter-party risk.
Besides the usual counter-party risk, PST recent US$183.2 million acquisition entails a new form of risk - financing (or rather lack of) risk. It has yet to secure loan financing or equity placements. Granted, it may be waiting for better financing options in light of the decreasing interest rates and recently rising unit prices. But till then, this risk exist. So buyers beware
(Vested)
PST has little fleet charterer diversification so the financial health of its two charterers play a key role in determining the Trust's future !!! Fortunately, the recent 4 acquisitions will further diversify the Trust charter-base to spread out its counter-party risk.
Besides the usual counter-party risk, PST recent US$183.2 million acquisition entails a new form of risk - financing (or rather lack of) risk. It has yet to secure loan financing or equity placements. Granted, it may be waiting for better financing options in light of the decreasing interest rates and recently rising unit prices. But till then, this risk exist. So buyers beware
(Vested)
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.