Shipping

 

I want to introduce you to a stock sector which is provides an integral service to the energy sector. The transportation of ore, oil and natural gas has become a business with explosive potential. Through my research, I have put together a portfolio of some of the more innovative players in this field, and will continue to upgrade the portfolio on a monthly basis.

Teekay Shipping (TK) provides international crude oil and petroleum product transportation services through its spot tanker fleet, including its fleet of aframax-size oil tankers and its fixed-rate fleet, including its fleet of shuttle tankers. Teekay's tankers provide transportation services to oil companies, oil traders and government agencies worldwide. During the year ended December 31, 2003, the Company derived 27% of its total net voyage revenues from its operations in the Indo-Pacific Basin, compared to 43% during the year ended December 31, 2002. It is divided into four key areas: Teekay Tanker Services, Teekay Navion Shuttle Tankers, Teekay Gas & Offshore and Teekay Marine Services. In April 2004, the Company acquired Naviera F. Tapias S.A. (Tapias), an independent owner and operator of liquefied natural gas carriers and crude oil tankers in Spain. It also established a 50/50 joint venture with Tapias that will pursue new business in the oil and gas shipping sectors.

Overseas Shipholding Group Inc (OSG) is an independent bulk shipping company engaged primarily in the ocean transportation of crude oil and petroleum products. As of December 31, 2003, the Company's modern fleet consisted of 52 oceangoing vessels that aggregate 9.0 million deadweight tons, of which 43 vessels operated in the international market and nine vessels operated in the United States Flag market. Of the 52 vessels in OSG's fleet, 47 are tankers engaged in the oil transportation business. Its five other vessels are engaged in the transportation of dry bulk cargo. OSG charters its vessels either for specific voyages (voyage charters) at spot rates or for specific periods of time at fixed monthly amounts. From time to time, the Company also charters out its vessels on bareboat charters. Under such bareboat charters, the ships are chartered out for specific periods of time (generally medium- or long-term), during which they are manned and operated by the Company's customers.

On Feb. 3, DryShips (DRYS) shares rose 12 percent over their $18 offering price in their debut in Wall Street's most recent shipping IPO. The stock is trading near $23.

Arlington Tankers Limited (ATB) , is a leading international seaborne transporter of crude oil and petroleum products.

Their fleet consists of six double-hulled vessels and is one of the youngest tanker fleets in the world, with an average vessel age of approximately 1.5 years. All of their vessels are employed on time charter contracts which provide investors with a secure minimum level of earnings over a fixed period of time.

Top Tankers Inc. (TOPT) is engaged in the worldwide transportation of petroleum cargo through the ownership and operation of a fleet of 16 tankers, consisting of four Suezmax double-hull tankers (for crude oil), 10 Handymax double-hull tankers (for petroleum products) and two Handysize tankers (for largely edible oils), with a total cargo carrying capacity of over 1.1 million dead weight tons (dwt). Ninety-five percent of its fleet by dwt is double hull. In early November 2004, TOP Tankers agreed to purchase five additional Double Hull Suezmax Tankers. Upon completion of the acquisition, the Company's fleet size will increase to 21 tankers, representing approx 1.9 million dwt.

Hornbeck Offshore (HOS) have also kicked off in the past year. Hornbeck is a provider of technologically advanced, new-generation ocean station vessels (OSVs), serving the offshore oil and gas industry, primarily in the United States Gulf of Mexico and in select international markets. The focus of the Company's OSV business is on complex exploration and production activities, which include deepwater, deep well and other logistically demanding projects. Through its tug and tank barge segment, Hornbeck Offshore Services is also a transporter of petroleum products, serving the energy industry, primarily in the northeastern United States and Puerto Rico.

This portfolio was created on March the 4th, 2005. As a group, they went up .27% in the first fifteen minutes. Check back in a month and we will see how they are doing.