Losses on ship sales may put Soeharto-linked firm into red<\/p>\n
SINGAPORE (Reuters): Energy transportation group Osprey
\nMaritime Ltd, partly owned by former president Soeharto's family,
\nwill see weaker earnings for 1998, possibly slipping into the
\nred, due to huge losses from the sale of two vessels, analysts
\nsaid on Monday.<\/p>\n
\"For 1998, they would have shown a profit if not for the loss
\nfrom the sale of their two vessels, but it will still be a
\ndeterioration because overall rates have come down,\" ABN AMRO
\nAsia Securities' analyst Elizabeth Cheng told Reuters.<\/p>\n
Osprey, which is more than 50 percent owned by Indonesian
\ninvestors including the Soeharto family, said last October the
\nsale of its two very large crude carriers (VLCCs) would result in
\nan exceptional loss of US$27.8 million.<\/p>\n
Analysts Reuters spoke to were expecting losses ranging from
\nUS$18 million to $33 million compared to a net profit of US$18.22
\nmillion for 1997.<\/p>\n
The oil and gas carrier would see an earnings recovery for
\n1999 but this would be insignificant due to expectations of flat
\nfreight rates, analysts said.<\/p>\n
\"I think earnings will remain low because the crude and
\nproduct tanker rates are very bad. The VLCC rates may see some
\nimprovement but still not too exciting on the whole,\" said an
\nanalyst with a local brokerage.<\/p>\n
Most analysts had a reduced call on the stock, seen more as a
\nspeculative play than a fundamental one.<\/p>\n
\"Osprey is a speculative play. The group is surrounded by many
\nrumors, including its Indonesian partners selling their stake and
\na potential target for a reverse takeover by the Gotaas-Larsen
\ngroup,\" said the analyst with a U.S house.<\/p>\n
Osprey acquired gas shipping group Gotaas-Larsen in 1997.<\/p>\n
\"The chances are the Indonesians will sell out. But a lot of
\ninvestors have lost their confidence in the company. That is why
\nthe share price is hovering next to nothing. In event there is a
\nsell-out, there will be a strong upside for the stock,\" added
\nanother analyst.<\/p>\n
Osprey shares have fallen to Singapore $0.605 as of Monday
\nfrom their heydays of more than S$2 in June 1997.<\/p>",
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