There’s a rather vulgar expression about indecision, the nicer part of which involves the words “get off the pot”.
And to be clear, those were not the words used by Norwegian shipping entrepreneur Tor Olav Troim in Manhattan this week, when he was asked about a pursuit by his former boss, the famed John Fredriksen, of an increased role in the affairs of New York tanker owner International Seaways.
Come with cash
But still, it appears Troim is not the biggest fan of the months-long pressure campaign waged by Fredriksen and his private companies, including Seatankers Group and Famatown Finance, centred on gaining board appointments and a removal of anti-takeover provisions in company bylaws.
Of course, we know this only because Troim was asked about the subject during a wide-ranging on-stage interview by Michael Tusiani, the legendary chairman of New York brokerage Poten & Partners, at this year’s Marine Money Week in New York.
“If John really wants Seaways, he should come with a cash bid,” Troim told Tusiani after reminiscing about the days in which the Norwegian tycoon worked out a deal with the late John Angelicoussis for ICB Shipping in 1999.
“You can’t just sit there and scream and shout. If you want to avoid a poison pill, you come with a strong bid for the benefit of all shareholders and then let the shareholders decide.”
For what it is worth, Seatankers has said recently that its goal is not to take control of the New York company.
If anyone has an informed opinion about such things, it ought to be Troim, who spent nearly two decades by Fredriksen’s side before the two decided to part ways in 2014.
Fredriksen gained his reputation as shipping’s greatest deal-maker during that period, but Troim was there too, effectively serving as Fredriksen’s right-hand man.
For whatever reason, Fredriksen has been less successful in finalising consolidation deals like the ICB takeover since the time Troim left.
For his part, Troim was humble and reflective about the path he has taken since 2014, to the point of self-effacement.
“Since I broke from John in 2014, I haven’t had success, I’ve been through hell,” he told Tusiani. “I’m very humble about the tough times I’ve been through.”
Troim’s remarks apparently were a reference to the past financial struggles of his Borr Drilling in the offshore sector and to continuing efforts to make progress with floating LNG production with his Golar LNG.
But he is also the well-timed backer of New York-listed Himalaya Shipping and Oslo’s 2020 Bulkers in the dry bulk sector, and made news on Wednesday by telling Tusiani he is returning to the crude-tanker sector for the first time in 15 years, with an impending order for two dual-fuel LNG VLCCs.
“It’s not hard work, it’s fun. Did I have any regrets working for Fredriksen for 19 years, not at all, it was a fantastic place to work,” although he reflected a moment later that, “I probably should have left after 15. You get tired of each other.”
Troim has been brutally frank in recent years in publicly stating his view that advocates of environmental, social and governance (ESG) reforms are often “unrealistic” in their approach, and Tusiani couldn’t resist asking him about a comment that he was “tired as s**t of ESG”.
“I stand by that, I’m not ashamed of it,” Troim replied without skipping a beat. “If someone delivers 82% of the energy in the world and you call them stupid, you have a problem. To say we’re going to be carbon neutral by 2050 is unrealistic. It’s not going to happen.”
Questioning priorities
Troim would later return to his assault on ‘woke’ orthodoxy, claiming that “things have gone too far” and that whatever the ESG failings of maritime outfits — be it emissions or gender diversity — they were outweighed many times over by the good shipping delivers.
Troim has just reached age 60, so there may not be many peak markets left in his shipping future. But he seems nothing if not optimistic that one is just around the corner on the strength of constrained vessel supply.
“I’m quite sure the upturn we have in front of us is stronger than 2003 through 2008,” he told Tusiani. “The whole Fredriksen fortune was created in those five years. Now it’s coming again. If you want to play the cycle, you’d better go in the beginning.”
More ship finance news
Evangelos Marinakis has lifted his stake in New York-listed Capital Product Partners above 25% as the Greek shipowner gradually added to his position in the company. Click here to read.
Norwegian investor Joakim Hannisdahl has cashed out of VLCC owner DHT Holdings, but is still positive on tanker prospects. Click here to read.
Greywolf Capital Management has closed its second container shipping fund. The New York and San Francisco-based alternative asset manager has held the final close of the Greywolf Containership Opportunities Fund II. Click here to read.