The Oslo-listed owner’s move to sell the ships controlled by the Philly Tankers and Crowley banners made its second quarter results a sideshow today.
“So who is the buyer?” wrote Arctic Securities analyst Erik Nikolai Stavseth in a report this morning. “OSG definitely springs to mind, but no slam dunk.”
Stavseth, who has repeatedly joined up the dots between the Philly Tankers vessels and OSG’s US flag business, says buying the full eight-vessel stable linked to Aker Philadelphia would cost $330m to $350m worth of cash.
“OSG is loaded with cash and the recent funneling of $200m from International to Holding suggested an acquisition in the Jones Act fleet,” he said.
“The transaction would make great strategic sense for OSG in terms of adding fixed income revenue and growth in earnings for its Jones Act fleet and provide a stepping stone for a Jones Act MLP.
However, he countered: “Kinder Morgan acquired American Petroleum Tankers in 2013 and we would not rule out another midstream player such as P66, Marathon or the likes to want exposure to Jones Act tonnage.”
