Latest news from Heavy Lift & Project Forwarding International Magazine

Eye-watering loss for Nord/LB

November 25 - German state bank Nord/LB, the country's second-largest ship financer, revealed a further decline in results on Thursday and indicated that its full-year losses would surpass an eye-watering EUR1 billion (USD1.05 billion).

The bank placed the blame for this increase in losses down to another rise in the costs of risks within its shipping loan book, particularly that managed by its Bremer Landesbank subsidiary, which is being fully integrated into Nord/LB.

Nord/LB reported a pre-tax loss of EUR624 million (USD661 million) for the first nine months of its current financial year, which is a clear reminder of the difficulties being faced by several banks as they try to manage their non-performing shipping loans.

Nord/LB also expects risk provisioning to be above average in the fourth quarter coming in considerably above EUR2 billion (USD2.10 billion). For 2016 as a whole. In accordance with current estimates, the annual loss is expected to be over EUR 1 billion (USD1.05 billion). With the risk provisioning measures, Nord/LB is once again implementing a substantial increase in coverage for risks from ship finance. This lays the foundations for the further reduction of its ship finance portfolio as well as for a positive earnings performance in 2017 and onwards.

In spring 2016, Nord/LB had already made the strategic decision to considerably reduce its ship finance portfolio from EUR19 billion (USD20.10 billion) at the time. The bank aims to reduce the size of its portfolio to between EUR12 billion (USD12.7) and EUR14 billion (USD14.8 billion) by the end of 2018. Particular focus here is on increasing the quality of the portfolio. Over the first three quarters of 2016, the portfolio had already been scaled back by almost two billion euros. Further measures for scaling back the portfolio are in preparation. This includes a major transaction with the investment company KKR and with a foreign sovereign wealth fund. All in all, NORD/LB expects its ship finance portfolio to stand at around EUR16 billion (USD16.9 billion) by the end of 2016.

With the exception of ship finance, all of Nord/LB's business segments remained very profitable in the first three quarters of 2016. The risk situation in business segments outside ship finance remains relaxed.

"For reasons of caution, we also plan increased risk provisioning for ship finance for subsequent years," said Nord/LB's chief executive officer Gunter Dunkel.

As at September 30, 2016, 21 percent of Nord/LB shipping portfolio comprised multipurpose heavy lift, multipurpose heavy cargo and offshore vessels.

Heavy Lift | News

Drake closes Cometto deal for ANI thumbnail image

Drake closes Cometto deal for ANI

May 20 - The Drake Group, in its capacity as representative of the Cometto brand in Australia, has received an order from Australian Naval Infrastructure (ANI) for 16 self-propelled MSPE modules.
Views: 123
Dsouza joins Virgin Atlantic  thumbnail image

Dsouza joins Virgin Atlantic 

May 20 - Virgin Atlantic Cargo has named Bosco Dsouza as its account manager in Melbourne as the airline looks to continue its expansion in Australia. 
Views: 154
Demag duo for Cosmo thumbnail image

Demag duo for Cosmo

May 20 - Australia’s Cosmo Cranes has added two Demag all-terrain cranes to its fleet.
Views: 143
Marr towers ahead in Sydney Metro project thumbnail image

Marr towers ahead in Sydney Metro project

May 20 - At the end of 2018, Austrlian heavy lifting specialist Marr Contracting utilised two tower cranes to complete a key phase of the Sydney Metro infrastructure project.
Views: 130

Heavy Lift Across The World

Discover heavy lift and project logistics industry news from around the world by region.