The uncertain situation in the Red Sea and the Suez Canal is contributing to several shipping shares climbing sharply.
Photo: Erik Flaaris Johansen / NTBPublisert:
Less than 2 hours ago
Updated less than 10 minutes ago
Just after opening on Monday, the Main Index rises 0.89 per cent.
These are the most traded shares just under an hour after opening:
- Equinor rises 1.80 percent
- Frontline rises 5.69 percent
- Yara rises 0.33 percent
- Telenor rises 0.67 percent
- Aker BP rises 0.41 percent
- Hafnia rises 4.11 percent
A barrel of North Sea oil is traded at the time of writing for 77.02 dollars a barrel. There is an increase of 0.21 percent since midnight.
Shippingopptur
The John Fredriksen shipping company Frontline gets a real boost from the start on Monday, which can probably be linked to the situation in the Suez Canal and the Red Sea.
Several container shipping lines have stopped traffic in the Red Sea as a result of the attacks there in recent days. The Houthi rebels in Yemen have claimed responsibility for the actions, and have linked them to Israel’s warfare in the Gaza Strip.
Since 19 November, 1,955 ships have diverted via the Cape of Good Hope, while 2,128 have crossed the channel in the same period, says chairman Osama Rabie on Sunday.
– We are closely monitoring the consequences of current tensions in the Red Sea on traffic in the Suez Canal, he said.
The Suez Canal is one of the world’s most important canals and connects the Mediterranean and the Red Sea. It is a central trade route between Asia and Europe, and the route is much shorter than the shipping route around the coast of Africa and the Cape of Good Hope.
– Very sensitive
Investment economist at Nordnet, Mads Johannesen, describes the situation as very tense. He expects the shipping boom to continue as long as uncertainty remains in the air.
– The area is characterized by all types of tensions. It’s terribly inflamed down there. There are narrow channels and difficult driving conditions for the ships. Any delay will have major consequences for the shipping ballast, so this is very sensitive, says Johannessen to E24.
– There can be violent market reactions, he continues.
The Frontline share rises 5.69 percent in early trading.
Other shipping shares that are climbing include Höegh Autoliners, Hafnia and Wallenius Wilhelmsen, which rise 3.81, 4.11 and 3.54 per cent respectively.
The Norwegian Shipping Association has also issued a warning to Norwegian ships around the Red Sea in view of the geopolitical tension down there, Johannesen points out.
– If there are restrictions on traveling there, then it creates inertia and an imbalance in the shipping market. It takes longer for customers to receive their goods. This results in extreme movements in the shipping shares, says Johannessen.
Resumes production on the Alvheim field
Production is now underway again at the Alvheim oil and gas field, after Aker BP experienced a production stoppage as a result of technical problems. The company writes this in a stock exchange announcement on Monday morning.
Due to the downtime at Alvheim in the fourth quarter, Aker BP expects production in 2023 to end up in the lower tier of their own expectations.
The updated guidance the company included in the third quarter report was a production of 455,000-465,000 barrels of oil equivalent per day in 2023.
The problems at Alvheim arose as a result of errors in new equipment that was installed during maintenance.
In connection with the start of production, according to the report, an oil leak of approximately 50 cubic meters occurred, which the authorities were notified about. According to the company, the investigations showed that the leak did not cause any environmental damage.
The share is up 0.27 percent.
The Solstad saga continues
The last few weeks have been characterized by a power struggle between the billionaires Kjell Inge Røkke and Christen Sveaas. The core of the conflict is Solstad Offshore, where Sveaas and Kistefos have launched a full attack on Kjell Inge Røkkes Aker about the values in the shipping company.
The core of Kistefos’s criticism has been that the agreement which clears up Solstad’s debts grossly discriminates against the shareholders in favor of Aker. However, Aker has rejected this criticism.
Sveaas and Kistefos’ demand for a lawsuit may end up in court.
Before that time, the shareholders in the offshore shipping company are scheduled to vote on the matter at an extraordinary general meeting.
On Thursday, Røkke bought further into Solstad Offshore for NOK 400 million. This gives an ownership share of 32.9 per cent.
Just before the end of the stock exchange on Friday, it became known that DNB Bank has sold 6.1 million shares in Solstad Offshore. After the sale, the bank has no votes or shares left in Solstad.
Before the weekend, the stock shot up well over 25 percent, before closing up 4.5 percent on Friday.
On Monday, the share rose 3.49 percent.
2023-12-18 08:00:49
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