P&O quits bulk ship sector, sells out to partner
London-based Peninsular & Oriental Steam Navigation Co. has left the bulk shipping sector entirely, by selling its remaining 50 percent interest in Associated Bulk Carriers Ltd. to joint venture partner Eurotower Holdings SA.
The proceeds from the sale, $64 million, will be used to reduce group net debt. In addition, P&O’s share of joint venture and associate debt will be reduced by $53 million.
Prior to today’s announcement, Associated Bulk Carriers operated a fleet of five owned and seven leased/bareboat chartered capesize dry bulk vessels ranging in size from 120,000 deadweight tons to 210,000 deadweight tons.
“The sale of our investment in Associated Bulk Carriers brings P&O’s involvement in bulk shipping to an end,” said Bruce MacPhail, P&O managing director. “Eurotower’s significant interests and long experience in the capesize bulk shipping market mean they are ideally suited to develop the business,” he added.
For the six months of 2003, P&O reported an operating profit of '5.8 million ($10 million) from its stake in Associated Bulk Carriers.