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MARINE FINANCE Service assigned an A3 rating to the new $300 million notes and debentures of P&O, reflecting the group's geographical diversifica- tion, the steps it is taking to reduce debt and improve operating effi- ciency, the current strength of its cruising operations and its growth opportunities in emerging mar- kets. Moody's said the rating takes account of P&O's modest interest coverage and relatively high adjusted debt position as well as the company's increasing depen- dence on cruising, expected contin- uing high investment needs and uncertainty over elements of its strategic direction. Moody's said the mergers of P&O Containers with the contain- er shipping operations of Nedlloyd and (subject to regulatory approval) of P&O's Short Sea Cross-Channel Ferry operations with those of Stena Line AB, are well-directed towards meaningful cost-cutting and improving returns on investment. The transactions reduce P&O's on-balance sheet debt but also result in reducing the group's direct access to important sources of cash flow. Coflexip Stena Reports Q1 Results On May 28, Coflexip Stena Offshore reported net income of $0.07 per share for the first quar- ter of 1997. This compares with a net loss of $0.64 per share for the first quarter of 1996. This year's first quarter net operating revenues represent an increase of 61 percent compared with last year. However, when adjusting the first quarter 1996 to take account of the effect of exchange rate variations, the com- parable line would be FRF1,028 million, with the first quarter 1997 showing an increase of 43 percent. Moody's Downgrades TMM Ratings Moody's Investors Service down- graded the long-term debt ratings of Transportacion Maritima Mexicana S.A. de C.V. (TMM) and its subsidiary, TMM Financial Services, Ltd. The rating actions consider the intermediate-term outlook for the company's business units as well as higher leverage and weakened debt protection measurements following a number of debt-financed acquisitions, the largest of which has been the investment in a joint venture to operate the northeast Mexican railroad. The company recently announced a preliminary agree- ment with APL to establish a joint service to serve the Asia-Mexico container trade. TMM expects this venture to improve efficiency and reduce costs. Similar benefits are anticipated from integrating TMM's current operations with Grancolombiana and Trasatlantica Espanola. Fuel Handling Terminal Slated For Chilean Coast Cordex Petroleums Inc. recently announced acceptance of a pro- posed letter of intent by Chilgener S.A. to fund the construction of a bunker fuel and asphalt terminal in Puerto Ventanas, Chile. Chilgener plans to finance up to 90 percent of the $34 million project, with Cordex contributing a mini- mum of 10 percent. As the sole marine fuel and asphalt facility on Chile's coast, it would become the principal fuel and asphalt handling terminal for the entire west coast of Latin America, accommodating Chile's burgeoning shipping and interna- tional trade in addition to supply- ing asphalt for its highways. Who delivers the right balance of value and quality ______ on marine heat exchangers? And delivers on time, anywhere in the world. CRANE HEATEX Who else! For replacement marine charge air coolers, shell and tube exchangers, fin coils, chillers and condensers. Crane Heatex - accredited to ISO 9002 - guarantees outstanding service, value and quality. For details on a full range of heat exchanger services that work better for you, contact RRKIattenberg Marine Agency TEL: (201)731-4018 FAX: (201)325-3681 17 Grandview Avenue, West Orange, New Jersey 07052 Head Office: Curdworth, Birmingham, UK Isle of Wight manufacturer of oil pollution control equipment, has announced two orders for its Kebab and Komara oil skimming systems. The contracts were signed with the U.K. Ministry of Defence and Surgutneftegaz Oil Co. in Western Siberia. For more information on Vikoma Circle 26 on Reader Service Card Long Island OSRO Signs Contracts Windswept Environmental Group, Inc. announced that its West Babylon, N.Y.-based Trade- Winds subsidiary has signed an OSRO (oil spill removal organiza- tion) service contract with Star Enterprise/Texaco as a designated contractor for their Northeastern facilities through the year 2000. Trade-Winds has also been awarded a one-year contract, with a one-year renewal option, from Long Island Lighting Co. for emer- gency spill response, cleanup and disposal needs for three power sta- tions and seven additional facili- ties. Services will include both land and marine borne spills. Vikoma Receives Orders Vikoma International Ltd., an For calls outside USA and Canada Tel: +44(0) 1675 470042 Fax: +44(0) 1675 470490 Making heat exchangers work/for you 12 Circle 237 on Reader Service Card Service Marine Wins Historic Contract From Oceaneering Service Marine Industries of Morgan City, La., will build a 248- ft. (75.5-m), 4,000-hp multi-service vessel for Oceaneering International, Inc. The vessel — dubbed Ocean Intervention — is the first newbuild ever ordered by Oceaneering, and it will be used in support of ROV surveying and div- ing. Ocean Intervention will be classed to ABS DP-2 (double redundant) standards, certified for unrestricted ocean service and equipped with GMDSS for area A3 operation. The vessel will be con- figured with two 18-ft. (5.4-m) working moonpools to facilitate subsea operations in poor weather, and will be powered by a diesel- electric propulsion system. A Millennium class ROV will be built in, along with equipment to sup- port diving services. With a beam of 54 ft. (16.4 m), the vessel will have a dwt of 1,600 long tons at a draft of 15 ft. (4.5 m). Its capacities will include fuel oil storage tanks holding 149,000 gal- Maritime Reporter/Engineering News
