Month: January 2022

Release – Hypersonix and Kratos Sign Agreement to Develop and Fly DART AE Hypersonic Drone

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Hypersonix and Kratos Sign Agreement to Develop and Fly DART AE Hypersonic Drone

Research, News, and Market Data on Kratos Defense & Security Solutions

 

System to be Powered by Fifth-Generation SPARTAN, Zero Emission, Clean Hydrogen Scramjet Engine

 

SAN DIEGO, 
Jan. 25, 2022 (GLOBE NEWSWIRE) — 
Hypersonix Launch Systems Ltd. and 
Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS) have signed an agreement to launch the DART AE multi-mission hypersonic drone technology demonstrator. In the Hypersonix Kratos Team’s (the “Team”) submission to the 
Australian Department of Industry, Science, Energy and Resources Modern Manufacturing Initiative (MMI) Grants Program 2, the Team is planning for a launch and initial demonstration flight of the DART AE Hypersonic Drone System in 2023.

The Hypersonix DART AE, a multi-mission, hypersonic drone, will be fully 3D-printed out of exquisite high-temperature materials and powered by a single, fifth-generation SPARTAN, zero emission, clean hydrogen scramjet engine with a publicly disclosable range of 500km.

Kratos brings to the team and proposed effort its extensive digital engineering capabilities and sounding rocket booster integration and launch experience. The Kratos booster system will accelerate the DART AE drone to a speed greater than Mach 5 and release the vehicle, ignition of the Drone scramjet engine will occur, and autonomous flight of DART AE will proceed along a programmed flight path to a predetermined landing location.

Hypersonix Launch Systems is an Australian Aerospace Engineering company, specialising in the design and build of scramjet engines and hypersonic vehicles. Their SPARTAN scramjet engine is hydrogen fueled and designed to operate between Mach 5 and 12 in support of multiple missions.

Kratos is a leading provider of innovative products and solutions supporting ballistic missile targets, hypersonic systems, sub-orbital research, sounding rockets, unmanned drone systems, turbine technologies, directed energy and laser program systems. Kratos has significant experience in launching Australian hypersonic “experiments”, having been involved with multiple hypersonic launches in collaboration with the 
Defence and Science Technology Group, investigating the fundamental science of hypersonic technology and its potential for next generation aeronautical propulsion systems for technical, commercial and security purposes.

Kratos’ extensive involvement in past hypersonic experimental flight test programs demonstrates their ability to launch a variety of hypersonic vehicles and makes them a unique and highly qualified partner and teammate for Hypersonix, as the launch provider for the first DART AE flight in 2023.

“Kratos is excited to team up with Hypersonix on this innovative project and we look forward to supporting their development and the integration and flight of this truly disruptive and enabling Australian technology. DART AE is an ideal opportunity for Kratos to further showcase our extensive hypersonic launch system capability” said  David Carter, President of Kratos’ 
Defense Rocket & Support Services Division.

David Waterhouse, Hypersonix Managing Director and Co-Founder adds: “Kratos is an experienced launch provider who has a proven track record of launching payloads around the world. They understand hypersonic technology and flight and are ready to support us with the first launch of our transformative technology that will be faster, more sustainable, and more efficient than current technology. It is incredibly exciting to work with the Kratos team on this project and we are thrilled to share this news today with the public. “

ABOUT HYPERSONIX
Hypersonix Launch Systems is an Australian engineering, design and build company specializing in scramjet engines and hypersonic technology. Hypersonix is developing several hypersonic vehicles that fly at hypersonic speeds between Mach 5 and Mach 12 with zero CO2 emissions, only water vapor, and have applications in both satellite launch and high-speed aviation.

For more information, please watch the company video at https://vimeo.com/538520388 and go to www.hypersonix.com.au.

ABOUT KRATOS

Kratos Defense & Security Solutions (NASDAQ: KTOS) develops and fields transformative, affordable technology, platforms, systems for United States National Security related customers, allies, and commercial enterprises. Kratos is changing the way breakthrough technology for these industries are rapidly brought to market through proven commercial and venture capital backed approaches, including proactive research, and streamlined development processes. At Kratos, affordability is a technology, and we specialise in unmanned systems, satellite communications, cyber security/warfare, microwave electronics, missile defense, hypersonic systems, training, combat systems and next generation turbo jet and turbo fan engine development. For more information go to www.KratosDefense.com.

Notice Regarding Forward-Looking Statements
Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of the management of Kratos and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Kratos undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Kratos believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Kratos in general, see the risk disclosures in the Annual Report on Form 10-K of Kratos for the year ended 
December 27, 2020, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the 
SEC by Kratos.


Press Contact:
Yolanda White
858-812-7302 Direct

Investor Information:
877-934-4687
investor@kratosdefense.com

Source: Kratos Defense & Security Solutions, Inc.

Are the Markets Priced for the Worst-Case Scenario

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	Image Credit: Alphatradez (Pexels)

Does “Buy the Rumor, Sell the News” Apply to Today’s Markets?

 

Is the current market selloff a case of “Buy the rumor, sell the news”? The expectation that the upcoming Fed announcement is going to surprise investors with an even more hawkish stance than previously declared is the impetus for the current selloff. The presumed certainty is so great that the market may be positioned for the worst, and have this expectation already priced it in. If the Fed’s position is instead unchanged or otherwise less severe than feared, it could lead to a relief rally.

 

Background

The S&P 500 is down over 8% over the first 24 days of the year, the Nasdaq Index is down 12%, and both have fallen several more percentage points from their highs attained last year. Many highly followed tech stocks have fallen even further. Much of the selloff has been attributed to a hawkish Fed that is planning to raise interest rates to combat rising inflation. A modest increase in rates was expected heading into the new year. The market’s concern is now that the Fed will act with more resolve. The current selloff appears to be fear of the worst case for many sectors of the market, especially those that are impacted most by borrowing costs.

 

 

Is Relief on the Way?

If the market’s fears are correct and the Fed ramps up its hawkish rhetoric, will the markets have much further to fall? This risk may have already been substantially reduced with the current price action. If instead, the Fed sets a less aggressive timeline than priced in, many traders will wish they bought at current prices. And for those that are contemplating selling, they may be handed a better opportunity.

JP Morgan’s top equity strategist, Marko Kolanovic says the market correction could be approaching its “final stages.” In a note released this week, Kolanovic said the recent bearishness in stocks is out of line with momentum in economic activity, easing supply bottlenecks, and what JP Morgan expects will be a strong earnings season.  “While some are concerned that rising input prices will eat into margins, we expect margins to remain resilient thanks to strong activity and prices outpacing wage inflation,” Kolanovic wrote.

Investor sentiment has turned bearish, causing technical indicators to suggest oversold conditions, “we could be in the final stages of this correction. While the market struggles to digest the rotation forced on it by raising rates, we expect the earnings season to reassure,” Kolanovic explained.

According to the latest AAII Sentiment Survey, bullish sentiment fell to a low not seen since the coronavirus selloff. At the same time, bearish sentiment rose to a 16 month high. For many contrarian investors, that bearish sentiment suggests something between incremental buying and loading up on favorite sectors.

The Fed is in a tough spot and may again use unconventional tools to navigate. If the market continues to decline, it has implications for the overall economy and employment. Should the selloff continue, Kolanovic sees the Fed potentially stepping in with policy changes to stem the decline. “In a worst-case scenario, we could see a return of the ‘Fed
put,'” Kolanovic said.

Fed thinking could be altered by a continued steep market correction which may translate into fewer and smaller interest rate hikes in 2022 or a return to a longer-term tapering.  Just as when a quarterback calls a play, the movement on the field may quickly dictate other means of moving the ball toward the goal line. If the Feds plan to fight inflation and maintain a strong economy runs afoul, it certainly has other less aggressive offensive options to implement toward its goal.

Take-Away

As with all things related to predicting economic trends (or even forecasting weather), the expectations never match what is actually experienced. If the Fed is predicting one set of conditions, and it appears that another set is unfolding, they can turn on a dime. The Fed has done this unannounced before. It has also pulled tools from its quiver that have previously gone unused.

The most recent selloff appears to be based on the worst-case scenario; as JP Morgan’s top strategist has written, the economy is growing with very strong momentum.

Is there a better sell opportunity in the near future, is this a buying opportunity? Time will tell.

Paul Hoffman

Managing Editor, Channelchek

 

Suggested Reading



Will the Fed “Put” Become Worthless?

Climbing a “Wall of Worry”





The Correlation of Passive Ownership and Underperformance

Safe Haven Comparison During Downturns, Bitcoin vs. Gold

 

 

Sources

https://www.nasdaq.com/articles/vix-etfs-surge-as-stocks-continue-to-tumble

https://www.cnbc.com/2022/01/24/jpmorgans-kolanovic-says-selling-is-overdone-as-stocks-tumble.html

https://www.aaii.com/sentimentsurvey

https://www.thebalance.com/what-does-buy-the-rumor-sell-the-news-mean-1344971

www.koyfin.com

 

Stay up to date. Follow us:

 

Orion Group Holdings, Inc. Announces Board of Director Changes

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Orion Group Holdings, Inc. Announces Board of Director Changes

Research, News, and Market Data on Orion Group Holdings

 

HOUSTON–(BUSINESS WIRE)–Jan. 25, 2022– 
Orion Group Holdings, Inc. (NYSE: ORN) (the “Company”) a leading specialty construction company, today announced the appointment of  Quentin P. Smith, Jr. to the Board of Directors, as well as the retirement of  Richard L. Daerr, Jr. as a board member.

The Board’s appointment of  Mr. Smith to the Board of Directors is effective 
January 21, 2022. His initial term will expire at the 2022 annual meeting of stockholders, at which time the Board will propose  Mr. Smith for re-election as a Class II Director to serve until the 2024 annual meeting of stockholders. In addition,  Richard L. Daerr, Jr. has announced his retirement from the Board effective 
May 20, 2022.  Mr. Daerr has served as a member of the Board since 2007 and was Chairman of the Board of Directors from 2007 to 2020. With the timing of the appointment of  Mr. Smith and Mr. Daerr’s retirement, the 
Orion Group Holdings, Inc. Board of Directors will temporarily expand to eight Directors.

Austin Shanfelter, the Company’s Chairman of the Board, commented, “We are pleased to welcome Quentin as a new independent director. He brings a wealth of experience, particularly in strategic planning, business development and governance, and we are confident he will provide valuable perspectives as we continue to execute on our strategy to be a premier specialty construction company focused on providing solutions for our customers across the infrastructure, industrial, and building sectors while maximizing stakeholder value. We also want to thank Richard for his years of service to the Company and his many valuable contributions, including his board leadership in the transition of Orion to a public company, establishing the standards for governance, and the growth of the Company. We wish him all the best in his future endeavors.”

About Quentin P. Smith, Jr.

Mr. Smith is president of 
Cadre Business Advisors, LLC, a professional management-consulting firm with an emphasis on strategic planning, business development, and business performance improvement. He has 40 years of experience providing management services to publicly and privately held businesses and government agencies of virtually every size and scope. To effectively execute business strategies, he often assumes the role of board chairman, interim CEO or special advisor to the CEO, taking responsibility for corporate governance, capital formation, setting the company’s operating strategy, and guiding it to profitability. He is Chairman of 
Banner Health and serves on its Executive and Nominating & Governance and Compensation Committees; and is a Director of 
Store Capital (NYSE: STOR), is Chairman of its Compensation Committee and serves on its 
Nominating & Governance Committee. His additional past board service includes 
Arizona Public Service (NYSE: PNW), 
Rodel, Inc., iCrossing, Arizona MultiBank, Greater Phoenix Leadership, and the 
Morrison Institute for Public Policy at 
Arizona State University.  Mr. Smith holds a Bachelor’s degree in Industrial Management and Computer Science from the 
Krannert School of Business at 
Purdue University and a Master’s degree in Business Administration from 
Pepperdine University in 
Malibu, California.

About Orion Group Holdings

Orion Group Holdings, Inc., a leading specialty construction company serving the infrastructure, industrial and building sectors, provides services both on and off the water in the continental 
United States, 
Alaska, 
Canada and the 
Caribbean Basin through its marine segment and its concrete segment. The Company’s marine segment provides construction and dredging services relating to marine transportation facility construction, marine pipeline construction, marine environmental structures, dredging of waterways, channels and ports, environmental dredging, design, and specialty services. Its concrete segment provides turnkey concrete construction services including pour and finish, dirt work, layout, forming, rebar, and mesh across the light commercial, structural and other associated business areas. The Company is headquartered in 
Houston, Texas with regional offices throughout its operating areas.

Forward-Looking Statements

The matters discussed in this press release may constitute or include projections or other forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, the provisions of which the Company is availing itself. Certain forward-looking statements can be identified by the use of forward-looking terminology, such as ‘believes’, ‘expects’, ‘may’, ‘will’, ‘could’, ‘should’, ‘seeks’, ‘approximately’, ‘intends’, ‘plans’, ‘estimates’, or ‘anticipates’, or the negative thereof or other comparable terminology, or by discussions of strategy, plans, objectives, intentions, estimates, forecasts, outlook, assumptions, or goals. In particular, statements regarding future operations or results, including those set forth in this press release and any other statement, express or implied, concerning future operating results or the future generation of or ability to generate revenues, income, net income, profit, EBITDA, EBITDA margin, or cash flow, including to service debt, and including any estimates, forecasts or assumptions regarding future revenues or revenue growth, are forward-looking statements. Forward looking statements also include estimated project start date, anticipated revenues, and contract options which may or may not be awarded in the future. Forward looking statements involve risks, including those associated with the Company’s fixed price contracts that impacts profits, unforeseen productivity delays that may alter the final profitability of the contract, cancellation of the contract by the customer for unforeseen reasons, delays or decreases in funding by the customer, levels and predictability of government funding or other governmental budgetary constraints and any potential contract options which may or may not be awarded in the future, and are the sole discretion of award by the customer. Past performance is not necessarily an indicator of future results. In light of these and other uncertainties, the inclusion of forward-looking statements in this press release should not be regarded as a representation by the Company that the Company’s plans, estimates, forecasts, goals, intentions, or objectives will be achieved or realized. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company assumes no obligation to update information contained in this press release whether as a result of new developments or otherwise.

Please refer to the Company’s Annual Report on Form 10-K filed on 
March 2, 2021, which is available on its website at www.oriongroupholdingsinc.com or at the SEC’s website at www.sec.gov, for additional and more detailed discussion of risk factors that could cause actual results to differ materially from our current expectations, estimates or forecasts.

Orion Group Holdings Inc.
Francis Okoniewski, Vice President Investor Relations
(346) 616-4138
fokoniewski@orn.net

www.oriongroupholdingsinc.com

Source: 
Orion Group Holdings, Inc.

Are the Markets Priced for the Worst-Case Scenario?

Posted on by Admin 


	Image Credit: Alphatradez (Pexels)

Does “Buy the Rumor, Sell the News” Apply to Today’s Markets?

 

Is the current market selloff a case of “Buy the rumor, sell the news”? The expectation that the upcoming Fed announcement is going to surprise investors with an even more hawkish stance than previously declared is the impetus for the current selloff. The presumed certainty is so great that the market may be positioned for the worst, and have this expectation already priced it in. If the Fed’s position is instead unchanged or otherwise less severe than feared, it could lead to a relief rally.

 

Background

The S&P 500 is down over 8% over the first 24 days of the year, the Nasdaq Index is down 12%, and both have fallen several more percentage points from their highs attained last year. Many highly followed tech stocks have fallen even further. Much of the selloff has been attributed to a hawkish Fed that is planning to raise interest rates to combat rising inflation. A modest increase in rates was expected heading into the new year. The market’s concern is now that the Fed will act with more resolve. The current selloff appears to be fear of the worst case for many sectors of the market, especially those that are impacted most by borrowing costs.

 

 

Is Relief on the Way?

If the market’s fears are correct and the Fed ramps up its hawkish rhetoric, will the markets have much further to fall? This risk may have already been substantially reduced with the current price action. If instead, the Fed sets a less aggressive timeline than priced in, many traders will wish they bought at current prices. And for those that are contemplating selling, they may be handed a better opportunity.

JP Morgan’s top equity strategist, Marko Kolanovic says the market correction could be approaching its “final stages.” In a note released this week, Kolanovic said the recent bearishness in stocks is out of line with momentum in economic activity, easing supply bottlenecks, and what JP Morgan expects will be a strong earnings season.  “While some are concerned that rising input prices will eat into margins, we expect margins to remain resilient thanks to strong activity and prices outpacing wage inflation,” Kolanovic wrote.

Investor sentiment has turned bearish, causing technical indicators to suggest oversold conditions, “we could be in the final stages of this correction. While the market struggles to digest the rotation forced on it by raising rates, we expect the earnings season to reassure,” Kolanovic explained.

According to the latest AAII Sentiment Survey, bullish sentiment fell to a low not seen since the coronavirus selloff. At the same time, bearish sentiment rose to a 16 month high. For many contrarian investors, that bearish sentiment suggests something between incremental buying and loading up on favorite sectors.

The Fed is in a tough spot and may again use unconventional tools to navigate. If the market continues to decline, it has implications for the overall economy and employment. Should the selloff continue, Kolanovic sees the Fed potentially stepping in with policy changes to stem the decline. “In a worst-case scenario, we could see a return of the ‘Fed
put,'” Kolanovic said.

Fed thinking could be altered by a continued steep market correction which may translate into fewer and smaller interest rate hikes in 2022 or a return to a longer-term tapering.  Just as when a quarterback calls a play, the movement on the field may quickly dictate other means of moving the ball toward the goal line. If the Feds plan to fight inflation and maintain a strong economy runs afoul, it certainly has other less aggressive offensive options to implement toward its goal.

Take-Away

As with all things related to predicting economic trends (or even forecasting weather), the expectations never match what is actually experienced. If the Fed is predicting one set of conditions, and it appears that another set is unfolding, they can turn on a dime. The Fed has done this unannounced before. It has also pulled tools from its quiver that have previously gone unused.

The most recent selloff appears to be based on the worst-case scenario; as JP Morgan’s top strategist has written, the economy is growing with very strong momentum.

Is there a better sell opportunity in the near future, is this a buying opportunity? Time will tell.

Paul Hoffman

Managing Editor, Channelchek

 

Suggested Reading



Will the Fed “Put” Become Worthless?

Climbing a “Wall of Worry”





The Correlation of Passive Ownership and Underperformance

Safe Haven Comparison During Downturns, Bitcoin vs. Gold

 

 

Sources

https://www.nasdaq.com/articles/vix-etfs-surge-as-stocks-continue-to-tumble

https://www.cnbc.com/2022/01/24/jpmorgans-kolanovic-says-selling-is-overdone-as-stocks-tumble.html

https://www.aaii.com/sentimentsurvey

https://www.thebalance.com/what-does-buy-the-rumor-sell-the-news-mean-1344971

www.koyfin.com

 

Stay up to date. Follow us:

 

Release – Indonesia Energy Closes Initial Tranche of $7.0 Million Private Placement

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Indonesia Energy Closes Initial Tranche of $7.0 Million Private Placement

Research, News, and Market Data on Indonesia Energy

 

JAKARTA, INDONESIA and DANVILLE, CA / ACCESSWIRE / January 24, 2022 / Indonesia Energy Corporation (NYSE American:INDO) (“IEC”), an oil and gas exploration and production company focused on Indonesia, today announced the closing of the initial $5.0 million tranche of a total anticipated $7.0 million private placement with a single institutional investor.

The Company intends to use the net proceeds from the private placement for funding its previously announced oil well drilling program and for working capital general corporate purposes.

The investment is in the form of a senior convertible note which carries a 6.0% original issue discount, resulting in proceeds before expenses to IEC of approximately $4.7 million. The note has an 18-month maturity and a fixed conversion price of $6.00 per ordinary share for voluntary conversions of the note, subject to adjustment. Beginning four months following the closing of this initial tranche, IEC is required to make equal monthly installment payments of the note through the maturity date, which payments are payable in cash or ordinary shares of IEC (or a combination of cash and shares), with such shares being valued for each payment on the terms provided for under the note.

As part of the investment, the investor was also granted a five year warrant to purchase 383,620 ordinary shares at an exercise price of $6.00 per share, subject to adjustment.

IEC has agreed to file a registration statement registering for resale the ordinary shares issuable upon conversion of the note and upon exercise of the warrant. Upon the declaration of effectiveness of such registration statement, and subject to the satisfaction of certain conditions, a second tranche of funding will be provided by the investor in the principal amount of $2 million, less a 6% original issuance discount, resulting in proceeds before expenses to IEC of approximately $1.88 million. Such principal amount, if funded, will be added to the principal amount of the note, and the investor will be entitled to receive an additional warrant (carrying the same terms as the initial warrant) to purchase 153,450 ordinary shares.

EF Hutton, division of Benchmark Investments, LLC, acted as exclusive placement agent for the private placement and received customary fees.

Additional information regarding this transaction will be provided in a Form 6-K to be filed by IEC with Securities and Exchange Commission.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Indonesia Energy Corporation Limited

Indonesia Energy Corporation Limited (NYSE American:INDO) is a publicly traded energy company engaged in the acquisition and development of strategic, high growth energy projects in Indonesia. IEC’s principal assets are its Kruh Block (63,000 acres) located onshore on the Island of Sumatra in Indonesia and its Citarum Block (1,000,000 acres) located onshore on the Island of Java in Indonesia. IEC is headquartered in Jakarta, Indonesia and has a representative office in Danville, California. For more information on IEC, please visit www.indo-energy.com.

Cautionary Statement Regarding Forward-Looking Statements

All statements in this press release of Indonesia Energy Corporation Limited (“IEC”) and its representatives and partners that are not based on historical fact are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Acts”). In particular, when used in the preceding discussion, the words “estimates,” “believes,” “hopes,” “expects,” “intends,” “on-track”, “plans,” “anticipates,” or “may,” and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Acts and are subject to the safe harbor created by the Acts. Any statements made in this news release other than those of historical fact, about an action, event or development, are forward-looking statements. While management has based any forward-looking statements contained herein on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties, and other factors, many of which are outside of the IEC’s control, that could cause actual results (including, without limitation, whether the second tranche of the financing described herein actually occurs, or the results of IEC’s drilling program) to materially and adversely differ from such statements. Such risks, uncertainties, and other factors include, but are not necessarily limited to, those set forth in the Risk Factors section of the Company’s annual report on Form 20-F for the fiscal year ended December 31, 2020, filed on May 18, 2021, with the Securities and Exchange Commission (SEC). Copies are of such documents are available on the SEC’s website, www.sec.gov. IEC undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

Company Contact:

Frank C. Ingriselli
President, Indonesia Energy Corporation Limited
Frank.Ingriselli@Indo-Energy.com

SOURCE: Indonesia Energy Corporation Limited

Will Crude Break $100 Per Barrel

Posted on by Admin 


	Image Credit: Pixabay (Pexels)

A Growing Number of Analysts are Forecasting Triple Digit Oil Prices

 

International oil prices could soar to $150 a barrel during the first quarter of 2022 if an ongoing conflict between Russia and Ukraine causes supply problems. Respected analysts and economists are reworking their forecasts and building in the “what-if” scenario, related to Russia; this has caused even more experts to join Goldman and JP Morgan in calling for over $100 per barrel of oil.

JP Morgan is projecting $125 and as high as $150 according to a research note they released. The projection adds to the already 12% higher price than Brent Crude reached in January. Oil is currently trading near its seven-year highs as demand is running ahead of global production. Brent is trading in the mid-$80s per barrel.

Russia Potential

Sanctions from the West against Russia would reduce supply to Western European nations that rely on the country’s oil and exacerbate supply issues. Since late 2021, Russia is said to have been building up troops and artillery near Ukraine’s border. Russia has repeatedly claimed it’s not planning an invasion of its mineral-rich neighbor.

“The latest geopolitical tensions between Russia and Ukraine raise the risk of a material spike this quarter,” wrote JPMorgan economists Joseph Lupton and Bruce Kasman in their research note. “That this comes on the back of already elevated inflation—running at a multi-decade high last quarter—and a global economy that is being buffeted by yet another wave of the COVID-19 pandemic adds to the near-term fragility of what is otherwise a fundamentally strong recovery.”

If an adverse geopolitical event should unfold between Russia and Ukraine, JP Morgan envisions a “quick” surge in Brent Crude over one to two quarters to $150 a barrel.  The projection is based on an estimated “sharp” cut of 2.3 million barrels a day in oil output. This is approximately a 2% drop in total global supply.

Other Forecasts for Higher Oil

Triple-digit oil “is in the works” for the second quarter of 2022, according to Francisco Blanch, head of global commodities at Bank of America, who told this to Bloomberg. His reasoning is demand is recovering in a big way, while OPEC+ supply will start leveling off within the next two months. Blanch noted that it will be only Saudi Arabia and the UAE that can produce incremental barrels to add to the market.

Morgan Stanley is one of the most recent large Wall Street banks to revise its forecast to over $100 per barrel. The company expects oil prices to hit $100 per barrel in the second half of the year. The oil market is headed to a “triple deficit” of low inventories, low spare production capacity, and low investment, Morgan Stanley said in a note carried by Reuters.

Take-Away

The year began with a number of factors driving oil prices higher. These include OPEC+ producers regularly falling short of their targets, increasing demand as travel and commutes have caused gasoline demand to rise, and inventory drawdowns.  On top of this, there is the new threat of supply disruptions in Eastern Europe which could reduce available Brent by 2% of global output. Outright sanctions against Russia also create a scenario of reduced supply and strong upward pressure on oil prices.

Paul Hoffman

Managing Editor, Channelchek

 

Suggested Reading



Why Some Forecasters are Bullish on Oil in 2022

Natural Gas Protests in Kazakhstan May Impact Global Fuel Costs Across the Board





Is Thorium, Not Uranium the Future of Power Generation?

Industry Report – Energy Stocks Level out but Pricing is Still Attractive

 

Sources

https://www.reuters.com/business/jp-morgan-sees-opec-spare-capacity-falling-through-2022-2022-01-12/

https://www.macrobusiness.com.au/2022/01/the-ukraine-commodity-shock/

https://www.barchart.com/story/news/6992728/tight-physical-crude-market-points-to-higher-oil-prices

https://www.reuters.com/business/energy/oil-prices-could-hit-100-demand-outstrips-supply-analysts-say-2022-01-12/

https://markets.businessinsider.com/news/commodities/oil-price-outlook-russia-ukraine-tensions-150-per-barrel-supply-2022-1

 

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Indonesia Energy Closes Initial Tranche of $7.0 Million Private Placement

Posted on by Admin



Indonesia Energy Closes Initial Tranche of $7.0 Million Private Placement

Research, News, and Market Data on Indonesia Energy

 

JAKARTA, INDONESIA and DANVILLE, CA / ACCESSWIRE / January 24, 2022 / Indonesia Energy Corporation (NYSE American:INDO) (“IEC”), an oil and gas exploration and production company focused on Indonesia, today announced the closing of the initial $5.0 million tranche of a total anticipated $7.0 million private placement with a single institutional investor.

The Company intends to use the net proceeds from the private placement for funding its previously announced oil well drilling program and for working capital general corporate purposes.

The investment is in the form of a senior convertible note which carries a 6.0% original issue discount, resulting in proceeds before expenses to IEC of approximately $4.7 million. The note has an 18-month maturity and a fixed conversion price of $6.00 per ordinary share for voluntary conversions of the note, subject to adjustment. Beginning four months following the closing of this initial tranche, IEC is required to make equal monthly installment payments of the note through the maturity date, which payments are payable in cash or ordinary shares of IEC (or a combination of cash and shares), with such shares being valued for each payment on the terms provided for under the note.

As part of the investment, the investor was also granted a five year warrant to purchase 383,620 ordinary shares at an exercise price of $6.00 per share, subject to adjustment.

IEC has agreed to file a registration statement registering for resale the ordinary shares issuable upon conversion of the note and upon exercise of the warrant. Upon the declaration of effectiveness of such registration statement, and subject to the satisfaction of certain conditions, a second tranche of funding will be provided by the investor in the principal amount of $2 million, less a 6% original issuance discount, resulting in proceeds before expenses to IEC of approximately $1.88 million. Such principal amount, if funded, will be added to the principal amount of the note, and the investor will be entitled to receive an additional warrant (carrying the same terms as the initial warrant) to purchase 153,450 ordinary shares.

EF Hutton, division of Benchmark Investments, LLC, acted as exclusive placement agent for the private placement and received customary fees.

Additional information regarding this transaction will be provided in a Form 6-K to be filed by IEC with Securities and Exchange Commission.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Indonesia Energy Corporation Limited

Indonesia Energy Corporation Limited (NYSE American:INDO) is a publicly traded energy company engaged in the acquisition and development of strategic, high growth energy projects in Indonesia. IEC’s principal assets are its Kruh Block (63,000 acres) located onshore on the Island of Sumatra in Indonesia and its Citarum Block (1,000,000 acres) located onshore on the Island of Java in Indonesia. IEC is headquartered in Jakarta, Indonesia and has a representative office in Danville, California. For more information on IEC, please visit www.indo-energy.com.

Cautionary Statement Regarding Forward-Looking Statements

All statements in this press release of Indonesia Energy Corporation Limited (“IEC”) and its representatives and partners that are not based on historical fact are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Acts”). In particular, when used in the preceding discussion, the words “estimates,” “believes,” “hopes,” “expects,” “intends,” “on-track”, “plans,” “anticipates,” or “may,” and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Acts and are subject to the safe harbor created by the Acts. Any statements made in this news release other than those of historical fact, about an action, event or development, are forward-looking statements. While management has based any forward-looking statements contained herein on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties, and other factors, many of which are outside of the IEC’s control, that could cause actual results (including, without limitation, whether the second tranche of the financing described herein actually occurs, or the results of IEC’s drilling program) to materially and adversely differ from such statements. Such risks, uncertainties, and other factors include, but are not necessarily limited to, those set forth in the Risk Factors section of the Company’s annual report on Form 20-F for the fiscal year ended December 31, 2020, filed on May 18, 2021, with the Securities and Exchange Commission (SEC). Copies are of such documents are available on the SEC’s website, www.sec.gov. IEC undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

Company Contact:

Frank C. Ingriselli
President, Indonesia Energy Corporation Limited
Frank.Ingriselli@Indo-Energy.com

SOURCE: Indonesia Energy Corporation Limited

Release – Ocugen Inc. Announces Nirdosh Jagota Ph.D. as Senior Vice President Regulatory Affairs Compliance Safety

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Ocugen Inc. Announces Nirdosh Jagota, Ph.D. as Senior Vice President, Regulatory Affairs, Compliance & Safety

 

Research, News, and Market Data on Ocugen

 

MALVERN, Pa., Jan. 24, 2022 (GLOBE NEWSWIRE) — Ocugen, Inc. (NASDAQ: OCGN), a biopharmaceutical company focused on discovering, developing, and commercializing gene therapies to cure blindness diseases and developing a vaccine to save lives from COVID-19, today announced the appointment of Nirdosh Jagota, Ph.D.,  as Senior Vice President (SVP), Regulatory Affairs, compliance and safety.

He’ll be responsible for ensuring the global strategy, development and execution of regulatory activities for the company’s pipeline, including gene therapies and vaccines, are aligned with local and international registration requirements. His responsibilities include supporting commercialization. He will serve as a member of Ocugen’s management team, reporting directly to the CEO.

Dr. Jagota is a seasoned biopharmaceutical regulatory professional with 30 years of experience in leading roles in drug development and regulatory sciences for vaccines, biologics and small molecules. Prior to joining Ocugen, he was Executive Vice President and Chief Regulatory Officer of Arcturus Therapeutics. Before joining Arcuturs he was Senior Vice President in Global Regulatory Affairs and Safety. Over the course of his career, Dr. Jagota has held leadership positions with Genentech, Roche, and Pfizer.

“We’ve been making progress on our regulatory efforts, and Nirdosh’s arrival comes at an important time. He brings the experience, knowledge and successful track record of bringing many biopharmaceuticals and vaccines, through high performance teams, to the market. This is an investment into Ocugen’s future work with national and international regulatory agencies,” said Dr. Shankar Musunuri, Chairman of the Board, Chief Executive Officer, and Co-founder of Ocugen.

“Ocugen is a company with the talent and expertise to tackle some of the world’s most challenging health issues, and I’m excited to be joining this team,” commented Nirdosh Jagota, Ph.D.

Dr. Jagota’s work has had international impact, managing teams spanning more than 20 countries, successfully shaping regulatory strategy across multiple therapeutic categories and establishing centers of excellence. In his career, Dr. Jagota has led and contributed to development, approval, and expansion of more than 30 vaccines and therapeutics including Ervebo®, Vaxneuvance™, Gardasil®9, Kadcyla®, Erivedge®, Zelboraf®, and Keytruda®.

Dr. Jagota holds a Ph.D. in pharmaceutical sciences from University of Georgia and an M.S. in biotechnology from University of Toledo, Ohio. and a BS/MS in pharmacy from Indian Institute of Technology (IIT) Varanasi. 

About Ocugen, Inc.
Ocugen, Inc. is a biopharmaceutical company focused on discovering, developing, and commercializing gene therapies to cure blindness diseases and develop a vaccine to save lives from COVID-19. Our breakthrough modifier gene therapy platform has the potential to treat multiple retinal diseases with one drug – “one to many” and our novel biologic product candidate aims to offer better therapy to patients with underserved diseases such as wet age-related macular degeneration, diabetic macular edema, and diabetic retinopathy. We are co-developing Bharat Biotech’s COVAXIN™ vaccine candidate for COVID-19 in the U.S. market. For more information, please visit www.ocugen.com.

Cautionary Note on Forward-Looking Statements
This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties. We may, in some cases, use terms such as “predicts,” “believes,” “potential,” “proposed,” “continue,” “estimates,” “anticipates,” “expects,” “plans,” “intends,” “may,” “could,” “might,” “will,” “should” or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. Such statements are subject to numerous important factors, risks and uncertainties that may cause actual events or results to differ materially from our current expectations. These and other risks and uncertainties are more fully described in our periodic filings with the Securities and Exchange Commission (“SEC”), including the risk factors described in the section entitled “Risk Factors” in the quarterly and annual reports that we file with the SEC. Any forward-looking statements that we make in this press release speak only as of the date of this press release. Except as required by law, we assume no obligation to update forward-looking statements contained in this press release whether as a result of new information, future events or otherwise, after the date of this press release.

Ocugen Contact: 
Ken Inchausti
Head, Investor Relations & Communications
IR@Ocugen.com 

Release – Seanergy Maritime Provides Guidance on TCE and EBITDA

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Seanergy Maritime Provides Guidance on TCE and EBITDA

Research, News, and Market Data on Seanergy Maritime

 

January 24, 2022 – Glyfada, Greece – Seanergy Maritime Holdings Corp. (the “Company” or “Seanergy”) (NASDAQ: SHIP) updated its time charter equivalent (“TCE rate”) guidance upwards for the fourth quarter of 2021, provided preliminary TCE guidance for the first quarter of 2022, as well as EBITDA projections for FY 2022.1 2

TCE Guidance

In the fourth quarter of 2021, the Company is expected to exceed an average TCE rate of approximately $36,000 per ship per day, outperforming our previously announced guidance of $35,200 per ship per day.3

As of the date of this press release, our estimated TCE rate for the first quarter of 2022 is expected to be approximately $19,0004. This estimate assumes that the remaining unfixed operating days of our index-linked vessels for this period will be equal to the average Forward Freight Agreement (“FFA”) rate of $13,500 per day. Our TCE guidance for the first quarter includes certain conversions of index-linked charters to fixed, which were concluded in the third and fourth quarter of 2021, as part of our freight hedging strategy.

EBITDA Projections5

The following graph provides the Company’s estimates for its EBITDA for 2022, based on various scenarios for the average TCE for the 5 T/C routes of the Baltic Capesize Index (“TC5” of the “BCI”).

 

Stamatis Tsantanis, the Company’s Chairman & Chief Executive Officer, stated:

“As a result of our pro-active hedging strategy in 2H21, we estimate that we will overperform the current spot market rate by approximately 50% in the first quarter. Moreover, our robust EBITDA generating capacity in multiple freight environments attests to our firm belief that our shares are currently significantly undervalued.

“Despite the seasonal market weakness, we expect that supply and demand fundamentals will result in a strong recovery of Capesize rates within the following months. Our solid balance sheet, modern fleet and strong relationships with world leading charterers in combination with our substantial operating leverage place Seanergy in an optimal position to generate strong revenues and profitability in an improving charter rate environment.”

About Seanergy Maritime Holdings Corp.

Seanergy Maritime Holdings Corp. is the only pure-play Capesize ship-owner publicly listed in the US. Seanergy provides marine dry bulk transportation services through a modern fleet of Capesize vessels. The Company’s operating fleet consists of 17 Capesize vessels with an average age of 11.7 years and aggregate cargo carrying capacity of approximately 3,011,083 dwt.

The Company is incorporated in the Marshall Islands and has executive offices in Glyfada, Greece. The Company’s common shares trade on the Nasdaq Capital Market under the symbol “SHIP” and its Class B warrants under “SHIPZ”.

Please visit our company website at: www.seanergymaritime.com.

Note Regarding Non-U.S. GAAP Financial Measures

The Company reports its financial results in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). EBITDA and TCE rate are non-GAAP financial measures.

Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) represents the sum of net income / (loss) (the most directly comparable U.S. GAAP measure), interest and finance costs, interest income, depreciation and amortization and, if any, income taxes during a period. EBITDA is not a recognized measurement under U.S. GAAP.

EBITDA is presented as we believe that this measure is useful to investors as a widely used means of evaluating operating profitability. EBITDA as presented here may not be comparable to similarly titled measures presented by other companies. This non-GAAP measure should not be considered in isolation from, as a substitute for, or superior to, financial measures prepared in accordance with U.S. GAAP.

TCE rate is defined as the Company’s net revenue less voyage expenses during a period divided by the number of the Company’s operating days during the period. Voyage expenses include port charges, bunker (fuel oil and diesel oil) expenses, canal charges and other commissions. The Company includes the TCE rate, a non-GAAP measure, as it believes it provides additional meaningful information in conjunction with net revenues from vessels, the most directly comparable U.S. GAAP measure, and because it assists the Company’s management in making decisions regarding the deployment and use of the Company’s vessels and in evaluating their financial performance. The Company’s calculation of TCE rate may not be comparable to that reported by other companies.

Forward-Looking Statements

This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events. Words such as “may”, “should”, “expects”, “intends”, “plans”, “believes”, “anticipates”, “hopes”, “estimates” and variations of such words and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks and are based upon a number of assumptions and estimates, which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the Company’s operating or financial results; the Company’s liquidity, including its ability to service its indebtedness; competitive factors in the market in which the Company operates; shipping industry trends, including charter rates, vessel values and factors affecting vessel supply and demand; future, pending or recent acquisitions and dispositions, business strategy, areas of possible expansion or contraction, and expected capital spending or operating expenses; risks associated with operations outside the United States; risks associated with the length and severity of the ongoing novel coronavirus (COVID-19) outbreak, including its effects on demand for dry bulk products and the transportation thereof; and other factors listed from time to time in the Company’s filings with the SEC, including its most recent annual report on Form 20-F. The Company’s filings can be obtained free of charge on the SEC’s website at www.sec.gov. Except to the extent required by law, the Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

For further information please contact:

Seanergy Investor Relations

Tel: +30 213 0181 522

E-mail: ir@seanergy.gr

 

Capital Link, Inc.

Paul Lampoutis

230 Park Avenue Suite 1536

New York, NY 10169

Tel: (212) 661-7566

E-mail: seanergy@capitallink.com


1 EBITDA and TCE rate are non-GAAP measures. Please see the discussion above under the heading “Note Regarding Non-U.S. GAAP Financial Measures” for more information.

2 Guidance is provided for TCE rate and EBITDA on a non-U.S. GAAP basis only, because information regarding various items necessary to determine net revenue from vessels and net income / (loss), the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP for TCE rate and EBITDA, respectively, on a forward looking basis is unavailable due to the uncertainty and inherent difficulty of predicting the occurrence and the future financial statement impact of such items, including, but not limited to, voyage expenses, stock-based compensation and the non-recurring gain on sale of vessel and gain on debt refinancing, and certain non-ordinary course matters. Because of the uncertainty and variability of the nature and amount of such items, which could be significant, the Company is unable to provide a quantitative reconciliation of the differences between expected TCE rate and EBITDA and the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP without unreasonable efforts. The unavailable reconciling items could significantly affect the Company’s financial results for the periods discussed on a forward-looking basis herein.

3 The Company has not finalized its financial statement closing process for the fourth quarter. During the course of that process, the Company may identify items that would require it to make adjustments, including possible material adjustments to these preliminary results.

4 This guidance is based on certain assumptions, including projected utilization, and there can be no assurance that these assumptions and the resulting TCE estimates will be realized. TCE estimates include certain floating (index) to fixed rate conversions concluded in previous periods. For vessels on index-linked T/Cs, the TCE realized will vary with the underlying index, and for the purposes of this guidance, the TCE assumed for the remaining operating days of an index-linked T/C is equal to the average FFA rate of approximately $13,500 per day for the remaining days of the first quarter of 2022 based on the FFA curve as of January 19, 2022.

5 These projections are based on certain assumptions, including no change to the current composition of our fleet, fleet utilization or commissions and expenses, including operating and general & administrative expenses, based on the historical performance of the Company in the first nine months of 2021. EBITDA projections exclude extraordinary items such as gain/loss on vessel sales, loan refinancing etc. There can be no assurance that these assumptions and the resulting projections will be realized. As a result, the above projections constitute forward-looking statements and are subject to risks and uncertainties, including possible material adjustments to the projections disclosed. The Company is providing this information on a one-time basis only, subject to these assumptions, risks and uncertainties, and does not intend to update this information.

Ocugen Inc. Announces Nirdosh Jagota, Ph.D. as Senior Vice President, Regulatory Affairs, Compliance & Safety

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Ocugen Inc. Announces Nirdosh Jagota, Ph.D. as Senior Vice President, Regulatory Affairs, Compliance & Safety

 

Research, News, and Market Data on Ocugen

 

MALVERN, Pa., Jan. 24, 2022 (GLOBE NEWSWIRE) — Ocugen, Inc. (NASDAQ: OCGN), a biopharmaceutical company focused on discovering, developing, and commercializing gene therapies to cure blindness diseases and developing a vaccine to save lives from COVID-19, today announced the appointment of Nirdosh Jagota, Ph.D.,  as Senior Vice President (SVP), Regulatory Affairs, compliance and safety.

He’ll be responsible for ensuring the global strategy, development and execution of regulatory activities for the company’s pipeline, including gene therapies and vaccines, are aligned with local and international registration requirements. His responsibilities include supporting commercialization. He will serve as a member of Ocugen’s management team, reporting directly to the CEO.

Dr. Jagota is a seasoned biopharmaceutical regulatory professional with 30 years of experience in leading roles in drug development and regulatory sciences for vaccines, biologics and small molecules. Prior to joining Ocugen, he was Executive Vice President and Chief Regulatory Officer of Arcturus Therapeutics. Before joining Arcuturs he was Senior Vice President in Global Regulatory Affairs and Safety. Over the course of his career, Dr. Jagota has held leadership positions with Genentech, Roche, and Pfizer.

“We’ve been making progress on our regulatory efforts, and Nirdosh’s arrival comes at an important time. He brings the experience, knowledge and successful track record of bringing many biopharmaceuticals and vaccines, through high performance teams, to the market. This is an investment into Ocugen’s future work with national and international regulatory agencies,” said Dr. Shankar Musunuri, Chairman of the Board, Chief Executive Officer, and Co-founder of Ocugen.

“Ocugen is a company with the talent and expertise to tackle some of the world’s most challenging health issues, and I’m excited to be joining this team,” commented Nirdosh Jagota, Ph.D.

Dr. Jagota’s work has had international impact, managing teams spanning more than 20 countries, successfully shaping regulatory strategy across multiple therapeutic categories and establishing centers of excellence. In his career, Dr. Jagota has led and contributed to development, approval, and expansion of more than 30 vaccines and therapeutics including Ervebo®, Vaxneuvance™, Gardasil®9, Kadcyla®, Erivedge®, Zelboraf®, and Keytruda®.

Dr. Jagota holds a Ph.D. in pharmaceutical sciences from University of Georgia and an M.S. in biotechnology from University of Toledo, Ohio. and a BS/MS in pharmacy from Indian Institute of Technology (IIT) Varanasi. 

About Ocugen, Inc.
Ocugen, Inc. is a biopharmaceutical company focused on discovering, developing, and commercializing gene therapies to cure blindness diseases and develop a vaccine to save lives from COVID-19. Our breakthrough modifier gene therapy platform has the potential to treat multiple retinal diseases with one drug – “one to many” and our novel biologic product candidate aims to offer better therapy to patients with underserved diseases such as wet age-related macular degeneration, diabetic macular edema, and diabetic retinopathy. We are co-developing Bharat Biotech’s COVAXIN™ vaccine candidate for COVID-19 in the U.S. market. For more information, please visit www.ocugen.com.

Cautionary Note on Forward-Looking Statements
This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties. We may, in some cases, use terms such as “predicts,” “believes,” “potential,” “proposed,” “continue,” “estimates,” “anticipates,” “expects,” “plans,” “intends,” “may,” “could,” “might,” “will,” “should” or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. Such statements are subject to numerous important factors, risks and uncertainties that may cause actual events or results to differ materially from our current expectations. These and other risks and uncertainties are more fully described in our periodic filings with the Securities and Exchange Commission (“SEC”), including the risk factors described in the section entitled “Risk Factors” in the quarterly and annual reports that we file with the SEC. Any forward-looking statements that we make in this press release speak only as of the date of this press release. Except as required by law, we assume no obligation to update forward-looking statements contained in this press release whether as a result of new information, future events or otherwise, after the date of this press release.

Ocugen Contact: 
Ken Inchausti
Head, Investor Relations & Communications
IR@Ocugen.com 

Seanergy Maritime Provides Guidance on TCE and EBITDA

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Seanergy Maritime Provides Guidance on TCE and EBITDA

Research, News, and Market Data on Seanergy Maritime

 

January 24, 2022 – Glyfada, Greece – Seanergy Maritime Holdings Corp. (the “Company” or “Seanergy”) (NASDAQ: SHIP) updated its time charter equivalent (“TCE rate”) guidance upwards for the fourth quarter of 2021, provided preliminary TCE guidance for the first quarter of 2022, as well as EBITDA projections for FY 2022.1 2

TCE Guidance

In the fourth quarter of 2021, the Company is expected to exceed an average TCE rate of approximately $36,000 per ship per day, outperforming our previously announced guidance of $35,200 per ship per day.3

As of the date of this press release, our estimated TCE rate for the first quarter of 2022 is expected to be approximately $19,0004. This estimate assumes that the remaining unfixed operating days of our index-linked vessels for this period will be equal to the average Forward Freight Agreement (“FFA”) rate of $13,500 per day. Our TCE guidance for the first quarter includes certain conversions of index-linked charters to fixed, which were concluded in the third and fourth quarter of 2021, as part of our freight hedging strategy.

EBITDA Projections5

The following graph provides the Company’s estimates for its EBITDA for 2022, based on various scenarios for the average TCE for the 5 T/C routes of the Baltic Capesize Index (“TC5” of the “BCI”).

 

Stamatis Tsantanis, the Company’s Chairman & Chief Executive Officer, stated:

“As a result of our pro-active hedging strategy in 2H21, we estimate that we will overperform the current spot market rate by approximately 50% in the first quarter. Moreover, our robust EBITDA generating capacity in multiple freight environments attests to our firm belief that our shares are currently significantly undervalued.

“Despite the seasonal market weakness, we expect that supply and demand fundamentals will result in a strong recovery of Capesize rates within the following months. Our solid balance sheet, modern fleet and strong relationships with world leading charterers in combination with our substantial operating leverage place Seanergy in an optimal position to generate strong revenues and profitability in an improving charter rate environment.”

About Seanergy Maritime Holdings Corp.

Seanergy Maritime Holdings Corp. is the only pure-play Capesize ship-owner publicly listed in the US. Seanergy provides marine dry bulk transportation services through a modern fleet of Capesize vessels. The Company’s operating fleet consists of 17 Capesize vessels with an average age of 11.7 years and aggregate cargo carrying capacity of approximately 3,011,083 dwt.

The Company is incorporated in the Marshall Islands and has executive offices in Glyfada, Greece. The Company’s common shares trade on the Nasdaq Capital Market under the symbol “SHIP” and its Class B warrants under “SHIPZ”.

Please visit our company website at: www.seanergymaritime.com.

Note Regarding Non-U.S. GAAP Financial Measures

The Company reports its financial results in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). EBITDA and TCE rate are non-GAAP financial measures.

Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) represents the sum of net income / (loss) (the most directly comparable U.S. GAAP measure), interest and finance costs, interest income, depreciation and amortization and, if any, income taxes during a period. EBITDA is not a recognized measurement under U.S. GAAP.

EBITDA is presented as we believe that this measure is useful to investors as a widely used means of evaluating operating profitability. EBITDA as presented here may not be comparable to similarly titled measures presented by other companies. This non-GAAP measure should not be considered in isolation from, as a substitute for, or superior to, financial measures prepared in accordance with U.S. GAAP.

TCE rate is defined as the Company’s net revenue less voyage expenses during a period divided by the number of the Company’s operating days during the period. Voyage expenses include port charges, bunker (fuel oil and diesel oil) expenses, canal charges and other commissions. The Company includes the TCE rate, a non-GAAP measure, as it believes it provides additional meaningful information in conjunction with net revenues from vessels, the most directly comparable U.S. GAAP measure, and because it assists the Company’s management in making decisions regarding the deployment and use of the Company’s vessels and in evaluating their financial performance. The Company’s calculation of TCE rate may not be comparable to that reported by other companies.

Forward-Looking Statements

This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events. Words such as “may”, “should”, “expects”, “intends”, “plans”, “believes”, “anticipates”, “hopes”, “estimates” and variations of such words and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks and are based upon a number of assumptions and estimates, which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the Company’s operating or financial results; the Company’s liquidity, including its ability to service its indebtedness; competitive factors in the market in which the Company operates; shipping industry trends, including charter rates, vessel values and factors affecting vessel supply and demand; future, pending or recent acquisitions and dispositions, business strategy, areas of possible expansion or contraction, and expected capital spending or operating expenses; risks associated with operations outside the United States; risks associated with the length and severity of the ongoing novel coronavirus (COVID-19) outbreak, including its effects on demand for dry bulk products and the transportation thereof; and other factors listed from time to time in the Company’s filings with the SEC, including its most recent annual report on Form 20-F. The Company’s filings can be obtained free of charge on the SEC’s website at www.sec.gov. Except to the extent required by law, the Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

For further information please contact:

Seanergy Investor Relations

Tel: +30 213 0181 522

E-mail: ir@seanergy.gr

 

Capital Link, Inc.

Paul Lampoutis

230 Park Avenue Suite 1536

New York, NY 10169

Tel: (212) 661-7566

E-mail: seanergy@capitallink.com


1 EBITDA and TCE rate are non-GAAP measures. Please see the discussion above under the heading “Note Regarding Non-U.S. GAAP Financial Measures” for more information.

2 Guidance is provided for TCE rate and EBITDA on a non-U.S. GAAP basis only, because information regarding various items necessary to determine net revenue from vessels and net income / (loss), the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP for TCE rate and EBITDA, respectively, on a forward looking basis is unavailable due to the uncertainty and inherent difficulty of predicting the occurrence and the future financial statement impact of such items, including, but not limited to, voyage expenses, stock-based compensation and the non-recurring gain on sale of vessel and gain on debt refinancing, and certain non-ordinary course matters. Because of the uncertainty and variability of the nature and amount of such items, which could be significant, the Company is unable to provide a quantitative reconciliation of the differences between expected TCE rate and EBITDA and the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP without unreasonable efforts. The unavailable reconciling items could significantly affect the Company’s financial results for the periods discussed on a forward-looking basis herein.

3 The Company has not finalized its financial statement closing process for the fourth quarter. During the course of that process, the Company may identify items that would require it to make adjustments, including possible material adjustments to these preliminary results.

4 This guidance is based on certain assumptions, including projected utilization, and there can be no assurance that these assumptions and the resulting TCE estimates will be realized. TCE estimates include certain floating (index) to fixed rate conversions concluded in previous periods. For vessels on index-linked T/Cs, the TCE realized will vary with the underlying index, and for the purposes of this guidance, the TCE assumed for the remaining operating days of an index-linked T/C is equal to the average FFA rate of approximately $13,500 per day for the remaining days of the first quarter of 2022 based on the FFA curve as of January 19, 2022.

5 These projections are based on certain assumptions, including no change to the current composition of our fleet, fleet utilization or commissions and expenses, including operating and general & administrative expenses, based on the historical performance of the Company in the first nine months of 2021. EBITDA projections exclude extraordinary items such as gain/loss on vessel sales, loan refinancing etc. There can be no assurance that these assumptions and the resulting projections will be realized. As a result, the above projections constitute forward-looking statements and are subject to risks and uncertainties, including possible material adjustments to the projections disclosed. The Company is providing this information on a one-time basis only, subject to these assumptions, risks and uncertainties, and does not intend to update this information.

Will Crude Break $100 Per Barrel?

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	Image Credit: Pixabay (Pexels)

A Growing Number of Analysts are Forecasting Triple Digit Oil Prices

 

International oil prices could soar to $150 a barrel during the first quarter of 2022 if an ongoing conflict between Russia and Ukraine causes supply problems. Respected analysts and economists are reworking their forecasts and building in the “what-if” scenario, related to Russia; this has caused even more experts to join Goldman and JP Morgan in calling for over $100 per barrel of oil.

JP Morgan is projecting $125 and as high as $150 according to a research note they released. The projection adds to the already 12% higher price than Brent Crude reached in January. Oil is currently trading near its seven-year highs as demand is running ahead of global production. Brent is trading in the mid-$80s per barrel.

Russia Potential

Sanctions from the West against Russia would reduce supply to Western European nations that rely on the country’s oil and exacerbate supply issues. Since late 2021, Russia is said to have been building up troops and artillery near Ukraine’s border. Russia has repeatedly claimed it’s not planning an invasion of its mineral-rich neighbor.

“The latest geopolitical tensions between Russia and Ukraine raise the risk of a material spike this quarter,” wrote JPMorgan economists Joseph Lupton and Bruce Kasman in their research note. “That this comes on the back of already elevated inflation—running at a multi-decade high last quarter—and a global economy that is being buffeted by yet another wave of the COVID-19 pandemic adds to the near-term fragility of what is otherwise a fundamentally strong recovery.”

If an adverse geopolitical event should unfold between Russia and Ukraine, JP Morgan envisions a “quick” surge in Brent Crude over one to two quarters to $150 a barrel.  The projection is based on an estimated “sharp” cut of 2.3 million barrels a day in oil output. This is approximately a 2% drop in total global supply.

Other Forecasts for Higher Oil

Triple-digit oil “is in the works” for the second quarter of 2022, according to Francisco Blanch, head of global commodities at Bank of America, who told this to Bloomberg. His reasoning is demand is recovering in a big way, while OPEC+ supply will start leveling off within the next two months. Blanch noted that it will be only Saudi Arabia and the UAE that can produce incremental barrels to add to the market.

Morgan Stanley is one of the most recent large Wall Street banks to revise its forecast to over $100 per barrel. The company expects oil prices to hit $100 per barrel in the second half of the year. The oil market is headed to a “triple deficit” of low inventories, low spare production capacity, and low investment, Morgan Stanley said in a note carried by Reuters.

Take-Away

The year began with a number of factors driving oil prices higher. These include OPEC+ producers regularly falling short of their targets, increasing demand as travel and commutes have caused gasoline demand to rise, and inventory drawdowns.  On top of this, there is the new threat of supply disruptions in Eastern Europe which could reduce available Brent by 2% of global output. Outright sanctions against Russia also create a scenario of reduced supply and strong upward pressure on oil prices.

Paul Hoffman

Managing Editor, Channelchek

 

Suggested Reading



Why Some Forecasters are Bullish on Oil in 2022

Natural Gas Protests in Kazakhstan May Impact Global Fuel Costs Across the Board





Is Thorium, Not Uranium the Future of Power Generation?

Industry Report – Energy Stocks Level out but Pricing is Still Attractive

 

Sources

https://www.reuters.com/business/jp-morgan-sees-opec-spare-capacity-falling-through-2022-2022-01-12/

https://www.macrobusiness.com.au/2022/01/the-ukraine-commodity-shock/

https://www.barchart.com/story/news/6992728/tight-physical-crude-market-points-to-higher-oil-prices

https://www.reuters.com/business/energy/oil-prices-could-hit-100-demand-outstrips-supply-analysts-say-2022-01-12/

https://markets.businessinsider.com/news/commodities/oil-price-outlook-russia-ukraine-tensions-150-per-barrel-supply-2022-1

 

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Does Cryptocurrency Balance Risk When Stocks Sell-off

Posted on by Admin 


	Image Credit: Marco Verch (Flickr)

Safe Haven Comparison During Downturns, Bitcoin vs. Gold

 

The jury is still out on whether bitcoin is a safe haven portfolio holding versus more traditional assets like gold, bonds, or even real estate. The world’s first cryptocurrency would seem to meet the criteria that would make it a logical non-correlated asset. These include independence from central bank policies, being a store of value, and it has an established deep market, but it has not been put to the test. Bitcoin history is too short; there are not many data points from which to assess expected future behavior.

Correlation to Stocks

Recent history does provide some insight as to whether bitcoin or gold is more effective during extreme market weakness. The following three charts provide a helpful visual of the comparative performance of bitcoin, gold, and the S&P 500.

 

 

The chart above is of the last three months of 2018. The market sold off sharply November through December in reaction to a U.S. trade war with China, the slowdown in global economic growth, and concern that the Federal Reserve was raising interest rates too fast. The price movement shows that when the market sold off over 13% in just three months, bitcoin moved in the same direction and suffered more than three times the loss (43%). Portfolios holding assets that closely tracked the price of gold were able to mute the negative performance of the equity portion because during this period gold moved higher by more than 7%.

 

 

A little more than a year later, the markets sold off in reaction to the novel coronavirus that placed uncertainty in every aspect of people’s lives and every corner of the economy. This second chart shows that when the market sold off by more than 23% for different reasons than in 2018, bitcoin again moved in the same direction and exceeded equities losses. Gold during this time remained virtually unchanged. This provided portfolios holding the asset class less of an impact from the movement of stocks, bitcoin, or any other asset held.

 

 

The stock market started off 2022 reacting to a change of thinking on how long the Fed would keep monetary policy extremely accommodative. Through January 21st, stocks are down 8%. Once again following in the same direction. Bitcoin has fallen by more than twice that of equities. For its part, gold is up over 1%, having the effect of providing a safe haven for equity investors that bitcoin did not provide in either this down period or any of the other two that came before it.

Take-Away

Diversifying a portfolio means that you spread risk by holding assets that move independently based on their own factors. A non-correlated portfolio doesn’t swing for home runs, it aims to win by performing more consistently over time. The question of whether bitcoin or younger cryptocurrencies help diversify a portfolio will be answered better as more experiences present themselves over time.

The statistical evidence available today suggests that gold investments as an uncorrelated asset are superior to bitcoin by a wide margin based on the very few times the market has sold off sharply since the birth of cryptocurrencies.

Paul Hoffman

Managing Editor, Channelchek

 

Suggested Reading



Will Gold Continue to Outperform in 2022?

Capturing More Performance with Gold Prices Rising





Has Bitcoin Lived Up to its Original Vision?

Cryptocurrencies in 2022, a View from Academics

 

Sources

www.koyfin.com

https://www.wellsfargo.com/financial-education/investing/why-diversify-your-portfolio/

https://www.pbs.org/newshour/economy/making-sense/6-factors-that-fueled-the-stock-market-dive-in-2018

https://www.investopedia.com/terms/s/safe-haven.asp

https://www.sciencedirect.com/science/article/pii/S1544612320304244

www.businessinsider.com/news/currencies/bitcoin-price-positively-correlated-to-stock-market-risk-asset-gold-2022-1

 

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