Arlington Tankers May Seek Sale
The NYSE-listed oil transport company brought in Jefferies to pursue a strategic review.
June 23, 2008
New York Stock Exchange-listed Arlington Tankers has tapped Jefferies & Co. as an adviser to help the oil transport outfit pursue possible strategic alternatives, which could include acquisitions, a merger or possible sale of the company.
Arlington Tankers, based in Connecticut, is a seaborne transporter of crude oil and petroleum products with a fleet consisting of eight double-hulled vessels. Swedish transporters Stena AB and Concordia Maritime floated the company back in 2004 through a $229 million initial public offering, and continue to hold a roughly 18% stake in Arlington, according to the company’s most recent 10K filing.
Arlington, which has a market cap of $365 million, swung to a net loss in the first quarter of $2.48 million, on revenue of $17.6 million. For the full-year 2007, the company posted net income of $11.7 million, on revenue of $70.2 million.
The company has seen its operating expenses climb, thanks largely to higher vessel management costs and increased professional fees, according to an analyst note from BOE Research Services. The analysts, which rate Arlington’s stock as a “hold,” also mentioned “the company’s high exposure in the time-charter business,” as another concern, but said Arlington’s recent move into the spot segment provides reason for encouragement.
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