Gulf Navigation Holding (GULFNAV) surged to the highest in almost three years after Dubai’s only publicly traded oil-vessel owner said it plans to sell a supertanker.
The shares soared 13 percent to 43.9 fils at the close in Dubai, the strongest level since January 2011. The stock has climbed 47 percent since Sept. 22, when Gulf Navigation said its board recommended a capital increase as well as the sale of a very large crude carrier. The company also recommended raising foreign ownership limits.
The share price has been supported by Gulf Navigation’s plans to exit the oil shipping industry, where rates have declined to the point that “they don’t cover the operating costs anymore,” said Alaa Ghanem, lead analyst at Beirut-based Audi Saradar Investment Bank. “Investors took the news as a positive sign as the company remains in the petrochemicals shipping sector, which is very profitable.”
The company said Sept. 16 that its supertanker Gulf Sheba was detained at Port Rotterdam because of a “default in repayment of interest and principal toward end of July 2013.” Gulf Navigation also said it has been discussing proposals from prospective buyers for the sale of the vessel.
More than 300 million Gulf Navigation shares were traded today, almost six times the three-month daily average, according to data compiled by Bloomberg. The stock was the third-biggest gainer on the benchmark DFM General Index, which rose 0.3 percent.
To contact the reporter on this story: Deema Almashabi in Riyadh at email@example.com
To contact the editor responsible for this story: Shaji Mathew at firstname.lastname@example.org