Omegra Shipping

Singapore based dry-cargo operator Omegra Shipping’s decision has paid off handsomely as the company retained its focus on operating chartered ships. Omegra Shipping was established in 2013 as wholly owned subsidiary of Enerfo Pte Ltd. Omegra Shipping specialized in worldwide chartering and operations within the Handysize, Supramax and Panamax markets for subsidiary of commodity trader Enerfo Pte Ltd. Five years ago Omegra Shipping was looking to buy several kamsarmax bulk carriers in order to hedge against volatile charter rates. Omegra Shipping and affiliated commodity trader Enerfo Pte Ltd cancelled kamsarmax plans. Instead of acquiring kamsarmax bulk carriers, Omegra Shipping opted asset-light business model and retained its focus on operating chartered bulk carriers. Omegra Shipping’s decision to focus exclusively on chartering bulk carriers from the market is a winner as revenue grows. Lukasz Ogryczak led Omegra Shipping’s decision has paid off handsomely. Purely time-chartered bulk carriers with option periods gives flexibility to Omegra Shipping. Omegra Shipping adjust market exposure and maintain optimal position throughout the shipping cycles. In fragile dry bulk market environment, Omegra Shipping is chartering in tonnage according requirements of parent company Enerfo Pte Ltd. Omegra Shipping aiming for the optimum fleet size with the fair balance between the fleet scale and the cargo book. Omegra Shipping try to manage to achieve high bulk carrier utilisation. In 2018, Omegra Shipping predicted that the dry bulk market would be weak during the Q1 2019. Lukasz Ogryczak led Omegra Shipping took advantage of the weak market during Q1 2019 and gradually build up its time-chartered tonnage. As of July 2019, Omegra Shipping has 25 bulk carriers under its commercial control on a mix of short, medium and long period charters. Panamax and kamsarmax bulk carriers are the main workhorses with 17 on charter, including seven (7) on medium or long-term periods, while the remaining eight (8) are handymax and supramax bulk carriers on trip or short period charters. Lukasz Ogryczak led Omegra Shipping charter in other size bulk carriers as and when required. Omegra Shipping only charter young, Japanese-built ships from financially stable owners and tonnage providers. Omegra Shipping do not get involved in charter chains. Lukasz Ogryczak led Omegra Shipping’s plan to acquire bulk carriers will remain on hold for the foreseeable future. Omegra Shipping is happy to continue with our asset-light model. Omegra Shipping’s team has an ability to achieve optimal combination and match the right ship with the right cargo. Omegra Shipping came out profitable during the first half of 2019. Omegra Shipping generated trading revenue of $122 million which is 22% above budget. According to Lukasz Ogryczak, Omegra Shipping’s  profit was driven by logistical optimization of trading patterns and an increased number of operated voyages, and arbitraging bulk carriers and cargoes. Omegra Shipping’s accumulated cargo volumes of close to four (4) million metric tonnes (mtons). Omegra Shipping generated average daily earnings of just over $14,500 on panamax and just over $11,000 on supramax bulk carriers. Omegra Shipping CEO Lukasz Ogryczak expects that dry bulk markets will continue to be volatile in 2019, but overall near-term prospects at least look positive for the entire dry bulk market.

In June 2019, dry bulk market rates went beyond market player’s expectations. Panamax bulk carrier rates improved by 65% in just three weeks in June 2019. Panamax bulk carrier rates were recording an incredible $1,000-per-day improvement on 21 June 2019. Only in 2013, panamax bulk carrier rates increased by $1,000 in a single day. Panamax bulk carrier rates have now climbed to the highest level since December 2013. Panamax bulk carrier rates have continued to rise due to strength in South American spot grain cargoes, various other spot material volumes and scrubber fittings at shipyards. According to Omegra Shipping CEO Lukasz Ogryczak also attributes recent dry bulk market improvements to very low fleet growth. Furthermore, Lukasz Ogryczak calculates that around 300 bulk carriers are expected to head into shipyards in 2019 to install scrubbers. Hence, an effective fleet reduction of up to 4%. Omegra Shipping is often regarded as the shipping arm of Singapore based commodity trader Enerfo. But, Lukasz Ogryczak insists that Omegra Shipping is a separate, stand-alone company. Omegra Shipping and Enerfo share the same majority shareholders in the form of Indonesian business conglomerate FKS Group. Omegra Shipping continues to be Enerfo’s shipping provider. Omegra Shipping mainly handles grain cargoes and smaller volumes of coal, minerals, metals and fertilizers. Besides Enerfo, Omegra Shipping has developed a significant volume of third-party charterers and traders. In order to keep its bulk carriers full on both front-haul and back-haul legs, third-party business is key to Omegra Shipping ’s strategy to maximise shipping operations. Omegra Shipping have had an average annual revenue growth rate of 26%. If growth rate continues, Omegra Shipping will be a $1 billion revenue company by 2026.