P&O STARTS TO STEAM AWAY FROM BULK SHIPPING

Peninsular and Oriental Steam Navigation Company, the ports and transport group, continued the process of selling non-core businesses as it started its long-promised exit from bulk shipping. Associated Bulk Carriers, in which P&O has a 50 per cent stake, has sold four ships to different subsidiaries of its other owner, Eurotower Holdings SA, for Dollars 45m (Pounds 31m) – the book value of the ships. Peter Smith, P&O corporate affairs director, said ABC was expected to continue selling the rest of its fleet to Eurotower. The company owns 11 more ships and charters a further seven. The total book value of P&O’s share of the business was Pounds 151m, and yesterday’s sale represented approximately Pounds 15m of that. “We committed ourselves some time ago to exiting this business and the most natural purchaser is our joint venture partner,” said Mr Smith. P&O, which holds its annual meeting today, also announced this week that it wants to sell its contract logistics business – the biggest part of P&O Trans European. Analysts, who were downbeat about the possible sale, said the business could fetch Pounds 130m to Pounds 150m. The company has also announced its intention to exit P&O Nedlloyd, the container shipping joint venture with Royal Nedlloyd in the Netherlands. Some analysts have called for P&O to divest all the businesses except the main ports division. “Ports, ferries and contract logistics – they are the areas on which we’re focusing,” said Mr Smith. P&O shares closed down 1 1/2p at 271p. Copyright © 2002: Financial Times Group