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SYDNEY - Tugboat operator Adsteam Marine says the drought will have a negative impact on its business as grain shipments out of Australian ports decline.
But Adsteam, which is awaiting UK regulatory approval for a A$700 million ($817 million) friendly takeover by Danish shipping giant SvitzerWijsmuller, expects a booming resource sector to offset the drought's drain on revenue.
The operator of more than 150 tugboats is active in 36 ports in Australia, so it gets a balanced exposure to different sectors, chief executive officer John Moller said after the group's annual meeting in Sydney yesterday.
"So we're highly exposed to grain but we're highly exposed to coal and other resources," he said.
SvitzerWijsmuller, a subsidiary of the world's largest shipping company AP Moller-Maersk, launched its A$2.54 per share offer in July valuing Adsteam at A$693 million.
- AAP
