John Fredriksen is a self-made billionaire
who built his financial empire as a shipping magnate, primarily in the
business of transporting oil, then continued his success in offshore oil
drilling. Fredriksen is currently ranked number 75 on Forbes’ list of
billionaires, and listed at 68 on Bloomberg’s list of the 200 richest
people. His net worth is currently estimated at $13.3 billion as per
Bloomberg’s figures. Britain’s Sunday Times lists him as the
ninth richest person residing in the country, where they estimate his
wealth at £6.6 billion [for more commodity news and analysis subscribe
to our free newsletter].
John Fredriksen’s wealth grew through the early 1980s when he started trading oil out of Beirut. During the Iran-Iraq war, Fredriksen famously moved crude oil out of Iran, leading to a number of his tankers becoming targets for Iraqi missiles.
Fredriksen
went on to build the world’s largest fleet of oil tankers, operated
through his publicly traded company, Frontline. Frontline is listed on
the New York Stock Exchange (FRO), London Stock Exchange (FRO) and Oslo
Stock Exchange (FRO). Recent years have seen Frontline face some
financial struggles. However, Fredriksen announced in late 2011 that he
would personally bail out Frontline, later breaking the company into two
separate entities: Frontline and Frontline 2012. Frontline 2012 holds
many of the former Frontline’s newest ships, and much of the old
entity’s debt as well [see also The Ten Commandments of Commodity Investing].
Fredriksen is also Chairman, President and Director of Golar LNG, a company that started in 2001. Golar is another publicly traded company that’s listed on the Nasdaq (GLNG). The company also specializes in ship transport.
Fredriksen’s most recent financial successes come primarily from SeaDrill, a very successful offshore deep-water drilling company that he founded in 2005. Fredriksen continues to lead this company today with its headquarters located in Bermuda and operations extending into 15 countries. SeaDrill’s profits continue to rise as its reputation for safe and cost-effective drilling holds true. The company is listed on the New York Stock Exchange (SDRL), and the Oslo Stock Exchange (SDRL). SeaDrill recently sold off its Asian unit to free up cash to expand into other deep-water drilling operations. The deal was worth approximately 2.9 billion dollars, including a combination of cash, capital expenditures and shares.
Despite the cyclical nature of the shipping industry, John Fredriksen’s fortune continues to grow. He has made many wise investment decisions; having saved money when the industry was booming, he now has the ability to safely navigate his companies through the downtimes faced in recent years. His investments come from a combination of transport (primarily oil, though also of minerals, grains and fish), and from his drilling operations. John Fredriksen has involvement in a diverse group of other companies, including Deep Sea Supply, Fred Olsen Production, Marine Harvest and Golden Ocean, among numerous others. Roughly half of the companies Fredriksen is involved in are publicly traded.
John Fredriksen has maintained the confidence of his outside investors for several reasons. First, his companies typically pay off large dividends when times are good and the money is rolling in. Secondly, Fredriksen has become known for his uncanny ability to identify the exact moments when it is best to enter or exit a market, often having his investment decisions followed by others. Fredriksen maintains that sharing with investors and treating them fairly is key. He operates his businesses on the premise that if he gets paid, so do the investors [see also How To Lose Money Investing In Commodities].
Fredriksen’s more recent investments tend to surround the dropping prices of drilling rigs and shipping vessels that have come as a result of the recent economic decline. The prices of shipping vessels coming out of China and South Korea are currently sitting at about half of what they were at in 2007. Fredriksen stated in an interview with Bloomberg that he sees himself as a trader.
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Early Career
Fredriksen got his start in the shipping industry at a young age as a courier with a shipbroker in the Oslo, Norway area, later going on to work for himself. Fredriksen left his home in Norway in the 1960s to pursue a career in trading, working in New York, Athens and Singapore. Fredriksen purchased his first freighter in 1973 for $700,000. However, this investment proved to be non-profitable when the freighter broke down in the Caribbean soon after he bought it.John Fredriksen’s wealth grew through the early 1980s when he started trading oil out of Beirut. During the Iran-Iraq war, Fredriksen famously moved crude oil out of Iran, leading to a number of his tankers becoming targets for Iraqi missiles.
Modern-Day Career
Fredriksen
went on to build the world’s largest fleet of oil tankers, operated
through his publicly traded company, Frontline. Frontline is listed on
the New York Stock Exchange (FRO), London Stock Exchange (FRO) and Oslo
Stock Exchange (FRO). Recent years have seen Frontline face some
financial struggles. However, Fredriksen announced in late 2011 that he
would personally bail out Frontline, later breaking the company into two
separate entities: Frontline and Frontline 2012. Frontline 2012 holds
many of the former Frontline’s newest ships, and much of the old
entity’s debt as well [see also The Ten Commandments of Commodity Investing].Fredriksen is also Chairman, President and Director of Golar LNG, a company that started in 2001. Golar is another publicly traded company that’s listed on the Nasdaq (GLNG). The company also specializes in ship transport.
Fredriksen’s most recent financial successes come primarily from SeaDrill, a very successful offshore deep-water drilling company that he founded in 2005. Fredriksen continues to lead this company today with its headquarters located in Bermuda and operations extending into 15 countries. SeaDrill’s profits continue to rise as its reputation for safe and cost-effective drilling holds true. The company is listed on the New York Stock Exchange (SDRL), and the Oslo Stock Exchange (SDRL). SeaDrill recently sold off its Asian unit to free up cash to expand into other deep-water drilling operations. The deal was worth approximately 2.9 billion dollars, including a combination of cash, capital expenditures and shares.
Despite the cyclical nature of the shipping industry, John Fredriksen’s fortune continues to grow. He has made many wise investment decisions; having saved money when the industry was booming, he now has the ability to safely navigate his companies through the downtimes faced in recent years. His investments come from a combination of transport (primarily oil, though also of minerals, grains and fish), and from his drilling operations. John Fredriksen has involvement in a diverse group of other companies, including Deep Sea Supply, Fred Olsen Production, Marine Harvest and Golden Ocean, among numerous others. Roughly half of the companies Fredriksen is involved in are publicly traded.
John Fredriksen has maintained the confidence of his outside investors for several reasons. First, his companies typically pay off large dividends when times are good and the money is rolling in. Secondly, Fredriksen has become known for his uncanny ability to identify the exact moments when it is best to enter or exit a market, often having his investment decisions followed by others. Fredriksen maintains that sharing with investors and treating them fairly is key. He operates his businesses on the premise that if he gets paid, so do the investors [see also How To Lose Money Investing In Commodities].
Future Growth
John Fredriksen continues to invest in new companies, such as the newly formed Archer Ltd., which is an organization that specializes in oil drilling, both on and offshore.Fredriksen’s more recent investments tend to surround the dropping prices of drilling rigs and shipping vessels that have come as a result of the recent economic decline. The prices of shipping vessels coming out of China and South Korea are currently sitting at about half of what they were at in 2007. Fredriksen stated in an interview with Bloomberg that he sees himself as a trader.
Read Full Article>>>