Tightening of maritime security creates winners and losers

Yesterday we reported that leaders in the maritime shipping and transportation industries were decrying what they described as “draconian” port security measures now contemplated in Congress (to be precise, there are now eleven different pieces of legislation relating to port and infrastructure security being written or proposed by different members of Congress) as a result of the Bush administration’s mishandling of the DP World port management deal. Some industries, however, do not mind ever stricter maritime security regulations — indeed, they benefit from these regulations. Take London-based Inmarsat: The homeland security-inspired requirement for ships to install satellite communications equipment to help identify themselves and their location to the U.S. coast guard boosted profit at the satellite operator. Increased demand helped lift pre-tax profit from $24.9 million to $95.5 million. Revenue rose 2 percent overall to $491 million — but by 7 percent in the company’s maritime business and by 35 percent in aeronautical sales.

A final dividend of 10.95 cents was proposed, for a total of 16.42 cents. The company’s shares, which have gained nearly 40 percent since the IPO, rose 12.5 p to 383 p yesterday.

-read more in this news release