UPDATE 2-Quintana to mull strategic options, shares at year high

(Recasts, adds analyst comments)

By Sakthi Prasad

BANGALORE, Oct 16 (Reuters) - Greece's dry bulk carrier Quintana Maritime Ltd QMAR.O said it plans to evaluate strategic alternatives, sending its shares to a new year-high.

"The goal, I believe, is to close the valuation gap Quintana shares receive relative to other publicly traded names and I think that is their motivation for exploring strategic alternatives," said Jefferies & Co analyst Douglas Mavrinac over the phone to Reuters.

Quintana Maritime was not immediately available for comment.

The company's current 12-month forward price to earnings ratio is 19.27, compared with the sector average of 20.42, according to Reuters data.

In a statement, Chairman Corbin Robertson cited significant increases in asset values in the drybulk shipping industry during the past year.

Charter rates for seaborne dry commodities trade have broken record after record this year on strong demand for raw materials, buoyant global economic growth and port congestion at key export centers.

"We expect the dry bulk freight rates would continue to strenghthen on a quarter-on-quarter and year-on-year basis," Mavrinac added.

Demand for raw materials is particularly high in China and India and congestion in ports in Brazil and Australia are the main drivers for freight costs. The market has remained strong despite recent turmoil in financial markets and concern over slowing U.S. economic growth.

Earlier in the day, Jefferies & Co raised its price target on Quintana to $31 from $24 per share, saying the outlook for the dry bulk shipping market remains attractive as significant quantities of new iron ore production capacity come on-line over the next 12 months.

The Baltic Exchange's dry freight index .BADI, which gauges the strength of seaborne trade for dry commodities such as coal, iron ore and grains, hit a record high last Wednesday.

Citi and Dahlman Rose have been retained as advisers, said the company in statement.

Shares of the company, which have more than doubled in value so far this year, rose $2.84 to $28.08 in afternoon trade on the Nasdaq. The shares touched their year-high of $28.70 earlier in the day. (Additional reporting by Shikhar Balwani)