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Wednesday, 26 October 11
PWCS GLOBAL SHIPPING BENCHMARKING ANALYSIS: RECOVERY IN 2010 BUT GREAT UNCERTAINLY FOR 2011
 The recovery of global trade in 2010 to the same levels as 2008 led to an improvement in the overall performance of shipping companies in 2010 compared to 2009, according to the 2010 Global Shipping Benchmarking Analysis of PwC. But this does not mean that the shipping industry is on a safe path to recovery, since the deteriorating economic situation in Europe and the US have increased volatility and market uncertainty, impacting shipping companies’ performance as reflected in their reported results in the first half of 2011, which have been worse than the same period in 2010.
In its global benchmarking analysis, which is in its third year of publication, PwC has analyzed certain key performance indicators (KPIs) of 150 shipping companies from around the world. The results are based on an analysis of their published annual reports over the last five years including 2010. The analysis covers both quantitative and qualitative information and gives an insight into how these companies are facing recent challenges and the main drivers of performance in the shipping industry.
The analysis shows that the Container and the Dry Bulk subsectors were the best performers in 2010, while the Tanker subsector was the worst performer. With the exception of net debt ratio and the ratio of net fixed assets to sales ratio, all financial performance indicators stabilized or improved in 2010 compared to 2009.
Socrates Leptos-Bourgi, Partner of PwC in Greece and the PwC Global Shipping & Ports Leader, says: “We’ve seen improvements in freight rates across all trades in 2010, which combined with cost savings implemented in 2009, have improved the reported profitability of shipping companies in 2010. How good or bad things will get in the future depends on how well the world economy copes with the post financial crisis problems that the US is facing, the resolution of the European sovereign debt crisis, the challenge of rebuilding northern Japan and the prospects of the Chinese economy. However, given the pressures caused from the supply of new tonnage in the shipping markets, it will require an extraordinary performance on all accounts to bring the shipping industry back to a period where returns become relatively attractive again.”
While the world economy is still fragile, with increasing volatility and uncertainty prevalent across many sectors, businesses continue to face tightening credit conditions and limited liquidity. Financial institutions have toughened their positions, both in existing exposures and when making new facilities available. Under these conditions many companies were forced to restructure their loan facilities in an attempt to rectify existing issues with their facilities or in preparing for a tougher year ahead.
Approximately 60% of the container vessel owners covered by our analysis have reported restructuring of their loan obligations during 2010. The corresponding percentage for the dry bulk sector was 29% and for the tanker sector 12%. But significantly less owners foresee debt restructuring in 2011.
Second hand vessel sale & purchase activity was significantly lower in 2010 than in 2009. The number of reported sales was down by close to 20% compared to 2009. Vessel values were under pressure reflecting a weaker freight market, an increasing concern about the order book and in general a large number of potential sales candidates. The survey results demonstrate that asset impairments are at lower levels in 2010 compared to 2009 in most sectors, but especially in the dry bulk and tanker sectors. The container sector reported the largest share of impairments on vessels in 2010, with 42% of the companies incurring impairment losses.
Our analysis shows clearly lower levels of shipbuilding cancellations in 2010 compared to 2009. Especially in the dry bulk sector there was a dramatic reduction of vessel cancellations among the companies we have covered. The reduced shipbuilding cancellations were accompanied with a resumption of ordering activity. This may have been the result increasing cargo demand, the firming of freight rates and low newbuilding prices. Especially for the dry bulk sector the number of orders for new vessels increased two-fold. This trend is expected to change in 2011 as the lower growth in world trade and the increase newbuilding deliveries is likely to divert ship owners’ interest to other subsectors such as gas (LPG or LNG) carriers.
According to our analysis, the newbuilding ratio (calculated as the number of vessels on order divided by the number of vessels operated for all companies in our sample) stands at 25% for dry bulk vessels, 7% for tankers and 10% for containerships. However, these newbuilding ratios are significantly lower than those for the whole shipping market. We believe this is reflective of the fact that most of the companies in our sample are listed and, being accountable to a number of shareholders in the public markets, tend to follow more conservative strategies, while private companies have more risk tolerance and tend to take a more aggressive view of the market.
Finally, scrapping activity declined in 2010, despite very strong scrap prices and relatively weak hire rates. Looking at the dry bulk sector, scrapping activity was negligible in the second half of 2010. However, this trend is likely to change as the container and tanker sectors are under severe pressure from freight rates that declined to levels close to or below operating break-even levels and scrap prices remaining at attractive levels.
Source: PriceWaterHouseCoopers / Hellenic Shipping
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Thursday, 03 November 11
DRY BULK MARKET OFFICIALLY IN THE RED ON LOWER CARGO DEMAND - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The dry bulk market kept falling yesterday, on lower iron ore demand, which has caused the industry’s benchmark, the BDI (Baltic Dry Index) to ...
Wednesday, 02 November 11
MMTC TO BUY 3.73 MILLION TONS OF COAL FOR 2011- 2013
COALspot.com - India’s state-owned coal and mineral trader MMTC looking for 3.73 million tons of power plant coal for the period 2011 - 2012/ ...
Wednesday, 02 November 11
PANAMAX MARKET BECAME QUIETER AFTER THE RECENT RECOVERY - BRS
There were substantial losses across the board this week: the BDI lost 6.3% to end at 2,018 and the BCI 8.2% to end 3,274. In the smaller sizes the ...
Tuesday, 01 November 11
BORNEO LUMBUNG BUYS 23.8% INTEREST IN BUMI
COALspot.com - PT. Borneo Lumbung Energi (BORN), an Indonesian coking coal producer announces that it has signed a sale and purchase agreement, cond ...
Tuesday, 01 November 11
BAKRIE FORMS STRATEGIC PARTNERSHIP WITH BORNEO - REDUCING DEBT BY USD 1 BILLION
Press Release - Enhancing the standing of “Indonesia Inc.” at the London Stock Exchange PT Bakrie & Brothers Tbk (“BNBR” ...
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- Pipit Mutiara Jaya. PT, Indonesia
- Semirara Mining and Power Corporation, Philippines
- Bharathi Cement Corporation - India
- Intertek Mineral Services - Indonesia
- Deloitte Consulting - India
- San Jose City I Power Corp, Philippines
- Alfred C Toepfer International GmbH - Germany
- VISA Power Limited - India
- Port Waratah Coal Services - Australia
- PTC India Limited - India
- Eastern Energy - Thailand
- South Luzon Thermal Energy Corporation
- Ceylon Electricity Board - Sri Lanka
- Kalimantan Lumbung Energi - Indonesia
- Bayan Resources Tbk. - Indonesia
- Chamber of Mines of South Africa
- ASAPP Information Group - India
- Bhatia International Limited - India
- Globalindo Alam Lestari - Indonesia
- White Energy Company Limited
- Formosa Plastics Group - Taiwan
- Rashtriya Ispat Nigam Limited - India
- Sical Logistics Limited - India
- Dalmia Cement Bharat India
- Kepco SPC Power Corporation, Philippines
- Billiton Holdings Pty Ltd - Australia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Africa Commodities Group - South Africa
- London Commodity Brokers - England
- Salva Resources Pvt Ltd - India
- Ministry of Transport, Egypt
- Jindal Steel & Power Ltd - India
- The University of Queensland
- Mjunction Services Limited - India
- Sindya Power Generating Company Private Ltd
- Vizag Seaport Private Limited - India
- Thai Mozambique Logistica
- Bukit Baiduri Energy - Indonesia
- Electricity Authority, New Zealand
- Binh Thuan Hamico - Vietnam
- Central Java Power - Indonesia
- Iligan Light & Power Inc, Philippines
- Sakthi Sugars Limited - India
- Timah Investasi Mineral - Indoneisa
- Pendopo Energi Batubara - Indonesia
- Bhushan Steel Limited - India
- Tata Chemicals Ltd - India
- Chettinad Cement Corporation Ltd - India
- Indogreen Group - Indonesia
- Price Waterhouse Coopers - Russia
- Barasentosa Lestari - Indonesia
- Anglo American - United Kingdom
- OPG Power Generation Pvt Ltd - India
- Baramulti Group, Indonesia
- Metalloyd Limited - United Kingdom
- Gujarat Sidhee Cement - India
- European Bulk Services B.V. - Netherlands
- Jaiprakash Power Ventures ltd
- Eastern Coal Council - USA
- Riau Bara Harum - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Global Coal Blending Company Limited - Australia
- Electricity Generating Authority of Thailand
- Kartika Selabumi Mining - Indonesia
- TeaM Sual Corporation - Philippines
- Australian Coal Association
- Goldman Sachs - Singapore
- Bukit Makmur.PT - Indonesia
- Ministry of Finance - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- CNBM International Corporation - China
- New Zealand Coal & Carbon
- Siam City Cement - Thailand
- Tamil Nadu electricity Board
- PNOC Exploration Corporation - Philippines
- Borneo Indobara - Indonesia
- The State Trading Corporation of India Ltd
- India Bulls Power Limited - India
- Kobexindo Tractors - Indoneisa
- Offshore Bulk Terminal Pte Ltd, Singapore
- Standard Chartered Bank - UAE
- Savvy Resources Ltd - HongKong
- Asmin Koalindo Tuhup - Indonesia
- Posco Energy - South Korea
- Ambuja Cements Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Georgia Ports Authority, United States
- Larsen & Toubro Limited - India
- Aditya Birla Group - India
- Edison Trading Spa - Italy
- Maharashtra Electricity Regulatory Commission - India
- Indonesian Coal Mining Association
- Gujarat Electricity Regulatory Commission - India
- ICICI Bank Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Madhucon Powers Ltd - India
- Vedanta Resources Plc - India
- Toyota Tsusho Corporation, Japan
- Singapore Mercantile Exchange
- Medco Energi Mining Internasional
- Miang Besar Coal Terminal - Indonesia
- Grasim Industreis Ltd - India
- Lanco Infratech Ltd - India
- Global Business Power Corporation, Philippines
- Meenaskhi Energy Private Limited - India
- SMC Global Power, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Bahari Cakrawala Sebuku - Indonesia
- Wilmar Investment Holdings
- Kideco Jaya Agung - Indonesia
- Uttam Galva Steels Limited - India
- Bhoruka Overseas - Indonesia
- Coalindo Energy - Indonesia
- Bulk Trading Sa - Switzerland
- Kumho Petrochemical, South Korea
- Parliament of New Zealand
- Malabar Cements Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Interocean Group of Companies - India
- TNB Fuel Sdn Bhd - Malaysia
- Australian Commodity Traders Exchange
- Indika Energy - Indonesia
- GMR Energy Limited - India
- Meralco Power Generation, Philippines
- PowerSource Philippines DevCo
- Karaikal Port Pvt Ltd - India
- Oldendorff Carriers - Singapore
- McConnell Dowell - Australia
- Agrawal Coal Company - India
- Maheswari Brothers Coal Limited - India
- MS Steel International - UAE
- IHS Mccloskey Coal Group - USA
- Renaissance Capital - South Africa
- Vijayanagar Sugar Pvt Ltd - India
- LBH Netherlands Bv - Netherlands
- Sree Jayajothi Cements Limited - India
- Indian Energy Exchange, India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Global Green Power PLC Corporation, Philippines
- Heidelberg Cement - Germany
- Latin American Coal - Colombia
- Marubeni Corporation - India
- Sojitz Corporation - Japan
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Economic Council, Georgia
- IEA Clean Coal Centre - UK
- Romanian Commodities Exchange
- Indo Tambangraya Megah - Indonesia
- Energy Development Corp, Philippines
- Makarim & Taira - Indonesia
- Cement Manufacturers Association - India
- PetroVietnam Power Coal Import and Supply Company
- Orica Australia Pty. Ltd.
- CIMB Investment Bank - Malaysia
- Mercuria Energy - Indonesia
- Simpson Spence & Young - Indonesia
- Planning Commission, India
- Videocon Industries ltd - India
- Cigading International Bulk Terminal - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Indian Oil Corporation Limited
- Sarangani Energy Corporation, Philippines
- Altura Mining Limited, Indonesia
- Trasteel International SA, Italy
- Semirara Mining Corp, Philippines
- Rio Tinto Coal - Australia
- Banpu Public Company Limited - Thailand
- SN Aboitiz Power Inc, Philippines
- Orica Mining Services - Indonesia
- Attock Cement Pakistan Limited
- Petrochimia International Co. Ltd.- Taiwan
- Straits Asia Resources Limited - Singapore
- Bangladesh Power Developement Board
- Coastal Gujarat Power Limited - India
- Holcim Trading Pte Ltd - Singapore
- Petron Corporation, Philippines
- Xindia Steels Limited - India
- Leighton Contractors Pty Ltd - Australia
- Kapuas Tunggal Persada - Indonesia
- Kaltim Prima Coal - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Manunggal Multi Energi - Indonesia
- GAC Shipping (India) Pvt Ltd
- Mintek Dendrill Indonesia
- Aboitiz Power Corporation - Philippines
- Mercator Lines Limited - India
- Ministry of Mines - Canada
- Antam Resourcindo - Indonesia
- Ind-Barath Power Infra Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Independent Power Producers Association of India
- The Treasury - Australian Government
- Wood Mackenzie - Singapore
- Sinarmas Energy and Mining - Indonesia
- Samtan Co., Ltd - South Korea
- AsiaOL BioFuels Corp., Philippines
- Energy Link Ltd, New Zealand
- Thiess Contractors Indonesia
- Minerals Council of Australia
- Power Finance Corporation Ltd., India
- Coal and Oil Company - UAE
- Merrill Lynch Commodities Europe
- International Coal Ventures Pvt Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Central Electricity Authority - India
- SMG Consultants - Indonesia
- Parry Sugars Refinery, India
- Therma Luzon, Inc, Philippines
- Commonwealth Bank - Australia
- Directorate Of Revenue Intelligence - India
- Essar Steel Hazira Ltd - India
- GVK Power & Infra Limited - India
- Carbofer General Trading SA - India
- Star Paper Mills Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Siam City Cement PLC, Thailand
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