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Tuesday, 05 February 13
THE SHIPPING SECTOR IS " NAVIGATING IN STORMY WATERS" - PWC
 The vulnerabilities of the global economy have been exposed and have more than played their part in making 2011 one of the worst years of shipping in terms of financial performance, which deteriorated further in 2012, according to the 2011 Global Shipping Benchmarking Analysis of PwC. In its global benchmarking analysis, which is in its fourth 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 six years including 2011. 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. In our current year’s publication, developments in the area of sustainability reporting and corporate social responsibility in shipping have also been analysed, as this is rising up in the agenda of regulators, industry bodies and consumers.
The analysis shows that the Dry Bulk and the Offshore subsectors were the best performers in 2011, followed by the ferries subsector, while the Tanker subsector was the worst performer. For all subsectors the total performance for 2011 deteriorated compared to 2010 except for the ferries subsector which reported a slightly better performance. With the exception of the working capital to net revenues, all financial performance indicators stabilized or deteriorated in 2011 compared to 2010.
Socrates Leptos-Bourgi, Partner of PwC in Greece and the PwC Global Shipping & Ports Leader, says: “Unfortunately, the macroeconomic environment continues to be extremely uncertain. Combined with the delivery of new vessels into the existing fleet as a result of the tail end of the order book that was built in the years prior to the crisis has exerted severe pressure on hire rates for most subsectors for the shipping industry. Returns are particularly unattractive and equity investors have certainly incurred significant losses in the value of their investments. For seasoned participants in the shipping industry, this state of affairs may not come as a surprise, although the extent and depth of this downturn may have been hard to predict. Nevertheless, for some investors who understand the cyclicality of this industry, it is at this particular time that they believe that the best opportunities arise to enter the market.”
With increasing volatility and uncertainty prevalent across all sectors, banks are less optimistic about a recovery and are testing their shipping loans against more pessimistic assumptions about the future. Loan finance has also been impacted by the exit of some traditional shipping banks, the severe tightening of funding and the increased cost of new funding for ship owners. Many shipping companies have breached loan-to-value and liquidity covenants and have had to request lenders to either provide them with waivers or to revise loan terms. Among the companies covered by the PwC analysis 17% have reported that they have restructured their loan facilities. Approximately 21% of those belong to the tanker sector and 17% to the dry bulk sector.
Vessel values incurred a significant decline in 2011, both for new buildings and for second hand vessels across almost all subsectors, reflecting the weak freight market and the surplus supply of vessels in the market. The PwC analysis indicates that asset impairments are at higher levels in 2011 compared to 2010. Approximately 39% of the companies covered in our analysis reported vessel impairments in 2011 against 24% in 2010. The container subsector showed the largest share of impairments on vessels with 67% of the companies belonging in the sector incurring impairment losses.
According to the PwC 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) stood at 16% for dry bulk vessels, 8% for tankers and only 1% for containerships. However, these newbuilding ratios are markedly lower than those for the whole shipping market. It is considered that this may be reflective of the fact that most of the companies in the 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.
The PwC analysis also indicates higher levels of shipbuilding cancellations in 2011 compared to 2010 among the companies we have covered and especially in the dry bulk sector, which also reported a significant decline in returns to investors. The increase in shipbuilding cancellations were accompanied with significantly reduced new order activity. With the exception of 2009, the amount invested in new orders was the lowest since 2004. A significant portion of the investments in 2011 are attributed to the offshore sector.
The PwC analysis also looked at the performance of shipping companies across the various shipping sectors and their 1H2012 results. With the exception of the companies belonging to the offshore segment which showed a very positive trend, there was a clear deterioration in their results compared to their performance on the respective period of 2011. The dry bulk market was the hardest hit by the current market conditions with 68% of the companies covered, reporting a more than 15% decrease in their net income.
Although sustainability reporting is becoming important to shipping, the PwC analysis showed that the majority of shipping companies are lagging behind other industry sectors in this field. This may be a lost opportunity for shipping, since reporting about sustainability is not merely a matter of compliance but, more importantly, can have an impact on the bottom line. Pressure on the shipping sector to improve its sustainability reporting is likely to rise in the future as regulators, consumers and other participants in the supply chain become more sensitive to environmental and social responsibility concerns.
Source: PwC (PriceWaterHouseCoopers) / Hellenic Shipping
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Friday, 08 February 13
NORTH P&I CLUB WARNS OF LIQUEFACTION RISK FOR BAUXITE CARGOES
The ‘A’ rated 170 million GT North P&I club has warned shipowners carrying bauxite aluminium ore cargoes that they have the potentia ...
Thursday, 07 February 13
CHINA NDRC APPROVED 10 BILLION YUAN POWER GENERATION PROJECTS
NDRC of China currently announced that some of power grid and power station in Jiangxu, Sichuan and Anhui Province would be newly constructed or ext ...
Thursday, 07 February 13
CAPESIZE : MORE ACTIVE WEEK IN THE PACIFIC - FEARNLEYS AS
Handy
The Atlantic market remained stable with no significant movement in rates. Rates from USG to FEast were around USD 18k and Black Sea to Feast ...
Thursday, 07 February 13
WEAK STEEL MARKET MEANS IRON ORE RALLY LIKELY TO END SOON - FITCH
The sharp rebound in iron ore prices over the last couple of months will hurt margins at non-integrated steel producers in the first quarter of 2013 ...
Tuesday, 05 February 13
NEWCASTLE PORT COAL SHIPMENTS DROPPED BY 10.77 PERCENT W-O-W
COALspot.com - Newcastle port in Australia has loaded 2,412,497 MT of thermal and coking coal for week ended 0700 hours 4 February 2013, Newca ...
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Showing 4391 to 4395 news of total 6871 |
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- Miang Besar Coal Terminal - Indonesia
- CNBM International Corporation - China
- Singapore Mercantile Exchange
- Medco Energi Mining Internasional
- Attock Cement Pakistan Limited
- Thiess Contractors Indonesia
- Parry Sugars Refinery, India
- Goldman Sachs - Singapore
- Cement Manufacturers Association - India
- Deloitte Consulting - India
- Bharathi Cement Corporation - India
- India Bulls Power Limited - India
- The State Trading Corporation of India Ltd
- Mercuria Energy - Indonesia
- Siam City Cement - Thailand
- Gujarat Mineral Development Corp Ltd - India
- Bangladesh Power Developement Board
- The Treasury - Australian Government
- Chettinad Cement Corporation Ltd - India
- Wilmar Investment Holdings
- Maheswari Brothers Coal Limited - India
- Petron Corporation, Philippines
- Posco Energy - South Korea
- Borneo Indobara - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Leighton Contractors Pty Ltd - Australia
- Planning Commission, India
- Ministry of Transport, Egypt
- Heidelberg Cement - Germany
- PNOC Exploration Corporation - Philippines
- Kaltim Prima Coal - Indonesia
- Sojitz Corporation - Japan
- Kapuas Tunggal Persada - Indonesia
- Holcim Trading Pte Ltd - Singapore
- White Energy Company Limited
- Vizag Seaport Private Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Carbofer General Trading SA - India
- Ceylon Electricity Board - Sri Lanka
- GVK Power & Infra Limited - India
- Aditya Birla Group - India
- Kalimantan Lumbung Energi - Indonesia
- Kartika Selabumi Mining - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Sical Logistics Limited - India
- Ind-Barath Power Infra Limited - India
- Sree Jayajothi Cements Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Meenaskhi Energy Private Limited - India
- Banpu Public Company Limited - Thailand
- Eastern Energy - Thailand
- GN Power Mariveles Coal Plant, Philippines
- Larsen & Toubro Limited - India
- Indian Oil Corporation Limited
- Chamber of Mines of South Africa
- Price Waterhouse Coopers - Russia
- Jorong Barutama Greston.PT - Indonesia
- GMR Energy Limited - India
- Tata Chemicals Ltd - India
- SMC Global Power, Philippines
- Gujarat Electricity Regulatory Commission - India
- Jaiprakash Power Ventures ltd
- Vijayanagar Sugar Pvt Ltd - India
- Rashtriya Ispat Nigam Limited - India
- Barasentosa Lestari - Indonesia
- Baramulti Group, Indonesia
- Kepco SPC Power Corporation, Philippines
- Essar Steel Hazira Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Samtan Co., Ltd - South Korea
- Coalindo Energy - Indonesia
- Port Waratah Coal Services - Australia
- Central Java Power - Indonesia
- SN Aboitiz Power Inc, Philippines
- Central Electricity Authority - India
- Meralco Power Generation, Philippines
- Australian Commodity Traders Exchange
- Parliament of New Zealand
- ASAPP Information Group - India
- Kohat Cement Company Ltd. - Pakistan
- Manunggal Multi Energi - Indonesia
- Ministry of Mines - Canada
- Makarim & Taira - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Karaikal Port Pvt Ltd - India
- PTC India Limited - India
- Ministry of Finance - Indonesia
- Salva Resources Pvt Ltd - India
- Latin American Coal - Colombia
- Australian Coal Association
- Economic Council, Georgia
- Videocon Industries ltd - India
- Africa Commodities Group - South Africa
- Toyota Tsusho Corporation, Japan
- CIMB Investment Bank - Malaysia
- Semirara Mining Corp, Philippines
- Bhushan Steel Limited - India
- Global Coal Blending Company Limited - Australia
- Uttam Galva Steels Limited - India
- Karbindo Abesyapradhi - Indoneisa
- MS Steel International - UAE
- Straits Asia Resources Limited - Singapore
- Georgia Ports Authority, United States
- New Zealand Coal & Carbon
- VISA Power Limited - India
- South Luzon Thermal Energy Corporation
- Romanian Commodities Exchange
- Indian Energy Exchange, India
- Kumho Petrochemical, South Korea
- Bulk Trading Sa - Switzerland
- Eastern Coal Council - USA
- Petrochimia International Co. Ltd.- Taiwan
- Antam Resourcindo - Indonesia
- Orica Mining Services - Indonesia
- IEA Clean Coal Centre - UK
- Indonesian Coal Mining Association
- Trasteel International SA, Italy
- Orica Australia Pty. Ltd.
- Anglo American - United Kingdom
- Bank of Tokyo Mitsubishi UFJ Ltd
- Neyveli Lignite Corporation Ltd, - India
- Savvy Resources Ltd - HongKong
- Mintek Dendrill Indonesia
- ICICI Bank Limited - India
- European Bulk Services B.V. - Netherlands
- Vedanta Resources Plc - India
- Marubeni Corporation - India
- Star Paper Mills Limited - India
- Malabar Cements Ltd - India
- GAC Shipping (India) Pvt Ltd
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Kobexindo Tractors - Indoneisa
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Alfred C Toepfer International GmbH - Germany
- Commonwealth Bank - Australia
- Coal and Oil Company - UAE
- Metalloyd Limited - United Kingdom
- Aboitiz Power Corporation - Philippines
- Wood Mackenzie - Singapore
- Altura Mining Limited, Indonesia
- OPG Power Generation Pvt Ltd - India
- Global Business Power Corporation, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Mjunction Services Limited - India
- Pendopo Energi Batubara - Indonesia
- International Coal Ventures Pvt Ltd - India
- Agrawal Coal Company - India
- Electricity Authority, New Zealand
- Bhoruka Overseas - Indonesia
- PowerSource Philippines DevCo
- Minerals Council of Australia
- London Commodity Brokers - England
- Binh Thuan Hamico - Vietnam
- Edison Trading Spa - Italy
- IHS Mccloskey Coal Group - USA
- Intertek Mineral Services - Indonesia
- Tamil Nadu electricity Board
- McConnell Dowell - Australia
- Indika Energy - Indonesia
- Renaissance Capital - South Africa
- Dalmia Cement Bharat India
- Formosa Plastics Group - Taiwan
- Madhucon Powers Ltd - India
- Kideco Jaya Agung - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Energy Development Corp, Philippines
- Sindya Power Generating Company Private Ltd
- TeaM Sual Corporation - Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Coastal Gujarat Power Limited - India
- Xindia Steels Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Therma Luzon, Inc, Philippines
- Lanco Infratech Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Indo Tambangraya Megah - Indonesia
- Interocean Group of Companies - India
- Billiton Holdings Pty Ltd - Australia
- Bayan Resources Tbk. - Indonesia
- Standard Chartered Bank - UAE
- Bukit Baiduri Energy - Indonesia
- Siam City Cement PLC, Thailand
- Mercator Lines Limited - India
- Gujarat Sidhee Cement - India
- Rio Tinto Coal - Australia
- Grasim Industreis Ltd - India
- Merrill Lynch Commodities Europe
- Directorate Of Revenue Intelligence - India
- Indogreen Group - Indonesia
- San Jose City I Power Corp, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Thai Mozambique Logistica
- Oldendorff Carriers - Singapore
- Globalindo Alam Lestari - Indonesia
- Power Finance Corporation Ltd., India
- Electricity Generating Authority of Thailand
- Sakthi Sugars Limited - India
- Iligan Light & Power Inc, Philippines
- Asmin Koalindo Tuhup - Indonesia
- Global Green Power PLC Corporation, Philippines
- Simpson Spence & Young - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Sarangani Energy Corporation, Philippines
- Jindal Steel & Power Ltd - India
- Independent Power Producers Association of India
- The University of Queensland
- Bhatia International Limited - India
- Ambuja Cements Ltd - India
- Timah Investasi Mineral - Indoneisa
- Sinarmas Energy and Mining - Indonesia
- LBH Netherlands Bv - Netherlands
- Bukit Makmur.PT - Indonesia
- SMG Consultants - Indonesia
- Riau Bara Harum - Indonesia
- Energy Link Ltd, New Zealand
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