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Tuesday, 03 November 15
EU OIL MAJORS FACE FURTHER EARNINGS DECLINE IN Q415 - FITCH RATINGS
 The sharp drop in major European oil companies' third-quarter profits is likely to be extended in the fourth quarter as refining margins, which had cushioned some of the blow from low oil prices, have fallen steeply, Fitch Ratings says.
According to Fitch, with little prospect of a near-term oil-price recovery and refining margins likely to remain thin, companies' ability to stabilize or even grow profits in 2016 will depend on how quickly cost-cutting measures and cost deflation in the supply chain feed through to the bottom line.
Royal Dutch Shell, Total, BP, Eni and BG all reported 3Q15 results last week. On average, their 3Q15 EBITDA fell by 26% compared with 2Q15, and cash flow from operations by 30%. The main reason was lower oil prices as Brent slid 19% from an average USD63/bbl in 2Q15 to USD51/bbl in 3Q15. The majors' 9M15 EBITDA dropped 39%, and cash from operations fell 38%, as Brent plummeted by 48%, from an average of USD107/bbl in 9M14 to USD56 in 9M15.
4Q15 may be even more painful for integrated companies as refining margins have fallen since the middle of the third quarter, which is likely to drag on profits in their downstream operations. In October, Brent Crack Rotterdam Refinery Margin, as calculated by Thomson Reuters, averaged USD4.0/bbl, compared with USD7.9 in 3Q15 and USD8.1 in 2Q15.
Part of this decline is likely to be a seasonal effect from the end of the main driving season in the northern hemisphere. But we also expect an underlying correction in margins due to overcapacity in European refining and strong competition from Middle Eastern, Russian and US refineries, which generally have access to cheaper feedstock and lower energy costs, says Fitch. BG may be the only exception. We expect its earnings to rise in 4Q15 vs 3Q15 provided oil prices do not fall. This is because BG has no exposure to refining and its production is rising due to operations ramping up in Australia and Brazil.
Apart from oil prices, majors' upstream profits will be increasingly affected by the scale of cost deflation. Oil majors are reducing costs and in some parts of the value chain, the fall has already been substantial. For example, in the offshore drilling industry the cost of hiring a rig has fallen by 30%-40% yoy, according to various sources. According to Total, rates for many other services, including marine logistics and well services, are down up to 20%. Overall, however, industry deflation is still insufficient to materially affect profits, as negotiating new contracts may take some time. We expect the impact to be more pronounced in 2016 as oil majors are now re-negotiating prices with their contractors and are aiming to reduce staff costs and streamline operations.
To balance their cash flows, oil majors are reducing capex and continuing divestments. Majors' ability to keep these commitments without jeopardizing the level and quality of reserves and production will drive their ratings in the next one or two years. For example, BP said its 2015-2017 capex will be USD17bn-19bn a year, compared with the original 2015 guidance of USD24bn-26bn announced a year ago. Total's guidance for 2015 is unchanged at USD23bn-24bn, but the company said capex will go down to USD20bn-21bn in 2016 and USD17bn-19bn a year in 2017-2019. Shell said it will prioritize debt reduction over dividends and capex.
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Friday, 13 November 15
WEAK CHINA POWER DEMAND DAMPENS COAL CONSUMPTION - FITCH
The weak growth in China's electricity consumption in 2015, together with increasing non-thermal power generation capacity are exerting more pr ...
Friday, 13 November 15
DRY BULK, IT IS HARD TO MAINTAIN AN OPTIMISTIC VIEW FOR THE NEXT COUPLE OF MONTHS - INTERMODAL
COALspot.com: The dry bulk owners looking for cover remained under pressure for size segments across the board. With Capes closing off the week as ...
Friday, 13 November 15
WEEKLY US COAL PRODUCTION DECLINES TO 16.5 MMST; SLIDE 14.9% Y-Y: EIA
COALspot.com – United States the world’s second largest coal producer has produced approximately totaled an estimated 16.5 million shor ...
Thursday, 12 November 15
FOREIGN COAL MINE ACQUISITION - STRATEGY VERSUS OPPORTUNITY FOR INDIAN UTILITIES - DIPESH DIPU
The acquisition market for thermal coal assets abroad is dull. Sellers of all hues are in the market; some are actively scouting for buyers while o ...
Thursday, 12 November 15
PORT OF NEWCASTLE'S COAL EXPORT VOLUME UP IN OCTOBER 2015
COALspot.com: The Port of Newcastle, Australia’s major trading ports and the world’s largest coal export port has shipped $1.254 billio ...
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Showing 2716 to 2720 news of total 6871 |
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- Therma Luzon, Inc, Philippines
- Indonesian Coal Mining Association
- Pendopo Energi Batubara - Indonesia
- Sical Logistics Limited - India
- Chamber of Mines of South Africa
- Metalloyd Limited - United Kingdom
- Interocean Group of Companies - India
- Toyota Tsusho Corporation, Japan
- Rio Tinto Coal - Australia
- Bukit Baiduri Energy - Indonesia
- Electricity Authority, New Zealand
- Jaiprakash Power Ventures ltd
- Kapuas Tunggal Persada - Indonesia
- Kideco Jaya Agung - Indonesia
- Lanco Infratech Ltd - India
- Indogreen Group - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- San Jose City I Power Corp, Philippines
- Oldendorff Carriers - Singapore
- Offshore Bulk Terminal Pte Ltd, Singapore
- Indika Energy - Indonesia
- SMC Global Power, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Economic Council, Georgia
- South Luzon Thermal Energy Corporation
- GVK Power & Infra Limited - India
- McConnell Dowell - Australia
- New Zealand Coal & Carbon
- Asmin Koalindo Tuhup - Indonesia
- European Bulk Services B.V. - Netherlands
- Merrill Lynch Commodities Europe
- Chettinad Cement Corporation Ltd - India
- Ambuja Cements Ltd - India
- Aditya Birla Group - India
- Sindya Power Generating Company Private Ltd
- Gujarat Sidhee Cement - India
- Attock Cement Pakistan Limited
- Miang Besar Coal Terminal - Indonesia
- Bhushan Steel Limited - India
- Posco Energy - South Korea
- Carbofer General Trading SA - India
- Coastal Gujarat Power Limited - India
- The State Trading Corporation of India Ltd
- TNB Fuel Sdn Bhd - Malaysia
- Kaltim Prima Coal - Indonesia
- Wilmar Investment Holdings
- Star Paper Mills Limited - India
- India Bulls Power Limited - India
- Simpson Spence & Young - Indonesia
- Africa Commodities Group - South Africa
- Orica Mining Services - Indonesia
- Vedanta Resources Plc - India
- Iligan Light & Power Inc, Philippines
- Manunggal Multi Energi - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Binh Thuan Hamico - Vietnam
- Indian Energy Exchange, India
- Australian Coal Association
- Medco Energi Mining Internasional
- Formosa Plastics Group - Taiwan
- IHS Mccloskey Coal Group - USA
- Petron Corporation, Philippines
- Sree Jayajothi Cements Limited - India
- Eastern Energy - Thailand
- The Treasury - Australian Government
- Bulk Trading Sa - Switzerland
- Independent Power Producers Association of India
- Madhucon Powers Ltd - India
- GMR Energy Limited - India
- International Coal Ventures Pvt Ltd - India
- Ministry of Finance - Indonesia
- Samtan Co., Ltd - South Korea
- Standard Chartered Bank - UAE
- Indo Tambangraya Megah - Indonesia
- Xindia Steels Limited - India
- Power Finance Corporation Ltd., India
- Ceylon Electricity Board - Sri Lanka
- TeaM Sual Corporation - Philippines
- Ministry of Mines - Canada
- Trasteel International SA, Italy
- Riau Bara Harum - Indonesia
- Tata Chemicals Ltd - India
- Kepco SPC Power Corporation, Philippines
- Baramulti Group, Indonesia
- Alfred C Toepfer International GmbH - Germany
- Bharathi Cement Corporation - India
- Siam City Cement PLC, Thailand
- Ind-Barath Power Infra Limited - India
- Georgia Ports Authority, United States
- VISA Power Limited - India
- Bangladesh Power Developement Board
- SN Aboitiz Power Inc, Philippines
- Billiton Holdings Pty Ltd - Australia
- Romanian Commodities Exchange
- Australian Commodity Traders Exchange
- Malabar Cements Ltd - India
- AsiaOL BioFuels Corp., Philippines
- PNOC Exploration Corporation - Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Barasentosa Lestari - Indonesia
- Goldman Sachs - Singapore
- Mercator Lines Limited - India
- The University of Queensland
- London Commodity Brokers - England
- Aboitiz Power Corporation - Philippines
- Electricity Generating Authority of Thailand
- Tamil Nadu electricity Board
- Eastern Coal Council - USA
- GAC Shipping (India) Pvt Ltd
- Pipit Mutiara Jaya. PT, Indonesia
- Planning Commission, India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Mercuria Energy - Indonesia
- Central Java Power - Indonesia
- Indian Oil Corporation Limited
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Jorong Barutama Greston.PT - Indonesia
- Coal and Oil Company - UAE
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Agrawal Coal Company - India
- Antam Resourcindo - Indonesia
- Parliament of New Zealand
- Energy Development Corp, Philippines
- Thai Mozambique Logistica
- Kumho Petrochemical, South Korea
- CNBM International Corporation - China
- Orica Australia Pty. Ltd.
- Bukit Makmur.PT - Indonesia
- Bayan Resources Tbk. - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Mintek Dendrill Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Bhoruka Overseas - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Borneo Indobara - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Parry Sugars Refinery, India
- PTC India Limited - India
- IEA Clean Coal Centre - UK
- Jindal Steel & Power Ltd - India
- Holcim Trading Pte Ltd - Singapore
- Bahari Cakrawala Sebuku - Indonesia
- Grasim Industreis Ltd - India
- Larsen & Toubro Limited - India
- Port Waratah Coal Services - Australia
- Siam City Cement - Thailand
- Commonwealth Bank - Australia
- Karbindo Abesyapradhi - Indoneisa
- Cigading International Bulk Terminal - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Latin American Coal - Colombia
- PetroVietnam Power Coal Import and Supply Company
- Altura Mining Limited, Indonesia
- Intertek Mineral Services - Indonesia
- Global Coal Blending Company Limited - Australia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Marubeni Corporation - India
- Salva Resources Pvt Ltd - India
- Essar Steel Hazira Ltd - India
- Energy Link Ltd, New Zealand
- ICICI Bank Limited - India
- Dalmia Cement Bharat India
- White Energy Company Limited
- Timah Investasi Mineral - Indoneisa
- Karaikal Port Pvt Ltd - India
- Sarangani Energy Corporation, Philippines
- Sojitz Corporation - Japan
- Kobexindo Tractors - Indoneisa
- Rashtriya Ispat Nigam Limited - India
- Heidelberg Cement - Germany
- Gujarat Mineral Development Corp Ltd - India
- Mjunction Services Limited - India
- Ministry of Transport, Egypt
- Central Electricity Authority - India
- Edison Trading Spa - Italy
- Globalindo Alam Lestari - Indonesia
- Directorate Of Revenue Intelligence - India
- Semirara Mining Corp, Philippines
- Thiess Contractors Indonesia
- Minerals Council of Australia
- Meralco Power Generation, Philippines
- PowerSource Philippines DevCo
- Leighton Contractors Pty Ltd - Australia
- Banpu Public Company Limited - Thailand
- Gujarat Electricity Regulatory Commission - India
- ASAPP Information Group - India
- Global Green Power PLC Corporation, Philippines
- Cement Manufacturers Association - India
- Semirara Mining and Power Corporation, Philippines
- Sakthi Sugars Limited - India
- Makarim & Taira - Indonesia
- SMG Consultants - Indonesia
- Renaissance Capital - South Africa
- Savvy Resources Ltd - HongKong
- CIMB Investment Bank - Malaysia
- Vijayanagar Sugar Pvt Ltd - India
- Wood Mackenzie - Singapore
- Price Waterhouse Coopers - Russia
- MS Steel International - UAE
- Singapore Mercantile Exchange
- Global Business Power Corporation, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Bhatia International Limited - India
- Coalindo Energy - Indonesia
- Kartika Selabumi Mining - Indonesia
- LBH Netherlands Bv - Netherlands
- Meenaskhi Energy Private Limited - India
- OPG Power Generation Pvt Ltd - India
- Maheswari Brothers Coal Limited - India
- Straits Asia Resources Limited - Singapore
- Bukit Asam (Persero) Tbk - Indonesia
- Anglo American - United Kingdom
- Uttam Galva Steels Limited - India
- Vizag Seaport Private Limited - India
- Videocon Industries ltd - India
- Deloitte Consulting - India
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