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Friday, 10 July 20
SLOW RECOVERY IN TANKER RATES TO WEIGH ON BUANA LINTAS LAUTAN - FITCH RATINGS
 Fitch Ratings believes that international tanker rates are likely improve after their sharp fall since May 2020, albeit at a slow pace. The weakness in rates may weigh on the financial profile of PT Buana Lintas Lautan Tbk (BULL, B+/Negative), which has around 15% of its fleet capacity earning revenue based on international spot rates.
The Baltic Dirty Tanker Index, which is made up from 12 Baltic international routes and mainly for crude oil shipping, has declined to below 500 points, from an average of 1,200 in March-April 2020, and is at its lowest since 2009. The index averaged 855 points in 2019 and around 770 points since 2009. Similarly, the Baltic Clean Tanker Index for refined fuel shipping has fallen to below 400 points from an average of around 1,305 points in April 2020.
The sharp fall in rates follows lower demand for global oil transportation with the OPEC+ alliance announcing in April 2020 an agreement to cut output by 9.7 million barrels per day (mbpd), or 10% of global output, from May 1. The group agreed in June to extend the production cut by one month through the end of July. The cut in output also resulted in a sharp rally in crude oil prices, with Brent price increasing to over USD40 per barrel (bbl) from around USD20/bbl near mid-April. Higher oil prices reduced the demand for floating storage and such tankers were freed, increasing spare capacity and pressuring rates.
Tanker demand has declined sharply since March-April, when Saudi Arabia increased its oil output ahead of the OPEC+ deal to cut production. The effect of increased oil output on tanker rates was compounded by the sharp fall in oil prices, which caused the futures curve to be in contango and incentivised oil storage on land and in tankers.
Demand for tankers is likely to improve from August with a reduction in the OPEC+ cuts to 7.7mbpd until the end of the 2020 and further to 5.8mbpd from January 2021. However, the output cut will continue weighing on tanker rates and improvement in rates is likely to be a gradual process.
Indonesian tanker operators PT Soechi Lines Tbk (B/Stable) and BULL benefit from largely stable rates in the domestic market, which is protected from foreign competition by cabotage laws and dominated by state-owned oil major PT Pertamina (Persero) (BBB/Stable) which is the main revenue driver.
However, BULL’s exposure to international rate volatility has increased this year. BULL had 24 of its 25 ships, or 93% of its fleet capacity, under standard time-charter contracts as of end-2019 while one tanker was part of a pool of ships managed by a pool operator and earned revenue based on international spot rates. The share of BULL’s fleet capacity managed by the pool operator has increased to 14% by end-2Q20 with three out of 33 ships being part of the pool. Additionally, BULL has two ships constituting 10% of its capacity under time-charter contracts with a base rate and upside if international spot rates are higher.
The company said it is seeking to switch the fleet under the pool operator to short-term time charter contracts of three to six months from September 2020 to limit the impact of the fall in tanker rates. Nonetheless, the Negative Outlook on BULL’s rating reflects risks to its financial profile from weak international rates, apart from sustained spending on fleet expansion. We estimate FFO gross leverage to increase to 3.8x in 2021, from 2.9x in 2020 (2019: 4.3x), due to lower international rates and EBITDA. We also assume BULL acquires five more ships for USD100 million in 2021.
Source: Fitch Ratings
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Monday, 20 July 20
COAL INDIA LAUNCHES SPECIAL CATEGORY OF E-AUCTION FOR COAL IMPORTERS - BUSINESS STANDARD
Coal India (CIL) on Friday launched a special category of e-auction for importers of coal. This is in line with the government’s declaration ...
Monday, 20 July 20
OIL PRICE OF $40-43 PER BARREL MORE OR LESS BALANCED - NOVAK | TASS
The Russian Ministry of Energy considers the current oil price of $40-43 per barrel more or less balanced and does not expect price changes after t ...
Monday, 20 July 20
SUPRAMAX: A 63,000 OPEN NORTH CHINA FIXING AN AUSTRALIAN ROUND IN THE LOW $10,000S - BALTIC BRIEFING
Capesize
The capesize market showed some resistance this week to recent losses as all routes saw a small uptick in value to end the week. With ...
Friday, 17 July 20
MISC MALAYSIA ENTERS INTO PURCHASE AGREEMENTS AND TIME CHARTER PARTIES FOR SIX VLECS
MISC Berhad (MISC) has entered into Memorandum of Agreements (MOAs) with six indirect wholly-owned subsidiaries of Zhejiang Satellite Petrochem ...
Wednesday, 15 July 20
HOW MEANINGFUL ARE SOME ESTIMATES FOR INDIA’S COAL CONSUMPTION DATA? - IEEFA
In recent years, BP's estimates for India have contained what appears to be a record of over-optimistic projections
BP’s a ...
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Showing 866 to 870 news of total 6871 |
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- Siam City Cement - Thailand
- San Jose City I Power Corp, Philippines
- Deloitte Consulting - India
- Jorong Barutama Greston.PT - Indonesia
- Sical Logistics Limited - India
- Edison Trading Spa - Italy
- Barasentosa Lestari - Indonesia
- Bulk Trading Sa - Switzerland
- Star Paper Mills Limited - India
- Ministry of Finance - Indonesia
- Borneo Indobara - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Bhoruka Overseas - Indonesia
- Sarangani Energy Corporation, Philippines
- Tata Chemicals Ltd - India
- Simpson Spence & Young - Indonesia
- Power Finance Corporation Ltd., India
- Global Coal Blending Company Limited - Australia
- Attock Cement Pakistan Limited
- European Bulk Services B.V. - Netherlands
- Ministry of Transport, Egypt
- Samtan Co., Ltd - South Korea
- Meenaskhi Energy Private Limited - India
- Goldman Sachs - Singapore
- MS Steel International - UAE
- Karaikal Port Pvt Ltd - India
- Aboitiz Power Corporation - Philippines
- Mjunction Services Limited - India
- Larsen & Toubro Limited - India
- Petron Corporation, Philippines
- Latin American Coal - Colombia
- Krishnapatnam Port Company Ltd. - India
- Bukit Makmur.PT - Indonesia
- Anglo American - United Kingdom
- Altura Mining Limited, Indonesia
- GMR Energy Limited - India
- Binh Thuan Hamico - Vietnam
- Neyveli Lignite Corporation Ltd, - India
- Intertek Mineral Services - Indonesia
- Georgia Ports Authority, United States
- New Zealand Coal & Carbon
- Meralco Power Generation, Philippines
- Orica Australia Pty. Ltd.
- Makarim & Taira - Indonesia
- Medco Energi Mining Internasional
- Renaissance Capital - South Africa
- Trasteel International SA, Italy
- Australian Coal Association
- Xindia Steels Limited - India
- Madhucon Powers Ltd - India
- The University of Queensland
- Central Java Power - Indonesia
- Rio Tinto Coal - Australia
- Thiess Contractors Indonesia
- Jindal Steel & Power Ltd - India
- Pendopo Energi Batubara - Indonesia
- Siam City Cement PLC, Thailand
- Coastal Gujarat Power Limited - India
- Antam Resourcindo - Indonesia
- GVK Power & Infra Limited - India
- IEA Clean Coal Centre - UK
- South Luzon Thermal Energy Corporation
- Coal and Oil Company - UAE
- PNOC Exploration Corporation - Philippines
- Kalimantan Lumbung Energi - Indonesia
- ASAPP Information Group - India
- Indian Energy Exchange, India
- Global Green Power PLC Corporation, Philippines
- Agrawal Coal Company - India
- Bhushan Steel Limited - India
- Lanco Infratech Ltd - India
- Merrill Lynch Commodities Europe
- PTC India Limited - India
- Therma Luzon, Inc, Philippines
- Indonesian Coal Mining Association
- SMG Consultants - Indonesia
- Toyota Tsusho Corporation, Japan
- Kartika Selabumi Mining - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Commonwealth Bank - Australia
- Riau Bara Harum - Indonesia
- Wood Mackenzie - Singapore
- Alfred C Toepfer International GmbH - Germany
- Directorate Of Revenue Intelligence - India
- Formosa Plastics Group - Taiwan
- Australian Commodity Traders Exchange
- Energy Development Corp, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Heidelberg Cement - Germany
- Iligan Light & Power Inc, Philippines
- Ministry of Mines - Canada
- TNB Fuel Sdn Bhd - Malaysia
- Globalindo Alam Lestari - Indonesia
- Parry Sugars Refinery, India
- Banpu Public Company Limited - Thailand
- Vijayanagar Sugar Pvt Ltd - India
- Semirara Mining Corp, Philippines
- Posco Energy - South Korea
- Metalloyd Limited - United Kingdom
- Ceylon Electricity Board - Sri Lanka
- Price Waterhouse Coopers - Russia
- Savvy Resources Ltd - HongKong
- SN Aboitiz Power Inc, Philippines
- The Treasury - Australian Government
- Pipit Mutiara Jaya. PT, Indonesia
- Central Electricity Authority - India
- Marubeni Corporation - India
- Gujarat Electricity Regulatory Commission - India
- Sojitz Corporation - Japan
- Standard Chartered Bank - UAE
- Coalindo Energy - Indonesia
- Carbofer General Trading SA - India
- Kumho Petrochemical, South Korea
- Gujarat Mineral Development Corp Ltd - India
- Bukit Baiduri Energy - Indonesia
- ICICI Bank Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Mintek Dendrill Indonesia
- TeaM Sual Corporation - Philippines
- Electricity Authority, New Zealand
- Indogreen Group - Indonesia
- Africa Commodities Group - South Africa
- India Bulls Power Limited - India
- Parliament of New Zealand
- Manunggal Multi Energi - Indonesia
- Indika Energy - Indonesia
- Global Business Power Corporation, Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Straits Asia Resources Limited - Singapore
- LBH Netherlands Bv - Netherlands
- Salva Resources Pvt Ltd - India
- Vedanta Resources Plc - India
- SMC Global Power, Philippines
- IHS Mccloskey Coal Group - USA
- London Commodity Brokers - England
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bhatia International Limited - India
- Port Waratah Coal Services - Australia
- Ambuja Cements Ltd - India
- McConnell Dowell - Australia
- GN Power Mariveles Coal Plant, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Kideco Jaya Agung - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Dalmia Cement Bharat India
- OPG Power Generation Pvt Ltd - India
- Mercator Lines Limited - India
- Malabar Cements Ltd - India
- GAC Shipping (India) Pvt Ltd
- Cement Manufacturers Association - India
- Ind-Barath Power Infra Limited - India
- Cigading International Bulk Terminal - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Wilmar Investment Holdings
- White Energy Company Limited
- Kaltim Prima Coal - Indonesia
- Bharathi Cement Corporation - India
- Oldendorff Carriers - Singapore
- Maheswari Brothers Coal Limited - India
- Uttam Galva Steels Limited - India
- Sindya Power Generating Company Private Ltd
- Gujarat Sidhee Cement - India
- The State Trading Corporation of India Ltd
- Interocean Group of Companies - India
- Sree Jayajothi Cements Limited - India
- Bangladesh Power Developement Board
- Indian Oil Corporation Limited
- International Coal Ventures Pvt Ltd - India
- Vizag Seaport Private Limited - India
- CIMB Investment Bank - Malaysia
- Bayan Resources Tbk. - Indonesia
- Timah Investasi Mineral - Indoneisa
- Independent Power Producers Association of India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Eastern Coal Council - USA
- Kepco SPC Power Corporation, Philippines
- Essar Steel Hazira Ltd - India
- Rashtriya Ispat Nigam Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Electricity Generating Authority of Thailand
- Semirara Mining and Power Corporation, Philippines
- Kapuas Tunggal Persada - Indonesia
- Thai Mozambique Logistica
- Mercuria Energy - Indonesia
- PowerSource Philippines DevCo
- Energy Link Ltd, New Zealand
- Sakthi Sugars Limited - India
- Romanian Commodities Exchange
- Jaiprakash Power Ventures ltd
- Eastern Energy - Thailand
- Bukit Asam (Persero) Tbk - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Petrochimia International Co. Ltd.- Taiwan
- Billiton Holdings Pty Ltd - Australia
- Tamil Nadu electricity Board
- Orica Mining Services - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Singapore Mercantile Exchange
- Aditya Birla Group - India
- Karbindo Abesyapradhi - Indoneisa
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Chettinad Cement Corporation Ltd - India
- Minerals Council of Australia
- Kobexindo Tractors - Indoneisa
- Planning Commission, India
- Chamber of Mines of South Africa
- VISA Power Limited - India
- Economic Council, Georgia
- Indo Tambangraya Megah - Indonesia
- Grasim Industreis Ltd - India
- Miang Besar Coal Terminal - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- CNBM International Corporation - China
- Videocon Industries ltd - India
- Baramulti Group, Indonesia
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