We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
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
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Wednesday, 15 July 20
CHINA'S JUNE COAL IMPORTS FALL 6.7% Y/Y ON PORT CURBS - REUTERS
China’s coal imports dropped 6.7% in June from the same period last year, as stringent import restrictions at ports impeded purchases by trad ...
Wednesday, 15 July 20
MARKET INSIGHT - INTERMODAL
The Covid-19 virus spread around the world has obviously impacted the global oil demand while the situation remains fluid. The overall constraint ...
Tuesday, 14 July 20
CHINA TAIYUAN COAL TRANSACTION PRICE INDEX UP 0.75 PCT - XINHUA
China Taiyuan coal transaction price index stood at 126.01 points Monday, up 0.75 percent week on week.
The index, released by China ...
Tuesday, 14 July 20
TURKEY - A CASE OF UNDECLARED BUNKER - GARD
KNOWLEDGE TO ELEVATE
Undeclared/excess bunkers can be considered a criminal act by Turkish customs officials with the ship's crew being ac ...
Monday, 13 July 20
PANAMAX: A TUMULTUOUS WEEK IN THE PANAMAX MARKET ENSURED ALL MARKETS GAINED VALUE ON THE WEEK - BALTIC BRIEFING
Capesize
This week witnessed the dreaded correction in the Capesize market, with the time charter average shedding almost 18 per cent to close ...
|
|
|
Showing 871 to 875 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- CNBM International Corporation - China
- Rashtriya Ispat Nigam Limited - India
- Independent Power Producers Association of India
- Mercuria Energy - Indonesia
- Samtan Co., Ltd - South Korea
- Attock Cement Pakistan Limited
- Makarim & Taira - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- ICICI Bank Limited - India
- Carbofer General Trading SA - India
- Lanco Infratech Ltd - India
- Thai Mozambique Logistica
- Sindya Power Generating Company Private Ltd
- Renaissance Capital - South Africa
- Ind-Barath Power Infra Limited - India
- Essar Steel Hazira Ltd - India
- Central Electricity Authority - India
- TeaM Sual Corporation - Philippines
- Coalindo Energy - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Ministry of Mines - Canada
- Standard Chartered Bank - UAE
- Indonesian Coal Mining Association
- Merrill Lynch Commodities Europe
- Semirara Mining Corp, Philippines
- Timah Investasi Mineral - Indoneisa
- Simpson Spence & Young - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- SMC Global Power, Philippines
- Aditya Birla Group - India
- Planning Commission, India
- Pendopo Energi Batubara - Indonesia
- Bangladesh Power Developement Board
- Karaikal Port Pvt Ltd - India
- Gujarat Electricity Regulatory Commission - India
- Indo Tambangraya Megah - Indonesia
- Bayan Resources Tbk. - Indonesia
- Power Finance Corporation Ltd., India
- Eastern Coal Council - USA
- Posco Energy - South Korea
- Romanian Commodities Exchange
- Riau Bara Harum - Indonesia
- Minerals Council of Australia
- Orica Australia Pty. Ltd.
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- PowerSource Philippines DevCo
- Therma Luzon, Inc, Philippines
- Indian Energy Exchange, India
- SMG Consultants - Indonesia
- Bharathi Cement Corporation - India
- Star Paper Mills Limited - India
- Thiess Contractors Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Meenaskhi Energy Private Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Georgia Ports Authority, United States
- ASAPP Information Group - India
- Coastal Gujarat Power Limited - India
- Larsen & Toubro Limited - India
- Kepco SPC Power Corporation, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Indika Energy - Indonesia
- LBH Netherlands Bv - Netherlands
- Gujarat Sidhee Cement - India
- Sarangani Energy Corporation, Philippines
- Aboitiz Power Corporation - Philippines
- Videocon Industries ltd - India
- Tamil Nadu electricity Board
- PTC India Limited - India
- GVK Power & Infra Limited - India
- Dalmia Cement Bharat India
- Borneo Indobara - Indonesia
- Globalindo Alam Lestari - Indonesia
- Bukit Makmur.PT - Indonesia
- Jaiprakash Power Ventures ltd
- Mjunction Services Limited - India
- Petron Corporation, Philippines
- Krishnapatnam Port Company Ltd. - India
- Neyveli Lignite Corporation Ltd, - India
- Mintek Dendrill Indonesia
- MS Steel International - UAE
- Maharashtra Electricity Regulatory Commission - India
- Alfred C Toepfer International GmbH - Germany
- Energy Development Corp, Philippines
- Global Green Power PLC Corporation, Philippines
- Formosa Plastics Group - Taiwan
- CIMB Investment Bank - Malaysia
- Central Java Power - Indonesia
- Oldendorff Carriers - Singapore
- India Bulls Power Limited - India
- Sree Jayajothi Cements Limited - India
- Manunggal Multi Energi - Indonesia
- Africa Commodities Group - South Africa
- Marubeni Corporation - India
- Metalloyd Limited - United Kingdom
- GMR Energy Limited - India
- Bulk Trading Sa - Switzerland
- Eastern Energy - Thailand
- Chettinad Cement Corporation Ltd - India
- Deloitte Consulting - India
- Malabar Cements Ltd - India
- Ambuja Cements Ltd - India
- Energy Link Ltd, New Zealand
- Miang Besar Coal Terminal - Indonesia
- Anglo American - United Kingdom
- London Commodity Brokers - England
- Baramulti Group, Indonesia
- Trasteel International SA, Italy
- McConnell Dowell - Australia
- Kumho Petrochemical, South Korea
- PetroVietnam Power Coal Import and Supply Company
- Siam City Cement PLC, Thailand
- Parry Sugars Refinery, India
- Barasentosa Lestari - Indonesia
- Uttam Galva Steels Limited - India
- Altura Mining Limited, Indonesia
- Parliament of New Zealand
- Kobexindo Tractors - Indoneisa
- Bank of Tokyo Mitsubishi UFJ Ltd
- Vizag Seaport Private Limited - India
- Cigading International Bulk Terminal - Indonesia
- Singapore Mercantile Exchange
- Coal and Oil Company - UAE
- Price Waterhouse Coopers - Russia
- Australian Commodity Traders Exchange
- PNOC Exploration Corporation - Philippines
- Vedanta Resources Plc - India
- Economic Council, Georgia
- IHS Mccloskey Coal Group - USA
- Latin American Coal - Colombia
- Electricity Authority, New Zealand
- Meralco Power Generation, Philippines
- Electricity Generating Authority of Thailand
- The University of Queensland
- Interocean Group of Companies - India
- Gujarat Mineral Development Corp Ltd - India
- Wood Mackenzie - Singapore
- Global Business Power Corporation, Philippines
- Mercator Lines Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- The Treasury - Australian Government
- Leighton Contractors Pty Ltd - Australia
- The State Trading Corporation of India Ltd
- Petrochimia International Co. Ltd.- Taiwan
- Toyota Tsusho Corporation, Japan
- OPG Power Generation Pvt Ltd - India
- Chamber of Mines of South Africa
- Jorong Barutama Greston.PT - Indonesia
- IEA Clean Coal Centre - UK
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Commonwealth Bank - Australia
- Savvy Resources Ltd - HongKong
- Directorate Of Revenue Intelligence - India
- Bhatia International Limited - India
- Bhushan Steel Limited - India
- Goldman Sachs - Singapore
- Salva Resources Pvt Ltd - India
- Sakthi Sugars Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Ministry of Finance - Indonesia
- Jindal Steel & Power Ltd - India
- San Jose City I Power Corp, Philippines
- Sojitz Corporation - Japan
- AsiaOL BioFuels Corp., Philippines
- Medco Energi Mining Internasional
- Wilmar Investment Holdings
- Ceylon Electricity Board - Sri Lanka
- Indogreen Group - Indonesia
- Australian Coal Association
- Sical Logistics Limited - India
- Bukit Baiduri Energy - Indonesia
- Rio Tinto Coal - Australia
- Tata Chemicals Ltd - India
- Global Coal Blending Company Limited - Australia
- Kapuas Tunggal Persada - Indonesia
- European Bulk Services B.V. - Netherlands
- Offshore Bulk Terminal Pte Ltd, Singapore
- SN Aboitiz Power Inc, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Asmin Koalindo Tuhup - Indonesia
- GAC Shipping (India) Pvt Ltd
- Madhucon Powers Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Indian Oil Corporation Limited
- Kartika Selabumi Mining - Indonesia
- White Energy Company Limited
- International Coal Ventures Pvt Ltd - India
- Kideco Jaya Agung - Indonesia
- Banpu Public Company Limited - Thailand
- Port Waratah Coal Services - Australia
- Straits Asia Resources Limited - Singapore
- Heidelberg Cement - Germany
- Maheswari Brothers Coal Limited - India
- Binh Thuan Hamico - Vietnam
- TNB Fuel Sdn Bhd - Malaysia
- Xindia Steels Limited - India
- Cement Manufacturers Association - India
- New Zealand Coal & Carbon
- Iligan Light & Power Inc, Philippines
- VISA Power Limited - India
- Edison Trading Spa - Italy
- Bahari Cakrawala Sebuku - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- South Luzon Thermal Energy Corporation
- Ministry of Transport, Egypt
- Intertek Mineral Services - Indonesia
- Orica Mining Services - Indonesia
- Siam City Cement - Thailand
- Grasim Industreis Ltd - India
- Antam Resourcindo - Indonesia
- Agrawal Coal Company - India
- Bhoruka Overseas - Indonesia
- Kaltim Prima Coal - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
|
| |
| |
|
