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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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Wednesday, 17 June 20
KOREA SOUTHERN POWER CO INVITED 80000 MT OF LOW CALORIFIC VALUE COAL FOR AUGUST 1H, 2020 LOADING
COALspot.com: Korea Southern Power Co., Ltd. (KOSPO) has issued an International tender for 80,000 Metric Tons (MT) Min 4,200 kcal/kg - Max. ...
Tuesday, 16 June 20
A GLOBAL ECONOMIC SLUMP: WHAT WILL IT MEAN FOR METALS AND MINING? - WOOD MACKENZIE
Back before coronavirus knocked “normal” out cold, the key issues for miners were sub-investment prices, rising requirements for ESG an ...
Tuesday, 16 June 20
CHINA TAIYUAN COAL TRANSACTION PRICE INDEX UP 0.58 PCT - XINHUA
China Taiyuan coal transaction price index stood at 124.43 points Monday, up 0.58 percent week on week.
The index, released by China ...
Tuesday, 16 June 20
HIGHER IRON ORE PRICES OFFSET CORONAVIRUS-DRIVEN PRODUCTION RISK - FITCH RATINGS
Lower iron ore production in Brazil, resulting from rising coronavirus infections, should only marginally affect the cash flow of Vale and other gl ...
Tuesday, 16 June 20
SHALE SHOCKED - WOOD MACKENZIE
Capturing shut-ins in real time
Oil markets are searching for balance as the world reflects on the impact of the COVID-19 pandemic. ...
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Showing 906 to 910 news of total 6871 |
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- ASAPP Information Group - India
- Aboitiz Power Corporation - Philippines
- Sakthi Sugars Limited - India
- Coalindo Energy - Indonesia
- Ministry of Finance - Indonesia
- Jindal Steel & Power Ltd - India
- Heidelberg Cement - Germany
- Karbindo Abesyapradhi - Indoneisa
- Singapore Mercantile Exchange
- South Luzon Thermal Energy Corporation
- The Treasury - Australian Government
- Trasteel International SA, Italy
- Intertek Mineral Services - Indonesia
- Videocon Industries ltd - India
- IEA Clean Coal Centre - UK
- Ambuja Cements Ltd - India
- Romanian Commodities Exchange
- Makarim & Taira - Indonesia
- Essar Steel Hazira Ltd - India
- Baramulti Group, Indonesia
- Chamber of Mines of South Africa
- Cement Manufacturers Association - India
- Semirara Mining and Power Corporation, Philippines
- Star Paper Mills Limited - India
- Bulk Trading Sa - Switzerland
- Sinarmas Energy and Mining - Indonesia
- Eastern Energy - Thailand
- Attock Cement Pakistan Limited
- Bhoruka Overseas - Indonesia
- Metalloyd Limited - United Kingdom
- International Coal Ventures Pvt Ltd - India
- Planning Commission, India
- OPG Power Generation Pvt Ltd - India
- Gujarat Sidhee Cement - India
- Kalimantan Lumbung Energi - Indonesia
- Semirara Mining Corp, Philippines
- Orica Mining Services - Indonesia
- Interocean Group of Companies - India
- Medco Energi Mining Internasional
- Petrochimia International Co. Ltd.- Taiwan
- Globalindo Alam Lestari - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Binh Thuan Hamico - Vietnam
- Indonesian Coal Mining Association
- Maharashtra Electricity Regulatory Commission - India
- Miang Besar Coal Terminal - Indonesia
- Kumho Petrochemical, South Korea
- Samtan Co., Ltd - South Korea
- Tamil Nadu electricity Board
- Kohat Cement Company Ltd. - Pakistan
- Banpu Public Company Limited - Thailand
- Manunggal Multi Energi - Indonesia
- Sarangani Energy Corporation, Philippines
- The University of Queensland
- AsiaOL BioFuels Corp., Philippines
- Thiess Contractors Indonesia
- Billiton Holdings Pty Ltd - Australia
- Energy Development Corp, Philippines
- Mercator Lines Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Goldman Sachs - Singapore
- PetroVietnam Power Coal Import and Supply Company
- Simpson Spence & Young - Indonesia
- SMG Consultants - Indonesia
- Vedanta Resources Plc - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- GAC Shipping (India) Pvt Ltd
- Barasentosa Lestari - Indonesia
- SN Aboitiz Power Inc, Philippines
- Global Green Power PLC Corporation, Philippines
- Meralco Power Generation, Philippines
- Bukit Makmur.PT - Indonesia
- Pendopo Energi Batubara - Indonesia
- Edison Trading Spa - Italy
- Georgia Ports Authority, United States
- Kideco Jaya Agung - Indonesia
- Bhushan Steel Limited - India
- Central Electricity Authority - India
- Directorate Of Revenue Intelligence - India
- Wilmar Investment Holdings
- Bank of Tokyo Mitsubishi UFJ Ltd
- Sree Jayajothi Cements Limited - India
- Orica Australia Pty. Ltd.
- Kapuas Tunggal Persada - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Global Coal Blending Company Limited - Australia
- CNBM International Corporation - China
- MS Steel International - UAE
- Vizag Seaport Private Limited - India
- White Energy Company Limited
- Minerals Council of Australia
- Bharathi Cement Corporation - India
- Gujarat Electricity Regulatory Commission - India
- Commonwealth Bank - Australia
- TNB Fuel Sdn Bhd - Malaysia
- Price Waterhouse Coopers - Russia
- Karaikal Port Pvt Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Parry Sugars Refinery, India
- San Jose City I Power Corp, Philippines
- Timah Investasi Mineral - Indoneisa
- Chettinad Cement Corporation Ltd - India
- Antam Resourcindo - Indonesia
- Uttam Galva Steels Limited - India
- Global Business Power Corporation, Philippines
- PowerSource Philippines DevCo
- Coastal Gujarat Power Limited - India
- Bhatia International Limited - India
- Parliament of New Zealand
- Larsen & Toubro Limited - India
- New Zealand Coal & Carbon
- Oldendorff Carriers - Singapore
- PTC India Limited - India
- Jaiprakash Power Ventures ltd
- Holcim Trading Pte Ltd - Singapore
- Riau Bara Harum - Indonesia
- Electricity Generating Authority of Thailand
- Indogreen Group - Indonesia
- Anglo American - United Kingdom
- Madhucon Powers Ltd - India
- VISA Power Limited - India
- ICICI Bank Limited - India
- Port Waratah Coal Services - Australia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Maheswari Brothers Coal Limited - India
- Sojitz Corporation - Japan
- Thai Mozambique Logistica
- TeaM Sual Corporation - Philippines
- Bukit Baiduri Energy - Indonesia
- Rio Tinto Coal - Australia
- Lanco Infratech Ltd - India
- London Commodity Brokers - England
- Grasim Industreis Ltd - India
- The State Trading Corporation of India Ltd
- Indian Oil Corporation Limited
- Xindia Steels Limited - India
- Australian Commodity Traders Exchange
- Kepco SPC Power Corporation, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Kobexindo Tractors - Indoneisa
- Siam City Cement PLC, Thailand
- LBH Netherlands Bv - Netherlands
- Cigading International Bulk Terminal - Indonesia
- Renaissance Capital - South Africa
- Directorate General of MIneral and Coal - Indonesia
- Energy Link Ltd, New Zealand
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Ind-Barath Power Infra Limited - India
- Merrill Lynch Commodities Europe
- Alfred C Toepfer International GmbH - Germany
- Indian Energy Exchange, India
- Indo Tambangraya Megah - Indonesia
- Dalmia Cement Bharat India
- Coal and Oil Company - UAE
- Formosa Plastics Group - Taiwan
- Rashtriya Ispat Nigam Limited - India
- Tata Chemicals Ltd - India
- Mercuria Energy - Indonesia
- SMC Global Power, Philippines
- Leighton Contractors Pty Ltd - Australia
- Petron Corporation, Philippines
- Straits Asia Resources Limited - Singapore
- Sical Logistics Limited - India
- Electricity Authority, New Zealand
- Central Java Power - Indonesia
- Savvy Resources Ltd - HongKong
- PNOC Exploration Corporation - Philippines
- Siam City Cement - Thailand
- Posco Energy - South Korea
- McConnell Dowell - Australia
- Toyota Tsusho Corporation, Japan
- IHS Mccloskey Coal Group - USA
- Kaltim Prima Coal - Indonesia
- Eastern Coal Council - USA
- Mjunction Services Limited - India
- Australian Coal Association
- Pipit Mutiara Jaya. PT, Indonesia
- Agrawal Coal Company - India
- Latin American Coal - Colombia
- Meenaskhi Energy Private Limited - India
- Bayan Resources Tbk. - Indonesia
- Economic Council, Georgia
- European Bulk Services B.V. - Netherlands
- Sindya Power Generating Company Private Ltd
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Mintek Dendrill Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Deloitte Consulting - India
- Therma Luzon, Inc, Philippines
- Ministry of Transport, Egypt
- Malabar Cements Ltd - India
- CIMB Investment Bank - Malaysia
- Indika Energy - Indonesia
- GVK Power & Infra Limited - India
- Bangladesh Power Developement Board
- Iligan Light & Power Inc, Philippines
- Carbofer General Trading SA - India
- Ceylon Electricity Board - Sri Lanka
- Salva Resources Pvt Ltd - India
- Altura Mining Limited, Indonesia
- Wood Mackenzie - Singapore
- India Bulls Power Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Kartika Selabumi Mining - Indonesia
- Marubeni Corporation - India
- GN Power Mariveles Coal Plant, Philippines
- GMR Energy Limited - India
- Borneo Indobara - Indonesia
- Standard Chartered Bank - UAE
- Africa Commodities Group - South Africa
- Power Finance Corporation Ltd., India
- Independent Power Producers Association of India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Ministry of Mines - Canada
- Aditya Birla Group - India
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