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Tuesday, 23 March 21
LOWER WHOLESALE PRICES PUT PRESSURE ON AUSTRALIAN ENERGY RETAILERS - FITCH RATINGS
 Fitch Ratings expects the low wholesale energy prices in the Australian National Energy Market to persist through to 2022, which will affect electricity generators and retailers. This is despite recent agreements to continue operating an aluminium smelter that accounts for around 10% of the State of Victoria's energy demand.
Lower demand due to mild weather and 3,700MW of new renewable generation capacity starting up resulted in average wholesale spot electricity prices falling by 23%-58% in 2020. Fitch expects pricing pressure to persist through to 2022, as more renewable generation comes online, and demand remains subdued. Prices may partially recover in 2023 as the planned closure of AGL's 2,000MW Liddell Coal power plant will remove some generation capacity from the market and as weather conditions normalise.
The lower prices are likely to reduce the earnings of power producers and retailers. Origin Energy Ltd (BBB/Stable) cut its guidance for Energy Markets division EBITDA for the financial year ended 30 June 2021 (FY21) to AUD1.00 billion-1.14 billion (FY20: AUD1.46 billion. AGL Energy Ltd also announced AUD2.7 billion of charges, reflecting onerous contracts primarily related to high-cost wind farm offtake agreements, as well as AUD532 million of impairments to the value of its generation fleet and natural gas assets.
Fitch expects Origin's Energy Markets earnings to fall further in FY22 as the decline in wholesale prices leads to lower retail prices. The Australian Energy Regulator's (AER) draft Default Market Offer (DMO) for the year to 1 July 2021 included price reductions of between 4.6% and 7.9% for residential customers, and 4.1% and 8.5% for small business customers. The regulated DMO acts as a maximum cap that electricity retailers can charge customers, and Fitch expects further reductions in non-regulated market offers, as retailers pass on lower wholesale prices to customers to win or maintain market share.
Fitch expects lower earnings from Origin's Energy Markets division to reduce the headroom available in its rating. Origin typically generates around 16TWh of energy annually from its Eraring coal-fired plant, but the recent price decreases have seen Origin reduce Earring's output due to its relatively high cost compared to market prices. The completion of the 530MW Stockyard Hill wind farm by the end of 2021 should increase Origin's access to lower-cost generation, although this is unlikely to be sufficient to fully offset the fall in retail prices.
Origin's rating incorporates the benefits of cash distributions from its investment in APLNG, which operates a gas liquefaction project. Origin has guided cash receipts of between AUD575 million and AUD675 million in FY21, and Fitch expects receipts to rise in FY22 as oil prices recover. These increased receipts will help partially offset lower energy markets earnings, but larger-than-expected declines in earnings from this segment or lower-than-forecast receipts from APLNG could place pressure on Origin's rating.
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Thursday, 10 June 21
INDONESIA COAL EARNINGS RECOVERY TO SLOW AFTER STRONG 1Q - FITCH RATINGS
Fitch Ratings expects the recovery in operating and financial performance of Indonesian coal miners and coal contractors to slow during rest of 202 ...
Thursday, 10 June 21
U.S. COAL PRODUCTION TO TOTAL 600 MMST IN 2021, 11% MORE THAN IN 2020 - EIA
EIA expects U.S. coal production to total 600 million short tons (MMst) in 2021, which is 61 MMst (11%) more than in 2020.
The increase is dri ...
Wednesday, 09 June 21
SHIPTEK INTERNATIONAL CONFERENCE & AWARDS 2021
The In-Person Maritime Event
SHIPTEK INTERNATIONAL CONFERENCE & AWARDS 2021
culminates successfully in Dubai
Press Release: ...
Wednesday, 09 June 21
MARKET INSIGHT - INTERMODAL
“Counter cyclical investments.” usually take place by investing in a “bad” market at the point that ensures that the acquir ...
Saturday, 05 June 21
KOMIPO INVITED 5600 NAR COAL OFFERS FOR THREE YEARS SUPPLY; 520,000 MT PER YEAR
COALspot.com: Korea Midland Power Co., Ltd (KOMIPO) has issued an international tender for total 1,560,000 MT of Bituminous Coal to be used a ...
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- Minerals Council of Australia
- Sinarmas Energy and Mining - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Iligan Light & Power Inc, Philippines
- European Bulk Services B.V. - Netherlands
- Intertek Mineral Services - Indonesia
- Bayan Resources Tbk. - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Sical Logistics Limited - India
- Sindya Power Generating Company Private Ltd
- Cigading International Bulk Terminal - Indonesia
- New Zealand Coal & Carbon
- Gujarat Mineral Development Corp Ltd - India
- Sakthi Sugars Limited - India
- ICICI Bank Limited - India
- Therma Luzon, Inc, Philippines
- Orica Australia Pty. Ltd.
- Energy Development Corp, Philippines
- Semirara Mining Corp, Philippines
- Krishnapatnam Port Company Ltd. - India
- Alfred C Toepfer International GmbH - Germany
- India Bulls Power Limited - India
- Eastern Coal Council - USA
- Savvy Resources Ltd - HongKong
- Siam City Cement PLC, Thailand
- Riau Bara Harum - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Directorate Of Revenue Intelligence - India
- Altura Mining Limited, Indonesia
- Billiton Holdings Pty Ltd - Australia
- Ambuja Cements Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Pendopo Energi Batubara - Indonesia
- Banpu Public Company Limited - Thailand
- Salva Resources Pvt Ltd - India
- Indonesian Coal Mining Association
- Gujarat Electricity Regulatory Commission - India
- Aboitiz Power Corporation - Philippines
- Globalindo Alam Lestari - Indonesia
- Meralco Power Generation, Philippines
- PowerSource Philippines DevCo
- Kapuas Tunggal Persada - Indonesia
- Siam City Cement - Thailand
- Kideco Jaya Agung - Indonesia
- Standard Chartered Bank - UAE
- Parry Sugars Refinery, India
- Tamil Nadu electricity Board
- Coastal Gujarat Power Limited - India
- Bangladesh Power Developement Board
- Sarangani Energy Corporation, Philippines
- Essar Steel Hazira Ltd - India
- LBH Netherlands Bv - Netherlands
- Indian Energy Exchange, India
- MS Steel International - UAE
- SN Aboitiz Power Inc, Philippines
- Price Waterhouse Coopers - Russia
- GMR Energy Limited - India
- Marubeni Corporation - India
- Kobexindo Tractors - Indoneisa
- Mintek Dendrill Indonesia
- Anglo American - United Kingdom
- Ministry of Transport, Egypt
- Madhucon Powers Ltd - India
- Ministry of Finance - Indonesia
- White Energy Company Limited
- McConnell Dowell - Australia
- Borneo Indobara - Indonesia
- PTC India Limited - India
- SMG Consultants - Indonesia
- Energy Link Ltd, New Zealand
- AsiaOL BioFuels Corp., Philippines
- Cement Manufacturers Association - India
- Global Green Power PLC Corporation, Philippines
- Mjunction Services Limited - India
- Singapore Mercantile Exchange
- Binh Thuan Hamico - Vietnam
- The University of Queensland
- Jaiprakash Power Ventures ltd
- Eastern Energy - Thailand
- ASAPP Information Group - India
- Coalindo Energy - Indonesia
- TeaM Sual Corporation - Philippines
- International Coal Ventures Pvt Ltd - India
- Global Coal Blending Company Limited - Australia
- Ceylon Electricity Board - Sri Lanka
- Bhushan Steel Limited - India
- Mercuria Energy - Indonesia
- San Jose City I Power Corp, Philippines
- GAC Shipping (India) Pvt Ltd
- Bhoruka Overseas - Indonesia
- Coal and Oil Company - UAE
- Vedanta Resources Plc - India
- Videocon Industries ltd - India
- SMC Global Power, Philippines
- GVK Power & Infra Limited - India
- Maharashtra Electricity Regulatory Commission - India
- IEA Clean Coal Centre - UK
- Aditya Birla Group - India
- Economic Council, Georgia
- The State Trading Corporation of India Ltd
- Commonwealth Bank - Australia
- Sojitz Corporation - Japan
- Mercator Lines Limited - India
- Indika Energy - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Directorate General of MIneral and Coal - Indonesia
- Karaikal Port Pvt Ltd - India
- Kaltim Prima Coal - Indonesia
- Chettinad Cement Corporation Ltd - India
- Xindia Steels Limited - India
- CNBM International Corporation - China
- Edison Trading Spa - Italy
- Tata Chemicals Ltd - India
- Leighton Contractors Pty Ltd - Australia
- Barasentosa Lestari - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- PNOC Exploration Corporation - Philippines
- Formosa Plastics Group - Taiwan
- Parliament of New Zealand
- IHS Mccloskey Coal Group - USA
- Larsen & Toubro Limited - India
- Indogreen Group - Indonesia
- Uttam Galva Steels Limited - India
- Kartika Selabumi Mining - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Australian Coal Association
- Ind-Barath Power Infra Limited - India
- Antam Resourcindo - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Jorong Barutama Greston.PT - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Timah Investasi Mineral - Indoneisa
- Deloitte Consulting - India
- Maheswari Brothers Coal Limited - India
- Medco Energi Mining Internasional
- Pipit Mutiara Jaya. PT, Indonesia
- Indian Oil Corporation Limited
- Agrawal Coal Company - India
- Gujarat Sidhee Cement - India
- The Treasury - Australian Government
- Bulk Trading Sa - Switzerland
- Merrill Lynch Commodities Europe
- Sree Jayajothi Cements Limited - India
- Oldendorff Carriers - Singapore
- Manunggal Multi Energi - Indonesia
- Bharathi Cement Corporation - India
- Petrochimia International Co. Ltd.- Taiwan
- Baramulti Group, Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Central Electricity Authority - India
- Star Paper Mills Limited - India
- Orica Mining Services - Indonesia
- Power Finance Corporation Ltd., India
- Asmin Koalindo Tuhup - Indonesia
- Simpson Spence & Young - Indonesia
- Bukit Baiduri Energy - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Electricity Authority, New Zealand
- Interocean Group of Companies - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Makarim & Taira - Indonesia
- Vizag Seaport Private Limited - India
- South Luzon Thermal Energy Corporation
- London Commodity Brokers - England
- Attock Cement Pakistan Limited
- Central Java Power - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Straits Asia Resources Limited - Singapore
- VISA Power Limited - India
- OPG Power Generation Pvt Ltd - India
- Lanco Infratech Ltd - India
- Goldman Sachs - Singapore
- Australian Commodity Traders Exchange
- Romanian Commodities Exchange
- Electricity Generating Authority of Thailand
- Heidelberg Cement - Germany
- Global Business Power Corporation, Philippines
- CIMB Investment Bank - Malaysia
- Wilmar Investment Holdings
- Chamber of Mines of South Africa
- Ministry of Mines - Canada
- Posco Energy - South Korea
- Georgia Ports Authority, United States
- Bhatia International Limited - India
- Renaissance Capital - South Africa
- Rio Tinto Coal - Australia
- Independent Power Producers Association of India
- Trasteel International SA, Italy
- Toyota Tsusho Corporation, Japan
- GN Power Mariveles Coal Plant, Philippines
- Kepco SPC Power Corporation, Philippines
- Grasim Industreis Ltd - India
- Jindal Steel & Power Ltd - India
- Thai Mozambique Logistica
- Samtan Co., Ltd - South Korea
- Wood Mackenzie - Singapore
- Miang Besar Coal Terminal - Indonesia
- Metalloyd Limited - United Kingdom
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Malabar Cements Ltd - India
- Latin American Coal - Colombia
- Port Waratah Coal Services - Australia
- Carbofer General Trading SA - India
- TNB Fuel Sdn Bhd - Malaysia
- Bukit Makmur.PT - Indonesia
- Indo Tambangraya Megah - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Thiess Contractors Indonesia
- Planning Commission, India
- Rashtriya Ispat Nigam Limited - India
- Africa Commodities Group - South Africa
- Kumho Petrochemical, South Korea
- Dalmia Cement Bharat India
- Meenaskhi Energy Private Limited - India
- Petron Corporation, Philippines
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