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Wednesday, 26 October 11
PWCS GLOBAL SHIPPING BENCHMARKING ANALYSIS: RECOVERY IN 2010 BUT GREAT UNCERTAINLY FOR 2011
 The recovery of global trade in 2010 to the same levels as 2008 led to an improvement in the overall performance of shipping companies in 2010 compared to 2009, according to the 2010 Global Shipping Benchmarking Analysis of PwC. But this does not mean that the shipping industry is on a safe path to recovery, since the deteriorating economic situation in Europe and the US have increased volatility and market uncertainty, impacting shipping companies’ performance as reflected in their reported results in the first half of 2011, which have been worse than the same period in 2010.
In its global benchmarking analysis, which is in its third year of publication, PwC has analyzed certain key performance indicators (KPIs) of 150 shipping companies from around the world. The results are based on an analysis of their published annual reports over the last five years including 2010. The analysis covers both quantitative and qualitative information and gives an insight into how these companies are facing recent challenges and the main drivers of performance in the shipping industry.
The analysis shows that the Container and the Dry Bulk subsectors were the best performers in 2010, while the Tanker subsector was the worst performer. With the exception of net debt ratio and the ratio of net fixed assets to sales ratio, all financial performance indicators stabilized or improved in 2010 compared to 2009.
Socrates Leptos-Bourgi, Partner of PwC in Greece and the PwC Global Shipping & Ports Leader, says: “We’ve seen improvements in freight rates across all trades in 2010, which combined with cost savings implemented in 2009, have improved the reported profitability of shipping companies in 2010. How good or bad things will get in the future depends on how well the world economy copes with the post financial crisis problems that the US is facing, the resolution of the European sovereign debt crisis, the challenge of rebuilding northern Japan and the prospects of the Chinese economy. However, given the pressures caused from the supply of new tonnage in the shipping markets, it will require an extraordinary performance on all accounts to bring the shipping industry back to a period where returns become relatively attractive again.”
While the world economy is still fragile, with increasing volatility and uncertainty prevalent across many sectors, businesses continue to face tightening credit conditions and limited liquidity. Financial institutions have toughened their positions, both in existing exposures and when making new facilities available. Under these conditions many companies were forced to restructure their loan facilities in an attempt to rectify existing issues with their facilities or in preparing for a tougher year ahead.
Approximately 60% of the container vessel owners covered by our analysis have reported restructuring of their loan obligations during 2010. The corresponding percentage for the dry bulk sector was 29% and for the tanker sector 12%. But significantly less owners foresee debt restructuring in 2011.
Second hand vessel sale & purchase activity was significantly lower in 2010 than in 2009. The number of reported sales was down by close to 20% compared to 2009. Vessel values were under pressure reflecting a weaker freight market, an increasing concern about the order book and in general a large number of potential sales candidates. The survey results demonstrate that asset impairments are at lower levels in 2010 compared to 2009 in most sectors, but especially in the dry bulk and tanker sectors. The container sector reported the largest share of impairments on vessels in 2010, with 42% of the companies incurring impairment losses.
Our analysis shows clearly lower levels of shipbuilding cancellations in 2010 compared to 2009. Especially in the dry bulk sector there was a dramatic reduction of vessel cancellations among the companies we have covered. The reduced shipbuilding cancellations were accompanied with a resumption of ordering activity. This may have been the result increasing cargo demand, the firming of freight rates and low newbuilding prices. Especially for the dry bulk sector the number of orders for new vessels increased two-fold. This trend is expected to change in 2011 as the lower growth in world trade and the increase newbuilding deliveries is likely to divert ship owners’ interest to other subsectors such as gas (LPG or LNG) carriers.
According to our analysis, the newbuilding ratio (calculated as the number of vessels on order divided by the number of vessels operated for all companies in our sample) stands at 25% for dry bulk vessels, 7% for tankers and 10% for containerships. However, these newbuilding ratios are significantly lower than those for the whole shipping market. We believe this is reflective of the fact that most of the companies in our sample are listed and, being accountable to a number of shareholders in the public markets, tend to follow more conservative strategies, while private companies have more risk tolerance and tend to take a more aggressive view of the market.
Finally, scrapping activity declined in 2010, despite very strong scrap prices and relatively weak hire rates. Looking at the dry bulk sector, scrapping activity was negligible in the second half of 2010. However, this trend is likely to change as the container and tanker sectors are under severe pressure from freight rates that declined to levels close to or below operating break-even levels and scrap prices remaining at attractive levels.
Source: PriceWaterHouseCoopers / Hellenic Shipping
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Friday, 18 September 20
INDIA'S COAL-FIRED POWER OUTPUT PICKS UP AS INDUSTRIAL USE RISES - REUTERS
India’s coal-fired electricity generation rose 9.4% in the first half of September, provisional government data showed, as demand from indust ...
Friday, 18 September 20
CHINA'S BENCHMARK POWER COAL PRICE EDGES UP - XINHUA
China’s benchmark power coal price rose slightly during the past week.
The Bohai-Rim Steam-Coal Price Index (BSPI), a gauge of ...
Thursday, 17 September 20
LAST HOPES FOR DEMAND GROWTH SET TO DISAPPOINT THERMAL COAL EXPORTERS - IEEFA
Asian thermal coal exporters are fighting an uphill battle even in new markets
The world’s largest thermal coal exporter is eyeing new m ...
Wednesday, 16 September 20
MARKET INSIGHT - INTERMODAL
Another active week in terms of SnP has concluded in the dry bulk market with a diversified array of transactions recorded. Despite the correction ...
Friday, 11 September 20
IMO 2020: A REVIEW OF THE TRANSITION TO VLSFOS - GARD
KNOWLEDGE TO ELEVATE
Many predictions were made in the run up to the imposition of the MARPOL 2020 sulphur cap, none of which was that the tra ...
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- The Treasury - Australian Government
- Kaltim Prima Coal - Indonesia
- Agrawal Coal Company - India
- Larsen & Toubro Limited - India
- Jindal Steel & Power Ltd - India
- Bharathi Cement Corporation - India
- Meenaskhi Energy Private Limited - India
- South Luzon Thermal Energy Corporation
- Coalindo Energy - Indonesia
- Directorate Of Revenue Intelligence - India
- Bhatia International Limited - India
- Alfred C Toepfer International GmbH - Germany
- MS Steel International - UAE
- Parliament of New Zealand
- Videocon Industries ltd - India
- IHS Mccloskey Coal Group - USA
- Mercator Lines Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Meralco Power Generation, Philippines
- Karaikal Port Pvt Ltd - India
- San Jose City I Power Corp, Philippines
- International Coal Ventures Pvt Ltd - India
- Mjunction Services Limited - India
- Siam City Cement PLC, Thailand
- Economic Council, Georgia
- Mintek Dendrill Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Thiess Contractors Indonesia
- Bulk Trading Sa - Switzerland
- SN Aboitiz Power Inc, Philippines
- Vizag Seaport Private Limited - India
- White Energy Company Limited
- Bhoruka Overseas - Indonesia
- Ind-Barath Power Infra Limited - India
- Merrill Lynch Commodities Europe
- Pendopo Energi Batubara - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Eastern Energy - Thailand
- Latin American Coal - Colombia
- Neyveli Lignite Corporation Ltd, - India
- Australian Commodity Traders Exchange
- Attock Cement Pakistan Limited
- Edison Trading Spa - Italy
- Carbofer General Trading SA - India
- Ceylon Electricity Board - Sri Lanka
- Kalimantan Lumbung Energi - Indonesia
- Makarim & Taira - Indonesia
- Eastern Coal Council - USA
- Holcim Trading Pte Ltd - Singapore
- Iligan Light & Power Inc, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Maheswari Brothers Coal Limited - India
- Straits Asia Resources Limited - Singapore
- Barasentosa Lestari - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Heidelberg Cement - Germany
- Sojitz Corporation - Japan
- Chamber of Mines of South Africa
- Gujarat Mineral Development Corp Ltd - India
- Banpu Public Company Limited - Thailand
- Medco Energi Mining Internasional
- Gujarat Sidhee Cement - India
- Altura Mining Limited, Indonesia
- Samtan Co., Ltd - South Korea
- Metalloyd Limited - United Kingdom
- Semirara Mining and Power Corporation, Philippines
- The University of Queensland
- Chettinad Cement Corporation Ltd - India
- Global Green Power PLC Corporation, Philippines
- Cigading International Bulk Terminal - Indonesia
- Kideco Jaya Agung - Indonesia
- PowerSource Philippines DevCo
- SMC Global Power, Philippines
- Parry Sugars Refinery, India
- Kartika Selabumi Mining - Indonesia
- Kumho Petrochemical, South Korea
- Renaissance Capital - South Africa
- Grasim Industreis Ltd - India
- Bukit Makmur.PT - Indonesia
- Riau Bara Harum - Indonesia
- Australian Coal Association
- Bahari Cakrawala Sebuku - Indonesia
- Baramulti Group, Indonesia
- Kobexindo Tractors - Indoneisa
- AsiaOL BioFuels Corp., Philippines
- Indika Energy - Indonesia
- Power Finance Corporation Ltd., India
- Leighton Contractors Pty Ltd - Australia
- Indian Oil Corporation Limited
- Kapuas Tunggal Persada - Indonesia
- Malabar Cements Ltd - India
- Miang Besar Coal Terminal - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- GVK Power & Infra Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Ministry of Finance - Indonesia
- Electricity Authority, New Zealand
- Indogreen Group - Indonesia
- VISA Power Limited - India
- Bukit Baiduri Energy - Indonesia
- Mercuria Energy - Indonesia
- Global Coal Blending Company Limited - Australia
- Ministry of Transport, Egypt
- Aboitiz Power Corporation - Philippines
- LBH Netherlands Bv - Netherlands
- Bayan Resources Tbk. - Indonesia
- Port Waratah Coal Services - Australia
- Planning Commission, India
- London Commodity Brokers - England
- Goldman Sachs - Singapore
- Siam City Cement - Thailand
- Petron Corporation, Philippines
- TeaM Sual Corporation - Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Oldendorff Carriers - Singapore
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Commonwealth Bank - Australia
- Indonesian Coal Mining Association
- The State Trading Corporation of India Ltd
- Trasteel International SA, Italy
- Wood Mackenzie - Singapore
- Independent Power Producers Association of India
- India Bulls Power Limited - India
- SMG Consultants - Indonesia
- Global Business Power Corporation, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- TNB Fuel Sdn Bhd - Malaysia
- Interocean Group of Companies - India
- Jorong Barutama Greston.PT - Indonesia
- Semirara Mining Corp, Philippines
- Salva Resources Pvt Ltd - India
- Bhushan Steel Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Sinarmas Energy and Mining - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Aditya Birla Group - India
- Orica Australia Pty. Ltd.
- OPG Power Generation Pvt Ltd - India
- Savvy Resources Ltd - HongKong
- Sakthi Sugars Limited - India
- Essar Steel Hazira Ltd - India
- Tamil Nadu electricity Board
- Tata Chemicals Ltd - India
- Cement Manufacturers Association - India
- McConnell Dowell - Australia
- CIMB Investment Bank - Malaysia
- Star Paper Mills Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Coastal Gujarat Power Limited - India
- GAC Shipping (India) Pvt Ltd
- Romanian Commodities Exchange
- Directorate General of MIneral and Coal - Indonesia
- Standard Chartered Bank - UAE
- Xindia Steels Limited - India
- GMR Energy Limited - India
- Thai Mozambique Logistica
- GN Power Mariveles Coal Plant, Philippines
- Marubeni Corporation - India
- Indian Energy Exchange, India
- ICICI Bank Limited - India
- Anglo American - United Kingdom
- PetroVietnam Power Coal Import and Supply Company
- Gujarat Electricity Regulatory Commission - India
- Wilmar Investment Holdings
- Kepco SPC Power Corporation, Philippines
- Africa Commodities Group - South Africa
- Ambuja Cements Ltd - India
- Rio Tinto Coal - Australia
- Orica Mining Services - Indonesia
- Electricity Generating Authority of Thailand
- Krishnapatnam Port Company Ltd. - India
- Minerals Council of Australia
- CNBM International Corporation - China
- Intertek Mineral Services - Indonesia
- Central Java Power - Indonesia
- Energy Link Ltd, New Zealand
- ASAPP Information Group - India
- Ministry of Mines - Canada
- Simpson Spence & Young - Indonesia
- Energy Development Corp, Philippines
- Binh Thuan Hamico - Vietnam
- Deloitte Consulting - India
- Sindya Power Generating Company Private Ltd
- Posco Energy - South Korea
- Kohat Cement Company Ltd. - Pakistan
- Therma Luzon, Inc, Philippines
- Lanco Infratech Ltd - India
- Sical Logistics Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Price Waterhouse Coopers - Russia
- PNOC Exploration Corporation - Philippines
- IEA Clean Coal Centre - UK
- Billiton Holdings Pty Ltd - Australia
- PTC India Limited - India
- Georgia Ports Authority, United States
- European Bulk Services B.V. - Netherlands
- Indo Tambangraya Megah - Indonesia
- Uttam Galva Steels Limited - India
- Sarangani Energy Corporation, Philippines
- Coal and Oil Company - UAE
- Toyota Tsusho Corporation, Japan
- Antam Resourcindo - Indonesia
- Borneo Indobara - Indonesia
- Manunggal Multi Energi - Indonesia
- Formosa Plastics Group - Taiwan
- Bangladesh Power Developement Board
- Globalindo Alam Lestari - Indonesia
- Vedanta Resources Plc - India
- Jaiprakash Power Ventures ltd
- Central Electricity Authority - India
- Madhucon Powers Ltd - India
- New Zealand Coal & Carbon
- Dalmia Cement Bharat India
- Timah Investasi Mineral - Indoneisa
- Singapore Mercantile Exchange
- Sree Jayajothi Cements Limited - India
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