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Friday, 29 June 12
DRY BULK SHIP OWNERS DOING THEIR MATHS BEFORE PLACING NEWBUILDING ORDERS - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
 With oversupply having plagued the dry bulk shipping fleet since the end of 2011, it’s become ever so evident that placing a newbuilding order is a hard decision nowadays for most ship owners, despite the fact that newbuilding prices are close to their lowest price levels in two decades. Despite this incentive, ship owners have to consider additional factors, such as financing, market conditions and of course freight rates. If they are low, then it’s hard to consider a newbuilding order, since the return on investment will most likely be low, making it more difficult to secure and ultimately paying off a bank loan to finance the newbuilding investment.
In a recent report, Intermodal, aknowledging the fact that timing is crucial in a strongly cyclical and capital intensive market, such as international shipping, examined the case of Kamsarmax dry bulk carriers. In his report, Intermodal’s Panos Tsilingiris, said that for the purpose of the exercise, Intemodal assumed that contracting takes place today and delivery is scheduled after about two years. Furthermore, “the vessel is operated is operated by the buyer for 10 full years (including her second SS/DD) and is sold thereafter. The residual sale price is the resale price of the vessel depreciated over 10 years at 5% p.a. We accept newbuilding prices of $ 26.5 million basis 30/70 payment terms plus $ 500k pre-delivery expenses. With regards to financing, we suppose 60% loan with a fixed interest rate of 5% and 25% balloon, and arrangement/commitment costs of approximately 1.5% of the loan facility. The remaining 40% is financed via equity at 12% p.a. The Opex costs begin with xs $ 6,000/day and are subject to a 2.5% annual appreciation, while we also factor in indicative dry-docking costs. Assuming 365 OPEX days and 350 TC days, the resulting break-even TC rate for the 10-year period is $ 15,959/day” said Tsilingiris.
He added that “at first sight, the above figure may not enthuse speculators when compared to the current freight market in which Kamsarmax bulkers struggle to achieve double-digit yearly TC rates. However, the seasoned shipowner will recognize that this figure is well below the 20-year average, the 10-year average, and the 10-year average after excluding the 2007-2008 bubble years.
Further to the attractive break-even point, the driving force for newbuildings is the high price of bunkers; the ‘eco-type’ designs with their promised (yet generally unproven so far) increased energy efficiency appear tempting to both owners and charterers. Owners might prefer newbuildings over second-hand tonnage since they do not expect a radical peak-up in the dry bulk freight markets during 2012-2013. Moreover, the long operating life of a newbuilding provides some encouragement, if not statistical certainty, that the market will peak up at least once during the vessel’s operating life. There is hope that due to the significantly slower recent contracting of bulker newbuildings and assuming no collapse in demand, the market will return to healthy levels within 2015. Of course, massive orders, something not expected in the short-term given the current market, the tight financing and the global economic uncertainty, would negate any benefit from the lower break-even point of such investments” he said.
As a result, the report from Intermodal concludes that “while the exact figures depend upon the idiosyncrasies of the specific project and ship-owner as well as market conditions (LIBOR, actual TC rates, residual value, etc.), we have shown how the low entrance point for newbuildings renders attractive the break-even rate of such investments. In conclusion, as low shipbuilding prices gradually concur with the maturing of eco-type designs, newbuilding investments appear increasingly attractive” it said.
Source: Nikos Roussanoglou, Hellenic Shipping
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Friday, 22 March 24
INDONESIA APPROVES 922.14 MLN T COAL PRODUCTION QUOTA FOR 2024, ABOVE TARGET - REUTERS
Indonesia has approved coal production quotas totalling 922.14 million metric tons for 2024, Bambang Suswantono, a senior official at the mining mi ...
Friday, 22 March 24
CHINA COAL INDUSTRY GROUP EXPECTS OUTPUT GROWTH TO SLOW IN 2024 - REUTERS
China’s coal output is expected to increase 36 million metric tons, or 0.8%, to about 4.7 billion tonnes in 2024, a Chinese coal industry gro ...
Monday, 18 March 24
THREE KEY TAKEAWAYS FROM OUR EUROPE GAS MARKETS SHORT-TERM OUTLOOK Q1 2024 - WOOD MACKENZIE
European gas prices are currently back to pre-crisis levels, but with a complex series of factors affecting future supply and demand, are they set ...
Wednesday, 06 March 24
INDONESIA AIMS TO FINISH MINING OUTPUT QUOTAS APPROVAL BY END-MARCH, OFFICIAL SAYS - REUTERS
Indonesia’s has approved the mining production quotarequests from more than 120mineral companies and aims to complete the approval process th ...
Monday, 04 March 24
IS YOUR GUARANTEE A GUARANTEE? NOTE TO SHIPOWNERS - GARD
KNOWLEDGE TO ELEVATE
The law of guarantees is not always obvious or easy to understand without proper guidance. This article clarifies the dif ...
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Showing 26 to 30 news of total 6871 |
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- Bayan Resources Tbk. - Indonesia
- Xindia Steels Limited - India
- Thai Mozambique Logistica
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- The Treasury - Australian Government
- Meenaskhi Energy Private Limited - India
- Kobexindo Tractors - Indoneisa
- Straits Asia Resources Limited - Singapore
- Kepco SPC Power Corporation, Philippines
- Petron Corporation, Philippines
- Kapuas Tunggal Persada - Indonesia
- Central Electricity Authority - India
- AsiaOL BioFuels Corp., Philippines
- Electricity Authority, New Zealand
- The State Trading Corporation of India Ltd
- Electricity Generating Authority of Thailand
- Metalloyd Limited - United Kingdom
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- ICICI Bank Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Bharathi Cement Corporation - India
- Directorate Of Revenue Intelligence - India
- Banpu Public Company Limited - Thailand
- Indika Energy - Indonesia
- Lanco Infratech Ltd - India
- Goldman Sachs - Singapore
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Madhucon Powers Ltd - India
- Ministry of Transport, Egypt
- Asmin Koalindo Tuhup - Indonesia
- Power Finance Corporation Ltd., India
- GN Power Mariveles Coal Plant, Philippines
- Vedanta Resources Plc - India
- Kartika Selabumi Mining - Indonesia
- Essar Steel Hazira Ltd - India
- Altura Mining Limited, Indonesia
- Rio Tinto Coal - Australia
- Bukit Baiduri Energy - Indonesia
- Orica Mining Services - Indonesia
- Larsen & Toubro Limited - India
- Semirara Mining and Power Corporation, Philippines
- IHS Mccloskey Coal Group - USA
- Indonesian Coal Mining Association
- Standard Chartered Bank - UAE
- Vizag Seaport Private Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Oldendorff Carriers - Singapore
- PNOC Exploration Corporation - Philippines
- Edison Trading Spa - Italy
- Singapore Mercantile Exchange
- Coalindo Energy - Indonesia
- Commonwealth Bank - Australia
- Alfred C Toepfer International GmbH - Germany
- Indogreen Group - Indonesia
- Global Green Power PLC Corporation, Philippines
- Kumho Petrochemical, South Korea
- Australian Commodity Traders Exchange
- Karbindo Abesyapradhi - Indoneisa
- Bulk Trading Sa - Switzerland
- SN Aboitiz Power Inc, Philippines
- SMC Global Power, Philippines
- London Commodity Brokers - England
- GVK Power & Infra Limited - India
- Jindal Steel & Power Ltd - India
- CIMB Investment Bank - Malaysia
- Coal and Oil Company - UAE
- Samtan Co., Ltd - South Korea
- Port Waratah Coal Services - Australia
- Krishnapatnam Port Company Ltd. - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Sree Jayajothi Cements Limited - India
- Siam City Cement - Thailand
- The University of Queensland
- Merrill Lynch Commodities Europe
- Timah Investasi Mineral - Indoneisa
- Tata Chemicals Ltd - India
- Therma Luzon, Inc, Philippines
- Grasim Industreis Ltd - India
- Malabar Cements Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Trasteel International SA, Italy
- Sakthi Sugars Limited - India
- Holcim Trading Pte Ltd - Singapore
- Mercuria Energy - Indonesia
- SMG Consultants - Indonesia
- Energy Link Ltd, New Zealand
- Formosa Plastics Group - Taiwan
- Gujarat Mineral Development Corp Ltd - India
- Indian Energy Exchange, India
- Aboitiz Power Corporation - Philippines
- Mjunction Services Limited - India
- Renaissance Capital - South Africa
- Dalmia Cement Bharat India
- Romanian Commodities Exchange
- PTC India Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Pendopo Energi Batubara - Indonesia
- Cement Manufacturers Association - India
- OPG Power Generation Pvt Ltd - India
- Toyota Tsusho Corporation, Japan
- Maheswari Brothers Coal Limited - India
- Global Business Power Corporation, Philippines
- Aditya Birla Group - India
- Barasentosa Lestari - Indonesia
- San Jose City I Power Corp, Philippines
- Sojitz Corporation - Japan
- Ministry of Finance - Indonesia
- Ministry of Mines - Canada
- Miang Besar Coal Terminal - Indonesia
- Energy Development Corp, Philippines
- Riau Bara Harum - Indonesia
- LBH Netherlands Bv - Netherlands
- Simpson Spence & Young - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Chettinad Cement Corporation Ltd - India
- Intertek Mineral Services - Indonesia
- Latin American Coal - Colombia
- India Bulls Power Limited - India
- Bangladesh Power Developement Board
- Posco Energy - South Korea
- Star Paper Mills Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Chamber of Mines of South Africa
- Economic Council, Georgia
- GMR Energy Limited - India
- Parry Sugars Refinery, India
- CNBM International Corporation - China
- IEA Clean Coal Centre - UK
- Parliament of New Zealand
- Siam City Cement PLC, Thailand
- Australian Coal Association
- Indian Oil Corporation Limited
- TNB Fuel Sdn Bhd - Malaysia
- Tamil Nadu electricity Board
- PowerSource Philippines DevCo
- McConnell Dowell - Australia
- Heidelberg Cement - Germany
- Binh Thuan Hamico - Vietnam
- Antam Resourcindo - Indonesia
- VISA Power Limited - India
- GAC Shipping (India) Pvt Ltd
- Wilmar Investment Holdings
- Bhatia International Limited - India
- Ind-Barath Power Infra Limited - India
- Videocon Industries ltd - India
- Kideco Jaya Agung - Indonesia
- Global Coal Blending Company Limited - Australia
- Coastal Gujarat Power Limited - India
- Billiton Holdings Pty Ltd - Australia
- Rashtriya Ispat Nigam Limited - India
- Orica Australia Pty. Ltd.
- Interocean Group of Companies - India
- Georgia Ports Authority, United States
- Anglo American - United Kingdom
- South Luzon Thermal Energy Corporation
- Petrochimia International Co. Ltd.- Taiwan
- Karaikal Port Pvt Ltd - India
- Mintek Dendrill Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Manunggal Multi Energi - Indonesia
- Eastern Energy - Thailand
- Carbofer General Trading SA - India
- Savvy Resources Ltd - HongKong
- Sical Logistics Limited - India
- Uttam Galva Steels Limited - India
- White Energy Company Limited
- Thiess Contractors Indonesia
- ASAPP Information Group - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Kalimantan Lumbung Energi - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Bhoruka Overseas - Indonesia
- Eastern Coal Council - USA
- Ceylon Electricity Board - Sri Lanka
- PetroVietnam Power Coal Import and Supply Company
- Marubeni Corporation - India
- Baramulti Group, Indonesia
- Central Java Power - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Ambuja Cements Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- Jaiprakash Power Ventures ltd
- Meralco Power Generation, Philippines
- Minerals Council of Australia
- MS Steel International - UAE
- Wood Mackenzie - Singapore
- Kaltim Prima Coal - Indonesia
- Africa Commodities Group - South Africa
- Salva Resources Pvt Ltd - India
- Sinarmas Energy and Mining - Indonesia
- Price Waterhouse Coopers - Russia
- Bhushan Steel Limited - India
- Mercator Lines Limited - India
- TeaM Sual Corporation - Philippines
- Agrawal Coal Company - India
- Bukit Makmur.PT - Indonesia
- Sindya Power Generating Company Private Ltd
- European Bulk Services B.V. - Netherlands
- New Zealand Coal & Carbon
- Iligan Light & Power Inc, Philippines
- Gujarat Electricity Regulatory Commission - India
- Semirara Mining Corp, Philippines
- Attock Cement Pakistan Limited
- Sarangani Energy Corporation, Philippines
- Independent Power Producers Association of India
- Leighton Contractors Pty Ltd - Australia
- Makarim & Taira - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Borneo Indobara - Indonesia
- International Coal Ventures Pvt Ltd - India
- Gujarat Sidhee Cement - India
- Planning Commission, India
- Globalindo Alam Lestari - Indonesia
- Indo Tambangraya Megah - Indonesia
- Deloitte Consulting - India
- Medco Energi Mining Internasional
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