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Thursday, 30 June 16
OIL PRODUCT TANKERS EARNINGS DECLINE AS STOCKBUILDING SLOWS DOWN - BIMCO
BIMCO’s expectations remain as the oil product tanker fleet continues to grow with earnings at the lowest since Q3 in 2014. But there is still money to be made in the second half of 2016.
The oil product tanker market has reached a net fleet growth of 4.3m DWT so far in 2016. That is well in line with BIMCO’s full estimate of 8.5m DWT for the full year 2016. The main drivers of the total growth continue to be the MRs and LR2s.
With a net fleet growth of 5.8 % in 2015, the oil product tankers are looking to continue the trend of elevated supply growth with 3.0 % growth so far in 2016 – for the full year BIMCO expects 6.0 %.
Chief Analyst Peter Sand comments: “The LR2s and MRs are the leading segments for fleet growth in the oil product tanker market – in percentage as well as DWT in 2014 and 2015. This trend continues into the first half of 2016. Based on the current and anticipated new orders, BIMCO expects the net fleet growth in 2016 to be around the same level as in 2015 and likely to come down in 2017.
The earnings have been in decline since the beginning of 2016 and are actually at the lowest since Q3 in 2014. The reason for the decline is a combination of fleet growth alongside the deceleration of oil product stock building that was seen at the end of 2015 and early 2016. This is diminishing demand growth. While oil product production has been running ahead of end consumption, oil product tanker demand has risen above trend”.
Earnings decreasing into Q2 2016
All four oil product tanker segments have experienced an overall decline in earnings in 2016, with the LR2 seeing a 54 % decline from USD 33,966 per day from 1 January 2016 to USD 15,703 per day on 24 June 2016.
Peter Sand adds: “Due to our expectations that the freight rates would decline, we recommended back in January to fix some capacity on longer timecharters for companies with a high exposure to the spot market. We still see this need. As the spot rates are declining it is important to manage your risk and exposure to the market, as earnings could drop even further”.
Despite the demand side growing more than anticipated, the inflow of new tonnage has affected the freight market fundamentals and led to the present earnings.
Demand and supply for global oil is set to even out in Q3.
The demand growth for global oil according to The International Energy Agency (IEA) is up by 1.4 million barrels per day (mb/d) year on year for Q1 2016, compared to the previous expected 1.2 mb/d. Furthermore, they expect the demand and supply for global oil to be in balance in Q3 2016.
Peter Sand comments: “This balance puts an overhanging risk onto the global oil stockbuilding, which we have seen being built up on a large scale since mid-2014. When the global oil supply no longer outstrips global oil demand and the refineries cannot take advantage of the low and volatile crude oil prices, they do not contribute to further stockbuilding.
The increase in global oil demand and eventual levelling out over supply of oil means we will stop building stocks. We may even begin to draw down on the swollen stocks. This in turn presents an outside risk to the oil product tanker market. However, we could also see the new stock levels become permanent and so the tanker demand will not be affected in this way. Only time will tell how the dynamics will play out”.
Source: BIMCO
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Sunday, 07 April 19
IMO 2020: READY OR NOT? - WOOD MACKENZIE
New Year’s Day 2020 is firmly marked in the calendar as the refining and shipping industries prepare for change.
The International Marit ...
Saturday, 06 April 19
AUSTRALIA COAL POSTS BIGGEST WEEKLY DROP IN A DECADE AMID WEAK DEMAND - REUTERS
Australian thermal coal prices this week registered their biggest weekly fall since the financial market turmoil of a decade ago as demand plunged ...
Saturday, 06 April 19
SUPRAMAX: IT WAS A POOR WEEK OVERALL FOR THE BALTIC SUPRAMAX INDEX, WHICH LOST GROUND - BALTIC BRIEFING
Capesize
The Capesize market over the past week looked to have found a floor on Tuesday with the BCI 5TC at $3460 before firming into the rest ...
Thursday, 04 April 19
OVERSUPPLY STILL MAJOR CHALLENGE WARNS ICS
Speaking in Istanbul, Simon Bennett, Deputy Secretary General of the International Chamber of Shipping (ICS) warned that avoiding overcapacity and ...
Thursday, 04 April 19
GLENCORE, TOHOKU ELECTRIC SET COAL CONTRACT PRICE AT $94.75/T - SOURCE, REUTERS REPORTED
Global miner Glencore and Japan’s Tohoku Electric Power agreed on a price of $94.75 per tonne for supplies of thermal coal from Australia for ...
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Showing 1411 to 1415 news of total 6846 |
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- Vijayanagar Sugar Pvt Ltd - India
- Sree Jayajothi Cements Limited - India
- Bhushan Steel Limited - India
- Asmin Koalindo Tuhup - Indonesia
- MS Steel International - UAE
- Energy Link Ltd, New Zealand
- Parliament of New Zealand
- Essar Steel Hazira Ltd - India
- London Commodity Brokers - England
- Sindya Power Generating Company Private Ltd
- Krishnapatnam Port Company Ltd. - India
- Baramulti Group, Indonesia
- GN Power Mariveles Coal Plant, Philippines
- The State Trading Corporation of India Ltd
- Minerals Council of Australia
- Renaissance Capital - South Africa
- Larsen & Toubro Limited - India
- Economic Council, Georgia
- Georgia Ports Authority, United States
- Power Finance Corporation Ltd., India
- Karbindo Abesyapradhi - Indoneisa
- The Treasury - Australian Government
- Deloitte Consulting - India
- AsiaOL BioFuels Corp., Philippines
- Borneo Indobara - Indonesia
- Price Waterhouse Coopers - Russia
- Antam Resourcindo - Indonesia
- Global Green Power PLC Corporation, Philippines
- Africa Commodities Group - South Africa
- Pendopo Energi Batubara - Indonesia
- Aditya Birla Group - India
- Interocean Group of Companies - India
- Simpson Spence & Young - Indonesia
- Sakthi Sugars Limited - India
- Kumho Petrochemical, South Korea
- Intertek Mineral Services - Indonesia
- Kapuas Tunggal Persada - Indonesia
- PNOC Exploration Corporation - Philippines
- South Luzon Thermal Energy Corporation
- Madhucon Powers Ltd - India
- Standard Chartered Bank - UAE
- Meralco Power Generation, Philippines
- Eastern Energy - Thailand
- Eastern Coal Council - USA
- Planning Commission, India
- Coalindo Energy - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Toyota Tsusho Corporation, Japan
- Siam City Cement PLC, Thailand
- Tamil Nadu electricity Board
- ASAPP Information Group - India
- Central Java Power - Indonesia
- Salva Resources Pvt Ltd - India
- Agrawal Coal Company - India
- Mjunction Services Limited - India
- Lanco Infratech Ltd - India
- GMR Energy Limited - India
- SN Aboitiz Power Inc, Philippines
- Manunggal Multi Energi - Indonesia
- Billiton Holdings Pty Ltd - Australia
- New Zealand Coal & Carbon
- TeaM Sual Corporation - Philippines
- Sical Logistics Limited - India
- Merrill Lynch Commodities Europe
- Independent Power Producers Association of India
- Global Coal Blending Company Limited - Australia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bulk Trading Sa - Switzerland
- Altura Mining Limited, Indonesia
- Singapore Mercantile Exchange
- Australian Coal Association
- Mercuria Energy - Indonesia
- Kideco Jaya Agung - Indonesia
- Tata Chemicals Ltd - India
- Orica Mining Services - Indonesia
- McConnell Dowell - Australia
- ICICI Bank Limited - India
- Parry Sugars Refinery, India
- Thiess Contractors Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Attock Cement Pakistan Limited
- Riau Bara Harum - Indonesia
- SMC Global Power, Philippines
- Kalimantan Lumbung Energi - Indonesia
- PTC India Limited - India
- Iligan Light & Power Inc, Philippines
- Edison Trading Spa - Italy
- Global Business Power Corporation, Philippines
- GAC Shipping (India) Pvt Ltd
- Directorate Of Revenue Intelligence - India
- Electricity Generating Authority of Thailand
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Wood Mackenzie - Singapore
- Bhatia International Limited - India
- Energy Development Corp, Philippines
- Vedanta Resources Plc - India
- Central Electricity Authority - India
- Jindal Steel & Power Ltd - India
- International Coal Ventures Pvt Ltd - India
- Meenaskhi Energy Private Limited - India
- Bayan Resources Tbk. - Indonesia
- IEA Clean Coal Centre - UK
- Bukit Makmur.PT - Indonesia
- Makarim & Taira - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Vizag Seaport Private Limited - India
- Coal and Oil Company - UAE
- Miang Besar Coal Terminal - Indonesia
- San Jose City I Power Corp, Philippines
- Jaiprakash Power Ventures ltd
- Rashtriya Ispat Nigam Limited - India
- Mintek Dendrill Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Formosa Plastics Group - Taiwan
- Dalmia Cement Bharat India
- Ministry of Mines - Canada
- Trasteel International SA, Italy
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Anglo American - United Kingdom
- Semirara Mining Corp, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Medco Energi Mining Internasional
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- VISA Power Limited - India
- Maheswari Brothers Coal Limited - India
- Indo Tambangraya Megah - Indonesia
- Ministry of Transport, Egypt
- Indian Oil Corporation Limited
- Straits Asia Resources Limited - Singapore
- Gujarat Sidhee Cement - India
- Ministry of Finance - Indonesia
- Grasim Industreis Ltd - India
- Ind-Barath Power Infra Limited - India
- Globalindo Alam Lestari - Indonesia
- Cement Manufacturers Association - India
- Romanian Commodities Exchange
- Metalloyd Limited - United Kingdom
- India Bulls Power Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- CIMB Investment Bank - Malaysia
- Neyveli Lignite Corporation Ltd, - India
- PowerSource Philippines DevCo
- CNBM International Corporation - China
- TNB Fuel Sdn Bhd - Malaysia
- Electricity Authority, New Zealand
- Kartika Selabumi Mining - Indonesia
- LBH Netherlands Bv - Netherlands
- Commonwealth Bank - Australia
- Malabar Cements Ltd - India
- Sarangani Energy Corporation, Philippines
- Heidelberg Cement - Germany
- Chettinad Cement Corporation Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Kaltim Prima Coal - Indonesia
- Orica Australia Pty. Ltd.
- Wilmar Investment Holdings
- Therma Luzon, Inc, Philippines
- Marubeni Corporation - India
- European Bulk Services B.V. - Netherlands
- Xindia Steels Limited - India
- Petron Corporation, Philippines
- Cigading International Bulk Terminal - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Oldendorff Carriers - Singapore
- Sojitz Corporation - Japan
- Port Waratah Coal Services - Australia
- Kepco SPC Power Corporation, Philippines
- Ceylon Electricity Board - Sri Lanka
- Timah Investasi Mineral - Indoneisa
- Rio Tinto Coal - Australia
- Videocon Industries ltd - India
- IHS Mccloskey Coal Group - USA
- Bharathi Cement Corporation - India
- Indogreen Group - Indonesia
- Siam City Cement - Thailand
- Latin American Coal - Colombia
- Mercator Lines Limited - India
- Savvy Resources Ltd - HongKong
- Bangladesh Power Developement Board
- Thai Mozambique Logistica
- Samtan Co., Ltd - South Korea
- Uttam Galva Steels Limited - India
- Barasentosa Lestari - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Aboitiz Power Corporation - Philippines
- Goldman Sachs - Singapore
- Jorong Barutama Greston.PT - Indonesia
- Sinarmas Energy and Mining - Indonesia
- SMG Consultants - Indonesia
- Binh Thuan Hamico - Vietnam
- Star Paper Mills Limited - India
- Chamber of Mines of South Africa
- Maharashtra Electricity Regulatory Commission - India
- Ambuja Cements Ltd - India
- Bhoruka Overseas - Indonesia
- Indian Energy Exchange, India
- GVK Power & Infra Limited - India
- Banpu Public Company Limited - Thailand
- Bukit Baiduri Energy - Indonesia
- Indonesian Coal Mining Association
- Kohat Cement Company Ltd. - Pakistan
- White Energy Company Limited
- The University of Queensland
- Karaikal Port Pvt Ltd - India
- Indika Energy - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Australian Commodity Traders Exchange
- Bank of Tokyo Mitsubishi UFJ Ltd
- Carbofer General Trading SA - India
- Alfred C Toepfer International GmbH - Germany
- Posco Energy - South Korea
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Kobexindo Tractors - Indoneisa
- Coastal Gujarat Power Limited - India
- OPG Power Generation Pvt Ltd - India
- Leighton Contractors Pty Ltd - Australia
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