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Tuesday, 03 November 15
EU OIL MAJORS FACE FURTHER EARNINGS DECLINE IN Q415 - FITCH RATINGS
 The sharp drop in major European oil companies' third-quarter profits is likely to be extended in the fourth quarter as refining margins, which had cushioned some of the blow from low oil prices, have fallen steeply, Fitch Ratings says.
According to Fitch, with little prospect of a near-term oil-price recovery and refining margins likely to remain thin, companies' ability to stabilize or even grow profits in 2016 will depend on how quickly cost-cutting measures and cost deflation in the supply chain feed through to the bottom line.
Royal Dutch Shell, Total, BP, Eni and BG all reported 3Q15 results last week. On average, their 3Q15 EBITDA fell by 26% compared with 2Q15, and cash flow from operations by 30%. The main reason was lower oil prices as Brent slid 19% from an average USD63/bbl in 2Q15 to USD51/bbl in 3Q15. The majors' 9M15 EBITDA dropped 39%, and cash from operations fell 38%, as Brent plummeted by 48%, from an average of USD107/bbl in 9M14 to USD56 in 9M15.
4Q15 may be even more painful for integrated companies as refining margins have fallen since the middle of the third quarter, which is likely to drag on profits in their downstream operations. In October, Brent Crack Rotterdam Refinery Margin, as calculated by Thomson Reuters, averaged USD4.0/bbl, compared with USD7.9 in 3Q15 and USD8.1 in 2Q15.
Part of this decline is likely to be a seasonal effect from the end of the main driving season in the northern hemisphere. But we also expect an underlying correction in margins due to overcapacity in European refining and strong competition from Middle Eastern, Russian and US refineries, which generally have access to cheaper feedstock and lower energy costs, says Fitch. BG may be the only exception. We expect its earnings to rise in 4Q15 vs 3Q15 provided oil prices do not fall. This is because BG has no exposure to refining and its production is rising due to operations ramping up in Australia and Brazil.
Apart from oil prices, majors' upstream profits will be increasingly affected by the scale of cost deflation. Oil majors are reducing costs and in some parts of the value chain, the fall has already been substantial. For example, in the offshore drilling industry the cost of hiring a rig has fallen by 30%-40% yoy, according to various sources. According to Total, rates for many other services, including marine logistics and well services, are down up to 20%. Overall, however, industry deflation is still insufficient to materially affect profits, as negotiating new contracts may take some time. We expect the impact to be more pronounced in 2016 as oil majors are now re-negotiating prices with their contractors and are aiming to reduce staff costs and streamline operations.
To balance their cash flows, oil majors are reducing capex and continuing divestments. Majors' ability to keep these commitments without jeopardizing the level and quality of reserves and production will drive their ratings in the next one or two years. For example, BP said its 2015-2017 capex will be USD17bn-19bn a year, compared with the original 2015 guidance of USD24bn-26bn announced a year ago. Total's guidance for 2015 is unchanged at USD23bn-24bn, but the company said capex will go down to USD20bn-21bn in 2016 and USD17bn-19bn a year in 2017-2019. Shell said it will prioritize debt reduction over dividends and capex.
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Thursday, 17 September 15
MARKET INSIGHT - KONSTANTINOS KONTOMICHIS
Having experienced, as it was much anticipated, a poor 1st half combined with negative forecasts, summer, in sharp contrast, proved to be more hope ...
Wednesday, 16 September 15
SLOWER GROWTH IN WORLD COAL DEMAND AND LOWER INTERNATIONAL COAL PRICES LED A DECLINE IN INDONESIAN COAL PRODUCTION
COALspot.com: Slower growth in world coal demand particularly China and lower international coal prices have led to a decline in Indonesian coal pr ...
Wednesday, 16 September 15
HIGHER TAXES COULD LEAD GREEK SHIP OWNERS OUT OF THE COUNTRY - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
A potential taxation overhaul of the shipping industry in Hellas, which could see the loss of particular tax benefits for ship owners, could lead t ...
Tuesday, 15 September 15
WORLD SEABORNE TRADE: ENTERING INTO A ROLE REVERSAL? - CLARKSONS
Over the past decade, world seaborne trade growth has been dominated by dry bulk and container trade. However, developments in the global economy t ...
Tuesday, 15 September 15
Q2'16 RICHARDS BAY COAL SWAPS DIP TO $ 51.10 PER TON
COALspot.com: API4 FOB Richards Bay Coal swap for delivery 4Q' 2015 declined week over week and month over month.
The 4Q swap was down US$ ...
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Showing 2811 to 2815 news of total 6871 |
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- Wilmar Investment Holdings
- Edison Trading Spa - Italy
- Singapore Mercantile Exchange
- Offshore Bulk Terminal Pte Ltd, Singapore
- VISA Power Limited - India
- Timah Investasi Mineral - Indoneisa
- Kobexindo Tractors - Indoneisa
- Medco Energi Mining Internasional
- AsiaOL BioFuels Corp., Philippines
- Mercator Lines Limited - India
- Thai Mozambique Logistica
- Sakthi Sugars Limited - India
- Kaltim Prima Coal - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- PowerSource Philippines DevCo
- Marubeni Corporation - India
- Vedanta Resources Plc - India
- Mjunction Services Limited - India
- Mercuria Energy - Indonesia
- Kepco SPC Power Corporation, Philippines
- Savvy Resources Ltd - HongKong
- Kumho Petrochemical, South Korea
- The Treasury - Australian Government
- Straits Asia Resources Limited - Singapore
- Energy Link Ltd, New Zealand
- Rashtriya Ispat Nigam Limited - India
- India Bulls Power Limited - India
- Indian Energy Exchange, India
- Lanco Infratech Ltd - India
- Wood Mackenzie - Singapore
- GVK Power & Infra Limited - India
- SMG Consultants - Indonesia
- Antam Resourcindo - Indonesia
- Australian Coal Association
- Bayan Resources Tbk. - Indonesia
- Sree Jayajothi Cements Limited - India
- Ind-Barath Power Infra Limited - India
- Gujarat Sidhee Cement - India
- Baramulti Group, Indonesia
- Bhushan Steel Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Rio Tinto Coal - Australia
- Siam City Cement PLC, Thailand
- Altura Mining Limited, Indonesia
- Trasteel International SA, Italy
- Energy Development Corp, Philippines
- SN Aboitiz Power Inc, Philippines
- Goldman Sachs - Singapore
- ICICI Bank Limited - India
- MS Steel International - UAE
- Gujarat Electricity Regulatory Commission - India
- Banpu Public Company Limited - Thailand
- Bukit Asam (Persero) Tbk - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Australian Commodity Traders Exchange
- Coastal Gujarat Power Limited - India
- Binh Thuan Hamico - Vietnam
- Anglo American - United Kingdom
- Central Electricity Authority - India
- Samtan Co., Ltd - South Korea
- Madhucon Powers Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- European Bulk Services B.V. - Netherlands
- Sinarmas Energy and Mining - Indonesia
- Indo Tambangraya Megah - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Thiess Contractors Indonesia
- LBH Netherlands Bv - Netherlands
- Neyveli Lignite Corporation Ltd, - India
- Orica Australia Pty. Ltd.
- Renaissance Capital - South Africa
- Central Java Power - Indonesia
- Electricity Authority, New Zealand
- Krishnapatnam Port Company Ltd. - India
- Georgia Ports Authority, United States
- Chamber of Mines of South Africa
- Leighton Contractors Pty Ltd - Australia
- Makarim & Taira - Indonesia
- International Coal Ventures Pvt Ltd - India
- Interocean Group of Companies - India
- Merrill Lynch Commodities Europe
- Barasentosa Lestari - Indonesia
- Aboitiz Power Corporation - Philippines
- Bulk Trading Sa - Switzerland
- Romanian Commodities Exchange
- OPG Power Generation Pvt Ltd - India
- TeaM Sual Corporation - Philippines
- Orica Mining Services - Indonesia
- McConnell Dowell - Australia
- Bukit Baiduri Energy - Indonesia
- Riau Bara Harum - Indonesia
- CNBM International Corporation - China
- Globalindo Alam Lestari - Indonesia
- Petron Corporation, Philippines
- Heidelberg Cement - Germany
- Electricity Generating Authority of Thailand
- Semirara Mining Corp, Philippines
- Xindia Steels Limited - India
- Kideco Jaya Agung - Indonesia
- Indogreen Group - Indonesia
- Parliament of New Zealand
- Mintek Dendrill Indonesia
- Meralco Power Generation, Philippines
- Maharashtra Electricity Regulatory Commission - India
- Parry Sugars Refinery, India
- Independent Power Producers Association of India
- Ministry of Finance - Indonesia
- Sindya Power Generating Company Private Ltd
- White Energy Company Limited
- Karaikal Port Pvt Ltd - India
- Essar Steel Hazira Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Meenaskhi Energy Private Limited - India
- Miang Besar Coal Terminal - Indonesia
- Indonesian Coal Mining Association
- Kohat Cement Company Ltd. - Pakistan
- The State Trading Corporation of India Ltd
- Metalloyd Limited - United Kingdom
- SMC Global Power, Philippines
- Dalmia Cement Bharat India
- Attock Cement Pakistan Limited
- Iligan Light & Power Inc, Philippines
- Oldendorff Carriers - Singapore
- Sical Logistics Limited - India
- Kartika Selabumi Mining - Indonesia
- Therma Luzon, Inc, Philippines
- Pendopo Energi Batubara - Indonesia
- Directorate Of Revenue Intelligence - India
- Bahari Cakrawala Sebuku - Indonesia
- Ministry of Transport, Egypt
- Vizag Seaport Private Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Global Green Power PLC Corporation, Philippines
- Siam City Cement - Thailand
- Global Business Power Corporation, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Intertek Mineral Services - Indonesia
- Jindal Steel & Power Ltd - India
- Agrawal Coal Company - India
- Ceylon Electricity Board - Sri Lanka
- Alfred C Toepfer International GmbH - Germany
- Jaiprakash Power Ventures ltd
- Billiton Holdings Pty Ltd - Australia
- PTC India Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Toyota Tsusho Corporation, Japan
- Minerals Council of Australia
- Standard Chartered Bank - UAE
- ASAPP Information Group - India
- Carbofer General Trading SA - India
- Port Waratah Coal Services - Australia
- Commonwealth Bank - Australia
- Borneo Indobara - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- South Luzon Thermal Energy Corporation
- Maheswari Brothers Coal Limited - India
- Malabar Cements Ltd - India
- Tamil Nadu electricity Board
- Formosa Plastics Group - Taiwan
- CIMB Investment Bank - Malaysia
- Bukit Makmur.PT - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Power Finance Corporation Ltd., India
- New Zealand Coal & Carbon
- Posco Energy - South Korea
- Price Waterhouse Coopers - Russia
- Indika Energy - Indonesia
- Larsen & Toubro Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Bharathi Cement Corporation - India
- Global Coal Blending Company Limited - Australia
- Cement Manufacturers Association - India
- Chettinad Cement Corporation Ltd - India
- Aditya Birla Group - India
- Ambuja Cements Ltd - India
- Grasim Industreis Ltd - India
- Latin American Coal - Colombia
- Kalimantan Lumbung Energi - Indonesia
- Africa Commodities Group - South Africa
- Cigading International Bulk Terminal - Indonesia
- Eastern Energy - Thailand
- Ministry of Mines - Canada
- Semirara Mining and Power Corporation, Philippines
- Star Paper Mills Limited - India
- London Commodity Brokers - England
- Sarangani Energy Corporation, Philippines
- Sojitz Corporation - Japan
- GN Power Mariveles Coal Plant, Philippines
- Salva Resources Pvt Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Bhatia International Limited - India
- Coal and Oil Company - UAE
- The University of Queensland
- Economic Council, Georgia
- Videocon Industries ltd - India
- Uttam Galva Steels Limited - India
- PNOC Exploration Corporation - Philippines
- Planning Commission, India
- GAC Shipping (India) Pvt Ltd
- Holcim Trading Pte Ltd - Singapore
- Deloitte Consulting - India
- IEA Clean Coal Centre - UK
- IHS Mccloskey Coal Group - USA
- Bank of Tokyo Mitsubishi UFJ Ltd
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- San Jose City I Power Corp, Philippines
- Tata Chemicals Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Bhoruka Overseas - Indonesia
- GMR Energy Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Simpson Spence & Young - Indonesia
- Manunggal Multi Energi - Indonesia
- Indian Oil Corporation Limited
- Coalindo Energy - Indonesia
- Eastern Coal Council - USA
- Bangladesh Power Developement Board
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