We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
Wednesday, 24 February 16
THIRTEEN - NOT ALWAYS AN UNLUCKY NUMBER? - CLARKSONS
 Back in early 1999 the price of a 5 year old Panamax bulkcarrier dipped to $13.5m, and ever since analysts have hailed purchase decisions made at that time as some of the most lucrative shipping deals ever seen. Today, with the price back at $13m, perhaps it’s a good time to reflect on how successful investors were back in 1999 and whether there are similar opportunities once again.
What Was The Deal?
The graph shows for each year since 1990 the return that would have been generated by the purchase of a 5 year old Panamax bulkcarrier at the start of the year, the subsequent operation for ten years at the prevailing one year timecharter rate and then the sale of the unit at the end of that period as a 15 year old (for units purchased in 2007 and later, disposal at start 2016 was assumed). At the end of 1999 investors could pick up a 5 year old Panamax bulker for $14m. Trading that vessel at the start year one year timecharter rate for 10 years would have generated estimated earnings of $66.5m (after opex), and then as a 15 year old unit in 2009 the vessel could have been sold for $12.5m. That’s a small loss of $1.5m on the asset but still a total return of $65m, and an impressive internal rate of return (IRR) of 26%.
Playing Snap
A few years later, 5 year old Panamax bulkcarrier purchases did perhaps even better. Buying a 5 year old in 2002, once again at $14m, trading at the timecharter rate and selling as a 15 year old would have generated total returns of $73.2m and an IRR of 41%, whilst the equivalent project in 2003 would have generated $66.1m and an IRR of 44%. These vessels would have generated boom earnings earlier in the project period, subject to a heavier weighting in terms of the internal rate of return calculation.
Not Always A Good Hand
However, not all investors are so lucky. In this example, 5 year old ships purchased since 2008 (and sold this year, so admittedly with less time to hit upon a period of boom earnings) generated negative returns, and those purchased pre-1995 an average IRR of 7%. Buyers in 2008 would have lost a whopping $82.1m on the asset. Nevertheless, there was clearly a golden period; in the years 1998-2006 investors would have achieved an IRR ranging between 20% and 44%.
Unlucky (Or Lucky) 13?
So for those who have had the stomach to buy in at difficult times, there have been more than ample rewards. Today the price of a 5 year old Panamax is back at $13m. Dry bulk fundamentals, particularly on the demand side with the Chinese economy maturing, don’t look helpful at all (see SIW 1207), but with the 5 year old price at almost half that of a newbuild, who really knows what the longer-term opportunity might be?
Fortune favours the brave, but they also say that fools rush in. The outlook seems scary but investors might also have half an eye on their peers who invested at low points in the price cycle in the past. That’s the beauty of volatile and cyclical sectors, but it’s tricky food for thought for shipping investors. Are they willing to party like it’s 1999? Have a nice day.
Source: Clarksons
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Wednesday, 17 February 16
THE OWNERS FACING HISTORICAL LOW DRY BULK RATES; COAL IMPORTS TO CHINA IS STILL POINTING TO A STRONG TREND OF DECLINING CONSUMPTION
The sharp fall in dry bulk rates that has been taking place since the end of last year and has left owners facing historical low rates for a substa ...
Monday, 15 February 16
CALL THE DOCTOR! SHIPPING'S MEDICAL DRAMA UNFOLDS......- CLARKSONS
The recycling market has started 2016 with a bang, with a huge volume of tonnage heading to demolition facilities. Many of the key shipping markets ...
Monday, 15 February 16
CS 42 COAL INDEX ROSE 0.07% WEEK OVER WEEK
COALspot.com: Average 5000 GAR coal index of Indonesian origin decline 0.15 percent week over week to averaging $38.96 per ton on this past Friday, ...
Monday, 15 February 16
BALTIC INDEX MARGINALLY ROSE BY A POINT D-D; CAPESIZE INDEX DOWN 13 POINTS W-W; PANAMAX INDEX UP 29 POINTS W-W
COALspot.com: The freight markets continued to fall this past week.
The BDI, The Baltic Dry Index (BDI) of dry-bulk shipping freights, a measu ...
Friday, 12 February 16
DRY BULK MARKET'S FORTUNES STILL TIED WITH CHINA'S ECONOMY - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
The inevitable slowdown of the Chinese economy was expected to hurt dry bulk shipping, but few expected the blow to be this hard, especially given ...
|
|
|
Showing 2561 to 2565 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Chettinad Cement Corporation Ltd - India
- Toyota Tsusho Corporation, Japan
- Sical Logistics Limited - India
- Renaissance Capital - South Africa
- PowerSource Philippines DevCo
- ASAPP Information Group - India
- Wilmar Investment Holdings
- Sindya Power Generating Company Private Ltd
- Bhatia International Limited - India
- Uttam Galva Steels Limited - India
- Leighton Contractors Pty Ltd - Australia
- Petrochimia International Co. Ltd.- Taiwan
- Heidelberg Cement - Germany
- White Energy Company Limited
- Kohat Cement Company Ltd. - Pakistan
- Economic Council, Georgia
- Timah Investasi Mineral - Indoneisa
- Globalindo Alam Lestari - Indonesia
- Tata Chemicals Ltd - India
- Pendopo Energi Batubara - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Aditya Birla Group - India
- Siam City Cement - Thailand
- Rashtriya Ispat Nigam Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Chamber of Mines of South Africa
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- The State Trading Corporation of India Ltd
- Dalmia Cement Bharat India
- Asmin Koalindo Tuhup - Indonesia
- Merrill Lynch Commodities Europe
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Marubeni Corporation - India
- Indika Energy - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Romanian Commodities Exchange
- Coastal Gujarat Power Limited - India
- Altura Mining Limited, Indonesia
- Videocon Industries ltd - India
- Rio Tinto Coal - Australia
- SN Aboitiz Power Inc, Philippines
- Coalindo Energy - Indonesia
- Mercator Lines Limited - India
- Independent Power Producers Association of India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Medco Energi Mining Internasional
- Sojitz Corporation - Japan
- Bhoruka Overseas - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Attock Cement Pakistan Limited
- Ministry of Transport, Egypt
- Vijayanagar Sugar Pvt Ltd - India
- New Zealand Coal & Carbon
- Mjunction Services Limited - India
- International Coal Ventures Pvt Ltd - India
- Energy Development Corp, Philippines
- Riau Bara Harum - Indonesia
- Jaiprakash Power Ventures ltd
- Kartika Selabumi Mining - Indonesia
- Sree Jayajothi Cements Limited - India
- Standard Chartered Bank - UAE
- Bulk Trading Sa - Switzerland
- Metalloyd Limited - United Kingdom
- Binh Thuan Hamico - Vietnam
- VISA Power Limited - India
- Savvy Resources Ltd - HongKong
- Barasentosa Lestari - Indonesia
- Global Green Power PLC Corporation, Philippines
- Kumho Petrochemical, South Korea
- Alfred C Toepfer International GmbH - Germany
- TNB Fuel Sdn Bhd - Malaysia
- Indian Oil Corporation Limited
- Indian Energy Exchange, India
- GVK Power & Infra Limited - India
- Borneo Indobara - Indonesia
- Mercuria Energy - Indonesia
- Electricity Generating Authority of Thailand
- Trasteel International SA, Italy
- Gujarat Electricity Regulatory Commission - India
- IHS Mccloskey Coal Group - USA
- PTC India Limited - India
- Makarim & Taira - Indonesia
- IEA Clean Coal Centre - UK
- Bank of Tokyo Mitsubishi UFJ Ltd
- London Commodity Brokers - England
- Jindal Steel & Power Ltd - India
- Kideco Jaya Agung - Indonesia
- Port Waratah Coal Services - Australia
- Global Business Power Corporation, Philippines
- Billiton Holdings Pty Ltd - Australia
- Grasim Industreis Ltd - India
- Agrawal Coal Company - India
- Krishnapatnam Port Company Ltd. - India
- Deloitte Consulting - India
- India Bulls Power Limited - India
- Latin American Coal - Colombia
- Semirara Mining Corp, Philippines
- Orica Australia Pty. Ltd.
- Ministry of Mines - Canada
- Ambuja Cements Ltd - India
- Salva Resources Pvt Ltd - India
- CNBM International Corporation - China
- Baramulti Group, Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Central Java Power - Indonesia
- SMC Global Power, Philippines
- Kaltim Prima Coal - Indonesia
- Siam City Cement PLC, Thailand
- AsiaOL BioFuels Corp., Philippines
- Cigading International Bulk Terminal - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Electricity Authority, New Zealand
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Interocean Group of Companies - India
- Africa Commodities Group - South Africa
- Wood Mackenzie - Singapore
- Banpu Public Company Limited - Thailand
- CIMB Investment Bank - Malaysia
- Maharashtra Electricity Regulatory Commission - India
- Commonwealth Bank - Australia
- Parliament of New Zealand
- MS Steel International - UAE
- GN Power Mariveles Coal Plant, Philippines
- Indogreen Group - Indonesia
- Madhucon Powers Ltd - India
- Manunggal Multi Energi - Indonesia
- Malabar Cements Ltd - India
- Sarangani Energy Corporation, Philippines
- Eastern Energy - Thailand
- Holcim Trading Pte Ltd - Singapore
- Pipit Mutiara Jaya. PT, Indonesia
- Minerals Council of Australia
- Goldman Sachs - Singapore
- Australian Commodity Traders Exchange
- GMR Energy Limited - India
- Edison Trading Spa - Italy
- Orica Mining Services - Indonesia
- The University of Queensland
- Singapore Mercantile Exchange
- Bukit Makmur.PT - Indonesia
- Intertek Mineral Services - Indonesia
- Mintek Dendrill Indonesia
- Sakthi Sugars Limited - India
- Power Finance Corporation Ltd., India
- Therma Luzon, Inc, Philippines
- Thiess Contractors Indonesia
- Energy Link Ltd, New Zealand
- Directorate Of Revenue Intelligence - India
- ICICI Bank Limited - India
- Oldendorff Carriers - Singapore
- Ind-Barath Power Infra Limited - India
- Coal and Oil Company - UAE
- Kepco SPC Power Corporation, Philippines
- Kapuas Tunggal Persada - Indonesia
- Price Waterhouse Coopers - Russia
- Thai Mozambique Logistica
- Miang Besar Coal Terminal - Indonesia
- Planning Commission, India
- Samtan Co., Ltd - South Korea
- Star Paper Mills Limited - India
- Anglo American - United Kingdom
- Maheswari Brothers Coal Limited - India
- Xindia Steels Limited - India
- Aboitiz Power Corporation - Philippines
- Kobexindo Tractors - Indoneisa
- Central Electricity Authority - India
- PNOC Exploration Corporation - Philippines
- The Treasury - Australian Government
- Essar Steel Hazira Ltd - India
- Cement Manufacturers Association - India
- PetroVietnam Power Coal Import and Supply Company
- Simpson Spence & Young - Indonesia
- Gujarat Sidhee Cement - India
- South Luzon Thermal Energy Corporation
- Bukit Baiduri Energy - Indonesia
- Antam Resourcindo - Indonesia
- Georgia Ports Authority, United States
- GAC Shipping (India) Pvt Ltd
- Indonesian Coal Mining Association
- Eastern Coal Council - USA
- Bayan Resources Tbk. - Indonesia
- Indo Tambangraya Megah - Indonesia
- Global Coal Blending Company Limited - Australia
- Karbindo Abesyapradhi - Indoneisa
- San Jose City I Power Corp, Philippines
- Vedanta Resources Plc - India
- Meralco Power Generation, Philippines
- Australian Coal Association
- Iligan Light & Power Inc, Philippines
- Lanco Infratech Ltd - India
- Formosa Plastics Group - Taiwan
- Posco Energy - South Korea
- Straits Asia Resources Limited - Singapore
- European Bulk Services B.V. - Netherlands
- Ministry of Finance - Indonesia
- OPG Power Generation Pvt Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Vizag Seaport Private Limited - India
- Neyveli Lignite Corporation Ltd, - India
- SMG Consultants - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Larsen & Toubro Limited - India
- McConnell Dowell - Australia
- Meenaskhi Energy Private Limited - India
- Bhushan Steel Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Bangladesh Power Developement Board
- Tamil Nadu electricity Board
- LBH Netherlands Bv - Netherlands
- TeaM Sual Corporation - Philippines
- Parry Sugars Refinery, India
- Carbofer General Trading SA - India
- Petron Corporation, Philippines
- Bharathi Cement Corporation - India
- Karaikal Port Pvt Ltd - India
- Sinarmas Energy and Mining - Indonesia
|
| |
| |
|
