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Wednesday, 29 August 18
MID-YEAR FY19 POWER OUTLOOK: IMPORTED COAL REQUIREMENT TO INCREASE DURING REMAINING FY19: IND-RA
 India Ratings and Research (Ind-Ra) has maintained a stable-to-negative outlook on the Indian power sector for the remaining FY19, despite a rise in electricity demand and an increase in short-term prices.
According to a post published on Ind-Ra's website, the stable-to-negative outlook continues to reflect Ind-Ra’s expectation of a continued low plant load factor of 60.0%-62.0% of coal-based thermal power plants over the rest of FY19, because of large capacity additions in the past five years and domestic coal availability challenges. Ind-Ra expects India’s dependence on thermal power generation to remain high in the absence of any substantial improvement in power generation from other sources.
The agency has maintained a Stable Outlook on most of its rated power sector entities for the rest of FY19, as the agency expects the entities to continue to manage fuel and counterparty risks on account of a favourable tariff mechanism, a comfortable liquidity position and support from central and state governments.
Ind-Ra expects the dependence on coal-based power generation to continue despite a likely increase in capacity addition in the renewable segment, as capacity addition is low on an equivalent thermal basis owing to the low plant load factor in the renewable segment.
Given Ind-Ra’s expectation of healthy power demand growth in the rest of FY19 and thermal power capacity contributing to the required growth, coal availability becomes a key determinant for required power demand growth. Considering the historical growth rate of domestic non-coking coal production and offtake, Ind-Ra estimates imported coal requirement to increase to 62.0 million tonnes in FY19 from 56.0 million tonnes in FY18 to meet incremental power generation. Hence, there could be higher imported coal usage in FY19 than that in FY16-FY18, when imported coal usage declined. According to Ind-Ra, in a scenario of lower-than-required growth in domestic coal output, short-term power prices would remain firm and are likely to be determined by the marginal cost of energy production undertaken using imported coal.
Ind-Ra estimates project internal rate of returns to decline to a single-digit level in view of the recent aggressive bidding for wind power projects. Ind-Ra believes a high un-hedged forex exposure from the depreciating Indian rupee further lowers projects’ internal rate of returns. Moreover, access to the banking system may tighten, in case bidding continues to remain aggressive.
Solicitation Disclosures
Ratings are not a recommendation or suggestion, directly or indirectly, to you or any other person, to buy, sell, make or hold any investment, loan or security or to undertake any investment strategy with respect to any investment, loan or security or any issuer. Please also refer Ind-Ra’s Disclaimer
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Tuesday, 01 May 18
GLOBAL MINER PEABODY EYES SALES OPPORTUNITY IN INDIA’S RISING COAL IMPORTS - BUSINESS STANDARD
Indian imports of coal will continue to rise, reckons the world’s largest private sector coal miner Peabody Energy. Glenn Kellow, president a ...
Saturday, 28 April 18
STRONG ASIAN DEMAND CONTINUES TO HOLD UP THERMAL COAL MARKETS - REUTERS
Asian thermal coal demand is defying its typical seasonal slowdown as well as the expanding use of renewables and natural gas, with prices holding ...
Friday, 27 April 18
PEABODY ENERGY'S REVENUES FOR THE FIRST QUARTER ROSE 10 PERCENT OVER THE PRIOR YEAR TO $1.46 BILLION
Peabody Energy's revenues for the first quarter rose 10 percent over the prior year to $1.46 billion driven by improved seaborne coal pricing a ...
Thursday, 26 April 18
BALTIC EXCHANGE LAUNCHES ESCROW SERVICE FOR VESSEL SALES
The Baltic Exchange will be launching an Escrow Service for its members to hold deposits for ship sale transactions. The move will allow Baltic Exc ...
Thursday, 26 April 18
COAL PRICES ARE EXPECTED TO AVERAGE $85/MT IN 2018, DOWN SLIGHTLY FROM 2017 - WORLD BANK
Coal prices rose 4 percent in the first quarter (q/q), following a surge of 34 percent in 2017, mainly due to strong consumption in China spurred b ...
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- Electricity Authority, New Zealand
- Malabar Cements Ltd - India
- LBH Netherlands Bv - Netherlands
- Maharashtra Electricity Regulatory Commission - India
- Ministry of Finance - Indonesia
- Vizag Seaport Private Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- PNOC Exploration Corporation - Philippines
- Latin American Coal - Colombia
- Baramulti Group, Indonesia
- Marubeni Corporation - India
- Videocon Industries ltd - India
- The State Trading Corporation of India Ltd
- Semirara Mining and Power Corporation, Philippines
- Electricity Generating Authority of Thailand
- Price Waterhouse Coopers - Russia
- CNBM International Corporation - China
- Manunggal Multi Energi - Indonesia
- IHS Mccloskey Coal Group - USA
- Sojitz Corporation - Japan
- Meralco Power Generation, Philippines
- Cement Manufacturers Association - India
- Samtan Co., Ltd - South Korea
- Intertek Mineral Services - Indonesia
- Oldendorff Carriers - Singapore
- Kohat Cement Company Ltd. - Pakistan
- Australian Commodity Traders Exchange
- Krishnapatnam Port Company Ltd. - India
- PowerSource Philippines DevCo
- Standard Chartered Bank - UAE
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Deloitte Consulting - India
- Global Green Power PLC Corporation, Philippines
- Binh Thuan Hamico - Vietnam
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Kapuas Tunggal Persada - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Parliament of New Zealand
- Jaiprakash Power Ventures ltd
- India Bulls Power Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Neyveli Lignite Corporation Ltd, - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Mercuria Energy - Indonesia
- Iligan Light & Power Inc, Philippines
- Indika Energy - Indonesia
- Indonesian Coal Mining Association
- Bulk Trading Sa - Switzerland
- Kepco SPC Power Corporation, Philippines
- Miang Besar Coal Terminal - Indonesia
- Kobexindo Tractors - Indoneisa
- Gujarat Mineral Development Corp Ltd - India
- Banpu Public Company Limited - Thailand
- Aboitiz Power Corporation - Philippines
- OPG Power Generation Pvt Ltd - India
- Dalmia Cement Bharat India
- Lanco Infratech Ltd - India
- Tamil Nadu electricity Board
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Wood Mackenzie - Singapore
- Uttam Galva Steels Limited - India
- Bhoruka Overseas - Indonesia
- Energy Development Corp, Philippines
- Kumho Petrochemical, South Korea
- ICICI Bank Limited - India
- Georgia Ports Authority, United States
- Metalloyd Limited - United Kingdom
- TeaM Sual Corporation - Philippines
- Makarim & Taira - Indonesia
- Essar Steel Hazira Ltd - India
- Sree Jayajothi Cements Limited - India
- Eastern Energy - Thailand
- Savvy Resources Ltd - HongKong
- Vijayanagar Sugar Pvt Ltd - India
- Mjunction Services Limited - India
- Therma Luzon, Inc, Philippines
- New Zealand Coal & Carbon
- Simpson Spence & Young - Indonesia
- South Luzon Thermal Energy Corporation
- Kaltim Prima Coal - Indonesia
- International Coal Ventures Pvt Ltd - India
- Wilmar Investment Holdings
- Barasentosa Lestari - Indonesia
- Medco Energi Mining Internasional
- Holcim Trading Pte Ltd - Singapore
- Thiess Contractors Indonesia
- Star Paper Mills Limited - India
- Kideco Jaya Agung - Indonesia
- Romanian Commodities Exchange
- VISA Power Limited - India
- Meenaskhi Energy Private Limited - India
- Goldman Sachs - Singapore
- SMG Consultants - Indonesia
- Bayan Resources Tbk. - Indonesia
- Indian Energy Exchange, India
- San Jose City I Power Corp, Philippines
- SMC Global Power, Philippines
- CIMB Investment Bank - Malaysia
- Ind-Barath Power Infra Limited - India
- Energy Link Ltd, New Zealand
- Alfred C Toepfer International GmbH - Germany
- Mercator Lines Limited - India
- ASAPP Information Group - India
- TNB Fuel Sdn Bhd - Malaysia
- Ministry of Transport, Egypt
- PetroVietnam Power Coal Import and Supply Company
- Grasim Industreis Ltd - India
- Antam Resourcindo - Indonesia
- Rio Tinto Coal - Australia
- Tata Chemicals Ltd - India
- Power Finance Corporation Ltd., India
- Sical Logistics Limited - India
- AsiaOL BioFuels Corp., Philippines
- Anglo American - United Kingdom
- PTC India Limited - India
- Commonwealth Bank - Australia
- Mintek Dendrill Indonesia
- Carbofer General Trading SA - India
- Indian Oil Corporation Limited
- Central Electricity Authority - India
- Maheswari Brothers Coal Limited - India
- Formosa Plastics Group - Taiwan
- Africa Commodities Group - South Africa
- Merrill Lynch Commodities Europe
- European Bulk Services B.V. - Netherlands
- Attock Cement Pakistan Limited
- Globalindo Alam Lestari - Indonesia
- Global Coal Blending Company Limited - Australia
- Renaissance Capital - South Africa
- White Energy Company Limited
- Interocean Group of Companies - India
- Ministry of Mines - Canada
- Gujarat Sidhee Cement - India
- Pendopo Energi Batubara - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Pipit Mutiara Jaya. PT, Indonesia
- Port Waratah Coal Services - Australia
- Ceylon Electricity Board - Sri Lanka
- Australian Coal Association
- Bhushan Steel Limited - India
- Xindia Steels Limited - India
- Karaikal Port Pvt Ltd - India
- Aditya Birla Group - India
- Semirara Mining Corp, Philippines
- Central Java Power - Indonesia
- Riau Bara Harum - Indonesia
- GAC Shipping (India) Pvt Ltd
- Kartika Selabumi Mining - Indonesia
- Orica Mining Services - Indonesia
- Eastern Coal Council - USA
- Posco Energy - South Korea
- Bukit Makmur.PT - Indonesia
- MS Steel International - UAE
- Global Business Power Corporation, Philippines
- Karbindo Abesyapradhi - Indoneisa
- Sakthi Sugars Limited - India
- GMR Energy Limited - India
- Indo Tambangraya Megah - Indonesia
- Coal and Oil Company - UAE
- SN Aboitiz Power Inc, Philippines
- Toyota Tsusho Corporation, Japan
- Siam City Cement PLC, Thailand
- Siam City Cement - Thailand
- Edison Trading Spa - Italy
- Straits Asia Resources Limited - Singapore
- Altura Mining Limited, Indonesia
- Heidelberg Cement - Germany
- Coastal Gujarat Power Limited - India
- Sarangani Energy Corporation, Philippines
- Chettinad Cement Corporation Ltd - India
- Bangladesh Power Developement Board
- Bharathi Cement Corporation - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Jindal Steel & Power Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- Borneo Indobara - Indonesia
- Petron Corporation, Philippines
- Singapore Mercantile Exchange
- Chamber of Mines of South Africa
- Salva Resources Pvt Ltd - India
- Trasteel International SA, Italy
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Bukit Baiduri Energy - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Thai Mozambique Logistica
- Ambuja Cements Ltd - India
- London Commodity Brokers - England
- IEA Clean Coal Centre - UK
- Indogreen Group - Indonesia
- Orica Australia Pty. Ltd.
- Rashtriya Ispat Nigam Limited - India
- GVK Power & Infra Limited - India
- Planning Commission, India
- McConnell Dowell - Australia
- Madhucon Powers Ltd - India
- Agrawal Coal Company - India
- Directorate Of Revenue Intelligence - India
- Bahari Cakrawala Sebuku - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Sindya Power Generating Company Private Ltd
- Bhatia International Limited - India
- Sinarmas Energy and Mining - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Independent Power Producers Association of India
- The Treasury - Australian Government
- Larsen & Toubro Limited - India
- Timah Investasi Mineral - Indoneisa
- Coalindo Energy - Indonesia
- The University of Queensland
- Kalimantan Lumbung Energi - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Economic Council, Georgia
- Minerals Council of Australia
- Parry Sugars Refinery, India
- Vedanta Resources Plc - India
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