We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
Friday, 28 September 18
FITCH RATINGS: METALLURGICAL COAL MINERS MAY CURB COSTS AS PRICES SLIP
Strong cost inflation in the global metallurgical coal sector suggests that miners may focus on cost controls as prices decline from their current high levels over the next 18 months, say Fitch Ratings and CRU. However, mining companies rated by Fitch are well-positioned for any potential squeeze on margins, as their costs are relatively low by global standards and, in most cases, their diversified business operations limit exposure to the sector.
CRU estimates that global costs in the metallurgical coal sector increased by 18% in 2017 and continued to rise in 2018. Severe weather has played a role in Australia, causing supply-chain disruption that led to demurrage penalties and increased storage costs for unshipped coal. However, costs have also been pushed up globally by higher oil prices and attempts by mining companies to maximise production to take advantage of high prices.
Coking coal prices are currently sufficiently high that cost inflation has not undermined profitability. CRU estimates that the seaborne industry generated an average cash margin of 40% in 2016-2017, and profitability has remained very strong this year.
The metallurgical coal market is unlikely to become oversupplied in the near term, and Fitch does not expect prices to fall deep into the cost curve, as they did during 2014-2016. However, prices have already eased off from their peak of USD260/tonne in 4Q16, and are likely to decline further as supply constraints continue to ease. Fitch’s current assumptions are that hard coking coal prices will average USD185/tonne this year and USD140/tonne thereafter. These declines could put pressure on some less competitive mining companies to reduce costs to protect margins.
Among Fitch-rated companies, Teck Resources (BB+/Positive) has the largest exposure to the metallurgical coal sector, which accounted for 60% of its segment EBITDA in the 12 months to 30 June 2018. The company is among those that have increased use of contractors and rented more mining equipment to raise short-term output, which has pushed up marginal costs. Nevertheless, Teck is still in the lower half of the global cost curve (FOB port) and its costs remain lower in US dollar terms than in 2014. Teck has also taken advantage of strong margins and cash flow to reduce leverage. The main credit issue facing the company is the prospect of continued project spending and its funding resulting in weaker cash flows and higher financial leverage.
BHP Billiton (A/Stable) and Anglo American (BBB-/Stable) also have significant metallurgical coal assets, mostly located in Australia, where coal mines are generally relatively low cost by global standards. BHP and Anglo also have diversified operations, with metallurgical coal accounting for only around 16% of BHP Billiton’s revenue and 17% of Anglo’s in the financial year ending June 2017. There could be increased focus on improving efficiency in the Australian coal sector, as already signalled by some companies, but CRU and the Australian government expect production to continue to grow strongly over the next four years.
Meanwhile, mining service companies and earthmoving equipment manufacturers should continue to benefit from rising demand and a better pricing environment as miners continue with new projects and increase production. Emeco (B/Stable), which has the largest exposure to metallurgical coal among Fitch-rated companies, reported improved EBITDA margin as the commodity sector recovered. It also improved its leverage position. Further leverage improvements are likely in 2019-2021 due to equity-funded acquisitions and a tight rental equipment market in Australia.
Source: Fitch Ratings
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Monday, 01 October 18
A NO-DEAL BREXIT WILL UNDOUBTEDLY HAVE CONSEQUENCES FOR IMPORTERS AND EXPORTERS - KATE JONES, THE BALTIC BRIEFING
If you live in the UK, you might be finding it difficult to get away from the Brexit debate. “Hard Brexit”, “soft Brexit”, ...
Friday, 28 September 18
INDONESIA 2018 COAL OUTPUT TARGET NOW AROUND 507 MLN T - ENERGY MINISTRY : REUTERS
Indonesia has increased its 2018 coal production target to around 507 million tonnes from a previous target of 485 million tonnes, the Energy Minis ...
Wednesday, 26 September 18
IS YOUR CHARTER PARTY READY FOR 2020? - METTE KRONHOLM FRAENDE, BIMCO
As the deadline for the IMO’s global low-sulphur fuel requirements fast approaches, it is necessary to carefully check the bunker clauses in ...
Wednesday, 26 September 18
SHIPPING MARKET INSIGHT - GEORGE ILIOPOULOS
Despite the fact that the dry bulk SnP market saw an admittedly busy summer season, there is a noticeable slowdown in activity during the past thre ...
Tuesday, 25 September 18
THE INCONVENIENT TRUTH OF RISING COAL PRICES - FORBES
Coal prices are not supposed to be rising as governments tighten environmental controls but that’s precisely what is happening at the premium ...
|
|
|
Showing 1606 to 1610 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Wilmar Investment Holdings
- Offshore Bulk Terminal Pte Ltd, Singapore
- GVK Power & Infra Limited - India
- Siam City Cement PLC, Thailand
- Siam City Cement - Thailand
- Eastern Energy - Thailand
- Therma Luzon, Inc, Philippines
- Indika Energy - Indonesia
- Ambuja Cements Ltd - India
- MS Steel International - UAE
- Lanco Infratech Ltd - India
- Ceylon Electricity Board - Sri Lanka
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Jorong Barutama Greston.PT - Indonesia
- Medco Energi Mining Internasional
- Baramulti Group, Indonesia
- Australian Commodity Traders Exchange
- Vedanta Resources Plc - India
- Asmin Koalindo Tuhup - Indonesia
- Formosa Plastics Group - Taiwan
- Kapuas Tunggal Persada - Indonesia
- Electricity Authority, New Zealand
- Independent Power Producers Association of India
- VISA Power Limited - India
- Globalindo Alam Lestari - Indonesia
- Bhoruka Overseas - Indonesia
- PNOC Exploration Corporation - Philippines
- Anglo American - United Kingdom
- Intertek Mineral Services - Indonesia
- Aboitiz Power Corporation - Philippines
- TeaM Sual Corporation - Philippines
- Tamil Nadu electricity Board
- Renaissance Capital - South Africa
- GAC Shipping (India) Pvt Ltd
- Electricity Generating Authority of Thailand
- Romanian Commodities Exchange
- PowerSource Philippines DevCo
- Directorate General of MIneral and Coal - Indonesia
- ASAPP Information Group - India
- TNB Fuel Sdn Bhd - Malaysia
- Semirara Mining and Power Corporation, Philippines
- Karbindo Abesyapradhi - Indoneisa
- Samtan Co., Ltd - South Korea
- Borneo Indobara - Indonesia
- Altura Mining Limited, Indonesia
- SMC Global Power, Philippines
- Vizag Seaport Private Limited - India
- LBH Netherlands Bv - Netherlands
- Trasteel International SA, Italy
- Heidelberg Cement - Germany
- Ministry of Finance - Indonesia
- Coastal Gujarat Power Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Minerals Council of Australia
- Directorate Of Revenue Intelligence - India
- Rashtriya Ispat Nigam Limited - India
- White Energy Company Limited
- Leighton Contractors Pty Ltd - Australia
- Sical Logistics Limited - India
- Makarim & Taira - Indonesia
- Semirara Mining Corp, Philippines
- Mercuria Energy - Indonesia
- Parry Sugars Refinery, India
- Bulk Trading Sa - Switzerland
- Gujarat Electricity Regulatory Commission - India
- Singapore Mercantile Exchange
- Bhatia International Limited - India
- Star Paper Mills Limited - India
- Rio Tinto Coal - Australia
- Chamber of Mines of South Africa
- Edison Trading Spa - Italy
- Xindia Steels Limited - India
- Wood Mackenzie - Singapore
- Agrawal Coal Company - India
- Billiton Holdings Pty Ltd - Australia
- Timah Investasi Mineral - Indoneisa
- Indogreen Group - Indonesia
- IEA Clean Coal Centre - UK
- Holcim Trading Pte Ltd - Singapore
- Indian Oil Corporation Limited
- Bukit Makmur.PT - Indonesia
- Price Waterhouse Coopers - Russia
- Sakthi Sugars Limited - India
- Georgia Ports Authority, United States
- Mjunction Services Limited - India
- OPG Power Generation Pvt Ltd - India
- Kideco Jaya Agung - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Sree Jayajothi Cements Limited - India
- European Bulk Services B.V. - Netherlands
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Metalloyd Limited - United Kingdom
- Bahari Cakrawala Sebuku - Indonesia
- CIMB Investment Bank - Malaysia
- South Luzon Thermal Energy Corporation
- Sinarmas Energy and Mining - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Kartika Selabumi Mining - Indonesia
- Deloitte Consulting - India
- Sindya Power Generating Company Private Ltd
- Videocon Industries ltd - India
- India Bulls Power Limited - India
- Barasentosa Lestari - Indonesia
- IHS Mccloskey Coal Group - USA
- Orica Australia Pty. Ltd.
- Simpson Spence & Young - Indonesia
- Energy Development Corp, Philippines
- Coalindo Energy - Indonesia
- Toyota Tsusho Corporation, Japan
- Parliament of New Zealand
- Manunggal Multi Energi - Indonesia
- Madhucon Powers Ltd - India
- Bharathi Cement Corporation - India
- Merrill Lynch Commodities Europe
- Kaltim Prima Coal - Indonesia
- Oldendorff Carriers - Singapore
- Global Business Power Corporation, Philippines
- McConnell Dowell - Australia
- Thiess Contractors Indonesia
- Central Java Power - Indonesia
- Bangladesh Power Developement Board
- ICICI Bank Limited - India
- Bayan Resources Tbk. - Indonesia
- Thai Mozambique Logistica
- Antam Resourcindo - Indonesia
- Aditya Birla Group - India
- Riau Bara Harum - Indonesia
- Ind-Barath Power Infra Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Bukit Baiduri Energy - Indonesia
- Africa Commodities Group - South Africa
- Salva Resources Pvt Ltd - India
- Jindal Steel & Power Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Central Electricity Authority - India
- Orica Mining Services - Indonesia
- Kobexindo Tractors - Indoneisa
- SMG Consultants - Indonesia
- Global Coal Blending Company Limited - Australia
- Alfred C Toepfer International GmbH - Germany
- The University of Queensland
- Straits Asia Resources Limited - Singapore
- Binh Thuan Hamico - Vietnam
- Attock Cement Pakistan Limited
- Energy Link Ltd, New Zealand
- Uttam Galva Steels Limited - India
- Larsen & Toubro Limited - India
- Dalmia Cement Bharat India
- Goldman Sachs - Singapore
- Mercator Lines Limited - India
- Standard Chartered Bank - UAE
- Cement Manufacturers Association - India
- Latin American Coal - Colombia
- GMR Energy Limited - India
- Australian Coal Association
- Sojitz Corporation - Japan
- Planning Commission, India
- Gujarat Mineral Development Corp Ltd - India
- Commonwealth Bank - Australia
- Economic Council, Georgia
- PTC India Limited - India
- Malabar Cements Ltd - India
- London Commodity Brokers - England
- Bhushan Steel Limited - India
- SN Aboitiz Power Inc, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Krishnapatnam Port Company Ltd. - India
- Meenaskhi Energy Private Limited - India
- Miang Besar Coal Terminal - Indonesia
- Port Waratah Coal Services - Australia
- Indian Energy Exchange, India
- Ministry of Mines - Canada
- Mintek Dendrill Indonesia
- Indonesian Coal Mining Association
- Interocean Group of Companies - India
- Gujarat Sidhee Cement - India
- Posco Energy - South Korea
- The State Trading Corporation of India Ltd
- CNBM International Corporation - China
- Sarangani Energy Corporation, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Carbofer General Trading SA - India
- Marubeni Corporation - India
- Coal and Oil Company - UAE
- Petron Corporation, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Kohat Cement Company Ltd. - Pakistan
- Chettinad Cement Corporation Ltd - India
- The Treasury - Australian Government
- Maharashtra Electricity Regulatory Commission - India
- Iligan Light & Power Inc, Philippines
- Kalimantan Lumbung Energi - Indonesia
- San Jose City I Power Corp, Philippines
- Global Green Power PLC Corporation, Philippines
- Indo Tambangraya Megah - Indonesia
- Kepco SPC Power Corporation, Philippines
- Karaikal Port Pvt Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Eastern Coal Council - USA
- Kumho Petrochemical, South Korea
- PetroVietnam Power Coal Import and Supply Company
- Power Finance Corporation Ltd., India
- Tata Chemicals Ltd - India
- Savvy Resources Ltd - HongKong
- International Coal Ventures Pvt Ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Grasim Industreis Ltd - India
- Banpu Public Company Limited - Thailand
- Meralco Power Generation, Philippines
- Maheswari Brothers Coal Limited - India
- Jaiprakash Power Ventures ltd
- New Zealand Coal & Carbon
- Essar Steel Hazira Ltd - India
- Ministry of Transport, Egypt
- Pendopo Energi Batubara - Indonesia
|
| |
| |
|
