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Wednesday, 24 April 19
SHIPPING MARKET INSIGHT - IS THIS A BANKERS' MARKET? - INTERMODAL
 Over the last 10 years, many of the traditional and top lending banks have made the decision to either downsize their portfolios or even exit shipping. According to Petrofin, Top 40 shipping banks’ lending has fallen since 2008 by 25%, whilst at the same time the world fleet has grown by 28%. On top of this, out of the banks that have decided to stay in the game, not all of them have the strength, the budget and the competitive terms to do so. As a result, the availability of financing for small-medium size companies has become a scarce, hence a luxury good. In other words, even when there is available financing for these companies, its cost is really prohibitive.
Apart from the banks’ endogenous and structural issues, their shipping departments also need to decide where to allocate their budget. In an era of growing LNG demand, numerous large shipping firms invest in the very capital intensive LNG carriers. Most of the large banks are there to support their very good clients. However, this means that a big percentage of their budget (and resources in general) end up to the LNG carriers’ financing, i.e. not much budget left for the remaining sectors/shipping projects. So, when these banks are left with a limited budget to spend, they become very selective and of course their pricing goes up as the list of the waiting finance projects is significant.
But what about the alternative ways of financing for the small and medium size companies? Asian leasing has indeed filled part of the gap that was created with the traditional banks’ exit, however, again this is available for owners with larger fleets and bigger ticket sizes. Public markets have been quiet regarding shipping in general; bond markets again require significant size. Therefore, the small companies are left with the option of the so called alternative financing. Private equity and hedge funds do have the funds to invest, but this only happens when they get the return of capital that they require; given that this most of the times is a double digit figure, then the capital cost for the small/medium ship owners increases dramatically.
There are quite a few new European banks that have joined ship financing – whose pricing sits in between the one of the traditional banks and that of leasing – however, their current budget is nowhere near to filling the gap that was left after the departure of the big banks.
Therefore, small-medium size shipping companies struggle to find competitive finance terms. Someone may argue that this had always been the case, however, in today’s ship finance market it is evident that the financing of small-medium size shipping companies is not the banks’ first priority, which should not be the case given the performance of such companies during recent years. Indeed, many small-medium size companies have proved their top quality and professionalism by not only surviving the crisis but also by getting back into expansion mode. There are many ship-owning companies falling into this category. Indicatively, only in Greek shipping there are more than 150 companies that own 3-15 bulk carriers, of more than 28,000 dwt and younger than 17 years old. A big percentage of these companies are long standing and solid companies; however, face the above finance issues.
This is the clientele that will provide the bank with projects of good credit quality and at the right pricing and therefore should be the one attracting the attention of ship financiers if they wish to make their business efficient and dynamic again.
By George Laios
Deputy CEO, Intermodal Group
Compiled by:
Intermodal Research & Valuations
Analysts:
Ms Eva Tzima
George Panagopoulos
Disclaimer and legal disclosure: For any further queries please do not hesitate to contact our Research & Valuations Department. The information contained in this report has been obtained from various sources, as reported in the market. Intermodal Shipbrokers Co. believes such information to be factual and reliable without making guarantees regarding its accuracy or completeness. Whilst every care has been taken in the production of the above review, no liability can be accepted for any loss or damage incurred in any way whatsoever by any person who may seek to rely on the information and views contained in this material. This report is being produced for the internal use of the intended recipients only and no reproducing is allowed, without the prior written authorization of Intermodal Shipbrokers Co.
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Tuesday, 15 October 19
INDIA READIES POLICY TO ATTRACT FOREIGN INVESTMENT IN COAL MINING - REUTERS
India expects to have formulated a policy within the next two weeks to attract foreign investment to its coal mining industry, the country's Co ...
Monday, 14 October 19
WINTER OIL MARKET OUTLOOK - OPEC
Product markets in the last two months have benefitted from seasonal maintenance which have led to a tighter product market environment, providing ...
Sunday, 13 October 19
INDONESIA: PANAMAX VESSELS OPEN SOUTH CHINA WERE REPORTEDLY FIXED AT $14,000 LEVEL, WITH REDELIVERY BACK IN CHINA - BALTIC BRIEFING
Capesize
The Capesize market managed to find a floor and rally a little this week after several weeks of declines. While the West Australia to ...
Friday, 11 October 19
INDIAN MINERS REJECT PLAN TO LINK NATIONAL COAL INDEX TO FOREIGN PRICES - REUTERS
India’s miners are rejecting a government proposal to establish a national coal index that would be linked to international prices, documents ...
Friday, 11 October 19
THE OCTOBER BENCHMARK PRICE OF INDONESIAN THERMAL COAL DECLINES TO LOWEST SINCE OCTOBER 2016
COALspot.com: The Ministry of Energy and Mineral Resources of the Republic of Indonesia has revised down the benchmark price of Indonesian thermal ...
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Showing 1316 to 1320 news of total 6871 |
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- Kobexindo Tractors - Indoneisa
- SN Aboitiz Power Inc, Philippines
- Parry Sugars Refinery, India
- Sojitz Corporation - Japan
- McConnell Dowell - Australia
- Energy Development Corp, Philippines
- Orica Australia Pty. Ltd.
- Agrawal Coal Company - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Metalloyd Limited - United Kingdom
- Power Finance Corporation Ltd., India
- Siam City Cement - Thailand
- Anglo American - United Kingdom
- Directorate Of Revenue Intelligence - India
- Ministry of Finance - Indonesia
- Sical Logistics Limited - India
- Manunggal Multi Energi - Indonesia
- London Commodity Brokers - England
- Coastal Gujarat Power Limited - India
- Bhatia International Limited - India
- Ambuja Cements Ltd - India
- Wood Mackenzie - Singapore
- Georgia Ports Authority, United States
- Kapuas Tunggal Persada - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Indo Tambangraya Megah - Indonesia
- Cement Manufacturers Association - India
- Kepco SPC Power Corporation, Philippines
- Altura Mining Limited, Indonesia
- Samtan Co., Ltd - South Korea
- Salva Resources Pvt Ltd - India
- Bangladesh Power Developement Board
- Australian Coal Association
- Deloitte Consulting - India
- Mercuria Energy - Indonesia
- Central Java Power - Indonesia
- CIMB Investment Bank - Malaysia
- Orica Mining Services - Indonesia
- Uttam Galva Steels Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Holcim Trading Pte Ltd - Singapore
- CNBM International Corporation - China
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Kartika Selabumi Mining - Indonesia
- Lanco Infratech Ltd - India
- Global Business Power Corporation, Philippines
- Alfred C Toepfer International GmbH - Germany
- Trasteel International SA, Italy
- Simpson Spence & Young - Indonesia
- Heidelberg Cement - Germany
- Makarim & Taira - Indonesia
- Planning Commission, India
- Aboitiz Power Corporation - Philippines
- ICICI Bank Limited - India
- Billiton Holdings Pty Ltd - Australia
- Rio Tinto Coal - Australia
- MS Steel International - UAE
- PNOC Exploration Corporation - Philippines
- Formosa Plastics Group - Taiwan
- Sree Jayajothi Cements Limited - India
- GMR Energy Limited - India
- New Zealand Coal & Carbon
- Aditya Birla Group - India
- Toyota Tsusho Corporation, Japan
- Antam Resourcindo - Indonesia
- Malabar Cements Ltd - India
- Goldman Sachs - Singapore
- PowerSource Philippines DevCo
- Chettinad Cement Corporation Ltd - India
- Banpu Public Company Limited - Thailand
- Essar Steel Hazira Ltd - India
- Therma Luzon, Inc, Philippines
- Energy Link Ltd, New Zealand
- Renaissance Capital - South Africa
- Jorong Barutama Greston.PT - Indonesia
- Kideco Jaya Agung - Indonesia
- Ind-Barath Power Infra Limited - India
- OPG Power Generation Pvt Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- Africa Commodities Group - South Africa
- Chamber of Mines of South Africa
- Vedanta Resources Plc - India
- Miang Besar Coal Terminal - Indonesia
- LBH Netherlands Bv - Netherlands
- Latin American Coal - Colombia
- The Treasury - Australian Government
- Videocon Industries ltd - India
- Interocean Group of Companies - India
- Semirara Mining Corp, Philippines
- IEA Clean Coal Centre - UK
- Jaiprakash Power Ventures ltd
- Thiess Contractors Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Vizag Seaport Private Limited - India
- Independent Power Producers Association of India
- Bhushan Steel Limited - India
- International Coal Ventures Pvt Ltd - India
- ASAPP Information Group - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Thai Mozambique Logistica
- Savvy Resources Ltd - HongKong
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Baramulti Group, Indonesia
- Globalindo Alam Lestari - Indonesia
- Sarangani Energy Corporation, Philippines
- Minerals Council of Australia
- Posco Energy - South Korea
- The University of Queensland
- Semirara Mining and Power Corporation, Philippines
- Eastern Coal Council - USA
- Straits Asia Resources Limited - Singapore
- Kohat Cement Company Ltd. - Pakistan
- Edison Trading Spa - Italy
- Sindya Power Generating Company Private Ltd
- Barasentosa Lestari - Indonesia
- Price Waterhouse Coopers - Russia
- Madhucon Powers Ltd - India
- Intertek Mineral Services - Indonesia
- GAC Shipping (India) Pvt Ltd
- Oldendorff Carriers - Singapore
- Gujarat Sidhee Cement - India
- White Energy Company Limited
- Indonesian Coal Mining Association
- SMC Global Power, Philippines
- Mercator Lines Limited - India
- Cigading International Bulk Terminal - Indonesia
- Kumho Petrochemical, South Korea
- Pipit Mutiara Jaya. PT, Indonesia
- Indika Energy - Indonesia
- Borneo Indobara - Indonesia
- Pendopo Energi Batubara - Indonesia
- Electricity Authority, New Zealand
- Krishnapatnam Port Company Ltd. - India
- Bukit Baiduri Energy - Indonesia
- Iligan Light & Power Inc, Philippines
- Riau Bara Harum - Indonesia
- Port Waratah Coal Services - Australia
- Meralco Power Generation, Philippines
- Leighton Contractors Pty Ltd - Australia
- Meenaskhi Energy Private Limited - India
- Directorate General of MIneral and Coal - Indonesia
- IHS Mccloskey Coal Group - USA
- Marubeni Corporation - India
- Ceylon Electricity Board - Sri Lanka
- San Jose City I Power Corp, Philippines
- Dalmia Cement Bharat India
- Asmin Koalindo Tuhup - Indonesia
- AsiaOL BioFuels Corp., Philippines
- South Luzon Thermal Energy Corporation
- Offshore Bulk Terminal Pte Ltd, Singapore
- Wilmar Investment Holdings
- SMG Consultants - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Indian Energy Exchange, India
- TNB Fuel Sdn Bhd - Malaysia
- PetroVietnam Power Coal Import and Supply Company
- Coalindo Energy - Indonesia
- India Bulls Power Limited - India
- Bhoruka Overseas - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Mintek Dendrill Indonesia
- Economic Council, Georgia
- Bulk Trading Sa - Switzerland
- The State Trading Corporation of India Ltd
- Larsen & Toubro Limited - India
- Attock Cement Pakistan Limited
- Indian Oil Corporation Limited
- Petron Corporation, Philippines
- Ministry of Mines - Canada
- PTC India Limited - India
- Xindia Steels Limited - India
- Timah Investasi Mineral - Indoneisa
- Tamil Nadu electricity Board
- Global Coal Blending Company Limited - Australia
- Parliament of New Zealand
- Bukit Asam (Persero) Tbk - Indonesia
- Eastern Energy - Thailand
- Maharashtra Electricity Regulatory Commission - India
- TeaM Sual Corporation - Philippines
- Sinarmas Energy and Mining - Indonesia
- Bayan Resources Tbk. - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Sakthi Sugars Limited - India
- Electricity Generating Authority of Thailand
- Karaikal Port Pvt Ltd - India
- Central Electricity Authority - India
- Binh Thuan Hamico - Vietnam
- Australian Commodity Traders Exchange
- Bank of Tokyo Mitsubishi UFJ Ltd
- Jindal Steel & Power Ltd - India
- Singapore Mercantile Exchange
- Kaltim Prima Coal - Indonesia
- Maheswari Brothers Coal Limited - India
- Bharathi Cement Corporation - India
- Bukit Makmur.PT - Indonesia
- Star Paper Mills Limited - India
- Carbofer General Trading SA - India
- Medco Energi Mining Internasional
- VISA Power Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Mjunction Services Limited - India
- Global Green Power PLC Corporation, Philippines
- GVK Power & Infra Limited - India
- Merrill Lynch Commodities Europe
- Ministry of Transport, Egypt
- Tata Chemicals Ltd - India
- Romanian Commodities Exchange
- Commonwealth Bank - Australia
- Bahari Cakrawala Sebuku - Indonesia
- Siam City Cement PLC, Thailand
- European Bulk Services B.V. - Netherlands
- Grasim Industreis Ltd - India
- Indogreen Group - Indonesia
- Coal and Oil Company - UAE
- Standard Chartered Bank - UAE
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