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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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Friday, 12 April 19
U.S : MORE THAN 7 GW OF COAL-FIRED GENERATION IS SCHEDULED TO RETIRE BY THE END OF 2020 - EIA
EIA estimates that U.S. coal production decreased by 19 million short tons (MMst) (2%) in 2018, totaling 756 MMst.
EIA also expects ...
Friday, 12 April 19
GLENCORE WINS $520 MILLION DEAL TO SELL COAL TO MEXICO - REUTERS
Global trader Glencore has won contracts worth around $520 million to supply 4.94 million tonnes of coal to Mexico, state-run power utility the Fed ...
Thursday, 11 April 19
AUSTRALIAN COAL IN THE FRONTLINE OF CHINA'S SUPPLY GLUT - AUSTRALIAN FINANCIAL REVIEW
Australian coal will be hardest hit as China cuts foreign imports of its key energy source to tackle oversupply, and implements policies favouring ...
Wednesday, 10 April 19
COALTRANS ASIA - TAKE PART IN THE LARGEST COAL EVENT IN THE WORLD!
Take part in the largest coal event in the world!
Coaltrans Asia is back this June bringing together the entire international coal s ...
Wednesday, 10 April 19
KOSPO INVITED BIDS FOR 160K MT OF MIN. 3700 NCV COAL FOR JUNE LOADING
COALspot.com: South Korea state-owned utility Korea Southern Power Co. Ltd (KOSPO) issued a tender for 160,000 MT of min. 3,800 Kcal/kg ~max.4,100 ...
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Showing 1421 to 1425 news of total 6871 |
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- Marubeni Corporation - India
- Ind-Barath Power Infra Limited - India
- Indian Oil Corporation Limited
- GMR Energy Limited - India
- Indogreen Group - Indonesia
- Bhoruka Overseas - Indonesia
- Manunggal Multi Energi - Indonesia
- Jindal Steel & Power Ltd - India
- Chettinad Cement Corporation Ltd - India
- PowerSource Philippines DevCo
- The State Trading Corporation of India Ltd
- Latin American Coal - Colombia
- Krishnapatnam Port Company Ltd. - India
- PetroVietnam Power Coal Import and Supply Company
- Jorong Barutama Greston.PT - Indonesia
- Bulk Trading Sa - Switzerland
- Vedanta Resources Plc - India
- Asmin Koalindo Tuhup - Indonesia
- Makarim & Taira - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- OPG Power Generation Pvt Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Power Finance Corporation Ltd., India
- Energy Link Ltd, New Zealand
- Kaltim Prima Coal - Indonesia
- Timah Investasi Mineral - Indoneisa
- Metalloyd Limited - United Kingdom
- Sree Jayajothi Cements Limited - India
- PTC India Limited - India
- Edison Trading Spa - Italy
- The Treasury - Australian Government
- Offshore Bulk Terminal Pte Ltd, Singapore
- Borneo Indobara - Indonesia
- Salva Resources Pvt Ltd - India
- Globalindo Alam Lestari - Indonesia
- Karaikal Port Pvt Ltd - India
- Port Waratah Coal Services - Australia
- Maharashtra Electricity Regulatory Commission - India
- Coastal Gujarat Power Limited - India
- Bukit Makmur.PT - Indonesia
- Jaiprakash Power Ventures ltd
- CIMB Investment Bank - Malaysia
- IEA Clean Coal Centre - UK
- Mercuria Energy - Indonesia
- Singapore Mercantile Exchange
- Vijayanagar Sugar Pvt Ltd - India
- Holcim Trading Pte Ltd - Singapore
- Central Java Power - Indonesia
- Meenaskhi Energy Private Limited - India
- SMC Global Power, Philippines
- IHS Mccloskey Coal Group - USA
- Madhucon Powers Ltd - India
- Bhatia International Limited - India
- Petron Corporation, Philippines
- Eastern Energy - Thailand
- Energy Development Corp, Philippines
- Barasentosa Lestari - Indonesia
- Heidelberg Cement - Germany
- AsiaOL BioFuels Corp., Philippines
- Deloitte Consulting - India
- Iligan Light & Power Inc, Philippines
- Trasteel International SA, Italy
- Kalimantan Lumbung Energi - Indonesia
- International Coal Ventures Pvt Ltd - India
- Banpu Public Company Limited - Thailand
- Pendopo Energi Batubara - Indonesia
- CNBM International Corporation - China
- Star Paper Mills Limited - India
- Commonwealth Bank - Australia
- Cigading International Bulk Terminal - Indonesia
- Sindya Power Generating Company Private Ltd
- Alfred C Toepfer International GmbH - Germany
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Ministry of Mines - Canada
- Agrawal Coal Company - India
- Indo Tambangraya Megah - Indonesia
- Australian Coal Association
- The University of Queensland
- Anglo American - United Kingdom
- Straits Asia Resources Limited - Singapore
- Xindia Steels Limited - India
- Mintek Dendrill Indonesia
- Eastern Coal Council - USA
- Leighton Contractors Pty Ltd - Australia
- Medco Energi Mining Internasional
- Riau Bara Harum - Indonesia
- SN Aboitiz Power Inc, Philippines
- Kideco Jaya Agung - Indonesia
- White Energy Company Limited
- Ceylon Electricity Board - Sri Lanka
- Planning Commission, India
- Bayan Resources Tbk. - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Coal and Oil Company - UAE
- Thiess Contractors Indonesia
- Georgia Ports Authority, United States
- Dalmia Cement Bharat India
- Formosa Plastics Group - Taiwan
- Ministry of Finance - Indonesia
- VISA Power Limited - India
- Directorate Of Revenue Intelligence - India
- Wilmar Investment Holdings
- Coalindo Energy - Indonesia
- Grasim Industreis Ltd - India
- India Bulls Power Limited - India
- Bhushan Steel Limited - India
- Rio Tinto Coal - Australia
- Kepco SPC Power Corporation, Philippines
- Malabar Cements Ltd - India
- Ministry of Transport, Egypt
- Kartika Selabumi Mining - Indonesia
- Ambuja Cements Ltd - India
- Indonesian Coal Mining Association
- Gujarat Sidhee Cement - India
- Aditya Birla Group - India
- Global Business Power Corporation, Philippines
- Goldman Sachs - Singapore
- Videocon Industries ltd - India
- Rashtriya Ispat Nigam Limited - India
- Kumho Petrochemical, South Korea
- Sojitz Corporation - Japan
- Economic Council, Georgia
- Indika Energy - Indonesia
- Toyota Tsusho Corporation, Japan
- Attock Cement Pakistan Limited
- GVK Power & Infra Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Oldendorff Carriers - Singapore
- Cement Manufacturers Association - India
- Orica Australia Pty. Ltd.
- LBH Netherlands Bv - Netherlands
- Uttam Galva Steels Limited - India
- Samtan Co., Ltd - South Korea
- Kohat Cement Company Ltd. - Pakistan
- Sakthi Sugars Limited - India
- Global Coal Blending Company Limited - Australia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Savvy Resources Ltd - HongKong
- Semirara Mining Corp, Philippines
- Mercator Lines Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Parry Sugars Refinery, India
- Orica Mining Services - Indonesia
- Therma Luzon, Inc, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Miang Besar Coal Terminal - Indonesia
- Thai Mozambique Logistica
- Kapuas Tunggal Persada - Indonesia
- Sical Logistics Limited - India
- Bharathi Cement Corporation - India
- Australian Commodity Traders Exchange
- Carbofer General Trading SA - India
- Global Green Power PLC Corporation, Philippines
- New Zealand Coal & Carbon
- Vizag Seaport Private Limited - India
- Wood Mackenzie - Singapore
- Meralco Power Generation, Philippines
- Binh Thuan Hamico - Vietnam
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Chamber of Mines of South Africa
- Renaissance Capital - South Africa
- San Jose City I Power Corp, Philippines
- Sinarmas Energy and Mining - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Siam City Cement - Thailand
- Tamil Nadu electricity Board
- Independent Power Producers Association of India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Indian Energy Exchange, India
- Merrill Lynch Commodities Europe
- Kobexindo Tractors - Indoneisa
- Tata Chemicals Ltd - India
- Altura Mining Limited, Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Larsen & Toubro Limited - India
- Bukit Baiduri Energy - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Romanian Commodities Exchange
- Antam Resourcindo - Indonesia
- Siam City Cement PLC, Thailand
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Aboitiz Power Corporation - Philippines
- Neyveli Lignite Corporation Ltd, - India
- Interocean Group of Companies - India
- South Luzon Thermal Energy Corporation
- ICICI Bank Limited - India
- Baramulti Group, Indonesia
- Price Waterhouse Coopers - Russia
- Essar Steel Hazira Ltd - India
- Lanco Infratech Ltd - India
- SMG Consultants - Indonesia
- PNOC Exploration Corporation - Philippines
- Intertek Mineral Services - Indonesia
- London Commodity Brokers - England
- Sarangani Energy Corporation, Philippines
- TeaM Sual Corporation - Philippines
- Electricity Authority, New Zealand
- MS Steel International - UAE
- McConnell Dowell - Australia
- Central Electricity Authority - India
- Maheswari Brothers Coal Limited - India
- GAC Shipping (India) Pvt Ltd
- ASAPP Information Group - India
- Posco Energy - South Korea
- European Bulk Services B.V. - Netherlands
- Parliament of New Zealand
- Semirara Mining and Power Corporation, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Bangladesh Power Developement Board
- Africa Commodities Group - South Africa
- Standard Chartered Bank - UAE
- Electricity Generating Authority of Thailand
- Mjunction Services Limited - India
- Simpson Spence & Young - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Minerals Council of Australia
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