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Friday, 10 July 20
SLOW RECOVERY IN TANKER RATES TO WEIGH ON BUANA LINTAS LAUTAN - FITCH RATINGS
 Fitch Ratings believes that international tanker rates are likely improve after their sharp fall since May 2020, albeit at a slow pace. The weakness in rates may weigh on the financial profile of PT Buana Lintas Lautan Tbk (BULL, B+/Negative), which has around 15% of its fleet capacity earning revenue based on international spot rates.
The Baltic Dirty Tanker Index, which is made up from 12 Baltic international routes and mainly for crude oil shipping, has declined to below 500 points, from an average of 1,200 in March-April 2020, and is at its lowest since 2009. The index averaged 855 points in 2019 and around 770 points since 2009. Similarly, the Baltic Clean Tanker Index for refined fuel shipping has fallen to below 400 points from an average of around 1,305 points in April 2020.
The sharp fall in rates follows lower demand for global oil transportation with the OPEC+ alliance announcing in April 2020 an agreement to cut output by 9.7 million barrels per day (mbpd), or 10% of global output, from May 1. The group agreed in June to extend the production cut by one month through the end of July. The cut in output also resulted in a sharp rally in crude oil prices, with Brent price increasing to over USD40 per barrel (bbl) from around USD20/bbl near mid-April. Higher oil prices reduced the demand for floating storage and such tankers were freed, increasing spare capacity and pressuring rates.
Tanker demand has declined sharply since March-April, when Saudi Arabia increased its oil output ahead of the OPEC+ deal to cut production. The effect of increased oil output on tanker rates was compounded by the sharp fall in oil prices, which caused the futures curve to be in contango and incentivised oil storage on land and in tankers.
Demand for tankers is likely to improve from August with a reduction in the OPEC+ cuts to 7.7mbpd until the end of the 2020 and further to 5.8mbpd from January 2021. However, the output cut will continue weighing on tanker rates and improvement in rates is likely to be a gradual process.
Indonesian tanker operators PT Soechi Lines Tbk (B/Stable) and BULL benefit from largely stable rates in the domestic market, which is protected from foreign competition by cabotage laws and dominated by state-owned oil major PT Pertamina (Persero) (BBB/Stable) which is the main revenue driver.
However, BULL’s exposure to international rate volatility has increased this year. BULL had 24 of its 25 ships, or 93% of its fleet capacity, under standard time-charter contracts as of end-2019 while one tanker was part of a pool of ships managed by a pool operator and earned revenue based on international spot rates. The share of BULL’s fleet capacity managed by the pool operator has increased to 14% by end-2Q20 with three out of 33 ships being part of the pool. Additionally, BULL has two ships constituting 10% of its capacity under time-charter contracts with a base rate and upside if international spot rates are higher.
The company said it is seeking to switch the fleet under the pool operator to short-term time charter contracts of three to six months from September 2020 to limit the impact of the fall in tanker rates. Nonetheless, the Negative Outlook on BULL’s rating reflects risks to its financial profile from weak international rates, apart from sustained spending on fleet expansion. We estimate FFO gross leverage to increase to 3.8x in 2021, from 2.9x in 2020 (2019: 4.3x), due to lower international rates and EBITDA. We also assume BULL acquires five more ships for USD100 million in 2021.
Source: Fitch Ratings
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Wednesday, 22 November 23
INDIA: GOVERNMENT PLANS 1.4 BILLION TONNE COAL OUTPUT BY 2027 - LIVEMINT
The Union coal ministry on Monday announced plans to increase India’s coal production to 1.404 billion tonne by 2027, with an eye to further ...
Wednesday, 22 November 23
OBLIGATION. INDONESIA AIMS TO START COLLECTING LEVIES FROM COAL MINERS IN JANUARY - REUTERS
Indonesia plans to start collecting levies from coal miners in January to be used to compensate miners who sell coal to the state utility at lower ...
Tuesday, 21 November 23
INDIAN COAL POWER PLANTS’ CAPACITY UTILISATION WILL IMPROVE TO 65% THIS FISCAL: - CRISIL
Coal-based thermal power units’ plant load factor (PLF) or capacity utilisation will improve to 65 percent in the current fiscal year despite ...
Tuesday, 14 November 23
CAPITAL PRODUCT PARTNERS L.P. ANNOUNCES TRANSFORMATIVE TRANSACTION INCLUDING THE ACQUISITION OF 11 NEWBUILD LNG CARRIERS FOR $3.1 BILLION
Capital Product Partners L.P. announced that it has entered into an umbrella agreement (the “Umbrella Agreement”) with Capital Maritime ...
Tuesday, 14 November 23
COAL INDIA BEATS Q2 PROFIT VIEW ON HIGH POWER DEMAND AMID WEAK MONSOON - REUTERS
Coal India on Friday reported better-than-expected second-quarter profit, helped by high power demand and boosted production amid a weak monsoon.
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- Borneo Indobara - Indonesia
- Simpson Spence & Young - Indonesia
- Bayan Resources Tbk. - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Gujarat Mineral Development Corp Ltd - India
- PowerSource Philippines DevCo
- Miang Besar Coal Terminal - Indonesia
- Electricity Authority, New Zealand
- Iligan Light & Power Inc, Philippines
- Georgia Ports Authority, United States
- Mjunction Services Limited - India
- Baramulti Group, Indonesia
- Aboitiz Power Corporation - Philippines
- Indika Energy - Indonesia
- Altura Mining Limited, Indonesia
- Energy Development Corp, Philippines
- Agrawal Coal Company - India
- New Zealand Coal & Carbon
- ASAPP Information Group - India
- Semirara Mining Corp, Philippines
- ICICI Bank Limited - India
- IEA Clean Coal Centre - UK
- Sojitz Corporation - Japan
- Manunggal Multi Energi - Indonesia
- Bukit Makmur.PT - Indonesia
- Aditya Birla Group - India
- Asmin Koalindo Tuhup - Indonesia
- Ministry of Mines - Canada
- Kideco Jaya Agung - Indonesia
- Central Electricity Authority - India
- Antam Resourcindo - Indonesia
- Cement Manufacturers Association - India
- Rio Tinto Coal - Australia
- Global Coal Blending Company Limited - Australia
- Mercuria Energy - Indonesia
- GMR Energy Limited - India
- Siam City Cement PLC, Thailand
- LBH Netherlands Bv - Netherlands
- Chettinad Cement Corporation Ltd - India
- Coastal Gujarat Power Limited - India
- Gujarat Sidhee Cement - India
- Anglo American - United Kingdom
- IHS Mccloskey Coal Group - USA
- Australian Coal Association
- CIMB Investment Bank - Malaysia
- Bharathi Cement Corporation - India
- Star Paper Mills Limited - India
- Rashtriya Ispat Nigam Limited - India
- Vizag Seaport Private Limited - India
- Chamber of Mines of South Africa
- Directorate Of Revenue Intelligence - India
- Global Green Power PLC Corporation, Philippines
- Parliament of New Zealand
- White Energy Company Limited
- Indian Oil Corporation Limited
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Maheswari Brothers Coal Limited - India
- Coalindo Energy - Indonesia
- Straits Asia Resources Limited - Singapore
- PNOC Exploration Corporation - Philippines
- Standard Chartered Bank - UAE
- Parry Sugars Refinery, India
- PetroVietnam Power Coal Import and Supply Company
- International Coal Ventures Pvt Ltd - India
- Krishnapatnam Port Company Ltd. - India
- Oldendorff Carriers - Singapore
- Maharashtra Electricity Regulatory Commission - India
- Kartika Selabumi Mining - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- TeaM Sual Corporation - Philippines
- Goldman Sachs - Singapore
- Offshore Bulk Terminal Pte Ltd, Singapore
- Jaiprakash Power Ventures ltd
- Holcim Trading Pte Ltd - Singapore
- Edison Trading Spa - Italy
- Kumho Petrochemical, South Korea
- Thai Mozambique Logistica
- Eastern Energy - Thailand
- Bank of Tokyo Mitsubishi UFJ Ltd
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Essar Steel Hazira Ltd - India
- Attock Cement Pakistan Limited
- Indogreen Group - Indonesia
- Sakthi Sugars Limited - India
- Planning Commission, India
- SMG Consultants - Indonesia
- Jindal Steel & Power Ltd - India
- Toyota Tsusho Corporation, Japan
- Karaikal Port Pvt Ltd - India
- AsiaOL BioFuels Corp., Philippines
- Trasteel International SA, Italy
- Semirara Mining and Power Corporation, Philippines
- VISA Power Limited - India
- Metalloyd Limited - United Kingdom
- Intertek Mineral Services - Indonesia
- Lanco Infratech Ltd - India
- Africa Commodities Group - South Africa
- Uttam Galva Steels Limited - India
- Marubeni Corporation - India
- Thiess Contractors Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- The State Trading Corporation of India Ltd
- Sarangani Energy Corporation, Philippines
- Leighton Contractors Pty Ltd - Australia
- Kobexindo Tractors - Indoneisa
- Merrill Lynch Commodities Europe
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Barasentosa Lestari - Indonesia
- Globalindo Alam Lestari - Indonesia
- Larsen & Toubro Limited - India
- Coal and Oil Company - UAE
- Kaltim Prima Coal - Indonesia
- Orica Mining Services - Indonesia
- Makarim & Taira - Indonesia
- India Bulls Power Limited - India
- Romanian Commodities Exchange
- Kohat Cement Company Ltd. - Pakistan
- Riau Bara Harum - Indonesia
- SMC Global Power, Philippines
- The Treasury - Australian Government
- Meenaskhi Energy Private Limited - India
- Grasim Industreis Ltd - India
- Commonwealth Bank - Australia
- Madhucon Powers Ltd - India
- Singapore Mercantile Exchange
- Vedanta Resources Plc - India
- CNBM International Corporation - China
- Bulk Trading Sa - Switzerland
- Australian Commodity Traders Exchange
- MS Steel International - UAE
- Salva Resources Pvt Ltd - India
- Ind-Barath Power Infra Limited - India
- Sindya Power Generating Company Private Ltd
- Videocon Industries ltd - India
- Power Finance Corporation Ltd., India
- Bhoruka Overseas - Indonesia
- Tata Chemicals Ltd - India
- Energy Link Ltd, New Zealand
- Minerals Council of Australia
- Directorate General of MIneral and Coal - Indonesia
- Petron Corporation, Philippines
- Global Business Power Corporation, Philippines
- Dalmia Cement Bharat India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Posco Energy - South Korea
- Binh Thuan Hamico - Vietnam
- Bhushan Steel Limited - India
- San Jose City I Power Corp, Philippines
- The University of Queensland
- Port Waratah Coal Services - Australia
- OPG Power Generation Pvt Ltd - India
- GN Power Mariveles Coal Plant, Philippines
- Indonesian Coal Mining Association
- Bukit Baiduri Energy - Indonesia
- Xindia Steels Limited - India
- Siam City Cement - Thailand
- Gujarat Electricity Regulatory Commission - India
- Sinarmas Energy and Mining - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Heidelberg Cement - Germany
- Latin American Coal - Colombia
- Central Java Power - Indonesia
- Kapuas Tunggal Persada - Indonesia
- South Luzon Thermal Energy Corporation
- Mercator Lines Limited - India
- Price Waterhouse Coopers - Russia
- PTC India Limited - India
- Alfred C Toepfer International GmbH - Germany
- Orica Australia Pty. Ltd.
- Electricity Generating Authority of Thailand
- Malabar Cements Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Formosa Plastics Group - Taiwan
- SN Aboitiz Power Inc, Philippines
- Therma Luzon, Inc, Philippines
- Jorong Barutama Greston.PT - Indonesia
- GAC Shipping (India) Pvt Ltd
- Mintek Dendrill Indonesia
- Sical Logistics Limited - India
- Sree Jayajothi Cements Limited - India
- Carbofer General Trading SA - India
- Ambuja Cements Ltd - India
- Eastern Coal Council - USA
- Pendopo Energi Batubara - Indonesia
- Banpu Public Company Limited - Thailand
- Economic Council, Georgia
- Bhatia International Limited - India
- Ministry of Finance - Indonesia
- McConnell Dowell - Australia
- European Bulk Services B.V. - Netherlands
- Deloitte Consulting - India
- Independent Power Producers Association of India
- London Commodity Brokers - England
- Meralco Power Generation, Philippines
- Samtan Co., Ltd - South Korea
- Tamil Nadu electricity Board
- Renaissance Capital - South Africa
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- GVK Power & Infra Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Medco Energi Mining Internasional
- Kalimantan Lumbung Energi - Indonesia
- Wilmar Investment Holdings
- Ministry of Transport, Egypt
- Timah Investasi Mineral - Indoneisa
- Kepco SPC Power Corporation, Philippines
- Savvy Resources Ltd - HongKong
- Indian Energy Exchange, India
- Billiton Holdings Pty Ltd - Australia
- Indo Tambangraya Megah - Indonesia
- Bangladesh Power Developement Board
- Wood Mackenzie - Singapore
- Vijayanagar Sugar Pvt Ltd - India
- Interocean Group of Companies - India
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