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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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Friday, 04 September 20
IN A DEEPENING DEBT HOLE OF $34 BILLION, INDONESIA’S PLN MUST STOP DIGGING - IEEFA
The utility has added IDR100 trillion in debt annually for the last five years
Utilities globally started changing the way they do business ye ...
Friday, 04 September 20
KOMIPO INVITED BIDS FOR AUSTRALIAN MIN 5,700 NCV COAL FOR NOVEMBER
COALspot.com: Korea Midland Power Co. Ltd, has issued an International tender for 260,000 MT Min.5,700 kcal/kg NCV coal November, 2020 loading. Acc ...
Thursday, 03 September 20
BRINGING SERVICES OF FTCCI CLOSER TO THE EXPORTERS AT GMR AIR CARGO COMPLEX AT SHAMSHABAD
Press Release: “FTCCI Trade Facilitation Services at your doorstep now” says J.S. Chandrashekar, IRS., Principal Commissioner of Custom ...
Thursday, 03 September 20
CHINA'S BENCHMARK POWER COAL PRICE REMAINS FLAT - XINHUA
China’s benchmark power coal price remained flat during the past week.
The Bohai-Rim Steam-Coal Price Index (BSPI), a gauge of ...
Wednesday, 02 September 20
COAL PRODUCTION FALLS 7% IN APR-AUG; OFF TAKE DIPS 13.4% - FINANCIAL EXPRESS
In the month of August coal off take also increased 9.3% y-o-y to 44.34 MT as compared with 40.57 MT in the same period last year.
C ...
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- Kumho Petrochemical, South Korea
- Africa Commodities Group - South Africa
- Altura Mining Limited, Indonesia
- Manunggal Multi Energi - Indonesia
- Ministry of Transport, Egypt
- Tamil Nadu electricity Board
- Aboitiz Power Corporation - Philippines
- PowerSource Philippines DevCo
- Bank of Tokyo Mitsubishi UFJ Ltd
- Pipit Mutiara Jaya. PT, Indonesia
- Sical Logistics Limited - India
- Directorate General of MIneral and Coal - Indonesia
- White Energy Company Limited
- OPG Power Generation Pvt Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- GAC Shipping (India) Pvt Ltd
- Latin American Coal - Colombia
- Holcim Trading Pte Ltd - Singapore
- AsiaOL BioFuels Corp., Philippines
- Chettinad Cement Corporation Ltd - India
- Baramulti Group, Indonesia
- IHS Mccloskey Coal Group - USA
- ASAPP Information Group - India
- Karaikal Port Pvt Ltd - India
- Agrawal Coal Company - India
- Bhushan Steel Limited - India
- The Treasury - Australian Government
- Vijayanagar Sugar Pvt Ltd - India
- Bukit Makmur.PT - Indonesia
- Makarim & Taira - Indonesia
- Xindia Steels Limited - India
- Kobexindo Tractors - Indoneisa
- ICICI Bank Limited - India
- Central Java Power - Indonesia
- Straits Asia Resources Limited - Singapore
- Indian Oil Corporation Limited
- Malabar Cements Ltd - India
- Medco Energi Mining Internasional
- Port Waratah Coal Services - Australia
- Tata Chemicals Ltd - India
- Indika Energy - Indonesia
- Therma Luzon, Inc, Philippines
- London Commodity Brokers - England
- Parliament of New Zealand
- Bahari Cakrawala Sebuku - Indonesia
- The State Trading Corporation of India Ltd
- Bangladesh Power Developement Board
- Siam City Cement - Thailand
- LBH Netherlands Bv - Netherlands
- Borneo Indobara - Indonesia
- San Jose City I Power Corp, Philippines
- Electricity Authority, New Zealand
- Coastal Gujarat Power Limited - India
- Ceylon Electricity Board - Sri Lanka
- Indian Energy Exchange, India
- Wilmar Investment Holdings
- Indo Tambangraya Megah - Indonesia
- Planning Commission, India
- Petron Corporation, Philippines
- Bulk Trading Sa - Switzerland
- Minerals Council of Australia
- Wood Mackenzie - Singapore
- Mercator Lines Limited - India
- Siam City Cement PLC, Thailand
- Commonwealth Bank - Australia
- The University of Queensland
- Global Green Power PLC Corporation, Philippines
- Posco Energy - South Korea
- Petrochimia International Co. Ltd.- Taiwan
- Global Business Power Corporation, Philippines
- Billiton Holdings Pty Ltd - Australia
- Aditya Birla Group - India
- Jaiprakash Power Ventures ltd
- Romanian Commodities Exchange
- Sinarmas Energy and Mining - Indonesia
- Kideco Jaya Agung - Indonesia
- MS Steel International - UAE
- Central Electricity Authority - India
- Dalmia Cement Bharat India
- Antam Resourcindo - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Miang Besar Coal Terminal - Indonesia
- SMG Consultants - Indonesia
- Sojitz Corporation - Japan
- Ambuja Cements Ltd - India
- Jindal Steel & Power Ltd - India
- Cement Manufacturers Association - India
- Meralco Power Generation, Philippines
- GMR Energy Limited - India
- VISA Power Limited - India
- Mjunction Services Limited - India
- Toyota Tsusho Corporation, Japan
- New Zealand Coal & Carbon
- Lanco Infratech Ltd - India
- PTC India Limited - India
- Eastern Coal Council - USA
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bukit Asam (Persero) Tbk - Indonesia
- Samtan Co., Ltd - South Korea
- Interocean Group of Companies - India
- Global Coal Blending Company Limited - Australia
- Thai Mozambique Logistica
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- CNBM International Corporation - China
- PetroVietnam Power Coal Import and Supply Company
- Kapuas Tunggal Persada - Indonesia
- Pendopo Energi Batubara - Indonesia
- Banpu Public Company Limited - Thailand
- Marubeni Corporation - India
- Videocon Industries ltd - India
- Simpson Spence & Young - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Gujarat Sidhee Cement - India
- Larsen & Toubro Limited - India
- Australian Commodity Traders Exchange
- Coalindo Energy - Indonesia
- Mintek Dendrill Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- GN Power Mariveles Coal Plant, Philippines
- European Bulk Services B.V. - Netherlands
- Rio Tinto Coal - Australia
- Essar Steel Hazira Ltd - India
- Bharathi Cement Corporation - India
- Leighton Contractors Pty Ltd - Australia
- Power Finance Corporation Ltd., India
- Renaissance Capital - South Africa
- Kartika Selabumi Mining - Indonesia
- Savvy Resources Ltd - HongKong
- Vizag Seaport Private Limited - India
- Intertek Mineral Services - Indonesia
- Electricity Generating Authority of Thailand
- Sree Jayajothi Cements Limited - India
- Timah Investasi Mineral - Indoneisa
- Formosa Plastics Group - Taiwan
- Bayan Resources Tbk. - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Carbofer General Trading SA - India
- Krishnapatnam Port Company Ltd. - India
- Chamber of Mines of South Africa
- Riau Bara Harum - Indonesia
- Orica Australia Pty. Ltd.
- Vedanta Resources Plc - India
- Gujarat Mineral Development Corp Ltd - India
- Star Paper Mills Limited - India
- SMC Global Power, Philippines
- Ministry of Finance - Indonesia
- Independent Power Producers Association of India
- Parry Sugars Refinery, India
- McConnell Dowell - Australia
- Bhatia International Limited - India
- PNOC Exploration Corporation - Philippines
- Goldman Sachs - Singapore
- Directorate Of Revenue Intelligence - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Trasteel International SA, Italy
- Rashtriya Ispat Nigam Limited - India
- Metalloyd Limited - United Kingdom
- TeaM Sual Corporation - Philippines
- Kepco SPC Power Corporation, Philippines
- International Coal Ventures Pvt Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Anglo American - United Kingdom
- Kaltim Prima Coal - Indonesia
- Standard Chartered Bank - UAE
- Indonesian Coal Mining Association
- Sarangani Energy Corporation, Philippines
- Attock Cement Pakistan Limited
- Kalimantan Lumbung Energi - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Australian Coal Association
- Maheswari Brothers Coal Limited - India
- Singapore Mercantile Exchange
- Ministry of Mines - Canada
- Asmin Koalindo Tuhup - Indonesia
- Price Waterhouse Coopers - Russia
- Cigading International Bulk Terminal - Indonesia
- Meenaskhi Energy Private Limited - India
- Barasentosa Lestari - Indonesia
- Salva Resources Pvt Ltd - India
- Energy Development Corp, Philippines
- Ind-Barath Power Infra Limited - India
- Oldendorff Carriers - Singapore
- Bhoruka Overseas - Indonesia
- Merrill Lynch Commodities Europe
- CIMB Investment Bank - Malaysia
- Iligan Light & Power Inc, Philippines
- Eastern Energy - Thailand
- Heidelberg Cement - Germany
- Alfred C Toepfer International GmbH - Germany
- Thiess Contractors Indonesia
- Georgia Ports Authority, United States
- SN Aboitiz Power Inc, Philippines
- Sakthi Sugars Limited - India
- Indogreen Group - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Energy Link Ltd, New Zealand
- GVK Power & Infra Limited - India
- IEA Clean Coal Centre - UK
- Binh Thuan Hamico - Vietnam
- Madhucon Powers Ltd - India
- Bukit Baiduri Energy - Indonesia
- Edison Trading Spa - Italy
- Deloitte Consulting - India
- Orica Mining Services - Indonesia
- Coal and Oil Company - UAE
- India Bulls Power Limited - India
- Mercuria Energy - Indonesia
- Semirara Mining Corp, Philippines
- South Luzon Thermal Energy Corporation
- Grasim Industreis Ltd - India
- Globalindo Alam Lestari - Indonesia
- Uttam Galva Steels Limited - India
- Economic Council, Georgia
- Karbindo Abesyapradhi - Indoneisa
- Sindya Power Generating Company Private Ltd
- Neyveli Lignite Corporation Ltd, - India
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