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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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Sunday, 30 August 20
PANAMAX - THIS WEEK THE DEMAND HAS PICKED UP, BUT THE TONNAGE LIST IS INCREASING DAY BY DAY - FEARNLEYS
Cape Size
More or less flat from previous week, with cape rates moving from US$ 19,500 to 18,900 on average. West Australia however being more ...
Saturday, 29 August 20
COAL INDIA'S FUEL SUPPLY TO POWER SECTOR DROPS ABOUT 20% IN APR-JUL: PTI
State-owned Coal India”s fuel supply to the power sector registered a decline of 19.5 per cent to 126.30 million tonnes (MT) in the April-Jul ...
Saturday, 29 August 20
SOUTH KOREAN BROKERAGE FIRM KOREA INVESTMENT & SECURITIES TO STOP ALL COAL BUSINESS - KOREA HERALD
South Korean brokerage firm Korea Investment & Securities has decided to stop its investments in coal, in line with the Moon Jae-in administrat ...
Thursday, 27 August 20
KOREAN GENCOS INVITED BIDS FOR TOTAL 985,000 TONS OF BITUMINOUS COAL FOR NOVEMBER 2020 LOADING
COALspot.com: Korea Midland Power Co., Ltd (KOMIPO) on behalf of EWP, KOSPO, KOSEP and KOWEPO has issued an international tender for total 985,000 ...
Thursday, 27 August 20
SOUTHEAST ASIAN NATIONS SET REGION-WIDE RENEWABLE ENERGY GOAL OF 23 PERCENT BY 2025 - ASEAN POST
The Association of Southeast Asian Nations (ASEAN) has set an ambitious target of securing 23 percent of its primary energy from renewable so ...
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Showing 806 to 810 news of total 6871 |
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- Kohat Cement Company Ltd. - Pakistan
- Karaikal Port Pvt Ltd - India
- Africa Commodities Group - South Africa
- Bharathi Cement Corporation - India
- Holcim Trading Pte Ltd - Singapore
- Antam Resourcindo - Indonesia
- Chettinad Cement Corporation Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- TeaM Sual Corporation - Philippines
- Kumho Petrochemical, South Korea
- Krishnapatnam Port Company Ltd. - India
- Singapore Mercantile Exchange
- Indo Tambangraya Megah - Indonesia
- CNBM International Corporation - China
- Trasteel International SA, Italy
- Kobexindo Tractors - Indoneisa
- Global Business Power Corporation, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Posco Energy - South Korea
- SN Aboitiz Power Inc, Philippines
- Planning Commission, India
- Gujarat Mineral Development Corp Ltd - India
- Bhushan Steel Limited - India
- PTC India Limited - India
- London Commodity Brokers - England
- Interocean Group of Companies - India
- Ambuja Cements Ltd - India
- Leighton Contractors Pty Ltd - Australia
- Ministry of Transport, Egypt
- Metalloyd Limited - United Kingdom
- Cigading International Bulk Terminal - Indonesia
- Videocon Industries ltd - India
- Thiess Contractors Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Salva Resources Pvt Ltd - India
- McConnell Dowell - Australia
- Georgia Ports Authority, United States
- Meenaskhi Energy Private Limited - India
- Central Java Power - Indonesia
- Binh Thuan Hamico - Vietnam
- Indian Oil Corporation Limited
- The Treasury - Australian Government
- IHS Mccloskey Coal Group - USA
- Ind-Barath Power Infra Limited - India
- Barasentosa Lestari - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Marubeni Corporation - India
- Eastern Coal Council - USA
- PowerSource Philippines DevCo
- Mercuria Energy - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Standard Chartered Bank - UAE
- Grasim Industreis Ltd - India
- Australian Coal Association
- Indogreen Group - Indonesia
- Bhatia International Limited - India
- Dalmia Cement Bharat India
- Rashtriya Ispat Nigam Limited - India
- Simpson Spence & Young - Indonesia
- Siam City Cement - Thailand
- Maharashtra Electricity Regulatory Commission - India
- Rio Tinto Coal - Australia
- Vijayanagar Sugar Pvt Ltd - India
- Mercator Lines Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Bulk Trading Sa - Switzerland
- Economic Council, Georgia
- OPG Power Generation Pvt Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Indonesian Coal Mining Association
- Mintek Dendrill Indonesia
- Wilmar Investment Holdings
- Merrill Lynch Commodities Europe
- PNOC Exploration Corporation - Philippines
- Kalimantan Lumbung Energi - Indonesia
- Bhoruka Overseas - Indonesia
- Ministry of Finance - Indonesia
- Baramulti Group, Indonesia
- European Bulk Services B.V. - Netherlands
- Pendopo Energi Batubara - Indonesia
- Energy Link Ltd, New Zealand
- Aditya Birla Group - India
- Ceylon Electricity Board - Sri Lanka
- SMC Global Power, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Iligan Light & Power Inc, Philippines
- Directorate General of MIneral and Coal - Indonesia
- Kartika Selabumi Mining - Indonesia
- Meralco Power Generation, Philippines
- Therma Luzon, Inc, Philippines
- Australian Commodity Traders Exchange
- Jaiprakash Power Ventures ltd
- Energy Development Corp, Philippines
- The State Trading Corporation of India Ltd
- Vizag Seaport Private Limited - India
- Central Electricity Authority - India
- Petron Corporation, Philippines
- Deloitte Consulting - India
- Lanco Infratech Ltd - India
- Attock Cement Pakistan Limited
- Altura Mining Limited, Indonesia
- Orica Mining Services - Indonesia
- Edison Trading Spa - Italy
- Coal and Oil Company - UAE
- India Bulls Power Limited - India
- Billiton Holdings Pty Ltd - Australia
- Indika Energy - Indonesia
- Wood Mackenzie - Singapore
- LBH Netherlands Bv - Netherlands
- Malabar Cements Ltd - India
- Banpu Public Company Limited - Thailand
- Manunggal Multi Energi - Indonesia
- Timah Investasi Mineral - Indoneisa
- Coastal Gujarat Power Limited - India
- Port Waratah Coal Services - Australia
- Ministry of Mines - Canada
- Bangladesh Power Developement Board
- Price Waterhouse Coopers - Russia
- Toyota Tsusho Corporation, Japan
- Global Green Power PLC Corporation, Philippines
- Power Finance Corporation Ltd., India
- AsiaOL BioFuels Corp., Philippines
- Savvy Resources Ltd - HongKong
- Gujarat Sidhee Cement - India
- Madhucon Powers Ltd - India
- White Energy Company Limited
- Bukit Asam (Persero) Tbk - Indonesia
- Oldendorff Carriers - Singapore
- Aboitiz Power Corporation - Philippines
- Xindia Steels Limited - India
- Vedanta Resources Plc - India
- Bukit Baiduri Energy - Indonesia
- Jindal Steel & Power Ltd - India
- IEA Clean Coal Centre - UK
- Eastern Energy - Thailand
- Independent Power Producers Association of India
- Siam City Cement PLC, Thailand
- Indian Energy Exchange, India
- Maheswari Brothers Coal Limited - India
- Formosa Plastics Group - Taiwan
- Bayan Resources Tbk. - Indonesia
- Sree Jayajothi Cements Limited - India
- International Coal Ventures Pvt Ltd - India
- Kideco Jaya Agung - Indonesia
- Coalindo Energy - Indonesia
- Commonwealth Bank - Australia
- Mjunction Services Limited - India
- San Jose City I Power Corp, Philippines
- Makarim & Taira - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Minerals Council of Australia
- Anglo American - United Kingdom
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Electricity Generating Authority of Thailand
- Electricity Authority, New Zealand
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Essar Steel Hazira Ltd - India
- CIMB Investment Bank - Malaysia
- Sarangani Energy Corporation, Philippines
- ICICI Bank Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Riau Bara Harum - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Larsen & Toubro Limited - India
- Goldman Sachs - Singapore
- Medco Energi Mining Internasional
- Kapuas Tunggal Persada - Indonesia
- Kepco SPC Power Corporation, Philippines
- Globalindo Alam Lestari - Indonesia
- Carbofer General Trading SA - India
- Bukit Makmur.PT - Indonesia
- Sojitz Corporation - Japan
- Global Coal Blending Company Limited - Australia
- Agrawal Coal Company - India
- Intertek Mineral Services - Indonesia
- Straits Asia Resources Limited - Singapore
- New Zealand Coal & Carbon
- Chamber of Mines of South Africa
- Renaissance Capital - South Africa
- Sical Logistics Limited - India
- Samtan Co., Ltd - South Korea
- GMR Energy Limited - India
- Romanian Commodities Exchange
- Heidelberg Cement - Germany
- Semirara Mining Corp, Philippines
- Parry Sugars Refinery, India
- Orica Australia Pty. Ltd.
- Alfred C Toepfer International GmbH - Germany
- GVK Power & Infra Limited - India
- Directorate Of Revenue Intelligence - India
- PetroVietnam Power Coal Import and Supply Company
- Tata Chemicals Ltd - India
- The University of Queensland
- Semirara Mining and Power Corporation, Philippines
- South Luzon Thermal Energy Corporation
- Star Paper Mills Limited - India
- SMG Consultants - Indonesia
- GAC Shipping (India) Pvt Ltd
- Thai Mozambique Logistica
- Uttam Galva Steels Limited - India
- Borneo Indobara - Indonesia
- Sindya Power Generating Company Private Ltd
- Tamil Nadu electricity Board
- Asmin Koalindo Tuhup - Indonesia
- MS Steel International - UAE
- Sakthi Sugars Limited - India
- Kaltim Prima Coal - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Miang Besar Coal Terminal - Indonesia
- Latin American Coal - Colombia
- Parliament of New Zealand
- VISA Power Limited - India
- Cement Manufacturers Association - India
- ASAPP Information Group - India
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