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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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Tuesday, 25 August 20
INDIA'S IMPORTS FALL AS LOCKDOWNS IMPACT THE POWER AND INDUSTRIAL SECTORS - REPORT
India is the world’s second largest thermal coal consumer and importer, importing an estimated 211 million tonnes of thermal coal in 2019.&nb ...
Monday, 24 August 20
A COMBINATION OF DEVELOPMENTS DROVE THE FALLOFF COAL PRICES - CHIEF ECONOMIST’ OFFICE, AUSTRALIA
China, rising domestic production combined with subdued power demand;
India, a lockdown coupled with government directives that fav ...
Monday, 24 August 20
AUSTRALIA'S THERMAL COAL EXPORTS ARE FORECAST TO DROP FROM AN ESTIMATED $20 BILLION IN 2019-20 TO $16 BILLION IN 2020-21: REPORT
Thermal coal spot prices have fallen sharply as the impact of COVID-19 drives a contraction in seaborne trade for only the second time this century ...
Saturday, 22 August 20
REPORT SEES INDIA’S RELIANCE ON THERMAL POWER DROPPING TO 50% IN 2021, 43% IN 2026 - ET ENERGY | IEEFA
India’s dependence on thermal power will reduce to 50 per cent by 2021-22 and 43 per cent by 2026-27 on the back of renewable energy (RE) cap ...
Friday, 21 August 20
323 MILLION ELECTRIC VEHICLES WILL BE ON THE ROADS BY 2040 - WOOD MACKENZIE
Electric vehicle (EV) sales are expected to reach 45 million units per year by 2040, with a total global EV stock of 323 million, according to new ...
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- Ind-Barath Power Infra Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Sical Logistics Limited - India
- Anglo American - United Kingdom
- Xindia Steels Limited - India
- Baramulti Group, Indonesia
- Thai Mozambique Logistica
- Jorong Barutama Greston.PT - Indonesia
- Sojitz Corporation - Japan
- Samtan Co., Ltd - South Korea
- Meralco Power Generation, Philippines
- Borneo Indobara - Indonesia
- OPG Power Generation Pvt Ltd - India
- SMG Consultants - Indonesia
- Gujarat Sidhee Cement - India
- Electricity Generating Authority of Thailand
- Petrochimia International Co. Ltd.- Taiwan
- ICICI Bank Limited - India
- Billiton Holdings Pty Ltd - Australia
- Ceylon Electricity Board - Sri Lanka
- Riau Bara Harum - Indonesia
- Parliament of New Zealand
- Malabar Cements Ltd - India
- Aboitiz Power Corporation - Philippines
- Maheswari Brothers Coal Limited - India
- Bukit Makmur.PT - Indonesia
- Banpu Public Company Limited - Thailand
- Mintek Dendrill Indonesia
- Oldendorff Carriers - Singapore
- IHS Mccloskey Coal Group - USA
- Orica Mining Services - Indonesia
- Kideco Jaya Agung - Indonesia
- Pendopo Energi Batubara - Indonesia
- Australian Commodity Traders Exchange
- European Bulk Services B.V. - Netherlands
- Jaiprakash Power Ventures ltd
- Posco Energy - South Korea
- Kepco SPC Power Corporation, Philippines
- VISA Power Limited - India
- Kartika Selabumi Mining - Indonesia
- Eastern Energy - Thailand
- Sarangani Energy Corporation, Philippines
- Energy Development Corp, Philippines
- Electricity Authority, New Zealand
- Kaltim Prima Coal - Indonesia
- Coalindo Energy - Indonesia
- Directorate Of Revenue Intelligence - India
- Trasteel International SA, Italy
- Latin American Coal - Colombia
- Planning Commission, India
- Port Waratah Coal Services - Australia
- Tata Chemicals Ltd - India
- Altura Mining Limited, Indonesia
- Karaikal Port Pvt Ltd - India
- Krishnapatnam Port Company Ltd. - India
- Mercator Lines Limited - India
- Aditya Birla Group - India
- CIMB Investment Bank - Malaysia
- White Energy Company Limited
- PNOC Exploration Corporation - Philippines
- Maharashtra Electricity Regulatory Commission - India
- Jindal Steel & Power Ltd - India
- Ministry of Mines - Canada
- Chettinad Cement Corporation Ltd - India
- Leighton Contractors Pty Ltd - Australia
- Bhatia International Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Uttam Galva Steels Limited - India
- SN Aboitiz Power Inc, Philippines
- Straits Asia Resources Limited - Singapore
- Price Waterhouse Coopers - Russia
- Dalmia Cement Bharat India
- Bulk Trading Sa - Switzerland
- Timah Investasi Mineral - Indoneisa
- Neyveli Lignite Corporation Ltd, - India
- Interocean Group of Companies - India
- Essar Steel Hazira Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Global Business Power Corporation, Philippines
- Iligan Light & Power Inc, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Bhushan Steel Limited - India
- Intertek Mineral Services - Indonesia
- Merrill Lynch Commodities Europe
- Ambuja Cements Ltd - India
- New Zealand Coal & Carbon
- The State Trading Corporation of India Ltd
- Holcim Trading Pte Ltd - Singapore
- ASAPP Information Group - India
- Kalimantan Lumbung Energi - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- GVK Power & Infra Limited - India
- Economic Council, Georgia
- Edison Trading Spa - Italy
- Indo Tambangraya Megah - Indonesia
- Singapore Mercantile Exchange
- AsiaOL BioFuels Corp., Philippines
- Global Coal Blending Company Limited - Australia
- Siam City Cement PLC, Thailand
- Chamber of Mines of South Africa
- GAC Shipping (India) Pvt Ltd
- Bhoruka Overseas - Indonesia
- IEA Clean Coal Centre - UK
- Ministry of Transport, Egypt
- Central Electricity Authority - India
- Simpson Spence & Young - Indonesia
- Tamil Nadu electricity Board
- Commonwealth Bank - Australia
- Pipit Mutiara Jaya. PT, Indonesia
- Georgia Ports Authority, United States
- Mjunction Services Limited - India
- Indogreen Group - Indonesia
- LBH Netherlands Bv - Netherlands
- Goldman Sachs - Singapore
- Indian Energy Exchange, India
- Eastern Coal Council - USA
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Indian Oil Corporation Limited
- Therma Luzon, Inc, Philippines
- Africa Commodities Group - South Africa
- Cement Manufacturers Association - India
- Kobexindo Tractors - Indoneisa
- Vedanta Resources Plc - India
- Minerals Council of Australia
- Meenaskhi Energy Private Limited - India
- Indika Energy - Indonesia
- Heidelberg Cement - Germany
- Globalindo Alam Lestari - Indonesia
- Indonesian Coal Mining Association
- Coastal Gujarat Power Limited - India
- Vizag Seaport Private Limited - India
- International Coal Ventures Pvt Ltd - India
- SMC Global Power, Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Metalloyd Limited - United Kingdom
- Parry Sugars Refinery, India
- The Treasury - Australian Government
- Rio Tinto Coal - Australia
- Mercuria Energy - Indonesia
- Wood Mackenzie - Singapore
- Bharathi Cement Corporation - India
- Renaissance Capital - South Africa
- GN Power Mariveles Coal Plant, Philippines
- Petron Corporation, Philippines
- Star Paper Mills Limited - India
- Bukit Baiduri Energy - Indonesia
- Australian Coal Association
- Carbofer General Trading SA - India
- Binh Thuan Hamico - Vietnam
- India Bulls Power Limited - India
- Bayan Resources Tbk. - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Larsen & Toubro Limited - India
- Alfred C Toepfer International GmbH - Germany
- Wilmar Investment Holdings
- Energy Link Ltd, New Zealand
- Sinarmas Energy and Mining - Indonesia
- The University of Queensland
- Kumho Petrochemical, South Korea
- Power Finance Corporation Ltd., India
- Videocon Industries ltd - India
- GMR Energy Limited - India
- MS Steel International - UAE
- San Jose City I Power Corp, Philippines
- Kapuas Tunggal Persada - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- PTC India Limited - India
- Agrawal Coal Company - India
- South Luzon Thermal Energy Corporation
- Savvy Resources Ltd - HongKong
- CNBM International Corporation - China
- Cigading International Bulk Terminal - Indonesia
- Barasentosa Lestari - Indonesia
- Deloitte Consulting - India
- Sindya Power Generating Company Private Ltd
- Medco Energi Mining Internasional
- Romanian Commodities Exchange
- Gujarat Electricity Regulatory Commission - India
- Central Java Power - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Manunggal Multi Energi - Indonesia
- Madhucon Powers Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Rashtriya Ispat Nigam Limited - India
- London Commodity Brokers - England
- McConnell Dowell - Australia
- Grasim Industreis Ltd - India
- Bangladesh Power Developement Board
- Independent Power Producers Association of India
- Coal and Oil Company - UAE
- Salva Resources Pvt Ltd - India
- Siam City Cement - Thailand
- Makarim & Taira - Indonesia
- Thiess Contractors Indonesia
- PowerSource Philippines DevCo
- Orica Australia Pty. Ltd.
- Antam Resourcindo - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Attock Cement Pakistan Limited
- Ministry of Finance - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Gujarat Mineral Development Corp Ltd - India
- Formosa Plastics Group - Taiwan
- Bukit Asam (Persero) Tbk - Indonesia
- Standard Chartered Bank - UAE
- Marubeni Corporation - India
- Semirara Mining Corp, Philippines
- Sakthi Sugars Limited - India
- Lanco Infratech Ltd - India
- Toyota Tsusho Corporation, Japan
- TeaM Sual Corporation - Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Miang Besar Coal Terminal - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Global Green Power PLC Corporation, Philippines
- Sree Jayajothi Cements Limited - India
- PetroVietnam Power Coal Import and Supply Company
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