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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, 19 August 20
COAL INDIA TRADE UNIONS DEFER DAY-LONG STRIKE: PTI
The unions had decided to go on strike against the commercial mining and the proposed divestment or buyback of shares of Coal India Ltd (CIL).
...
Wednesday, 19 August 20
MISC MARKS ITS MAIDEN FORAY INTO MAJOR DEEP-WATER PROJECT IN LATIN AMERICA WITH MERO 3 FPSO
MISC Berhad (MISC) is pleased to announce its acceptance of Letter of Intent (LOI) from Petróleo Brasileiro S.A. (Petrobras) for the provisi ...
Wednesday, 19 August 20
MARKET INSIGHT - GEORGE LAIOS | INTERMODAL
Since the Covid-19 outbreak, governments and central banks around the globe have been using their ammunition and stimulus packages to keep their ec ...
Wednesday, 19 August 20
INDIA SAW A SHARP DECLINE IN ENERGY COAL IMPORTS IN JANUARY - JUNE 2020; –27 PER CENT YOY - BHP
Energy coal prices were weak in the second half of financial year 2020, BHP says in its Economic and Commodity Outlook FY20.
Accordi ...
Wednesday, 19 August 20
COAL PRICES TO REMAIN SUBDUED THIS FISCAL AMID WEAK DEMAND, HIGH INVENTORY - THE HINDU BUSINESS LINE
Coal offtake is improving gradually as lockdown eases
Coal prices are expected to remain subdued to weak demand and high inventory l ...
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- Bank of Tokyo Mitsubishi UFJ Ltd
- Coastal Gujarat Power Limited - India
- The Treasury - Australian Government
- Kartika Selabumi Mining - Indonesia
- PNOC Exploration Corporation - Philippines
- Banpu Public Company Limited - Thailand
- Ministry of Mines - Canada
- Parry Sugars Refinery, India
- Cigading International Bulk Terminal - Indonesia
- IEA Clean Coal Centre - UK
- Miang Besar Coal Terminal - Indonesia
- Global Business Power Corporation, Philippines
- Independent Power Producers Association of India
- Chamber of Mines of South Africa
- Parliament of New Zealand
- Videocon Industries ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Tata Chemicals Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Bayan Resources Tbk. - Indonesia
- Kobexindo Tractors - Indoneisa
- VISA Power Limited - India
- Deloitte Consulting - India
- Kalimantan Lumbung Energi - Indonesia
- Romanian Commodities Exchange
- Mjunction Services Limited - India
- Semirara Mining and Power Corporation, Philippines
- Ambuja Cements Ltd - India
- Indika Energy - Indonesia
- Trasteel International SA, Italy
- Meralco Power Generation, Philippines
- Indonesian Coal Mining Association
- Goldman Sachs - Singapore
- Global Green Power PLC Corporation, Philippines
- Oldendorff Carriers - Singapore
- Tamil Nadu electricity Board
- Riau Bara Harum - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Siam City Cement PLC, Thailand
- Intertek Mineral Services - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- London Commodity Brokers - England
- Grasim Industreis Ltd - India
- Leighton Contractors Pty Ltd - Australia
- Economic Council, Georgia
- Gujarat Sidhee Cement - India
- Maharashtra Electricity Regulatory Commission - India
- Australian Commodity Traders Exchange
- Lanco Infratech Ltd - India
- Kideco Jaya Agung - Indonesia
- ICICI Bank Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Directorate Of Revenue Intelligence - India
- Barasentosa Lestari - Indonesia
- Altura Mining Limited, Indonesia
- Billiton Holdings Pty Ltd - Australia
- Madhucon Powers Ltd - India
- Ceylon Electricity Board - Sri Lanka
- Kepco SPC Power Corporation, Philippines
- Sree Jayajothi Cements Limited - India
- GMR Energy Limited - India
- Vizag Seaport Private Limited - India
- Aditya Birla Group - India
- PetroVietnam Power Coal Import and Supply Company
- TNB Fuel Sdn Bhd - Malaysia
- Formosa Plastics Group - Taiwan
- Toyota Tsusho Corporation, Japan
- Latin American Coal - Colombia
- Directorate General of MIneral and Coal - Indonesia
- Jindal Steel & Power Ltd - India
- Mercuria Energy - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Thiess Contractors Indonesia
- Antam Resourcindo - Indonesia
- Baramulti Group, Indonesia
- Sical Logistics Limited - India
- Malabar Cements Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- SN Aboitiz Power Inc, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Mintek Dendrill Indonesia
- Indo Tambangraya Megah - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Sakthi Sugars Limited - India
- Star Paper Mills Limited - India
- Merrill Lynch Commodities Europe
- Agrawal Coal Company - India
- Edison Trading Spa - Italy
- White Energy Company Limited
- Maheswari Brothers Coal Limited - India
- Metalloyd Limited - United Kingdom
- Gujarat Electricity Regulatory Commission - India
- Electricity Generating Authority of Thailand
- Orica Mining Services - Indonesia
- Savvy Resources Ltd - HongKong
- Rashtriya Ispat Nigam Limited - India
- Electricity Authority, New Zealand
- Coalindo Energy - Indonesia
- Binh Thuan Hamico - Vietnam
- Pendopo Energi Batubara - Indonesia
- Manunggal Multi Energi - Indonesia
- Energy Development Corp, Philippines
- Kumho Petrochemical, South Korea
- Indogreen Group - Indonesia
- Ind-Barath Power Infra Limited - India
- Global Coal Blending Company Limited - Australia
- Planning Commission, India
- GAC Shipping (India) Pvt Ltd
- Dalmia Cement Bharat India
- McConnell Dowell - Australia
- Commonwealth Bank - Australia
- Kapuas Tunggal Persada - Indonesia
- Medco Energi Mining Internasional
- Standard Chartered Bank - UAE
- Larsen & Toubro Limited - India
- Central Java Power - Indonesia
- Straits Asia Resources Limited - Singapore
- CNBM International Corporation - China
- Chettinad Cement Corporation Ltd - India
- Jaiprakash Power Ventures ltd
- Offshore Bulk Terminal Pte Ltd, Singapore
- Port Waratah Coal Services - Australia
- SMC Global Power, Philippines
- India Bulls Power Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Kaltim Prima Coal - Indonesia
- Samtan Co., Ltd - South Korea
- Sindya Power Generating Company Private Ltd
- GVK Power & Infra Limited - India
- Indian Energy Exchange, India
- Marubeni Corporation - India
- Cement Manufacturers Association - India
- IHS Mccloskey Coal Group - USA
- Asmin Koalindo Tuhup - Indonesia
- Attock Cement Pakistan Limited
- Holcim Trading Pte Ltd - Singapore
- PTC India Limited - India
- Uttam Galva Steels Limited - India
- Bharathi Cement Corporation - India
- Minerals Council of Australia
- Australian Coal Association
- Therma Luzon, Inc, Philippines
- Heidelberg Cement - Germany
- European Bulk Services B.V. - Netherlands
- San Jose City I Power Corp, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- MS Steel International - UAE
- Price Waterhouse Coopers - Russia
- Africa Commodities Group - South Africa
- Wood Mackenzie - Singapore
- Timah Investasi Mineral - Indoneisa
- Singapore Mercantile Exchange
- Pipit Mutiara Jaya. PT, Indonesia
- Alfred C Toepfer International GmbH - Germany
- AsiaOL BioFuels Corp., Philippines
- Renaissance Capital - South Africa
- Bukit Makmur.PT - Indonesia
- The State Trading Corporation of India Ltd
- CIMB Investment Bank - Malaysia
- International Coal Ventures Pvt Ltd - India
- South Luzon Thermal Energy Corporation
- Karbindo Abesyapradhi - Indoneisa
- Central Electricity Authority - India
- TeaM Sual Corporation - Philippines
- Energy Link Ltd, New Zealand
- Semirara Mining Corp, Philippines
- SMG Consultants - Indonesia
- Indian Oil Corporation Limited
- Thai Mozambique Logistica
- Bhatia International Limited - India
- Bangladesh Power Developement Board
- Sojitz Corporation - Japan
- Sarangani Energy Corporation, Philippines
- Petron Corporation, Philippines
- Coal and Oil Company - UAE
- Globalindo Alam Lestari - Indonesia
- Mercator Lines Limited - India
- Vedanta Resources Plc - India
- Interocean Group of Companies - India
- Sinarmas Energy and Mining - Indonesia
- Eastern Coal Council - USA
- Rio Tinto Coal - Australia
- ASAPP Information Group - India
- The University of Queensland
- Bhoruka Overseas - Indonesia
- PowerSource Philippines DevCo
- Orica Australia Pty. Ltd.
- Karaikal Port Pvt Ltd - India
- Ministry of Finance - Indonesia
- Essar Steel Hazira Ltd - India
- OPG Power Generation Pvt Ltd - India
- Power Finance Corporation Ltd., India
- Borneo Indobara - Indonesia
- Anglo American - United Kingdom
- Georgia Ports Authority, United States
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Ministry of Transport, Egypt
- New Zealand Coal & Carbon
- Xindia Steels Limited - India
- Carbofer General Trading SA - India
- Aboitiz Power Corporation - Philippines
- Jorong Barutama Greston.PT - Indonesia
- Makarim & Taira - Indonesia
- Iligan Light & Power Inc, Philippines
- Salva Resources Pvt Ltd - India
- Krishnapatnam Port Company Ltd. - India
- LBH Netherlands Bv - Netherlands
- Meenaskhi Energy Private Limited - India
- Bhushan Steel Limited - India
- Eastern Energy - Thailand
- Bulk Trading Sa - Switzerland
- Wilmar Investment Holdings
- Simpson Spence & Young - Indonesia
- Siam City Cement - Thailand
- Bukit Baiduri Energy - Indonesia
- Posco Energy - South Korea
- Bukit Asam (Persero) Tbk - Indonesia
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