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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, 12 August 20
THE COAL MARKET IN ITALY - ASSOCARBONI
Italy, which in 2019 reported a decrease in thermal coal imports, with a volume of 7,5 million tons (-32% compared to 11 million tons in 2018), whi ...
Wednesday, 12 August 20
U.S. COAL PRODUCTION IN 2020 WILL DECREASE BY 29% FROM 2019 LEVELS TO 502 MMST - EIA
U.S. coal consumption, which dropped to its lowest point since April, totaled 95 MMst in the second quarter of 2020.
EIA expec ...
Tuesday, 11 August 20
BHP COAL ASSETS WORTH A BILLION LESS THAN JUST TWO YEARS AGO - IEEFA
Another global investor, the UK’s biggest public pension fund NEST, has withdrawn funds from BHP this week because the company is profiting & ...
Monday, 10 August 20
COAL IMPORT DROPS 43% IN JULY OWING TO HIGH STOCKPILE AT PITHEADS, PLANTS - PTI
“The market participants seem to have adopted a wait and watch approach and are currently looking for a direction. We do not expect to see an ...
Saturday, 08 August 20
GLOBAL COAL POWER PUZZLE - BALTIC EXCHANGE
Global Energy Monitor’s latest Global Coal Plant Tracker has put another nail in the coffin for the coal-carrying fleet with its finding that ...
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Showing 836 to 840 news of total 6871 |
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- Bhatia International Limited - India
- Coal and Oil Company - UAE
- Lanco Infratech Ltd - India
- Antam Resourcindo - Indonesia
- Barasentosa Lestari - Indonesia
- Anglo American - United Kingdom
- Electricity Generating Authority of Thailand
- Essar Steel Hazira Ltd - India
- Simpson Spence & Young - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Aboitiz Power Corporation - Philippines
- Oldendorff Carriers - Singapore
- Offshore Bulk Terminal Pte Ltd, Singapore
- Petrochimia International Co. Ltd.- Taiwan
- OPG Power Generation Pvt Ltd - India
- International Coal Ventures Pvt Ltd - India
- Manunggal Multi Energi - Indonesia
- TeaM Sual Corporation - Philippines
- IEA Clean Coal Centre - UK
- Metalloyd Limited - United Kingdom
- Mercuria Energy - Indonesia
- Uttam Galva Steels Limited - India
- Bulk Trading Sa - Switzerland
- Kohat Cement Company Ltd. - Pakistan
- Global Coal Blending Company Limited - Australia
- Kalimantan Lumbung Energi - Indonesia
- The State Trading Corporation of India Ltd
- Planning Commission, India
- Rio Tinto Coal - Australia
- Semirara Mining and Power Corporation, Philippines
- Economic Council, Georgia
- Kartika Selabumi Mining - Indonesia
- New Zealand Coal & Carbon
- European Bulk Services B.V. - Netherlands
- Samtan Co., Ltd - South Korea
- Minerals Council of Australia
- Bukit Makmur.PT - Indonesia
- Kumho Petrochemical, South Korea
- Neyveli Lignite Corporation Ltd, - India
- Orica Australia Pty. Ltd.
- PTC India Limited - India
- Energy Development Corp, Philippines
- Australian Coal Association
- Global Business Power Corporation, Philippines
- Georgia Ports Authority, United States
- Wood Mackenzie - Singapore
- Ministry of Finance - Indonesia
- Commonwealth Bank - Australia
- Coastal Gujarat Power Limited - India
- Cement Manufacturers Association - India
- Sarangani Energy Corporation, Philippines
- London Commodity Brokers - England
- Directorate General of MIneral and Coal - Indonesia
- Orica Mining Services - Indonesia
- Electricity Authority, New Zealand
- Bhushan Steel Limited - India
- McConnell Dowell - Australia
- Kideco Jaya Agung - Indonesia
- MS Steel International - UAE
- Billiton Holdings Pty Ltd - Australia
- Sakthi Sugars Limited - India
- Baramulti Group, Indonesia
- Larsen & Toubro Limited - India
- Altura Mining Limited, Indonesia
- Parliament of New Zealand
- Petron Corporation, Philippines
- Kobexindo Tractors - Indoneisa
- Miang Besar Coal Terminal - Indonesia
- Bangladesh Power Developement Board
- CIMB Investment Bank - Malaysia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Globalindo Alam Lestari - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Kepco SPC Power Corporation, Philippines
- Binh Thuan Hamico - Vietnam
- Australian Commodity Traders Exchange
- Rashtriya Ispat Nigam Limited - India
- Maheswari Brothers Coal Limited - India
- SMG Consultants - Indonesia
- Siam City Cement - Thailand
- Port Waratah Coal Services - Australia
- Parry Sugars Refinery, India
- Kaltim Prima Coal - Indonesia
- Thiess Contractors Indonesia
- Toyota Tsusho Corporation, Japan
- Grasim Industreis Ltd - India
- Bharathi Cement Corporation - India
- ICICI Bank Limited - India
- Indian Oil Corporation Limited
- Videocon Industries ltd - India
- Sree Jayajothi Cements Limited - India
- Eastern Energy - Thailand
- Savvy Resources Ltd - HongKong
- SMC Global Power, Philippines
- GAC Shipping (India) Pvt Ltd
- Ceylon Electricity Board - Sri Lanka
- Wilmar Investment Holdings
- Holcim Trading Pte Ltd - Singapore
- Vizag Seaport Private Limited - India
- Chamber of Mines of South Africa
- Alfred C Toepfer International GmbH - Germany
- Riau Bara Harum - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Bukit Asam (Persero) Tbk - Indonesia
- Heidelberg Cement - Germany
- Dalmia Cement Bharat India
- Borneo Indobara - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- South Luzon Thermal Energy Corporation
- Singapore Mercantile Exchange
- Romanian Commodities Exchange
- Agrawal Coal Company - India
- Indika Energy - Indonesia
- Eastern Coal Council - USA
- LBH Netherlands Bv - Netherlands
- Chettinad Cement Corporation Ltd - India
- Xindia Steels Limited - India
- Medco Energi Mining Internasional
- Africa Commodities Group - South Africa
- Vedanta Resources Plc - India
- IHS Mccloskey Coal Group - USA
- VISA Power Limited - India
- Central Java Power - Indonesia
- Central Electricity Authority - India
- Vijayanagar Sugar Pvt Ltd - India
- Pendopo Energi Batubara - Indonesia
- Power Finance Corporation Ltd., India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Sinarmas Energy and Mining - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Kapuas Tunggal Persada - Indonesia
- Marubeni Corporation - India
- Timah Investasi Mineral - Indoneisa
- Standard Chartered Bank - UAE
- GVK Power & Infra Limited - India
- Iligan Light & Power Inc, Philippines
- Siam City Cement PLC, Thailand
- Ministry of Transport, Egypt
- Mintek Dendrill Indonesia
- Latin American Coal - Colombia
- Indogreen Group - Indonesia
- Formosa Plastics Group - Taiwan
- Tata Chemicals Ltd - India
- Sical Logistics Limited - India
- Directorate Of Revenue Intelligence - India
- Independent Power Producers Association of India
- Gujarat Sidhee Cement - India
- Bhoruka Overseas - Indonesia
- ASAPP Information Group - India
- PetroVietnam Power Coal Import and Supply Company
- Edison Trading Spa - Italy
- Indian Energy Exchange, India
- Madhucon Powers Ltd - India
- AsiaOL BioFuels Corp., Philippines
- Interocean Group of Companies - India
- PNOC Exploration Corporation - Philippines
- White Energy Company Limited
- Intertek Mineral Services - Indonesia
- Salva Resources Pvt Ltd - India
- The Treasury - Australian Government
- Energy Link Ltd, New Zealand
- Karaikal Port Pvt Ltd - India
- PowerSource Philippines DevCo
- GMR Energy Limited - India
- Merrill Lynch Commodities Europe
- Deloitte Consulting - India
- Sojitz Corporation - Japan
- Star Paper Mills Limited - India
- Jaiprakash Power Ventures ltd
- Global Green Power PLC Corporation, Philippines
- Krishnapatnam Port Company Ltd. - India
- Bayan Resources Tbk. - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Aditya Birla Group - India
- Pipit Mutiara Jaya. PT, Indonesia
- Mjunction Services Limited - India
- Leighton Contractors Pty Ltd - Australia
- Jindal Steel & Power Ltd - India
- Banpu Public Company Limited - Thailand
- Trasteel International SA, Italy
- Semirara Mining Corp, Philippines
- The University of Queensland
- Renaissance Capital - South Africa
- Cigading International Bulk Terminal - Indonesia
- Makarim & Taira - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Meralco Power Generation, Philippines
- Posco Energy - South Korea
- CNBM International Corporation - China
- SN Aboitiz Power Inc, Philippines
- India Bulls Power Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Goldman Sachs - Singapore
- Ministry of Mines - Canada
- Indonesian Coal Mining Association
- Carbofer General Trading SA - India
- Malabar Cements Ltd - India
- Meenaskhi Energy Private Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Indo Tambangraya Megah - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Thai Mozambique Logistica
- Price Waterhouse Coopers - Russia
- Sindya Power Generating Company Private Ltd
- Ind-Barath Power Infra Limited - India
- Tamil Nadu electricity Board
- Bukit Baiduri Energy - Indonesia
- Attock Cement Pakistan Limited
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Mercator Lines Limited - India
- Coalindo Energy - Indonesia
- Straits Asia Resources Limited - Singapore
- Bahari Cakrawala Sebuku - Indonesia
- San Jose City I Power Corp, Philippines
- Ambuja Cements Ltd - India
- Therma Luzon, Inc, Philippines
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