We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
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
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Friday, 31 July 20
BOTSWANA PLANS MORE COAL-FIRED POWER AS AFRICAN SOLAR ACCELERATES - IEEFA
An African economic leader like Botswana should embrace solar to reduce subsidies and tariff hikes
As Sub-Saharan solar ambition has ...
Wednesday, 29 July 20
2019 U.S. COAL PRODUCTION FALLS TO ITS LOWEST LEVEL SINCE 1978 - EIA
In 2019, U.S. coal production totaled 706 million short tons (MMst), a 7% decrease from the 756 MMst mined in 2018. Last year’s production wa ...
Wednesday, 29 July 20
MARKET INSIGHT - INTERMODAL
The dry bulk sector is beginning to recover from reduced SnP activity recorded in the first quarter of 2020. The table below illustrates that appro ...
Tuesday, 28 July 20
DEUTSCHE BANK TO END GLOBAL BUSINESS ACTIVITIES IN COAL MINING BY 2025 - REUTERS
Deutsche Bank, in a revamp of its policies for fossil fuels, said on Monday that it would end business activities worldwide related to coal mining ...
Monday, 27 July 20
IEEFA ENERGY FINANCE CONFERENCE 2020: COAL, LNG, PETROCHEMICAL SECTORS FACE POOR OUTLOOK AND UPHILL BATTLE FOR INVESTORS
Fossil fuel industries were becoming less financially attractive even before the global coronavirus pandemic
Three major fossil fuel ...
|
|
|
Showing 856 to 860 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Directorate General of MIneral and Coal - Indonesia
- Parliament of New Zealand
- Africa Commodities Group - South Africa
- Kartika Selabumi Mining - Indonesia
- Economic Council, Georgia
- Sarangani Energy Corporation, Philippines
- Medco Energi Mining Internasional
- Thai Mozambique Logistica
- Carbofer General Trading SA - India
- Interocean Group of Companies - India
- Bukit Asam (Persero) Tbk - Indonesia
- Edison Trading Spa - Italy
- Coastal Gujarat Power Limited - India
- Australian Commodity Traders Exchange
- Heidelberg Cement - Germany
- Ceylon Electricity Board - Sri Lanka
- Neyveli Lignite Corporation Ltd, - India
- Petrochimia International Co. Ltd.- Taiwan
- OPG Power Generation Pvt Ltd - India
- Kaltim Prima Coal - Indonesia
- Sical Logistics Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Thiess Contractors Indonesia
- Bayan Resources Tbk. - Indonesia
- SN Aboitiz Power Inc, Philippines
- Attock Cement Pakistan Limited
- Binh Thuan Hamico - Vietnam
- Global Business Power Corporation, Philippines
- Samtan Co., Ltd - South Korea
- Bukit Makmur.PT - Indonesia
- Bharathi Cement Corporation - India
- Marubeni Corporation - India
- Mintek Dendrill Indonesia
- Orica Mining Services - Indonesia
- Ministry of Mines - Canada
- Indika Energy - Indonesia
- Dalmia Cement Bharat India
- Ind-Barath Power Infra Limited - India
- Karaikal Port Pvt Ltd - India
- Intertek Mineral Services - Indonesia
- MS Steel International - UAE
- European Bulk Services B.V. - Netherlands
- Merrill Lynch Commodities Europe
- Minerals Council of Australia
- PNOC Exploration Corporation - Philippines
- Indogreen Group - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Ministry of Transport, Egypt
- Sree Jayajothi Cements Limited - India
- Billiton Holdings Pty Ltd - Australia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Jaiprakash Power Ventures ltd
- Mjunction Services Limited - India
- New Zealand Coal & Carbon
- Iligan Light & Power Inc, Philippines
- IEA Clean Coal Centre - UK
- Sinarmas Energy and Mining - Indonesia
- Cement Manufacturers Association - India
- Central Electricity Authority - India
- Pipit Mutiara Jaya. PT, Indonesia
- Commonwealth Bank - Australia
- LBH Netherlands Bv - Netherlands
- Holcim Trading Pte Ltd - Singapore
- Videocon Industries ltd - India
- Straits Asia Resources Limited - Singapore
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Altura Mining Limited, Indonesia
- Australian Coal Association
- Electricity Authority, New Zealand
- San Jose City I Power Corp, Philippines
- Manunggal Multi Energi - Indonesia
- Port Waratah Coal Services - Australia
- Eastern Coal Council - USA
- IHS Mccloskey Coal Group - USA
- Xindia Steels Limited - India
- Uttam Galva Steels Limited - India
- Maheswari Brothers Coal Limited - India
- Makarim & Taira - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Global Green Power PLC Corporation, Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- PowerSource Philippines DevCo
- Vijayanagar Sugar Pvt Ltd - India
- Antam Resourcindo - Indonesia
- Salva Resources Pvt Ltd - India
- Georgia Ports Authority, United States
- GAC Shipping (India) Pvt Ltd
- Semirara Mining and Power Corporation, Philippines
- Posco Energy - South Korea
- Mercator Lines Limited - India
- Trasteel International SA, Italy
- Chamber of Mines of South Africa
- Kumho Petrochemical, South Korea
- Aditya Birla Group - India
- Kohat Cement Company Ltd. - Pakistan
- Pendopo Energi Batubara - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Central Java Power - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Petron Corporation, Philippines
- Lanco Infratech Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bhushan Steel Limited - India
- ICICI Bank Limited - India
- Energy Development Corp, Philippines
- Kapuas Tunggal Persada - Indonesia
- Romanian Commodities Exchange
- Kobexindo Tractors - Indoneisa
- Riau Bara Harum - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Karbindo Abesyapradhi - Indoneisa
- International Coal Ventures Pvt Ltd - India
- Larsen & Toubro Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Parry Sugars Refinery, India
- Indonesian Coal Mining Association
- Power Finance Corporation Ltd., India
- South Luzon Thermal Energy Corporation
- The State Trading Corporation of India Ltd
- Jorong Barutama Greston.PT - Indonesia
- The Treasury - Australian Government
- Alfred C Toepfer International GmbH - Germany
- Jindal Steel & Power Ltd - India
- GN Power Mariveles Coal Plant, Philippines
- Formosa Plastics Group - Taiwan
- Tata Chemicals Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- GVK Power & Infra Limited - India
- Grasim Industreis Ltd - India
- Bangladesh Power Developement Board
- CIMB Investment Bank - Malaysia
- Kideco Jaya Agung - Indonesia
- Sindya Power Generating Company Private Ltd
- London Commodity Brokers - England
- Gujarat Sidhee Cement - India
- Metalloyd Limited - United Kingdom
- Coal and Oil Company - UAE
- Goldman Sachs - Singapore
- Indian Energy Exchange, India
- Simpson Spence & Young - Indonesia
- Bhatia International Limited - India
- Rio Tinto Coal - Australia
- Therma Luzon, Inc, Philippines
- Orica Australia Pty. Ltd.
- Directorate Of Revenue Intelligence - India
- SMC Global Power, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Rashtriya Ispat Nigam Limited - India
- Malabar Cements Ltd - India
- Coalindo Energy - Indonesia
- McConnell Dowell - Australia
- Meralco Power Generation, Philippines
- Singapore Mercantile Exchange
- CNBM International Corporation - China
- Chettinad Cement Corporation Ltd - India
- Toyota Tsusho Corporation, Japan
- Latin American Coal - Colombia
- PTC India Limited - India
- Cigading International Bulk Terminal - Indonesia
- Energy Link Ltd, New Zealand
- Sakthi Sugars Limited - India
- Deloitte Consulting - India
- Bukit Baiduri Energy - Indonesia
- The University of Queensland
- ASAPP Information Group - India
- GMR Energy Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Eastern Energy - Thailand
- Agrawal Coal Company - India
- Krishnapatnam Port Company Ltd. - India
- Kepco SPC Power Corporation, Philippines
- Planning Commission, India
- TNB Fuel Sdn Bhd - Malaysia
- Timah Investasi Mineral - Indoneisa
- Vizag Seaport Private Limited - India
- Star Paper Mills Limited - India
- Madhucon Powers Ltd - India
- Indo Tambangraya Megah - Indonesia
- Anglo American - United Kingdom
- Aboitiz Power Corporation - Philippines
- Vedanta Resources Plc - India
- Ministry of Finance - Indonesia
- Banpu Public Company Limited - Thailand
- Electricity Generating Authority of Thailand
- Mercuria Energy - Indonesia
- Bulk Trading Sa - Switzerland
- Baramulti Group, Indonesia
- Oldendorff Carriers - Singapore
- Bhoruka Overseas - Indonesia
- TeaM Sual Corporation - Philippines
- Leighton Contractors Pty Ltd - Australia
- Siam City Cement PLC, Thailand
- Siam City Cement - Thailand
- Essar Steel Hazira Ltd - India
- Globalindo Alam Lestari - Indonesia
- Renaissance Capital - South Africa
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- India Bulls Power Limited - India
- Global Coal Blending Company Limited - Australia
- Wood Mackenzie - Singapore
- Wilmar Investment Holdings
- Barasentosa Lestari - Indonesia
- Price Waterhouse Coopers - Russia
- VISA Power Limited - India
- Standard Chartered Bank - UAE
- Tamil Nadu electricity Board
- Borneo Indobara - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Semirara Mining Corp, Philippines
- Meenaskhi Energy Private Limited - India
- Sojitz Corporation - Japan
- White Energy Company Limited
- Indian Oil Corporation Limited
- SMG Consultants - Indonesia
- Savvy Resources Ltd - HongKong
- Ambuja Cements Ltd - India
- Independent Power Producers Association of India
|
| |
| |
|
