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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, 17 June 20
KOREA SOUTHERN POWER CO INVITED 80000 MT OF LOW CALORIFIC VALUE COAL FOR AUGUST 1H, 2020 LOADING
COALspot.com: Korea Southern Power Co., Ltd. (KOSPO) has issued an International tender for 80,000 Metric Tons (MT) Min 4,200 kcal/kg - Max. ...
Tuesday, 16 June 20
A GLOBAL ECONOMIC SLUMP: WHAT WILL IT MEAN FOR METALS AND MINING? - WOOD MACKENZIE
Back before coronavirus knocked “normal” out cold, the key issues for miners were sub-investment prices, rising requirements for ESG an ...
Tuesday, 16 June 20
CHINA TAIYUAN COAL TRANSACTION PRICE INDEX UP 0.58 PCT - XINHUA
China Taiyuan coal transaction price index stood at 124.43 points Monday, up 0.58 percent week on week.
The index, released by China ...
Tuesday, 16 June 20
HIGHER IRON ORE PRICES OFFSET CORONAVIRUS-DRIVEN PRODUCTION RISK - FITCH RATINGS
Lower iron ore production in Brazil, resulting from rising coronavirus infections, should only marginally affect the cash flow of Vale and other gl ...
Tuesday, 16 June 20
SHALE SHOCKED - WOOD MACKENZIE
Capturing shut-ins in real time
Oil markets are searching for balance as the world reflects on the impact of the COVID-19 pandemic. ...
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Showing 906 to 910 news of total 6871 |
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- Oldendorff Carriers - Singapore
- Bangladesh Power Developement Board
- Kohat Cement Company Ltd. - Pakistan
- Economic Council, Georgia
- IHS Mccloskey Coal Group - USA
- Bayan Resources Tbk. - Indonesia
- Kartika Selabumi Mining - Indonesia
- McConnell Dowell - Australia
- International Coal Ventures Pvt Ltd - India
- Georgia Ports Authority, United States
- Global Coal Blending Company Limited - Australia
- Toyota Tsusho Corporation, Japan
- Indian Oil Corporation Limited
- Banpu Public Company Limited - Thailand
- Rio Tinto Coal - Australia
- Attock Cement Pakistan Limited
- Maheswari Brothers Coal Limited - India
- Power Finance Corporation Ltd., India
- Simpson Spence & Young - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- GMR Energy Limited - India
- CIMB Investment Bank - Malaysia
- Karbindo Abesyapradhi - Indoneisa
- Ministry of Finance - Indonesia
- Independent Power Producers Association of India
- Xindia Steels Limited - India
- Renaissance Capital - South Africa
- Minerals Council of Australia
- PNOC Exploration Corporation - Philippines
- TeaM Sual Corporation - Philippines
- Meenaskhi Energy Private Limited - India
- London Commodity Brokers - England
- Gujarat Electricity Regulatory Commission - India
- PowerSource Philippines DevCo
- Cigading International Bulk Terminal - Indonesia
- Interocean Group of Companies - India
- New Zealand Coal & Carbon
- Edison Trading Spa - Italy
- Petron Corporation, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Sarangani Energy Corporation, Philippines
- Vizag Seaport Private Limited - India
- Parliament of New Zealand
- Holcim Trading Pte Ltd - Singapore
- SN Aboitiz Power Inc, Philippines
- Indo Tambangraya Megah - Indonesia
- Ambuja Cements Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Lanco Infratech Ltd - India
- Agrawal Coal Company - India
- Coal and Oil Company - UAE
- Energy Development Corp, Philippines
- Borneo Indobara - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Wilmar Investment Holdings
- Ministry of Transport, Egypt
- Central Java Power - Indonesia
- Larsen & Toubro Limited - India
- Sindya Power Generating Company Private Ltd
- Vedanta Resources Plc - India
- GAC Shipping (India) Pvt Ltd
- Formosa Plastics Group - Taiwan
- Siam City Cement - Thailand
- Iligan Light & Power Inc, Philippines
- Sojitz Corporation - Japan
- Tata Chemicals Ltd - India
- Baramulti Group, Indonesia
- Energy Link Ltd, New Zealand
- ICICI Bank Limited - India
- The Treasury - Australian Government
- Grasim Industreis Ltd - India
- Coalindo Energy - Indonesia
- Samtan Co., Ltd - South Korea
- Mjunction Services Limited - India
- Bhatia International Limited - India
- Indonesian Coal Mining Association
- IEA Clean Coal Centre - UK
- The University of Queensland
- Mintek Dendrill Indonesia
- Planning Commission, India
- ASAPP Information Group - India
- Therma Luzon, Inc, Philippines
- Chamber of Mines of South Africa
- Cement Manufacturers Association - India
- Miang Besar Coal Terminal - Indonesia
- Aboitiz Power Corporation - Philippines
- Global Green Power PLC Corporation, Philippines
- Kideco Jaya Agung - Indonesia
- Essar Steel Hazira Ltd - India
- Bhoruka Overseas - Indonesia
- Star Paper Mills Limited - India
- Indika Energy - Indonesia
- Trasteel International SA, Italy
- GVK Power & Infra Limited - India
- European Bulk Services B.V. - Netherlands
- White Energy Company Limited
- Mercuria Energy - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Straits Asia Resources Limited - Singapore
- SMC Global Power, Philippines
- Directorate General of MIneral and Coal - Indonesia
- Siam City Cement PLC, Thailand
- Kalimantan Lumbung Energi - Indonesia
- Karaikal Port Pvt Ltd - India
- Mercator Lines Limited - India
- Global Business Power Corporation, Philippines
- Krishnapatnam Port Company Ltd. - India
- Parry Sugars Refinery, India
- SMG Consultants - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Savvy Resources Ltd - HongKong
- LBH Netherlands Bv - Netherlands
- Manunggal Multi Energi - Indonesia
- Price Waterhouse Coopers - Russia
- Ind-Barath Power Infra Limited - India
- Videocon Industries ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Commonwealth Bank - Australia
- Semirara Mining Corp, Philippines
- PetroVietnam Power Coal Import and Supply Company
- Kaltim Prima Coal - Indonesia
- Port Waratah Coal Services - Australia
- OPG Power Generation Pvt Ltd - India
- Marubeni Corporation - India
- Wood Mackenzie - Singapore
- Jindal Steel & Power Ltd - India
- Africa Commodities Group - South Africa
- Makarim & Taira - Indonesia
- CNBM International Corporation - China
- MS Steel International - UAE
- Barasentosa Lestari - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Billiton Holdings Pty Ltd - Australia
- Jaiprakash Power Ventures ltd
- India Bulls Power Limited - India
- Pendopo Energi Batubara - Indonesia
- San Jose City I Power Corp, Philippines
- Sree Jayajothi Cements Limited - India
- Sakthi Sugars Limited - India
- Medco Energi Mining Internasional
- Indogreen Group - Indonesia
- Globalindo Alam Lestari - Indonesia
- Ministry of Mines - Canada
- Dalmia Cement Bharat India
- Latin American Coal - Colombia
- Australian Commodity Traders Exchange
- Electricity Authority, New Zealand
- Riau Bara Harum - Indonesia
- Gujarat Sidhee Cement - India
- Kepco SPC Power Corporation, Philippines
- Ceylon Electricity Board - Sri Lanka
- Romanian Commodities Exchange
- Gujarat Mineral Development Corp Ltd - India
- AsiaOL BioFuels Corp., Philippines
- Deloitte Consulting - India
- Merrill Lynch Commodities Europe
- Maharashtra Electricity Regulatory Commission - India
- Indian Energy Exchange, India
- Petrochimia International Co. Ltd.- Taiwan
- Intertek Mineral Services - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Bharathi Cement Corporation - India
- TNB Fuel Sdn Bhd - Malaysia
- Salva Resources Pvt Ltd - India
- Electricity Generating Authority of Thailand
- Eastern Coal Council - USA
- South Luzon Thermal Energy Corporation
- Thai Mozambique Logistica
- Metalloyd Limited - United Kingdom
- Carbofer General Trading SA - India
- Central Electricity Authority - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Bukit Makmur.PT - Indonesia
- Coastal Gujarat Power Limited - India
- Sinarmas Energy and Mining - Indonesia
- Kobexindo Tractors - Indoneisa
- Antam Resourcindo - Indonesia
- Directorate Of Revenue Intelligence - India
- Kumho Petrochemical, South Korea
- Jorong Barutama Greston.PT - Indonesia
- Posco Energy - South Korea
- Standard Chartered Bank - UAE
- Orica Mining Services - Indonesia
- Altura Mining Limited, Indonesia
- Neyveli Lignite Corporation Ltd, - India
- The State Trading Corporation of India Ltd
- Offshore Bulk Terminal Pte Ltd, Singapore
- Madhucon Powers Ltd - India
- Bukit Baiduri Energy - Indonesia
- Timah Investasi Mineral - Indoneisa
- Bulk Trading Sa - Switzerland
- Thiess Contractors Indonesia
- Singapore Mercantile Exchange
- Meralco Power Generation, Philippines
- Malabar Cements Ltd - India
- Eastern Energy - Thailand
- Heidelberg Cement - Germany
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Chettinad Cement Corporation Ltd - India
- Uttam Galva Steels Limited - India
- Australian Coal Association
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- PTC India Limited - India
- Goldman Sachs - Singapore
- Orica Australia Pty. Ltd.
- Bank of Tokyo Mitsubishi UFJ Ltd
- Semirara Mining and Power Corporation, Philippines
- Anglo American - United Kingdom
- Vijayanagar Sugar Pvt Ltd - India
- Leighton Contractors Pty Ltd - Australia
- Binh Thuan Hamico - Vietnam
- Alfred C Toepfer International GmbH - Germany
- Aditya Birla Group - India
- Bhushan Steel Limited - India
- VISA Power Limited - India
- Sical Logistics Limited - India
- Tamil Nadu electricity Board
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