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.
|
|
Wednesday, 21 June 23
CHINA'S MAY COAL IMPORTS FROM AUSTRALIA RECOVER TO PRE-BAN LEVELS - REUTERS
Australian coal sales to China increased in May, as trade resumed between them even as overall coal demand weakened against an uncertain macroecono ...
Monday, 19 June 23
DROUGHT-DEPLETED HYDROPOWER DRIVES CHINA TO TURN TO COAL - REUTERS
China has leant hard on coal-fired power plants as well as wind and solar generators to make up for a shortfall in hydroelectric generation as a re ...
Monday, 19 June 23
CHINA COAL OUTPUT UP 4.2 PCT IN MAY - XINHUA
China’s raw coal output posted steady growth in May, official data showed.
The country produced 390 million tonnes of raw coal ...
Wednesday, 24 May 23
AMMONIA-FUELLED BULK CARRIERS WITHIN FIVE YEARS - BALTIC EXCHANGE
Within five years, ships powered by clean ammonia could be a feature on the iron ore trade routes between West Australia and East Asia.
A study ...
Tuesday, 23 May 23
CHINA'S APRIL COAL OUTPUT LEAPS 11% ON YEAR, BUT DEMAND DOWNTURN LOOMS - REUTERS
China’s daily coal output in April jumped 11% from the same month a year earlier, boosted by Beijing’s order to increase supply to ensu ...
|
|
|
Showing 96 to 100 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Vizag Seaport Private Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Coalindo Energy - Indonesia
- Riau Bara Harum - Indonesia
- Gujarat Sidhee Cement - India
- The Treasury - Australian Government
- Bulk Trading Sa - Switzerland
- Ministry of Finance - Indonesia
- Xindia Steels Limited - India
- Kaltim Prima Coal - Indonesia
- SN Aboitiz Power Inc, Philippines
- Rio Tinto Coal - Australia
- Kumho Petrochemical, South Korea
- Vijayanagar Sugar Pvt Ltd - India
- Parry Sugars Refinery, India
- Karbindo Abesyapradhi - Indoneisa
- Ind-Barath Power Infra Limited - India
- Kideco Jaya Agung - Indonesia
- Electricity Authority, New Zealand
- Ambuja Cements Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- Tata Chemicals Ltd - India
- South Luzon Thermal Energy Corporation
- Jorong Barutama Greston.PT - Indonesia
- Africa Commodities Group - South Africa
- Bharathi Cement Corporation - India
- Banpu Public Company Limited - Thailand
- Power Finance Corporation Ltd., India
- Coastal Gujarat Power Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Sakthi Sugars Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Kapuas Tunggal Persada - Indonesia
- Uttam Galva Steels Limited - India
- Bhatia International Limited - India
- Georgia Ports Authority, United States
- Directorate General of MIneral and Coal - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Mjunction Services Limited - India
- Medco Energi Mining Internasional
- Carbofer General Trading SA - India
- Thai Mozambique Logistica
- Electricity Generating Authority of Thailand
- McConnell Dowell - Australia
- Sical Logistics Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Bayan Resources Tbk. - Indonesia
- Energy Development Corp, Philippines
- Videocon Industries ltd - India
- Meralco Power Generation, Philippines
- Indo Tambangraya Megah - Indonesia
- Global Business Power Corporation, Philippines
- Singapore Mercantile Exchange
- Siam City Cement - Thailand
- Bhushan Steel Limited - India
- The University of Queensland
- Holcim Trading Pte Ltd - Singapore
- Cigading International Bulk Terminal - Indonesia
- Indian Oil Corporation Limited
- Grasim Industreis Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Attock Cement Pakistan Limited
- Sojitz Corporation - Japan
- Trasteel International SA, Italy
- Simpson Spence & Young - Indonesia
- PNOC Exploration Corporation - Philippines
- Orica Mining Services - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Chamber of Mines of South Africa
- Mercuria Energy - Indonesia
- Anglo American - United Kingdom
- Aboitiz Power Corporation - Philippines
- Mintek Dendrill Indonesia
- OPG Power Generation Pvt Ltd - India
- Petron Corporation, Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Price Waterhouse Coopers - Russia
- Wilmar Investment Holdings
- CNBM International Corporation - China
- Standard Chartered Bank - UAE
- Siam City Cement PLC, Thailand
- Ministry of Mines - Canada
- Indonesian Coal Mining Association
- Madhucon Powers Ltd - India
- Bhoruka Overseas - Indonesia
- Parliament of New Zealand
- Indian Energy Exchange, India
- Essar Steel Hazira Ltd - India
- Globalindo Alam Lestari - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Renaissance Capital - South Africa
- Indika Energy - Indonesia
- CIMB Investment Bank - Malaysia
- Eastern Energy - Thailand
- Iligan Light & Power Inc, Philippines
- Baramulti Group, Indonesia
- AsiaOL BioFuels Corp., Philippines
- MS Steel International - UAE
- Billiton Holdings Pty Ltd - Australia
- Timah Investasi Mineral - Indoneisa
- Kepco SPC Power Corporation, Philippines
- Posco Energy - South Korea
- Therma Luzon, Inc, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Borneo Indobara - Indonesia
- Marubeni Corporation - India
- Oldendorff Carriers - Singapore
- Straits Asia Resources Limited - Singapore
- LBH Netherlands Bv - Netherlands
- International Coal Ventures Pvt Ltd - India
- Rashtriya Ispat Nigam Limited - India
- Alfred C Toepfer International GmbH - Germany
- Eastern Coal Council - USA
- Pendopo Energi Batubara - Indonesia
- Agrawal Coal Company - India
- PowerSource Philippines DevCo
- Karaikal Port Pvt Ltd - India
- Goldman Sachs - Singapore
- Toyota Tsusho Corporation, Japan
- Latin American Coal - Colombia
- New Zealand Coal & Carbon
- Edison Trading Spa - Italy
- Sindya Power Generating Company Private Ltd
- Lanco Infratech Ltd - India
- Formosa Plastics Group - Taiwan
- Offshore Bulk Terminal Pte Ltd, Singapore
- Gujarat Mineral Development Corp Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Bangladesh Power Developement Board
- IHS Mccloskey Coal Group - USA
- Savvy Resources Ltd - HongKong
- Indogreen Group - Indonesia
- Global Green Power PLC Corporation, Philippines
- Central Java Power - Indonesia
- GVK Power & Infra Limited - India
- Coal and Oil Company - UAE
- Interocean Group of Companies - India
- Jindal Steel & Power Ltd - India
- SMG Consultants - Indonesia
- ASAPP Information Group - India
- European Bulk Services B.V. - Netherlands
- GAC Shipping (India) Pvt Ltd
- Port Waratah Coal Services - Australia
- Krishnapatnam Port Company Ltd. - India
- Central Electricity Authority - India
- PTC India Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Ceylon Electricity Board - Sri Lanka
- GMR Energy Limited - India
- Dalmia Cement Bharat India
- Metalloyd Limited - United Kingdom
- Gujarat Electricity Regulatory Commission - India
- Planning Commission, India
- India Bulls Power Limited - India
- Minerals Council of Australia
- Bukit Baiduri Energy - Indonesia
- Aditya Birla Group - India
- Neyveli Lignite Corporation Ltd, - India
- White Energy Company Limited
- Economic Council, Georgia
- SMC Global Power, Philippines
- Meenaskhi Energy Private Limited - India
- VISA Power Limited - India
- Sinarmas Energy and Mining - Indonesia
- Vedanta Resources Plc - India
- Antam Resourcindo - Indonesia
- Ministry of Transport, Egypt
- Mercator Lines Limited - India
- ICICI Bank Limited - India
- Samtan Co., Ltd - South Korea
- London Commodity Brokers - England
- Jaiprakash Power Ventures ltd
- Manunggal Multi Energi - Indonesia
- Heidelberg Cement - Germany
- The State Trading Corporation of India Ltd
- Sree Jayajothi Cements Limited - India
- Makarim & Taira - Indonesia
- Wood Mackenzie - Singapore
- Commonwealth Bank - Australia
- Sarangani Energy Corporation, Philippines
- Independent Power Producers Association of India
- Romanian Commodities Exchange
- Tamil Nadu electricity Board
- Bukit Makmur.PT - Indonesia
- Kartika Selabumi Mining - Indonesia
- Global Coal Blending Company Limited - Australia
- Binh Thuan Hamico - Vietnam
- Salva Resources Pvt Ltd - India
- IEA Clean Coal Centre - UK
- San Jose City I Power Corp, Philippines
- Directorate Of Revenue Intelligence - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Kobexindo Tractors - Indoneisa
- Chettinad Cement Corporation Ltd - India
- Star Paper Mills Limited - India
- Intertek Mineral Services - Indonesia
- Malabar Cements Ltd - India
- Orica Australia Pty. Ltd.
- Kohat Cement Company Ltd. - Pakistan
- Barasentosa Lestari - Indonesia
- Deloitte Consulting - India
- Miang Besar Coal Terminal - Indonesia
- Merrill Lynch Commodities Europe
- Semirara Mining Corp, Philippines
- Thiess Contractors Indonesia
- Energy Link Ltd, New Zealand
- TeaM Sual Corporation - Philippines
- Altura Mining Limited, Indonesia
- Australian Coal Association
- Australian Commodity Traders Exchange
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Maheswari Brothers Coal Limited - India
- Cement Manufacturers Association - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Larsen & Toubro Limited - India
- Asmin Koalindo Tuhup - Indonesia
|
| |
| |
|
