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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 June 24
CHINA ACCOUNTS FOR 16.3% OF AUSTRALIA'S COAL EXPORTS, FOLLOWED BY INDIA 14.4% - BANCHERO COSTA
Global coal trade has really picked up pace in recent months, and is now fully back to pre-Covid levels says Banchero Costa in its latest report.
...
Wednesday, 12 June 24
LNG NEWBUILDING VALUES AT RECORD HIGH: 78 NEWBUILD ORDERS PLACED IN 2024, DOUBLING 2023 - VESON NAUTICAL
The number of LNG newbuilding orders have more than doubled from the same period last year where 34 orders were placed, compared to 78 in the first ...
Monday, 10 June 24
CHINA'S MAY COAL IMPORTS RISE 11% ON LOWER DOMESTIC OUTPUT - REUTERS
China’s imports of coal rose 11% in May from a year earlier, customs data and Reuters records showed on Friday, as lower domestic output this ...
Tuesday, 04 June 24
HOW DO WESTERN SANCTIONS ON RUSSIA IMPACT THE GLOBAL METALS, MINING AND COAL MARKETS - WOOD MACKENZIE
The geopolitical landscape for Russia, as a major supplier of various commodities, has undergone a dramatic transformation since the invasion of Uk ...
Friday, 22 March 24
CASE STUDY: DANGERS OF COAL CARGO - SKULD
Recently, a bulk cargo vessel carrying coal from South Africa to Singapore suffered a fatal accident, resulting in the deaths of three crew members ...
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Showing 21 to 25 news of total 6871 |
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- PTC India Limited - India
- Toyota Tsusho Corporation, Japan
- CIMB Investment Bank - Malaysia
- Holcim Trading Pte Ltd - Singapore
- Independent Power Producers Association of India
- Medco Energi Mining Internasional
- Malabar Cements Ltd - India
- ASAPP Information Group - India
- Kobexindo Tractors - Indoneisa
- Vijayanagar Sugar Pvt Ltd - India
- Romanian Commodities Exchange
- Coal and Oil Company - UAE
- Salva Resources Pvt Ltd - India
- Posco Energy - South Korea
- Kideco Jaya Agung - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Global Business Power Corporation, Philippines
- Indian Energy Exchange, India
- Central Electricity Authority - India
- Rashtriya Ispat Nigam Limited - India
- Timah Investasi Mineral - Indoneisa
- Sarangani Energy Corporation, Philippines
- Dalmia Cement Bharat India
- Therma Luzon, Inc, Philippines
- Bhatia International Limited - India
- IHS Mccloskey Coal Group - USA
- Riau Bara Harum - Indonesia
- PNOC Exploration Corporation - Philippines
- Sical Logistics Limited - India
- Simpson Spence & Young - Indonesia
- Port Waratah Coal Services - Australia
- London Commodity Brokers - England
- Maharashtra Electricity Regulatory Commission - India
- Formosa Plastics Group - Taiwan
- Kapuas Tunggal Persada - Indonesia
- PowerSource Philippines DevCo
- PetroVietnam Power Coal Import and Supply Company
- Billiton Holdings Pty Ltd - Australia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Oldendorff Carriers - Singapore
- Wilmar Investment Holdings
- Intertek Mineral Services - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Africa Commodities Group - South Africa
- Bahari Cakrawala Sebuku - Indonesia
- Indian Oil Corporation Limited
- Leighton Contractors Pty Ltd - Australia
- Trasteel International SA, Italy
- Aditya Birla Group - India
- Savvy Resources Ltd - HongKong
- Kepco SPC Power Corporation, Philippines
- Parry Sugars Refinery, India
- Energy Link Ltd, New Zealand
- Uttam Galva Steels Limited - India
- Lanco Infratech Ltd - India
- SMG Consultants - Indonesia
- Ministry of Mines - Canada
- Bayan Resources Tbk. - Indonesia
- Global Green Power PLC Corporation, Philippines
- Metalloyd Limited - United Kingdom
- Tamil Nadu electricity Board
- Aboitiz Power Corporation - Philippines
- Essar Steel Hazira Ltd - India
- Price Waterhouse Coopers - Russia
- Mjunction Services Limited - India
- Central Java Power - Indonesia
- Ministry of Finance - Indonesia
- Electricity Generating Authority of Thailand
- MS Steel International - UAE
- Economic Council, Georgia
- Agrawal Coal Company - India
- Meenaskhi Energy Private Limited - India
- Madhucon Powers Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Karbindo Abesyapradhi - Indoneisa
- Sakthi Sugars Limited - India
- The State Trading Corporation of India Ltd
- Karaikal Port Pvt Ltd - India
- The University of Queensland
- South Luzon Thermal Energy Corporation
- GVK Power & Infra Limited - India
- Globalindo Alam Lestari - Indonesia
- Parliament of New Zealand
- Samtan Co., Ltd - South Korea
- Bhushan Steel Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Kumho Petrochemical, South Korea
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Baramulti Group, Indonesia
- Coastal Gujarat Power Limited - India
- Gujarat Sidhee Cement - India
- Altura Mining Limited, Indonesia
- Grasim Industreis Ltd - India
- Siam City Cement PLC, Thailand
- Electricity Authority, New Zealand
- Semirara Mining Corp, Philippines
- Directorate General of MIneral and Coal - Indonesia
- GMR Energy Limited - India
- Siam City Cement - Thailand
- The Treasury - Australian Government
- Sindya Power Generating Company Private Ltd
- Cigading International Bulk Terminal - Indonesia
- Pendopo Energi Batubara - Indonesia
- Binh Thuan Hamico - Vietnam
- Energy Development Corp, Philippines
- Krishnapatnam Port Company Ltd. - India
- Chamber of Mines of South Africa
- Vedanta Resources Plc - India
- Antam Resourcindo - Indonesia
- Larsen & Toubro Limited - India
- Global Coal Blending Company Limited - Australia
- Mercator Lines Limited - India
- Bhoruka Overseas - Indonesia
- Straits Asia Resources Limited - Singapore
- SN Aboitiz Power Inc, Philippines
- Orica Mining Services - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Jaiprakash Power Ventures ltd
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- India Bulls Power Limited - India
- Heidelberg Cement - Germany
- Jorong Barutama Greston.PT - Indonesia
- New Zealand Coal & Carbon
- Bukit Makmur.PT - Indonesia
- Bukit Baiduri Energy - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Kartika Selabumi Mining - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Georgia Ports Authority, United States
- Vizag Seaport Private Limited - India
- Merrill Lynch Commodities Europe
- Mintek Dendrill Indonesia
- AsiaOL BioFuels Corp., Philippines
- Latin American Coal - Colombia
- European Bulk Services B.V. - Netherlands
- Mercuria Energy - Indonesia
- Makarim & Taira - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Eastern Coal Council - USA
- Manunggal Multi Energi - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Power Finance Corporation Ltd., India
- International Coal Ventures Pvt Ltd - India
- Australian Commodity Traders Exchange
- Indogreen Group - Indonesia
- Borneo Indobara - Indonesia
- Bulk Trading Sa - Switzerland
- Offshore Bulk Terminal Pte Ltd, Singapore
- Marubeni Corporation - India
- Ceylon Electricity Board - Sri Lanka
- Directorate Of Revenue Intelligence - India
- Anglo American - United Kingdom
- Coalindo Energy - Indonesia
- Standard Chartered Bank - UAE
- CNBM International Corporation - China
- Bukit Asam (Persero) Tbk - Indonesia
- Rio Tinto Coal - Australia
- Singapore Mercantile Exchange
- McConnell Dowell - Australia
- Maheswari Brothers Coal Limited - India
- Wood Mackenzie - Singapore
- Edison Trading Spa - Italy
- Iligan Light & Power Inc, Philippines
- Jindal Steel & Power Ltd - India
- Bangladesh Power Developement Board
- Deloitte Consulting - India
- Carbofer General Trading SA - India
- Gujarat Mineral Development Corp Ltd - India
- Orica Australia Pty. Ltd.
- Attock Cement Pakistan Limited
- Petron Corporation, Philippines
- Barasentosa Lestari - Indonesia
- Xindia Steels Limited - India
- Ind-Barath Power Infra Limited - India
- Cement Manufacturers Association - India
- Thai Mozambique Logistica
- Kaltim Prima Coal - Indonesia
- White Energy Company Limited
- Chettinad Cement Corporation Ltd - India
- Tata Chemicals Ltd - India
- Thiess Contractors Indonesia
- Sree Jayajothi Cements Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- San Jose City I Power Corp, Philippines
- Commonwealth Bank - Australia
- Goldman Sachs - Singapore
- Australian Coal Association
- VISA Power Limited - India
- OPG Power Generation Pvt Ltd - India
- Minerals Council of Australia
- Banpu Public Company Limited - Thailand
- GAC Shipping (India) Pvt Ltd
- Meralco Power Generation, Philippines
- Alfred C Toepfer International GmbH - Germany
- Videocon Industries ltd - India
- Planning Commission, India
- Indonesian Coal Mining Association
- Sojitz Corporation - Japan
- Gujarat Electricity Regulatory Commission - India
- Indika Energy - Indonesia
- IEA Clean Coal Centre - UK
- Interocean Group of Companies - India
- Semirara Mining and Power Corporation, Philippines
- Ambuja Cements Ltd - India
- Renaissance Capital - South Africa
- SMC Global Power, Philippines
- ICICI Bank Limited - India
- Indo Tambangraya Megah - Indonesia
- Star Paper Mills Limited - India
- Eastern Energy - Thailand
- LBH Netherlands Bv - Netherlands
- Pipit Mutiara Jaya. PT, Indonesia
- TeaM Sual Corporation - Philippines
- Ministry of Transport, Egypt
- Bharathi Cement Corporation - India
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