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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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Friday, 23 February 24
STRONG OUTLOOK FOR THE TANKER MARKET IN 2024 AND BEYOND - DNV
Several factors have aligned over the past two years to create a robust and profitable market for tanker owners, which is expected to drive newbuil ...
Friday, 23 February 24
AUSTRALIAN COAL FLOWS TO ASIA HOVER ABOVE LAST YEAR’S VOLUME TONNES - SIGNAL GROUP
In the final days of February, the dry bulk freight market appeared to maintain a relatively stable momentum, particularly evident in the large ves ...
Friday, 23 February 24
RUSSIAN COAL SHIPMENTS FALL 14% AS SANCTIONS BITE - BIMCO
During the first seven weeks of 2024, Russian coal shipments have fallen 14% y/y. Volumes have gradually declined since October 2023 when logistica ...
Thursday, 22 February 24
BIMCO PUBLISHES SHIP FINANCING FORMS TO ENSURE UNINTERRUPTED USE OF SHIPS
BIMCO has published two standard Quiet Enjoyment Letters (QELs), the first standard form QELs available to the industry, to offer a tool that can e ...
Monday, 19 February 24
METALS INVESTMENT: THE DARKEST HOUR IS JUST BEFORE THE DAWN - WOOD MACKENZIE
Things often seem at their worst just before they get better. In terms of meeting our net zero 2050 scenario, we’ve reached a watershed momen ...
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Showing 31 to 35 news of total 6871 |
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- Bukit Makmur.PT - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Power Finance Corporation Ltd., India
- Petrochimia International Co. Ltd.- Taiwan
- Uttam Galva Steels Limited - India
- IHS Mccloskey Coal Group - USA
- Makarim & Taira - Indonesia
- Altura Mining Limited, Indonesia
- Cement Manufacturers Association - India
- Aboitiz Power Corporation - Philippines
- White Energy Company Limited
- Marubeni Corporation - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Therma Luzon, Inc, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- Ceylon Electricity Board - Sri Lanka
- Bangladesh Power Developement Board
- GAC Shipping (India) Pvt Ltd
- Billiton Holdings Pty Ltd - Australia
- Samtan Co., Ltd - South Korea
- Heidelberg Cement - Germany
- Thai Mozambique Logistica
- Antam Resourcindo - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Coastal Gujarat Power Limited - India
- Globalindo Alam Lestari - Indonesia
- OPG Power Generation Pvt Ltd - India
- Borneo Indobara - Indonesia
- Straits Asia Resources Limited - Singapore
- Interocean Group of Companies - India
- Bhatia International Limited - India
- Jindal Steel & Power Ltd - India
- Simpson Spence & Young - Indonesia
- Australian Coal Association
- GN Power Mariveles Coal Plant, Philippines
- Pendopo Energi Batubara - Indonesia
- Miang Besar Coal Terminal - Indonesia
- San Jose City I Power Corp, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Metalloyd Limited - United Kingdom
- Baramulti Group, Indonesia
- Directorate Of Revenue Intelligence - India
- Attock Cement Pakistan Limited
- Ministry of Finance - Indonesia
- Mercator Lines Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- London Commodity Brokers - England
- Binh Thuan Hamico - Vietnam
- Siam City Cement - Thailand
- Sree Jayajothi Cements Limited - India
- The Treasury - Australian Government
- Anglo American - United Kingdom
- International Coal Ventures Pvt Ltd - India
- Petron Corporation, Philippines
- Rashtriya Ispat Nigam Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Commonwealth Bank - Australia
- Mercuria Energy - Indonesia
- Australian Commodity Traders Exchange
- Bharathi Cement Corporation - India
- Indian Energy Exchange, India
- Videocon Industries ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Agrawal Coal Company - India
- Kideco Jaya Agung - Indonesia
- Xindia Steels Limited - India
- Iligan Light & Power Inc, Philippines
- Orica Australia Pty. Ltd.
- Indian Oil Corporation Limited
- Eastern Energy - Thailand
- Kaltim Prima Coal - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Coal and Oil Company - UAE
- PTC India Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Sinarmas Energy and Mining - Indonesia
- Sical Logistics Limited - India
- Bulk Trading Sa - Switzerland
- Sarangani Energy Corporation, Philippines
- Tamil Nadu electricity Board
- Energy Development Corp, Philippines
- European Bulk Services B.V. - Netherlands
- Planning Commission, India
- Meralco Power Generation, Philippines
- Kepco SPC Power Corporation, Philippines
- Tata Chemicals Ltd - India
- Krishnapatnam Port Company Ltd. - India
- Global Green Power PLC Corporation, Philippines
- Central Electricity Authority - India
- MS Steel International - UAE
- Orica Mining Services - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Malabar Cements Ltd - India
- The State Trading Corporation of India Ltd
- GVK Power & Infra Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Global Business Power Corporation, Philippines
- Renaissance Capital - South Africa
- Romanian Commodities Exchange
- Gujarat Electricity Regulatory Commission - India
- Standard Chartered Bank - UAE
- Kumho Petrochemical, South Korea
- Electricity Authority, New Zealand
- Semirara Mining Corp, Philippines
- Goldman Sachs - Singapore
- Banpu Public Company Limited - Thailand
- CNBM International Corporation - China
- New Zealand Coal & Carbon
- LBH Netherlands Bv - Netherlands
- CIMB Investment Bank - Malaysia
- VISA Power Limited - India
- Minerals Council of Australia
- Vijayanagar Sugar Pvt Ltd - India
- Maheswari Brothers Coal Limited - India
- Carbofer General Trading SA - India
- Holcim Trading Pte Ltd - Singapore
- Semirara Mining and Power Corporation, Philippines
- TeaM Sual Corporation - Philippines
- Karbindo Abesyapradhi - Indoneisa
- Asmin Koalindo Tuhup - Indonesia
- Electricity Generating Authority of Thailand
- Mjunction Services Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Chamber of Mines of South Africa
- Parry Sugars Refinery, India
- Port Waratah Coal Services - Australia
- Gujarat Mineral Development Corp Ltd - India
- Gujarat Sidhee Cement - India
- McConnell Dowell - Australia
- Sindya Power Generating Company Private Ltd
- Parliament of New Zealand
- SN Aboitiz Power Inc, Philippines
- SMC Global Power, Philippines
- Wood Mackenzie - Singapore
- Price Waterhouse Coopers - Russia
- Thiess Contractors Indonesia
- Africa Commodities Group - South Africa
- GMR Energy Limited - India
- Riau Bara Harum - Indonesia
- Lanco Infratech Ltd - India
- Ambuja Cements Ltd - India
- Wilmar Investment Holdings
- Vedanta Resources Plc - India
- SMG Consultants - Indonesia
- Jaiprakash Power Ventures ltd
- Economic Council, Georgia
- Indogreen Group - Indonesia
- Dalmia Cement Bharat India
- Star Paper Mills Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Posco Energy - South Korea
- Salva Resources Pvt Ltd - India
- Formosa Plastics Group - Taiwan
- Savvy Resources Ltd - HongKong
- Trasteel International SA, Italy
- Madhucon Powers Ltd - India
- Intertek Mineral Services - Indonesia
- Coalindo Energy - Indonesia
- South Luzon Thermal Energy Corporation
- Edison Trading Spa - Italy
- Ministry of Mines - Canada
- Essar Steel Hazira Ltd - India
- Oldendorff Carriers - Singapore
- Central Java Power - Indonesia
- Latin American Coal - Colombia
- Vizag Seaport Private Limited - India
- Bukit Baiduri Energy - Indonesia
- Ind-Barath Power Infra Limited - India
- Timah Investasi Mineral - Indoneisa
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Kobexindo Tractors - Indoneisa
- Kapuas Tunggal Persada - Indonesia
- PNOC Exploration Corporation - Philippines
- Merrill Lynch Commodities Europe
- Singapore Mercantile Exchange
- Meenaskhi Energy Private Limited - India
- Grasim Industreis Ltd - India
- Indika Energy - Indonesia
- The University of Queensland
- Rio Tinto Coal - Australia
- ICICI Bank Limited - India
- Global Coal Blending Company Limited - Australia
- PowerSource Philippines DevCo
- Toyota Tsusho Corporation, Japan
- Mintek Dendrill Indonesia
- Deloitte Consulting - India
- Ministry of Transport, Egypt
- Indonesian Coal Mining Association
- ASAPP Information Group - India
- Siam City Cement PLC, Thailand
- Barasentosa Lestari - Indonesia
- Bhoruka Overseas - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Manunggal Multi Energi - Indonesia
- Bayan Resources Tbk. - Indonesia
- India Bulls Power Limited - India
- Energy Link Ltd, New Zealand
- Larsen & Toubro Limited - India
- Sojitz Corporation - Japan
- Kartika Selabumi Mining - Indonesia
- Indo Tambangraya Megah - Indonesia
- Bhushan Steel Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Medco Energi Mining Internasional
- Georgia Ports Authority, United States
- Sakthi Sugars Limited - India
- AsiaOL BioFuels Corp., Philippines
- Kalimantan Lumbung Energi - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Aditya Birla Group - India
- Independent Power Producers Association of India
- Eastern Coal Council - USA
- Chettinad Cement Corporation Ltd - India
- IEA Clean Coal Centre - UK
- Karaikal Port Pvt Ltd - India
- PetroVietnam Power Coal Import and Supply Company
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