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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, 02 February 24
DRY BULK MARKET: THE DOWNWARD REVISION IN THE GROWTH OF CAPESIZE TONNE DAYS IN JANUARY WITH THE BCI DROPPING - MARIA BERTZELETOU
In the last week of January, the dry freight market sustained weakness in the Capesize segment, while the number of ballasters in the Southeast (SE ...
Friday, 02 February 24
COAL INDIA ACHIEVES NEARLY 80% OF ITS FY24 PRODUCTION TARGET IN TEN MONTHS - CNBCTV18
For the month of January, the company’s production grew by 9.1% from the same period last year to 78.4 Million Tonnes (MT), from 71.9 MT last ...
Thursday, 01 February 24
CHINA'S WIND, SOLAR CAPACITY TO OVERTAKE COAL IN 2024 - INDUSTRY BODY, REUTERS REPORTED
China’s installed wind and solar capacity is expected to overtake coal for the first time this year, according to industry forecasts.
&nb ...
Thursday, 01 February 24
ANTI-DEDUCTION CLAUSES: CAN A CHARTERER WITHHOLD HIRE WITHOUT AN OWNER'S CONSENT? - SKULD
KNOWLEDGE TO ELEVATE
Summary
In The Anna Dorothea, the Court found that where a charterparty provides that no deduction from hire may be m ...
Thursday, 01 February 24
INDIA REBUILDS COAL STOCKS TO ENSURE ELECTRIC RELIABILITY - REUTERS
India’s electricity supply is much more comfortable at the start of 2024 than in either 2023 or 2022 as coal production has ramped up and the ...
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Showing 41 to 45 news of total 6871 |
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- Wilmar Investment Holdings
- Coastal Gujarat Power Limited - India
- White Energy Company Limited
- Global Green Power PLC Corporation, Philippines
- Ambuja Cements Ltd - India
- Agrawal Coal Company - India
- Attock Cement Pakistan Limited
- Indo Tambangraya Megah - Indonesia
- Kartika Selabumi Mining - Indonesia
- Semirara Mining Corp, Philippines
- SMC Global Power, Philippines
- Sindya Power Generating Company Private Ltd
- ASAPP Information Group - India
- Malabar Cements Ltd - India
- Siam City Cement PLC, Thailand
- Alfred C Toepfer International GmbH - Germany
- PNOC Exploration Corporation - Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Economic Council, Georgia
- Bukit Asam (Persero) Tbk - Indonesia
- Karaikal Port Pvt Ltd - India
- Energy Development Corp, Philippines
- Parliament of New Zealand
- Therma Luzon, Inc, Philippines
- Intertek Mineral Services - Indonesia
- Aditya Birla Group - India
- Coalindo Energy - Indonesia
- Samtan Co., Ltd - South Korea
- Indian Oil Corporation Limited
- Global Coal Blending Company Limited - Australia
- Meenaskhi Energy Private Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Georgia Ports Authority, United States
- Metalloyd Limited - United Kingdom
- Borneo Indobara - Indonesia
- Posco Energy - South Korea
- Indonesian Coal Mining Association
- Price Waterhouse Coopers - Russia
- Rashtriya Ispat Nigam Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Petron Corporation, Philippines
- IEA Clean Coal Centre - UK
- Thai Mozambique Logistica
- Bhoruka Overseas - Indonesia
- Baramulti Group, Indonesia
- PTC India Limited - India
- GVK Power & Infra Limited - India
- Bhushan Steel Limited - India
- Bukit Baiduri Energy - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Minerals Council of Australia
- Bahari Cakrawala Sebuku - Indonesia
- Manunggal Multi Energi - Indonesia
- Toyota Tsusho Corporation, Japan
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Bhatia International Limited - India
- ICICI Bank Limited - India
- Oldendorff Carriers - Singapore
- GAC Shipping (India) Pvt Ltd
- Kumho Petrochemical, South Korea
- India Bulls Power Limited - India
- Goldman Sachs - Singapore
- The State Trading Corporation of India Ltd
- Indika Energy - Indonesia
- Kideco Jaya Agung - Indonesia
- CIMB Investment Bank - Malaysia
- Banpu Public Company Limited - Thailand
- Aboitiz Power Corporation - Philippines
- Kepco SPC Power Corporation, Philippines
- Altura Mining Limited, Indonesia
- The Treasury - Australian Government
- Gujarat Mineral Development Corp Ltd - India
- Indogreen Group - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Electricity Authority, New Zealand
- Orica Mining Services - Indonesia
- Mjunction Services Limited - India
- GMR Energy Limited - India
- Vedanta Resources Plc - India
- MS Steel International - UAE
- Bharathi Cement Corporation - India
- Australian Coal Association
- Mercator Lines Limited - India
- Interocean Group of Companies - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Krishnapatnam Port Company Ltd. - India
- PetroVietnam Power Coal Import and Supply Company
- Latin American Coal - Colombia
- Rio Tinto Coal - Australia
- The University of Queensland
- Maheswari Brothers Coal Limited - India
- Timah Investasi Mineral - Indoneisa
- Grasim Industreis Ltd - India
- Ministry of Mines - Canada
- Makarim & Taira - Indonesia
- VISA Power Limited - India
- Anglo American - United Kingdom
- Renaissance Capital - South Africa
- Leighton Contractors Pty Ltd - Australia
- Jaiprakash Power Ventures ltd
- Binh Thuan Hamico - Vietnam
- Holcim Trading Pte Ltd - Singapore
- Billiton Holdings Pty Ltd - Australia
- Ceylon Electricity Board - Sri Lanka
- Standard Chartered Bank - UAE
- Meralco Power Generation, Philippines
- Ind-Barath Power Infra Limited - India
- San Jose City I Power Corp, Philippines
- Directorate General of MIneral and Coal - Indonesia
- Singapore Mercantile Exchange
- Gujarat Sidhee Cement - India
- Mintek Dendrill Indonesia
- Kobexindo Tractors - Indoneisa
- Planning Commission, India
- Miang Besar Coal Terminal - Indonesia
- Marubeni Corporation - India
- CNBM International Corporation - China
- Trasteel International SA, Italy
- Formosa Plastics Group - Taiwan
- Chettinad Cement Corporation Ltd - India
- Chamber of Mines of South Africa
- Tamil Nadu electricity Board
- SMG Consultants - Indonesia
- TeaM Sual Corporation - Philippines
- Riau Bara Harum - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Mercuria Energy - Indonesia
- Essar Steel Hazira Ltd - India
- Vizag Seaport Private Limited - India
- Savvy Resources Ltd - HongKong
- Kapuas Tunggal Persada - Indonesia
- Larsen & Toubro Limited - India
- Indian Energy Exchange, India
- GN Power Mariveles Coal Plant, Philippines
- SN Aboitiz Power Inc, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Siam City Cement - Thailand
- Gujarat Electricity Regulatory Commission - India
- Antam Resourcindo - Indonesia
- Sojitz Corporation - Japan
- Merrill Lynch Commodities Europe
- Eastern Energy - Thailand
- Australian Commodity Traders Exchange
- Heidelberg Cement - Germany
- Bukit Makmur.PT - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Ministry of Finance - Indonesia
- Africa Commodities Group - South Africa
- Maharashtra Electricity Regulatory Commission - India
- AsiaOL BioFuels Corp., Philippines
- Salva Resources Pvt Ltd - India
- Electricity Generating Authority of Thailand
- Vijayanagar Sugar Pvt Ltd - India
- Star Paper Mills Limited - India
- Wood Mackenzie - Singapore
- Deloitte Consulting - India
- Lanco Infratech Ltd - India
- Uttam Galva Steels Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Parry Sugars Refinery, India
- Sical Logistics Limited - India
- Central Java Power - Indonesia
- McConnell Dowell - Australia
- Iligan Light & Power Inc, Philippines
- Xindia Steels Limited - India
- Simpson Spence & Young - Indonesia
- Bayan Resources Tbk. - Indonesia
- Energy Link Ltd, New Zealand
- Power Finance Corporation Ltd., India
- Sree Jayajothi Cements Limited - India
- IHS Mccloskey Coal Group - USA
- Commonwealth Bank - Australia
- Globalindo Alam Lestari - Indonesia
- Madhucon Powers Ltd - India
- Edison Trading Spa - Italy
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Independent Power Producers Association of India
- Cigading International Bulk Terminal - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Romanian Commodities Exchange
- Ministry of Transport, Egypt
- Eastern Coal Council - USA
- Medco Energi Mining Internasional
- Sakthi Sugars Limited - India
- LBH Netherlands Bv - Netherlands
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bangladesh Power Developement Board
- Karbindo Abesyapradhi - Indoneisa
- Thiess Contractors Indonesia
- Port Waratah Coal Services - Australia
- Jindal Steel & Power Ltd - India
- Coal and Oil Company - UAE
- New Zealand Coal & Carbon
- Directorate Of Revenue Intelligence - India
- South Luzon Thermal Energy Corporation
- Orica Australia Pty. Ltd.
- Central Electricity Authority - India
- Global Business Power Corporation, Philippines
- Carbofer General Trading SA - India
- Neyveli Lignite Corporation Ltd, - India
- Bulk Trading Sa - Switzerland
- Videocon Industries ltd - India
- Kaltim Prima Coal - Indonesia
- Cement Manufacturers Association - India
- London Commodity Brokers - England
- International Coal Ventures Pvt Ltd - India
- Barasentosa Lestari - Indonesia
- OPG Power Generation Pvt Ltd - India
- Sarangani Energy Corporation, Philippines
- Straits Asia Resources Limited - Singapore
- European Bulk Services B.V. - Netherlands
- PowerSource Philippines DevCo
- Pendopo Energi Batubara - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Tata Chemicals Ltd - India
- Dalmia Cement Bharat India
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