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Tuesday, 23 March 21
LOWER WHOLESALE PRICES PUT PRESSURE ON AUSTRALIAN ENERGY RETAILERS - FITCH RATINGS
 Fitch Ratings expects the low wholesale energy prices in the Australian National Energy Market to persist through to 2022, which will affect electricity generators and retailers. This is despite recent agreements to continue operating an aluminium smelter that accounts for around 10% of the State of Victoria's energy demand.
Lower demand due to mild weather and 3,700MW of new renewable generation capacity starting up resulted in average wholesale spot electricity prices falling by 23%-58% in 2020. Fitch expects pricing pressure to persist through to 2022, as more renewable generation comes online, and demand remains subdued. Prices may partially recover in 2023 as the planned closure of AGL's 2,000MW Liddell Coal power plant will remove some generation capacity from the market and as weather conditions normalise.
The lower prices are likely to reduce the earnings of power producers and retailers. Origin Energy Ltd (BBB/Stable) cut its guidance for Energy Markets division EBITDA for the financial year ended 30 June 2021 (FY21) to AUD1.00 billion-1.14 billion (FY20: AUD1.46 billion. AGL Energy Ltd also announced AUD2.7 billion of charges, reflecting onerous contracts primarily related to high-cost wind farm offtake agreements, as well as AUD532 million of impairments to the value of its generation fleet and natural gas assets.
Fitch expects Origin's Energy Markets earnings to fall further in FY22 as the decline in wholesale prices leads to lower retail prices. The Australian Energy Regulator's (AER) draft Default Market Offer (DMO) for the year to 1 July 2021 included price reductions of between 4.6% and 7.9% for residential customers, and 4.1% and 8.5% for small business customers. The regulated DMO acts as a maximum cap that electricity retailers can charge customers, and Fitch expects further reductions in non-regulated market offers, as retailers pass on lower wholesale prices to customers to win or maintain market share.
Fitch expects lower earnings from Origin's Energy Markets division to reduce the headroom available in its rating. Origin typically generates around 16TWh of energy annually from its Eraring coal-fired plant, but the recent price decreases have seen Origin reduce Earring's output due to its relatively high cost compared to market prices. The completion of the 530MW Stockyard Hill wind farm by the end of 2021 should increase Origin's access to lower-cost generation, although this is unlikely to be sufficient to fully offset the fall in retail prices.
Origin's rating incorporates the benefits of cash distributions from its investment in APLNG, which operates a gas liquefaction project. Origin has guided cash receipts of between AUD575 million and AUD675 million in FY21, and Fitch expects receipts to rise in FY22 as oil prices recover. These increased receipts will help partially offset lower energy markets earnings, but larger-than-expected declines in earnings from this segment or lower-than-forecast receipts from APLNG could place pressure on Origin's rating.
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Saturday, 06 March 21
AUSTRALIAN COAL: SOME WEAKNESS COULD MATERIALIZE AFTER THE WINTER - ING
Newcastle coal prices remain well supported for now, however as we move out of the winter months we would expect prices to come under pressure. Mea ...
Saturday, 06 March 21
ASIA SEABORNE COAL PRICES START TO RETREAT, CHINA-AUSTRALIA DISPUTE LINGERS - REUTERS
There are signs that the price and demand surge for coal during the recent colder-than-expected winter across North Asia is starting to ease, even ...
Thursday, 04 March 21
HEAD OF JBIC SAYS THE JAPANESE BANK WILL NOT FUND NEW COAL PLANT DEVELOPMENT - NHK NEWS
The governor of the Japan Bank for International Cooperation has said that the government-owned financial institution will stop funding new coal-fi ...
Wednesday, 03 March 21
MARKET INSIGHT - INTERMODAL
Following the recent rally to multi year highs of metal-based commodities, amid an unprecedented global economic stimulus, discussions of an emergi ...
Saturday, 27 February 21
CHINA'S BENCHMARK POWER COAL PRICE EDGES DOWN - XINHUA
China’s benchmark power coal price dropped slightly during the past week.
The Bohai-Rim Steam-Coal Price Index (BSPI), a gauge ...
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- SN Aboitiz Power Inc, Philippines
- Toyota Tsusho Corporation, Japan
- Electricity Authority, New Zealand
- Kalimantan Lumbung Energi - Indonesia
- Intertek Mineral Services - Indonesia
- Sojitz Corporation - Japan
- Star Paper Mills Limited - India
- Coal and Oil Company - UAE
- Edison Trading Spa - Italy
- Ceylon Electricity Board - Sri Lanka
- Pipit Mutiara Jaya. PT, Indonesia
- Semirara Mining Corp, Philippines
- Uttam Galva Steels Limited - India
- Antam Resourcindo - Indonesia
- Maheswari Brothers Coal Limited - India
- Jaiprakash Power Ventures ltd
- Energy Link Ltd, New Zealand
- Latin American Coal - Colombia
- San Jose City I Power Corp, Philippines
- VISA Power Limited - India
- Attock Cement Pakistan Limited
- Bangladesh Power Developement Board
- Grasim Industreis Ltd - India
- Aditya Birla Group - India
- The State Trading Corporation of India Ltd
- Kepco SPC Power Corporation, Philippines
- Vedanta Resources Plc - India
- ASAPP Information Group - India
- Carbofer General Trading SA - India
- Gujarat Electricity Regulatory Commission - India
- Economic Council, Georgia
- Indonesian Coal Mining Association
- Wood Mackenzie - Singapore
- Kobexindo Tractors - Indoneisa
- Banpu Public Company Limited - Thailand
- White Energy Company Limited
- Karbindo Abesyapradhi - Indoneisa
- Bulk Trading Sa - Switzerland
- Alfred C Toepfer International GmbH - Germany
- Formosa Plastics Group - Taiwan
- Trasteel International SA, Italy
- Marubeni Corporation - India
- Kaltim Prima Coal - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- McConnell Dowell - Australia
- PTC India Limited - India
- Samtan Co., Ltd - South Korea
- Price Waterhouse Coopers - Russia
- GMR Energy Limited - India
- Bukit Baiduri Energy - Indonesia
- IEA Clean Coal Centre - UK
- Romanian Commodities Exchange
- Simpson Spence & Young - Indonesia
- Dalmia Cement Bharat India
- The University of Queensland
- Wilmar Investment Holdings
- Siam City Cement PLC, Thailand
- Deloitte Consulting - India
- Medco Energi Mining Internasional
- Jindal Steel & Power Ltd - India
- Merrill Lynch Commodities Europe
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- The Treasury - Australian Government
- Bhoruka Overseas - Indonesia
- Port Waratah Coal Services - Australia
- Sree Jayajothi Cements Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Madhucon Powers Ltd - India
- Meenaskhi Energy Private Limited - India
- Planning Commission, India
- Ministry of Transport, Egypt
- Indian Oil Corporation Limited
- Cigading International Bulk Terminal - Indonesia
- Barasentosa Lestari - Indonesia
- Timah Investasi Mineral - Indoneisa
- GAC Shipping (India) Pvt Ltd
- GVK Power & Infra Limited - India
- Rashtriya Ispat Nigam Limited - India
- Chettinad Cement Corporation Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Standard Chartered Bank - UAE
- Sindya Power Generating Company Private Ltd
- Miang Besar Coal Terminal - Indonesia
- Makarim & Taira - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Indian Energy Exchange, India
- Bayan Resources Tbk. - Indonesia
- Orica Australia Pty. Ltd.
- Neyveli Lignite Corporation Ltd, - India
- PNOC Exploration Corporation - Philippines
- Gujarat Mineral Development Corp Ltd - India
- MS Steel International - UAE
- Independent Power Producers Association of India
- Thai Mozambique Logistica
- Videocon Industries ltd - India
- Ministry of Finance - Indonesia
- Manunggal Multi Energi - Indonesia
- Georgia Ports Authority, United States
- Singapore Mercantile Exchange
- Directorate Of Revenue Intelligence - India
- Siam City Cement - Thailand
- Mjunction Services Limited - India
- Commonwealth Bank - Australia
- SMG Consultants - Indonesia
- Cement Manufacturers Association - India
- ICICI Bank Limited - India
- Bukit Makmur.PT - Indonesia
- Globalindo Alam Lestari - Indonesia
- Sical Logistics Limited - India
- Larsen & Toubro Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Minerals Council of Australia
- SMC Global Power, Philippines
- Global Coal Blending Company Limited - Australia
- Tamil Nadu electricity Board
- Indogreen Group - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Maharashtra Electricity Regulatory Commission - India
- Orica Mining Services - Indonesia
- CIMB Investment Bank - Malaysia
- Tata Chemicals Ltd - India
- Australian Commodity Traders Exchange
- Posco Energy - South Korea
- Asmin Koalindo Tuhup - Indonesia
- Metalloyd Limited - United Kingdom
- Salva Resources Pvt Ltd - India
- Anglo American - United Kingdom
- Bhatia International Limited - India
- South Luzon Thermal Energy Corporation
- Interocean Group of Companies - India
- Power Finance Corporation Ltd., India
- Sarangani Energy Corporation, Philippines
- Indo Tambangraya Megah - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Billiton Holdings Pty Ltd - Australia
- AsiaOL BioFuels Corp., Philippines
- Bhushan Steel Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Mercuria Energy - Indonesia
- Coastal Gujarat Power Limited - India
- Indika Energy - Indonesia
- Ind-Barath Power Infra Limited - India
- Central Electricity Authority - India
- Mercator Lines Limited - India
- Goldman Sachs - Singapore
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Energy Development Corp, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Australian Coal Association
- PowerSource Philippines DevCo
- New Zealand Coal & Carbon
- Thiess Contractors Indonesia
- Kumho Petrochemical, South Korea
- GN Power Mariveles Coal Plant, Philippines
- Kideco Jaya Agung - Indonesia
- Sakthi Sugars Limited - India
- OPG Power Generation Pvt Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- European Bulk Services B.V. - Netherlands
- Central Java Power - Indonesia
- Aboitiz Power Corporation - Philippines
- Heidelberg Cement - Germany
- Bahari Cakrawala Sebuku - Indonesia
- London Commodity Brokers - England
- Altura Mining Limited, Indonesia
- Oldendorff Carriers - Singapore
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Meralco Power Generation, Philippines
- Coalindo Energy - Indonesia
- IHS Mccloskey Coal Group - USA
- Straits Asia Resources Limited - Singapore
- Iligan Light & Power Inc, Philippines
- Krishnapatnam Port Company Ltd. - India
- Africa Commodities Group - South Africa
- Electricity Generating Authority of Thailand
- Baramulti Group, Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Essar Steel Hazira Ltd - India
- Parliament of New Zealand
- Ministry of Mines - Canada
- Savvy Resources Ltd - HongKong
- Kapuas Tunggal Persada - Indonesia
- International Coal Ventures Pvt Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Agrawal Coal Company - India
- Binh Thuan Hamico - Vietnam
- Therma Luzon, Inc, Philippines
- Leighton Contractors Pty Ltd - Australia
- Pendopo Energi Batubara - Indonesia
- LBH Netherlands Bv - Netherlands
- Kartika Selabumi Mining - Indonesia
- Petron Corporation, Philippines
- Global Business Power Corporation, Philippines
- Parry Sugars Refinery, India
- Malabar Cements Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- India Bulls Power Limited - India
- Bharathi Cement Corporation - India
- TeaM Sual Corporation - Philippines
- Vizag Seaport Private Limited - India
- Mintek Dendrill Indonesia
- Gujarat Sidhee Cement - India
- Global Green Power PLC Corporation, Philippines
- Eastern Coal Council - USA
- Karaikal Port Pvt Ltd - India
- Lanco Infratech Ltd - India
- CNBM International Corporation - China
- Xindia Steels Limited - India
- Chamber of Mines of South Africa
- Borneo Indobara - Indonesia
- Rio Tinto Coal - Australia
- Renaissance Capital - South Africa
- Ambuja Cements Ltd - India
- Riau Bara Harum - Indonesia
- Eastern Energy - Thailand
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