We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
Thursday, 22 December 22
COAL AND GAS PRICE CAPS MAY COMPOUND POLITICAL RISK FOR AUSTRALIAN CORPORATES - FITCH RATINGS
 Australia’s introduction of temporary price caps on domestic sales of gas and coal used for electricity generation will probably have limited direct near-term credit impact for energy-sector issuers rated by Fitch Ratings, according to the agency. However, the caps highlight that energy companies face mounting political risks that could influence investor perceptions of the sector and capex plans over the long term.
The caps have been proposed for 12 months, but even if they are extended, the direct impact should generally be limited if prices for coal and gas fall over the coming years, in line with Fitch’s base-case assumptions.
The near-term impact on Australian thermal coal miners’ financial profiles will be further mitigated, as typically around 80% of the thermal coal produced in the country is exported, and therefore is not subject to the cap.
The natural gas sector will be more exposed, as domestic demand accounts for a larger share of supply. Santos (BBB/Stable) and Woodside Energy Group (BBB+/Stable) are large suppliers of gas to the domestic market. Such sales account for more than 40% of Santos’s gas production, but we estimate that only around 15% of total production goes to the east coast markets that are exposed to the price cap.
Woodside’s domestic gas sales, including pipeline gas from the NWS Project, Pluto and Wheatstone, account for less than 6% of its gas production, with the rest exported as LNG. For both companies, most gas is already produced under long-term contracts, which will be unaffected by the caps, limiting the near-term impact. The proportion of output affected could nonetheless rise over time if the caps are extended beyond 12 months.
The prevalence of long-term supply contracts will also reduce the impact of the caps for most domestic electricity and gas retailers, including Origin Energy (BBB/Stable). If global energy prices remain high, it is possible that the caps could offer a competitive advantage to some retailers that rely more on short-term supply contracts. That said, the superior sourcing ability and flexibility in contracts should limit downside risks for large retailers. For electricity sales, the highest-cost power generator generally determines the wholesale energy market price, and we anticipate a neutral to marginally positive financial effect for entities like Origin that have flexibility in their generation portfolio.
The price caps will add to a perception that Australia’s mining sector faces mounting political risk, even though we do not believe they will have a major impact on Fitch-rated issuers in the near term. For example, the government has announced plans to implement a new system to protect sites important to Australia’s indigenous peoples. Firms in the sector, as in other parts of the world, also face political risks associated with official efforts to promote the transition to renewable energy sources.
Mounting political risk may influence investors’ perceptions of the sector, and therefore the terms on which companies are able to access finance. This could also have ramifications for M&A plans or long-term capex strategies. Nonetheless, it is likely to take time to assess the impact, which may also be offset by other market developments.
Australia’s parliament on 16 December passed legislation empowering the government to regulate gas prices, alongside an AUD1.5 billion relief package for firms and households. It remains unclear how the relief package will affect power and gas market dynamics, but we expect its impact to be temporary. The authorities plan to cap domestic gas prices at AUD12 per gigajoule. Domestic thermal coal sales prices in New South Wales and Queensland will also be capped at AUD125 per tonne.
Source: Fitch Ratings
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Thursday, 15 December 22
MARKET INSIGHT - INTERMODAL
While observing the ship repair market very close to the end of the year, we are confident that shipyards worldwide are entering a new era. The nex ...
Tuesday, 13 December 22
STRONG COAL PRICES SUPPORT ROBUST EARNINGS AT INDONESIAN COAL MINERS - FITCH RATINGS
Fitch Ratings expects cash flow generation at Indonesian coal miners to remain strong in 2023, based on its forecast for coal prices to remain high ...
Tuesday, 13 December 22
BIMCO CII CLAUSE FINALLY RELEASED: DOES IT MAKE ANY SENSE OF CCI? - WFW
WHAT IS CII?
The new International Maritime Organisation’s (“IMO’s”) Carbon Intensity Indicator (“CII”) cer ...
Tuesday, 13 December 22
COAL BASE RAMPS UP ENERGY SUPPLY FOR WINTER NEEDS - XINHUA
Inner Mongolia Autonomous Region, China’s leading coal production base, has kicked its production into high gear to meet heating needs as col ...
Tuesday, 13 December 22
AUSTRALIA TO CAP PRICES OF COAL, GAS TO DRIVE DOWN ENERGY BILLS - REUTERS
Australia will cap coal and gas prices for a year in a bid to shave utility bills for households and businesses hit by soaring costs because of the ...
|
|
|
Showing 166 to 170 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Jindal Steel & Power Ltd - India
- Global Green Power PLC Corporation, Philippines
- London Commodity Brokers - England
- SMG Consultants - Indonesia
- Coal and Oil Company - UAE
- Banpu Public Company Limited - Thailand
- Leighton Contractors Pty Ltd - Australia
- Indo Tambangraya Megah - Indonesia
- Deloitte Consulting - India
- CIMB Investment Bank - Malaysia
- Makarim & Taira - Indonesia
- Bulk Trading Sa - Switzerland
- International Coal Ventures Pvt Ltd - India
- Krishnapatnam Port Company Ltd. - India
- Iligan Light & Power Inc, Philippines
- OPG Power Generation Pvt Ltd - India
- Bhushan Steel Limited - India
- Indogreen Group - Indonesia
- Baramulti Group, Indonesia
- Gujarat Electricity Regulatory Commission - India
- Global Business Power Corporation, Philippines
- Energy Development Corp, Philippines
- Central Java Power - Indonesia
- Edison Trading Spa - Italy
- Directorate General of MIneral and Coal - Indonesia
- Sojitz Corporation - Japan
- GN Power Mariveles Coal Plant, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Xindia Steels Limited - India
- Indika Energy - Indonesia
- Kartika Selabumi Mining - Indonesia
- Siam City Cement - Thailand
- European Bulk Services B.V. - Netherlands
- Kalimantan Lumbung Energi - Indonesia
- Vedanta Resources Plc - India
- Bukit Baiduri Energy - Indonesia
- Economic Council, Georgia
- Uttam Galva Steels Limited - India
- Directorate Of Revenue Intelligence - India
- PetroVietnam Power Coal Import and Supply Company
- Bhatia International Limited - India
- Mercuria Energy - Indonesia
- Barasentosa Lestari - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Videocon Industries ltd - India
- Rio Tinto Coal - Australia
- Romanian Commodities Exchange
- Borneo Indobara - Indonesia
- Latin American Coal - Colombia
- Wood Mackenzie - Singapore
- Indian Oil Corporation Limited
- Antam Resourcindo - Indonesia
- Electricity Generating Authority of Thailand
- Sarangani Energy Corporation, Philippines
- Therma Luzon, Inc, Philippines
- Ministry of Finance - Indonesia
- New Zealand Coal & Carbon
- Price Waterhouse Coopers - Russia
- Kideco Jaya Agung - Indonesia
- Bangladesh Power Developement Board
- ASAPP Information Group - India
- AsiaOL BioFuels Corp., Philippines
- Binh Thuan Hamico - Vietnam
- The University of Queensland
- Ind-Barath Power Infra Limited - India
- Simpson Spence & Young - Indonesia
- Ministry of Mines - Canada
- Cement Manufacturers Association - India
- Interocean Group of Companies - India
- PowerSource Philippines DevCo
- Kumho Petrochemical, South Korea
- White Energy Company Limited
- Ceylon Electricity Board - Sri Lanka
- GMR Energy Limited - India
- Rashtriya Ispat Nigam Limited - India
- Tamil Nadu electricity Board
- Global Coal Blending Company Limited - Australia
- Neyveli Lignite Corporation Ltd, - India
- LBH Netherlands Bv - Netherlands
- Holcim Trading Pte Ltd - Singapore
- Renaissance Capital - South Africa
- Orica Mining Services - Indonesia
- Chamber of Mines of South Africa
- Central Electricity Authority - India
- Gujarat Mineral Development Corp Ltd - India
- Merrill Lynch Commodities Europe
- Anglo American - United Kingdom
- Meenaskhi Energy Private Limited - India
- Standard Chartered Bank - UAE
- Tata Chemicals Ltd - India
- Parliament of New Zealand
- PNOC Exploration Corporation - Philippines
- Kobexindo Tractors - Indoneisa
- GAC Shipping (India) Pvt Ltd
- SN Aboitiz Power Inc, Philippines
- Formosa Plastics Group - Taiwan
- Savvy Resources Ltd - HongKong
- Oldendorff Carriers - Singapore
- Electricity Authority, New Zealand
- Semirara Mining and Power Corporation, Philippines
- Coastal Gujarat Power Limited - India
- Ministry of Transport, Egypt
- Bharathi Cement Corporation - India
- Power Finance Corporation Ltd., India
- Salva Resources Pvt Ltd - India
- Karaikal Port Pvt Ltd - India
- Riau Bara Harum - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Wilmar Investment Holdings
- South Luzon Thermal Energy Corporation
- McConnell Dowell - Australia
- Port Waratah Coal Services - Australia
- Bhoruka Overseas - Indonesia
- Intertek Mineral Services - Indonesia
- Gujarat Sidhee Cement - India
- GVK Power & Infra Limited - India
- Energy Link Ltd, New Zealand
- Sical Logistics Limited - India
- Timah Investasi Mineral - Indoneisa
- Aboitiz Power Corporation - Philippines
- Lanco Infratech Ltd - India
- Posco Energy - South Korea
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Larsen & Toubro Limited - India
- Sree Jayajothi Cements Limited - India
- Sakthi Sugars Limited - India
- Mjunction Services Limited - India
- MS Steel International - UAE
- Mintek Dendrill Indonesia
- Petron Corporation, Philippines
- Billiton Holdings Pty Ltd - Australia
- Kaltim Prima Coal - Indonesia
- VISA Power Limited - India
- San Jose City I Power Corp, Philippines
- Vizag Seaport Private Limited - India
- Eastern Energy - Thailand
- Medco Energi Mining Internasional
- Cigading International Bulk Terminal - Indonesia
- The State Trading Corporation of India Ltd
- Sinarmas Energy and Mining - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- CNBM International Corporation - China
- Karbindo Abesyapradhi - Indoneisa
- SMC Global Power, Philippines
- Parry Sugars Refinery, India
- India Bulls Power Limited - India
- Globalindo Alam Lestari - Indonesia
- Georgia Ports Authority, United States
- Semirara Mining Corp, Philippines
- Ambuja Cements Ltd - India
- Singapore Mercantile Exchange
- Independent Power Producers Association of India
- Carbofer General Trading SA - India
- Eastern Coal Council - USA
- Dalmia Cement Bharat India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Trasteel International SA, Italy
- Chettinad Cement Corporation Ltd - India
- Maheswari Brothers Coal Limited - India
- PTC India Limited - India
- Bukit Makmur.PT - Indonesia
- Metalloyd Limited - United Kingdom
- Aditya Birla Group - India
- Altura Mining Limited, Indonesia
- Indian Energy Exchange, India
- TeaM Sual Corporation - Philippines
- Minerals Council of Australia
- Star Paper Mills Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- ICICI Bank Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Grasim Industreis Ltd - India
- Malabar Cements Ltd - India
- Mercator Lines Limited - India
- Marubeni Corporation - India
- Siam City Cement PLC, Thailand
- Pipit Mutiara Jaya. PT, Indonesia
- Africa Commodities Group - South Africa
- Meralco Power Generation, Philippines
- Agrawal Coal Company - India
- Kohat Cement Company Ltd. - Pakistan
- Orica Australia Pty. Ltd.
- Asmin Koalindo Tuhup - Indonesia
- Coalindo Energy - Indonesia
- Essar Steel Hazira Ltd - India
- Toyota Tsusho Corporation, Japan
- Planning Commission, India
- Sindya Power Generating Company Private Ltd
- Kapuas Tunggal Persada - Indonesia
- Straits Asia Resources Limited - Singapore
- Madhucon Powers Ltd - India
- Manunggal Multi Energi - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Indonesian Coal Mining Association
- Heidelberg Cement - Germany
- Attock Cement Pakistan Limited
- Australian Coal Association
- Thiess Contractors Indonesia
- Goldman Sachs - Singapore
- Bayan Resources Tbk. - Indonesia
- Pendopo Energi Batubara - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Thai Mozambique Logistica
- Australian Commodity Traders Exchange
- Jaiprakash Power Ventures ltd
- IEA Clean Coal Centre - UK
- Commonwealth Bank - Australia
- Kepco SPC Power Corporation, Philippines
- IHS Mccloskey Coal Group - USA
- Samtan Co., Ltd - South Korea
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Bahari Cakrawala Sebuku - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Vijayanagar Sugar Pvt Ltd - India
- The Treasury - Australian Government
- TNB Fuel Sdn Bhd - Malaysia
|
| |
| |
|
