Monday 21 December 2009
BLT - 2009 Public Expose Material
The presentation material of the Public Expose conducted by BLT can be accessed to the IDXNet and the Company's website.
BLT - Public Expose 2009
Public Expose
PT Berlian Laju Tanker Tbk (the “Company”) is pleased to announce that the Company is going to conduct a Public Expose with the following details.
Day/Date : Monday, 21 December 2009
Time : 15:00 West Indonesian Time-end
Venue : Garden Terrace Room
2nd floor Four Seasons Hotel,
Jl. H.R. Rasuna Said Jakarta 12920
Indonesia
Focus : Company’s latest development
R.S.V.P latest by 17 December 2009 at 04:00 pm West Indonesian Time
Tel: +62-21-30060486 (Sari), +62-21-30060308 (Intan)
PT Berlian Laju Tanker Tbk (the “Company”) is pleased to announce that the Company is going to conduct a Public Expose with the following details.
Day/Date : Monday, 21 December 2009
Time : 15:00 West Indonesian Time-end
Venue : Garden Terrace Room
2nd floor Four Seasons Hotel,
Jl. H.R. Rasuna Said Jakarta 12920
Indonesia
Focus : Company’s latest development
R.S.V.P latest by 17 December 2009 at 04:00 pm West Indonesian Time
Tel: +62-21-30060486 (Sari), +62-21-30060308 (Intan)
Thursday 10 December 2009
BLT - Update on CECO Acquisition 2
BLT has issued a press release pre opening of market today regarding the update on CECO transaction. Such press release has been posted on SGX and IDX or public can also access such release on BLT's website.
BLT - Update on CECO Acquisition
BLT is going to issue tonight or pre opening tomorrow on the update regarding acquisition transaction of CECO.
Wednesday 9 December 2009
MOU BLT and Miclyn Express Offshore
Dear All,
BLT has posted press release regarding the MOU between BLT and Miclyn Express Offshore to diversify into the offshore support vessel markets. Please refer to http://www.blt.co.id/index.jsp?a=a&mnu=116&mnu2=1048&mnu3=1072
for the press release.
Sincerely Yours,
BLT has posted press release regarding the MOU between BLT and Miclyn Express Offshore to diversify into the offshore support vessel markets. Please refer to http://www.blt.co.id/index.jsp?a=a&mnu=116&mnu2=1048&mnu3=1072
for the press release.
Sincerely Yours,
Monday 30 November 2009
BLT - Response to Questions from IDX
BLT has posted reply on questions from IDX with regard to the recent proposed acquisition of Camillo Eitzen & Co. Please refer such reply on IDXNet and company's website.
Thursday 26 November 2009
Handysize Sector to Fare Better than Other Bulkers
Thursday, 26 November 2009
Handysizes would give good margins as they have been the segment with the biggest short fall and the highest scrapping rates so this year there has been no overall growth.
Handies will be slightly more isolated to other sectors going forward as the larger ship types have such huge orderbooks still to deliver.
Aside from that Indonesia needs to have significantly more powerplant as currently they are suffering from rolling black outs. The target for the next few years is very aggressive in which the government has set a 10,000 megawatts and most of them will be coal fired. Given Indonesian geography, the most suitable size for bulker will be the handysize and therefore the demand for this type of ship will increase.
Handysizes would give good margins as they have been the segment with the biggest short fall and the highest scrapping rates so this year there has been no overall growth.
Handies will be slightly more isolated to other sectors going forward as the larger ship types have such huge orderbooks still to deliver.
Aside from that Indonesia needs to have significantly more powerplant as currently they are suffering from rolling black outs. The target for the next few years is very aggressive in which the government has set a 10,000 megawatts and most of them will be coal fired. Given Indonesian geography, the most suitable size for bulker will be the handysize and therefore the demand for this type of ship will increase.
ECHEM - Press Release on Bank Restructuring
Eitzen Chemical ASA (OSE: ECHEM) is pleased to announce that the
company has signed amended agreements with its banks that secure
additional improvements to its loan agreements relative to the
agreement which was announced on 1 October 2009. Further reference is
made to previous announcements regarding the financial restructuring
of Eitzen Chemical.
Under the revised terms, all main debt maturities have now been
extended to July 2014. As earlier, all fixed instalments will be
suspended until November 2012, with a potential for variable debt
amortisation depending on Eitzen Chemical's financial performance.
From November 2012 to maturity, fixed quarterly instalments will
apply.
As per the earlier agreement, all existing financial covenants, with
the exception of a new minimum cash covenant to be introduced from
the first quarter of 2010 and a new minimum value-to-loan covenant to
be introduced from the first quarter of 2011, have been suspended,
and this suspension will now apply until the new maturity dates.
The company has called for an extraordinary general meeting (EGM) to
be held on 26 November 2009 at 12:00 CET to resolve the equity issue.
As a result of the new agreements with the banks, there are now no
other conditions for completion of the equity issue than approval by
shareholders in the EGM.
"This concludes the financial restructuring of Eitzen Chemical, only
conditional upon approval of the equity issue at the up-coming EGM.
The restructuring started with the cancellation of the newbuilding
program earlier this year. This facilitated the agreement with the
bondholders in September and the USD 115 mill. equity issue completed
earlier this month, and was finalized with the agreement with our
banks today. We are confident the robust financial platform following
the restructuring, coupled with the company's modern fleet and strong
market position will be a solid basis for creating shareholder value
and safeguarding our various stakeholders going forward", said Terje
Askvig, CEO of Eitzen Chemical.
Eitzen Chemical is an industrial carrier of petrochemical and related
cargos with a total fleet of 84 vessels. 62 vessels are owned and
leased, and a further 22 vessels are operated for partners.
For further information, please contact:
Terje Askvig
Chief Executive Officer
0047 2400 6170
Per-Hermod Rasmussen
Chief Financial Officer
0047 2400 6175
This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)
This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.
company has signed amended agreements with its banks that secure
additional improvements to its loan agreements relative to the
agreement which was announced on 1 October 2009. Further reference is
made to previous announcements regarding the financial restructuring
of Eitzen Chemical.
Under the revised terms, all main debt maturities have now been
extended to July 2014. As earlier, all fixed instalments will be
suspended until November 2012, with a potential for variable debt
amortisation depending on Eitzen Chemical's financial performance.
From November 2012 to maturity, fixed quarterly instalments will
apply.
As per the earlier agreement, all existing financial covenants, with
the exception of a new minimum cash covenant to be introduced from
the first quarter of 2010 and a new minimum value-to-loan covenant to
be introduced from the first quarter of 2011, have been suspended,
and this suspension will now apply until the new maturity dates.
The company has called for an extraordinary general meeting (EGM) to
be held on 26 November 2009 at 12:00 CET to resolve the equity issue.
As a result of the new agreements with the banks, there are now no
other conditions for completion of the equity issue than approval by
shareholders in the EGM.
"This concludes the financial restructuring of Eitzen Chemical, only
conditional upon approval of the equity issue at the up-coming EGM.
The restructuring started with the cancellation of the newbuilding
program earlier this year. This facilitated the agreement with the
bondholders in September and the USD 115 mill. equity issue completed
earlier this month, and was finalized with the agreement with our
banks today. We are confident the robust financial platform following
the restructuring, coupled with the company's modern fleet and strong
market position will be a solid basis for creating shareholder value
and safeguarding our various stakeholders going forward", said Terje
Askvig, CEO of Eitzen Chemical.
Eitzen Chemical is an industrial carrier of petrochemical and related
cargos with a total fleet of 84 vessels. 62 vessels are owned and
leased, and a further 22 vessels are operated for partners.
For further information, please contact:
Terje Askvig
Chief Executive Officer
0047 2400 6170
Per-Hermod Rasmussen
Chief Financial Officer
0047 2400 6175
This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)
This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.
Tuesday 24 November 2009
BLT - Analysis of BLT Performance by RS Platou
Strong chemical tanker performance
Berlian Laju Tankers (BLT) reported Q3’09 EBITDA just slightly below our estimates. While peers have reported double digit declines in chemical tanker earnings q/q, BLT’s rates were only down 3% likely due to its robust operation and limited dependence on the product tanker market.
Net revenues were USD 99m just as we had estimated in our Shipping Quarterly. EBITDA came in at USD 48m vs. our USD 51m. Deviation due to USD 3m higher costs evenly distributed on charter hire and G&A. Vessel opex remained unchanged at a low $4,100/day on average.
We calculate that time-charter equivalent earnings were down only 3% on average compared to Q2. This is much better performance than peers which have reported declines of 19% (Odfjell) and 15% (Eitzen Chemical) due to their exposure to the weak product tanker market. BLT has 63 chemical tankers in operations mainly in the regional, stainless steel segment.
No news about the ongoing take-over of Camillo Eitzen.
We make marginal changes to our operating estimates while increase our interest expense assumption somewhat.
Based on our estimates, BLT trades attractively at 80% of NAV and 7.6x 2010e EBITDA (based on 5% higher chemical rates y/y).
A recovery in the world economic outlook should be positive for chemical tanker earnings and asset values. 10% increase in values would increase NAV by over 40%.
For further detailed information, please refer to RS Platou report on BLT's website
Berlian Laju Tankers (BLT) reported Q3’09 EBITDA just slightly below our estimates. While peers have reported double digit declines in chemical tanker earnings q/q, BLT’s rates were only down 3% likely due to its robust operation and limited dependence on the product tanker market.
Net revenues were USD 99m just as we had estimated in our Shipping Quarterly. EBITDA came in at USD 48m vs. our USD 51m. Deviation due to USD 3m higher costs evenly distributed on charter hire and G&A. Vessel opex remained unchanged at a low $4,100/day on average.
We calculate that time-charter equivalent earnings were down only 3% on average compared to Q2. This is much better performance than peers which have reported declines of 19% (Odfjell) and 15% (Eitzen Chemical) due to their exposure to the weak product tanker market. BLT has 63 chemical tankers in operations mainly in the regional, stainless steel segment.
No news about the ongoing take-over of Camillo Eitzen.
We make marginal changes to our operating estimates while increase our interest expense assumption somewhat.
Based on our estimates, BLT trades attractively at 80% of NAV and 7.6x 2010e EBITDA (based on 5% higher chemical rates y/y).
A recovery in the world economic outlook should be positive for chemical tanker earnings and asset values. 10% increase in values would increase NAV by over 40%.
For further detailed information, please refer to RS Platou report on BLT's website
Stolt buys VLGC
Stolt buys VLGC
Stolt-Nielsen has purchased its first VLGC less than a month after making its debut in the sector with the long-term charter of a Yuyo Steamship vessel.
CEO Niels Stolt-Nielsen.
It has bought the 82,557-cbm Althea Gas (built 2003) from Iino Kaiun Kaisha of Japan, Stolt tells investors Thursday.
Oslo-listed Stolt has not put a price on the deal, believed to the first sale of a VLGC for a couple of years.
As TradeWinds weekly newspaper will report tomorrow Iino flatly rejected an offer of $45m for the vessel earlier this week.
A Stolt spokesperson refuses to discuss the price further, due to confidentiality clauses in the deal and the fear of banks seizing on the figure as a new benchmark for such tonnage.
A price of between $50m and $55m is considered realistic by observers, but the spokesman remains tight-lipped when this is put to him.
The vessel, which will be handed over early next year, will trade on the spot market.
“Locking into a long-term deal now is probably not something you want to do,” the spokesperson said.
Earlier this month we broke news of Stolt’s first foray into the VLGC sector with the three year charter of the 78,000-cbm Yuhsho (built 1999).
At the same time we reported the Althea Gas was being touted for sale, with sources suggesting the ship would fetch less than the $60m Iino paid for it as a newbuilding.
Stolt-Nielsen decided in 2007 to set up a gas-tanker company in anticipation of lower ship prices and rates.
Headed by Christian Andersen, the company has since been waiting for the right opportunity to take on ships.
Following its recent burst of activity in the sector, Stolt is guarded about further purchases.
“Hopefully we will be able to get one or two more on the table, but there is nothing else on the table as yet,” the spokesperson said.
By Andy Pierce in London
Stolt-Nielsen has purchased its first VLGC less than a month after making its debut in the sector with the long-term charter of a Yuyo Steamship vessel.
CEO Niels Stolt-Nielsen.
It has bought the 82,557-cbm Althea Gas (built 2003) from Iino Kaiun Kaisha of Japan, Stolt tells investors Thursday.
Oslo-listed Stolt has not put a price on the deal, believed to the first sale of a VLGC for a couple of years.
As TradeWinds weekly newspaper will report tomorrow Iino flatly rejected an offer of $45m for the vessel earlier this week.
A Stolt spokesperson refuses to discuss the price further, due to confidentiality clauses in the deal and the fear of banks seizing on the figure as a new benchmark for such tonnage.
A price of between $50m and $55m is considered realistic by observers, but the spokesman remains tight-lipped when this is put to him.
The vessel, which will be handed over early next year, will trade on the spot market.
“Locking into a long-term deal now is probably not something you want to do,” the spokesperson said.
Earlier this month we broke news of Stolt’s first foray into the VLGC sector with the three year charter of the 78,000-cbm Yuhsho (built 1999).
At the same time we reported the Althea Gas was being touted for sale, with sources suggesting the ship would fetch less than the $60m Iino paid for it as a newbuilding.
Stolt-Nielsen decided in 2007 to set up a gas-tanker company in anticipation of lower ship prices and rates.
Headed by Christian Andersen, the company has since been waiting for the right opportunity to take on ships.
Following its recent burst of activity in the sector, Stolt is guarded about further purchases.
“Hopefully we will be able to get one or two more on the table, but there is nothing else on the table as yet,” the spokesperson said.
By Andy Pierce in London
Eitzen - To merge and list Bulk Division
Wait for the sales
Eitzen Bulk opted to merge with sibling Orion to become a listed company rather than enjoy the fresh capital an IPO would provide as it has no need for the money, its managing director says.
Per Lange.
Per Lange explains the firm is looking to buy but he does not believe now is the right time.
In an interview with TradeWinds after the merger of the two Camillo Eitzen subsidiaries was announced, Lange said: “The present situation is that we have no need for fresh capital.
“This market will have opportunities for investment in the future. Getting fresh capital now would put pressure on us to buy in the wrong market.”
He explains the company will be open to buying vessels, possibly in partnership with others, when and banks and yards have become “reluctant shipowners”. Takeovers will also be an option in the future, Lange adds.
Eitzen Bulk management and key staff have paid around $10m to buy a 14.6% stake in the company.
CECO retains an 85% holding, but is willing to sell shares to boost the liquidity of the stock, Lange says.
Shares in Orion, which is to be renamed Eitzen Bulk Shipping when the merger is complete, climbed 18.81% to DKK 36 ($7.18) each in Copenhagen at the time of writing Friday.
Orion, in which CECO previously held a 93% stake, has not owned vessels since January 2007 following the sale of the -lane-metre ro-ro Lisbeth C (built 1993) to Arrow Seismic. However, it does have around $8m in cash.
Eitzen Bulk does not own any vessels but has over 50 ships on charter, some with purchase options. It also has a single newbuilding on order in Japan for delivery in 2011, Knudsen says.
The idea of floating Eitzen Bulk first emerged back in June with the Nasdaq OMX exchange in Copenhagen the likely destination.
By Andy Pierce in London
Eitzen Bulk opted to merge with sibling Orion to become a listed company rather than enjoy the fresh capital an IPO would provide as it has no need for the money, its managing director says.
Per Lange.
Per Lange explains the firm is looking to buy but he does not believe now is the right time.
In an interview with TradeWinds after the merger of the two Camillo Eitzen subsidiaries was announced, Lange said: “The present situation is that we have no need for fresh capital.
“This market will have opportunities for investment in the future. Getting fresh capital now would put pressure on us to buy in the wrong market.”
He explains the company will be open to buying vessels, possibly in partnership with others, when and banks and yards have become “reluctant shipowners”. Takeovers will also be an option in the future, Lange adds.
Eitzen Bulk management and key staff have paid around $10m to buy a 14.6% stake in the company.
CECO retains an 85% holding, but is willing to sell shares to boost the liquidity of the stock, Lange says.
Shares in Orion, which is to be renamed Eitzen Bulk Shipping when the merger is complete, climbed 18.81% to DKK 36 ($7.18) each in Copenhagen at the time of writing Friday.
Orion, in which CECO previously held a 93% stake, has not owned vessels since January 2007 following the sale of the -lane-metre ro-ro Lisbeth C (built 1993) to Arrow Seismic. However, it does have around $8m in cash.
Eitzen Bulk does not own any vessels but has over 50 ships on charter, some with purchase options. It also has a single newbuilding on order in Japan for delivery in 2011, Knudsen says.
The idea of floating Eitzen Bulk first emerged back in June with the Nasdaq OMX exchange in Copenhagen the likely destination.
By Andy Pierce in London
ECHEM - News on Private Placement
Successful completion of Private Placement
Reference is made to the stock exchange notice dated 5 November 2009 and 10 November 2009 regarding the contemplated private placement of shares (the "Private Placement") in Eitzen Chemical ASA ("Eitzen Chemical" or the "Company") and the notice of an extraordinary general meeting (the "EGM") dated 5 November 2009.
The Board of Directors of Eitzen Chemical has today resolved to propose to the Company's EGM, to be held on 26 November 2009, to issue a total of 515,200,000 new shares in Eitzen Chemical at a price of NOK 1.25 per share representing gross proceeds of NOK 644 million (equivalent to approximately USD 115 million). The subscription price was determined through a book-building process conducted by ABG Sundal Collier Norge ASA and Carnegie ASA, acting as Joint Lead Managers of the Private Placement.
"We are very pleased to see that we have been successful in raising new equity to Eitzen Chemical, based on the continued support from existing shareholders as well as new interest from prime domestic and international institutional investors. The equity issue is a key milestone in the process of re-establishing a robust financial platform for the company. We are confident that the actions that we have been taking through our restructuring will be to the long term advantage of all of our stakeholders, and are optimistic that we will get the support that is needed to now conclude this process and build a stronger Eitzen Chemical ", said Terje Askvig CEO of Eitzen Chemical.
Completion of the Private Placement is subject to; (i) the approval of the Private Placement by the EGM to be held on 26 November 2009; and (ii) agreements with Eitzen Chemical's banks regarding certain proposed amendments to the Company's main bank loan agreements.
The new shares to be issued in the Private Placement will not be tradable until the share capital increase has been resolved by the EGM, the share capital increase has been registered in the Norwegian Register of Business Enterprises, and a listing prospectus has been approved by the Oslo Stock Exchange, expected to take place on or about 30 November 2009.
Payment for the new shares to be issued in the Private Placement shall be made on 27 November 2009 following a resolution by the Company's EGM.
Camillo Eitzen & Co ASA, the main shareholder of Eitzen Chemical, was allocated 223,800,000 shares in the Private Placement and will own 45.53% of the shares of the Company following the completion of the Private Placement, but prior to completion of the Subsequent Offering described below.
Subject to final completion of the Private Placement, the Board of Directors of the Company has today resolved to propose to the Company's EGM that the contemplated subsequent offering shall comprise up to 67,200,000 new shares at NOK 1.25 per share and be directed towards those of the Company's existing shareholders registered in the Norwegian Central Securities Depository (the "VPS") on 10 November 2009 (i.e. the date of completion of the book-building process in the Private Placement) who were not offered to participate in the Private Placement (the "Subsequent Offering"). As a consequence, the shares in Eitzen Chemical will be traded without the right to participate in the Subsequent Offering from and including 11 November 2009. The timing and conditions for the proposed Subsequent Offering will be announced at a later stage.
Reference is made to the stock exchange notice dated 5 November 2009 and 10 November 2009 regarding the contemplated private placement of shares (the "Private Placement") in Eitzen Chemical ASA ("Eitzen Chemical" or the "Company") and the notice of an extraordinary general meeting (the "EGM") dated 5 November 2009.
The Board of Directors of Eitzen Chemical has today resolved to propose to the Company's EGM, to be held on 26 November 2009, to issue a total of 515,200,000 new shares in Eitzen Chemical at a price of NOK 1.25 per share representing gross proceeds of NOK 644 million (equivalent to approximately USD 115 million). The subscription price was determined through a book-building process conducted by ABG Sundal Collier Norge ASA and Carnegie ASA, acting as Joint Lead Managers of the Private Placement.
"We are very pleased to see that we have been successful in raising new equity to Eitzen Chemical, based on the continued support from existing shareholders as well as new interest from prime domestic and international institutional investors. The equity issue is a key milestone in the process of re-establishing a robust financial platform for the company. We are confident that the actions that we have been taking through our restructuring will be to the long term advantage of all of our stakeholders, and are optimistic that we will get the support that is needed to now conclude this process and build a stronger Eitzen Chemical ", said Terje Askvig CEO of Eitzen Chemical.
Completion of the Private Placement is subject to; (i) the approval of the Private Placement by the EGM to be held on 26 November 2009; and (ii) agreements with Eitzen Chemical's banks regarding certain proposed amendments to the Company's main bank loan agreements.
The new shares to be issued in the Private Placement will not be tradable until the share capital increase has been resolved by the EGM, the share capital increase has been registered in the Norwegian Register of Business Enterprises, and a listing prospectus has been approved by the Oslo Stock Exchange, expected to take place on or about 30 November 2009.
Payment for the new shares to be issued in the Private Placement shall be made on 27 November 2009 following a resolution by the Company's EGM.
Camillo Eitzen & Co ASA, the main shareholder of Eitzen Chemical, was allocated 223,800,000 shares in the Private Placement and will own 45.53% of the shares of the Company following the completion of the Private Placement, but prior to completion of the Subsequent Offering described below.
Subject to final completion of the Private Placement, the Board of Directors of the Company has today resolved to propose to the Company's EGM that the contemplated subsequent offering shall comprise up to 67,200,000 new shares at NOK 1.25 per share and be directed towards those of the Company's existing shareholders registered in the Norwegian Central Securities Depository (the "VPS") on 10 November 2009 (i.e. the date of completion of the book-building process in the Private Placement) who were not offered to participate in the Private Placement (the "Subsequent Offering"). As a consequence, the shares in Eitzen Chemical will be traded without the right to participate in the Subsequent Offering from and including 11 November 2009. The timing and conditions for the proposed Subsequent Offering will be announced at a later stage.
BLT - CB Exchange Offer
BLT is looking at the plan to do an exchange offer for the CB considering the slight delay on the fund raising activity in relation to the CECO transaction while at the same time, the opportunity from Pertamina on cabotage can no longer wait. BLT therefore needs to free up its funds to be able to finance the purchase of second hand ships for such lucrative cabotage opportunity
BLT - Goldman Sachs has a buy recommendation
Goldman Sachs in its Pan Asian Transporation Analysis has a buy call for BLT with the target price of Rp.1,040 on IDX market. For the details of the report, please refer to BLT's website.
Monday 23 November 2009
BLT 3Q09 Financials
Dear All,
BLT's financials for 3Q09 both for IFRS and the IndoGAAP are already out.
Regards
Peter
BLT's financials for 3Q09 both for IFRS and the IndoGAAP are already out.
Regards
Peter
Monday 2 November 2009
BLT - DNB NOR MARKETS CONFERENCE
BLT will join the above conference with the following details:
Day, Date: Wednesday 4 Nov 2009
Time: Full Day Conference
Location: Goodwood Park Hotel, Scotts Road, S'pore
Theme: First Asian Investor Conference
Day, Date: Wednesday 4 Nov 2009
Time: Full Day Conference
Location: Goodwood Park Hotel, Scotts Road, S'pore
Theme: First Asian Investor Conference
Friday 9 October 2009
Analyst Meeting on CECO Acquisition
Analyst Meetings in relation with the Company's voluntary offer to Camillo Eitzen & Co ASA
The company wishes to announce that Analyst Meetings in relation with the Company's voluntary offer to Camillo Eitzen & Co ASA will be held with details as follow:
Date : 13 Oct 2009
Event : Analyst Meeting
Time : 13.30
Venue : Ikat, Ulos, Songket Room Four Seasons Hotel Jakarta
Date : 16 Oct 2009
Event : Analyst Meeting
Time : 13.30
Venue : Straits Room, The Fullerton Hotel Singapore
Thank you
The company wishes to announce that Analyst Meetings in relation with the Company's voluntary offer to Camillo Eitzen & Co ASA will be held with details as follow:
Date : 13 Oct 2009
Event : Analyst Meeting
Time : 13.30
Venue : Ikat, Ulos, Songket Room Four Seasons Hotel Jakarta
Date : 16 Oct 2009
Event : Analyst Meeting
Time : 13.30
Venue : Straits Room, The Fullerton Hotel Singapore
Thank you
Tuesday 29 September 2009
Shortage of seafarers
There is a desperate shortage of seafarers throughout the entire world. Despite the prevalence of opportunities available on the sea, there was still a huge shortage of seafarers throughout the world, with the situation expected to worsen in the next two years.
As of August 29, 2009, there was a shortfall of 10 000 seafarers worldwide, and that number is expected to rise to 30 000 by 2011.
The fact that no matter how technologically advanced ships become, there will always be a need for seafarers to man ships and therefore countless opportunities existed, especially for young people.
No matter how much automatic facilities are introduced onto ships, there will always be a need for people to keep that ship going in areas such as piloting, marine engineering and maintenance, food and beverage and live on board entertainment. There is also the need for pilots, ship managers, marine superintendants and surveyors, amongst other jobs.
Skilled personnel such as coastal protection, marine biology, maritime security and environmental planning are also required.
As of August 29, 2009, there was a shortfall of 10 000 seafarers worldwide, and that number is expected to rise to 30 000 by 2011.
The fact that no matter how technologically advanced ships become, there will always be a need for seafarers to man ships and therefore countless opportunities existed, especially for young people.
No matter how much automatic facilities are introduced onto ships, there will always be a need for people to keep that ship going in areas such as piloting, marine engineering and maintenance, food and beverage and live on board entertainment. There is also the need for pilots, ship managers, marine superintendants and surveyors, amongst other jobs.
Skilled personnel such as coastal protection, marine biology, maritime security and environmental planning are also required.
Sunday 27 September 2009
Japanese Investors Eyeing Indonesian Sectors
With a nod of approval toward the country’s economic prospects, a group of Japanese corporate leaders has indicated their intention to invest in Indonesia, particularly in the consumer and infrastructure sectors, a leader of the group said. Koken-Kai is a group of about 200 Japanese corporate executives from Tokyo, Osaka and Fukuoka. Its members are involved in industries ranging from manufacturing to financial services. “I see a lot of potential in Indonesia,” said Kenichi Ohmae, who led a delegation of about 40 Koken-Kai members to the country last week to meet with political and business leaders.
“That’s why Japanese colleagues of mine will come to Indonesia to take advantage of the country’s very dynamic economic growth.” Ohmae, president of Business Breakthrough and an author of popular business books, said the country was now seen as one of the world’s new economic growth engines, behind China and India.
“People have high expectations for the new government and new cabinet, with Vice President-elect Boediono directing economic policy,” he said. Ohmae noted that Japan was already one of the country’s largest investors as well as one of its biggest export markets, but added that trade between the two sides should increase. “Our member companies will focus on investing in the consumer products and infrastructure sectors,” Ohmae said. “With a huge population of more than 200 million people, I think it would be a mistake for Japan not to pay close attention to the domestic market in Indonesia.”
He added that he was urging Japanese companies to invest in production facilities in Indonesia as well as in China and Vietnam to take advantage of low costs, abundant natural resources and skilled labor. “In my opinion, Indonesia is well-practiced at global competitiveness,” he said. Eric Alexander Sugandi, an economist at Standard Chartered Bank who met with the Koken-Kai delegation, shared Ohmae’s view about the resilience of the economy and the prospects for investment in the domestic consumer goods sector. “Indonesia’s economy is expected to grow by 4 percent this year and by 5 percent next year,” he said during a presentation to Koken-Kai on Friday.
Eric said the second government of President Susilo Bambang Yudhoyono would likely be stronger than the first, giving it more power to enact its reform agenda and providing Boediono greater influence on economic policy. “Indonesia has been less affected by the global crisis and the consumer sector was the most resilient to the downturn,” he added.
“That’s why Japanese colleagues of mine will come to Indonesia to take advantage of the country’s very dynamic economic growth.” Ohmae, president of Business Breakthrough and an author of popular business books, said the country was now seen as one of the world’s new economic growth engines, behind China and India.
“People have high expectations for the new government and new cabinet, with Vice President-elect Boediono directing economic policy,” he said. Ohmae noted that Japan was already one of the country’s largest investors as well as one of its biggest export markets, but added that trade between the two sides should increase. “Our member companies will focus on investing in the consumer products and infrastructure sectors,” Ohmae said. “With a huge population of more than 200 million people, I think it would be a mistake for Japan not to pay close attention to the domestic market in Indonesia.”
He added that he was urging Japanese companies to invest in production facilities in Indonesia as well as in China and Vietnam to take advantage of low costs, abundant natural resources and skilled labor. “In my opinion, Indonesia is well-practiced at global competitiveness,” he said. Eric Alexander Sugandi, an economist at Standard Chartered Bank who met with the Koken-Kai delegation, shared Ohmae’s view about the resilience of the economy and the prospects for investment in the domestic consumer goods sector. “Indonesia’s economy is expected to grow by 4 percent this year and by 5 percent next year,” he said during a presentation to Koken-Kai on Friday.
Eric said the second government of President Susilo Bambang Yudhoyono would likely be stronger than the first, giving it more power to enact its reform agenda and providing Boediono greater influence on economic policy. “Indonesia has been less affected by the global crisis and the consumer sector was the most resilient to the downturn,” he added.
Eitzen calls bond holders meeting
As part of the process of putting forward a new financial plan, on 21st September 2009, Eitzen Chemical called for a bond holders' meeting.
This was called to propose certain amendments to the loan agreement for the FRN Eitzen Chemical Callable Bond Issue 2006/2011.
It will be held on 29th September 2009.
The company has proposed to change the maturity date of the bond loan to October 2014 and to remove certain covenants.
Eitzen Chemical is also in the process of negotiating amendments to its current credit facility agreements to achieve a new and more favourable debt repayment schedule and covenant structure.
It has proposed to postpone all scheduled instalments until fourth quarter 2012; however, with a potential for variable instalments from 2010 based on Eitzen Chemical's financial performance.
It also proposed to remove covenants to achieve a new structure, which fits the current market environment and the company's financial position.
Eitzen also plans to complete a new issue of $100 mill to strengthen its liquidity buffer and balance sheet.
The proposed amendments to the loan agreements, including the bond loan, will be conditional upon successful completion of the equity issue, and in turn this will be conditional upon the lenders approving the proposed loan amendments.
This was called to propose certain amendments to the loan agreement for the FRN Eitzen Chemical Callable Bond Issue 2006/2011.
It will be held on 29th September 2009.
The company has proposed to change the maturity date of the bond loan to October 2014 and to remove certain covenants.
Eitzen Chemical is also in the process of negotiating amendments to its current credit facility agreements to achieve a new and more favourable debt repayment schedule and covenant structure.
It has proposed to postpone all scheduled instalments until fourth quarter 2012; however, with a potential for variable instalments from 2010 based on Eitzen Chemical's financial performance.
It also proposed to remove covenants to achieve a new structure, which fits the current market environment and the company's financial position.
Eitzen also plans to complete a new issue of $100 mill to strengthen its liquidity buffer and balance sheet.
The proposed amendments to the loan agreements, including the bond loan, will be conditional upon successful completion of the equity issue, and in turn this will be conditional upon the lenders approving the proposed loan amendments.
Friday 25 September 2009
Russia could take quarter of world LNG market - Gazprom CEO
Friday, 25 September 2009
Russia could increase its share on the world liquefied natural gas market to 25%, the CEO of Russian energy giant Gazprom said on Thursday. "Russia could take a leading position on the world LNG market and get 25% of the global market," Alexei Miller said at a meeting on the development of gas deposits. The global market for liquefied natural gas (LNG) will double by 2020, Miller said."The [LNG] market has grown 70% since 2000, and according to our forecasts it will double by 2020," Miller said.
The Gazprom CEO said that the project for the construction of a liquefied natural gas plant on Yamal Peninsula in West Siberia would be ready by 2015-2017."Currently we are at the pre-project stage; I don't believe this will happen earlier than 2015-2017," Miller said in response to the question about when the project would be ready and Gazprom would start selecting foreign partners for its implementation.Russian Energy Minister Sergei Shmatko said earlier in the day that the potential of natural gas production at explored fields alone on Yamal Peninsula was estimated at 360 billion cubic meters a year for many years to come, with the peninsula's reserves estimated at over 50 trillion cubic meters.
Source: RIA Novosti
Russia could increase its share on the world liquefied natural gas market to 25%, the CEO of Russian energy giant Gazprom said on Thursday. "Russia could take a leading position on the world LNG market and get 25% of the global market," Alexei Miller said at a meeting on the development of gas deposits. The global market for liquefied natural gas (LNG) will double by 2020, Miller said."The [LNG] market has grown 70% since 2000, and according to our forecasts it will double by 2020," Miller said.
The Gazprom CEO said that the project for the construction of a liquefied natural gas plant on Yamal Peninsula in West Siberia would be ready by 2015-2017."Currently we are at the pre-project stage; I don't believe this will happen earlier than 2015-2017," Miller said in response to the question about when the project would be ready and Gazprom would start selecting foreign partners for its implementation.Russian Energy Minister Sergei Shmatko said earlier in the day that the potential of natural gas production at explored fields alone on Yamal Peninsula was estimated at 360 billion cubic meters a year for many years to come, with the peninsula's reserves estimated at over 50 trillion cubic meters.
Source: RIA Novosti
Middle East gas demand to remain strong
Friday, 25 September 2009
Gas demand in the Middle East will remain strong for the foreseeable future, due to the needs of the power sector, according to an industry analyst. While demand for gas in the rest of the world has fallen, domestic requirements have remained steady in the Middle East, and much of this due to the increasing amount of power needed in the region reported George Sarraf, principal at Boooz and Company. “If you look at most of the Middle East countries, the gas demand is pretty strong. In Abu Dhabi there is a strong demand for gas mainly due to the need of the power sector which has had to grow significantly,” said Sarraf.“
It is the same story for all the other countries, the demand for gas domestically is high and it’s primarily driven by the growth in the power sector. There is an over consumption of electricity so this is driving all these projects building big power plants which require gas as a feedstock,” Sarraf added. Before the recession hit analysts were predicting world gas demand to rise 2% per annum for the foreseeable future, however due to gas demand correlating with industrial output, this has not been the case.
Source: Arabian Oil & Gas
Gas demand in the Middle East will remain strong for the foreseeable future, due to the needs of the power sector, according to an industry analyst. While demand for gas in the rest of the world has fallen, domestic requirements have remained steady in the Middle East, and much of this due to the increasing amount of power needed in the region reported George Sarraf, principal at Boooz and Company. “If you look at most of the Middle East countries, the gas demand is pretty strong. In Abu Dhabi there is a strong demand for gas mainly due to the need of the power sector which has had to grow significantly,” said Sarraf.“
It is the same story for all the other countries, the demand for gas domestically is high and it’s primarily driven by the growth in the power sector. There is an over consumption of electricity so this is driving all these projects building big power plants which require gas as a feedstock,” Sarraf added. Before the recession hit analysts were predicting world gas demand to rise 2% per annum for the foreseeable future, however due to gas demand correlating with industrial output, this has not been the case.
Source: Arabian Oil & Gas
Wednesday 23 September 2009
Eitzen Chemical - Summons for bondholders' meeting
As previously announced, Eitzen Chemical ASA is in the process of developing a long term financial plan. The plan is built around a new debt repayment schedule and covenant structure to fit the current market conditions in addition to a new equity issue. Eitzen Chemical is currently in the process of negotiating amendments to its main loan agreements. The Company has proposed that installments are deferred and certain covenants are amended, among other proposed changes in the main loan agreements.As part of the restructuring process, the Company has called for a bondholders' meeting to consider a proposal for amendments to the loan agreement for the FRN Eitzen Chemical ASA Callable Bond Issue 2006/2011 bond loan, consisting of a USD tranche with ISIN NO 00133433.7 and a NOK tranche with ISIN NO 001033434.5.The meeting will be held in the premises of Norsk Tillitsmann ASA (the loan trustee for the bond loan).
Asian Development Bank Upgrades Forecasts for Indonesia
The Asian Development Bank raised its growth forecasts for Indonesia on Tuesday, as it did for regional heavyweights China and India, saying the region is leading a global recovery but warning against ending stimulus efforts too quickly. The ADB forecast that Indonesia’s economy would expand 4.3 percent this year, compared with its 3.6 percent estimate in March.
The bank said “robust growth in private consumption, underpinned by easing inflation and a surge in election-related government spending, drove better-than-expected economic growth in the first half of 2009.” The report added that the country’s “fiscal stimulus measures supported growth. Net exports contributed to the expansion as imports contracted faster than exports, though investment weakened. “Relative to forecasts made in March this year, the full-year growth projections are revised up for 2009 and 2010, and inflation will likely be lower.
The bank said “robust growth in private consumption, underpinned by easing inflation and a surge in election-related government spending, drove better-than-expected economic growth in the first half of 2009.” The report added that the country’s “fiscal stimulus measures supported growth. Net exports contributed to the expansion as imports contracted faster than exports, though investment weakened. “Relative to forecasts made in March this year, the full-year growth projections are revised up for 2009 and 2010, and inflation will likely be lower.
Monday 21 September 2009
The Capture of Asia's Most Wanted Terrorists
So glad today to hear about the death of terror mastermind Noordin Top and this has shown that the Indonesian police has managed to continue to perform well after all the raids and captures of many other terrorists for the past 5 years. I salute Police excellent performance for this achievement. This time it is striking at the heart of the terrorist network behind a deadly campaign of suicide attacks in Indonesia. If i remember all the bombings that have happenned over the past few years, actually these terrorists have killed about nearly one thousands people.
These masterminds are actually Malaysian nationals and they were member of JI and regiional leaders for Al-Qaeda and linked to Osama Bin Laden. First one was Dr. Azahari who was shot dead on a raid in 2005 but the more cunning and and charismatic figure, Noordin had eluded capture for more than seven years. Indonesia has mounted Indonesia had mounted one of the biggest manhunts in its history to try to capture Noordin, widely distributing his photo and offering a $100,000 reward for information that led to his arrest. Yet he repeatedly managed to evade authorities, most recently in August when, after an all-night raid on a safe house, the police discovered they had killed the wrong man.
Noordin had an extensive support network, from Islamic schools to sympathetic radical groups, that helped him slip across Indonesia's vast island chain undetected, resettling and taking new wives as he recruited followers and plotted attacks. One of his wives was among those rounded up in the aftermath of the July hotel bombings, though she told authorities she was unaware of her husband's true identity.
With the death of the imporant person and most wanted terrorists, it will reduce substantially the leadership in this group and will reduce the terrorists threat. President Susilo Bambang Yudhoyono hailed Thursday's operation, saying it had removed a feared figure who "disturbed the life of this country, ruined our image in the international community and paralyzed the national economy." Still, he cautioned that Noordin's death should not be used as a reason for complacency.
With the Indonesian economy has shown resilience in the facing of the crisis and many analysts has put Indonesia at par with the rest of BRIC economic growth, its ability to continue to show strong growth will be further enhanced with the news of the death of Noordin M. Top. Tourism will hopefully increase considerably as Indonesia has improved its image of being able and has shown consistent results in combating terrorism.
Business confidence will also improve and there will be more investment coming into Indonesia as the threat of terrorism has reduced. Country risk will decline and sovereign ratings will be better. The will result in higher return and better investment case for Indonesia which have already given a strong and positive view by business comunities.
fights for ideology - eradicate poverty and backwardness
President Susilo Bambang Yudhoyono hailed Thursday's operation, saying it had removed a feared figure who "disturbed the life of this country, ruined our image in the international community and paralyzed the national economy." Still, he cautioned that Noordin's death should not be used as a reason for complacency.
A skilled bombmaker, Noordin has been implicated in every major recent attack in Indonesia, including 2002 and 2005 suicide bombings on the resort island of Bali that together killed 222 people, mostly foreigners.
Jemaah Islamiyah, and later Noordin's more militant splinter group, are also blamed for attacks in Jakarta, including the J.W. Marriott and Ritz-Carlton suicide bombings in July, an earlier attack on the Marriott in 2003 and a bombing at the Australian Embassy in 2004.
With Thursday's raid, police have now killed seven militant suspects since the July 17 hotel bombs and are still hunting three fugitives. Terrorism experts said Noordin's removal from the radical scene will improve the country's security outlook.
"You can't say that the terrorism threat is over, but you can say that a major figure has been taken out of the picture," said Sidney Jones, a leading terrorism adviser to the International Crisis Group think tank. "The threat had probably been diminished with his death and the inspiration he gave to follow al-Qaida line is finished."
The Obama administration welcomed the operation as "a significant step forward for Indonesia in its battle with political extremists," said State Department spokesman P.J. Crowley. Asked about any U.S. involvement, he said the U.S. did not take part or provide intelligence that led to the raid.
Noordin, 41, formed his radical ideas in the early 1990s at a Malaysian boarding school headed by an Indonesian Muslim cleric, Abdullah Sungkar, who founded the regional Jemaah Islamiyah network. Noordin joined in 1998 after training in the southern Philippines.
He fled to Indonesia in 2002 amid a crackdown on Muslim extremists in Malaysia following the Sept. 11, 2001, attacks in the United States, leaving behind a wife and three young children. He rose to prominence following the Bali bombings, coordinated by his close associate Dr. Azahari bin Husin, who was killed in a raid in late 2005.
A disagreement over targeting civilians caused a split in Jemaah Islamiyah and Noordin formed a more violent faction, Tanzim Qaidat al-Jihad, aimed at creating a common Muslim state in Indonesia, Malaysia, Brunei and the Philippines.
Authorities in the Philippines, who are fighting an Islamist insurgency in the south, said Noordin's death was a welcome sign that terrorists cannot hide forever.
"It's a major accomplishment, it's a big blow to their leadership, to their capability to train new bombers," said Maj. Gen. Benjamin Dolorfino, who leads assaults against al-Qaida-linked militants. "There are gains being made in the anti-terrrorism campaign in the region."
Noordin's death follows the killings of several key al-Qaida and Taliban figures, including Pakistani Taliban chief Baitullah Meshud, who died in a CIA missile strike in August, and al-Qaida operative Saleh Ali Saleh Nabhan, who was killed Monday in a U.S. commando raid in Somalia.
These masterminds are actually Malaysian nationals and they were member of JI and regiional leaders for Al-Qaeda and linked to Osama Bin Laden. First one was Dr. Azahari who was shot dead on a raid in 2005 but the more cunning and and charismatic figure, Noordin had eluded capture for more than seven years. Indonesia has mounted Indonesia had mounted one of the biggest manhunts in its history to try to capture Noordin, widely distributing his photo and offering a $100,000 reward for information that led to his arrest. Yet he repeatedly managed to evade authorities, most recently in August when, after an all-night raid on a safe house, the police discovered they had killed the wrong man.
Noordin had an extensive support network, from Islamic schools to sympathetic radical groups, that helped him slip across Indonesia's vast island chain undetected, resettling and taking new wives as he recruited followers and plotted attacks. One of his wives was among those rounded up in the aftermath of the July hotel bombings, though she told authorities she was unaware of her husband's true identity.
With the death of the imporant person and most wanted terrorists, it will reduce substantially the leadership in this group and will reduce the terrorists threat. President Susilo Bambang Yudhoyono hailed Thursday's operation, saying it had removed a feared figure who "disturbed the life of this country, ruined our image in the international community and paralyzed the national economy." Still, he cautioned that Noordin's death should not be used as a reason for complacency.
With the Indonesian economy has shown resilience in the facing of the crisis and many analysts has put Indonesia at par with the rest of BRIC economic growth, its ability to continue to show strong growth will be further enhanced with the news of the death of Noordin M. Top. Tourism will hopefully increase considerably as Indonesia has improved its image of being able and has shown consistent results in combating terrorism.
Business confidence will also improve and there will be more investment coming into Indonesia as the threat of terrorism has reduced. Country risk will decline and sovereign ratings will be better. The will result in higher return and better investment case for Indonesia which have already given a strong and positive view by business comunities.
fights for ideology - eradicate poverty and backwardness
President Susilo Bambang Yudhoyono hailed Thursday's operation, saying it had removed a feared figure who "disturbed the life of this country, ruined our image in the international community and paralyzed the national economy." Still, he cautioned that Noordin's death should not be used as a reason for complacency.
A skilled bombmaker, Noordin has been implicated in every major recent attack in Indonesia, including 2002 and 2005 suicide bombings on the resort island of Bali that together killed 222 people, mostly foreigners.
Jemaah Islamiyah, and later Noordin's more militant splinter group, are also blamed for attacks in Jakarta, including the J.W. Marriott and Ritz-Carlton suicide bombings in July, an earlier attack on the Marriott in 2003 and a bombing at the Australian Embassy in 2004.
With Thursday's raid, police have now killed seven militant suspects since the July 17 hotel bombs and are still hunting three fugitives. Terrorism experts said Noordin's removal from the radical scene will improve the country's security outlook.
"You can't say that the terrorism threat is over, but you can say that a major figure has been taken out of the picture," said Sidney Jones, a leading terrorism adviser to the International Crisis Group think tank. "The threat had probably been diminished with his death and the inspiration he gave to follow al-Qaida line is finished."
The Obama administration welcomed the operation as "a significant step forward for Indonesia in its battle with political extremists," said State Department spokesman P.J. Crowley. Asked about any U.S. involvement, he said the U.S. did not take part or provide intelligence that led to the raid.
Noordin, 41, formed his radical ideas in the early 1990s at a Malaysian boarding school headed by an Indonesian Muslim cleric, Abdullah Sungkar, who founded the regional Jemaah Islamiyah network. Noordin joined in 1998 after training in the southern Philippines.
He fled to Indonesia in 2002 amid a crackdown on Muslim extremists in Malaysia following the Sept. 11, 2001, attacks in the United States, leaving behind a wife and three young children. He rose to prominence following the Bali bombings, coordinated by his close associate Dr. Azahari bin Husin, who was killed in a raid in late 2005.
A disagreement over targeting civilians caused a split in Jemaah Islamiyah and Noordin formed a more violent faction, Tanzim Qaidat al-Jihad, aimed at creating a common Muslim state in Indonesia, Malaysia, Brunei and the Philippines.
Authorities in the Philippines, who are fighting an Islamist insurgency in the south, said Noordin's death was a welcome sign that terrorists cannot hide forever.
"It's a major accomplishment, it's a big blow to their leadership, to their capability to train new bombers," said Maj. Gen. Benjamin Dolorfino, who leads assaults against al-Qaida-linked militants. "There are gains being made in the anti-terrrorism campaign in the region."
Noordin's death follows the killings of several key al-Qaida and Taliban figures, including Pakistani Taliban chief Baitullah Meshud, who died in a CIA missile strike in August, and al-Qaida operative Saleh Ali Saleh Nabhan, who was killed Monday in a U.S. commando raid in Somalia.
Sunday 20 September 2009
Indonesia Should Aim Higher: The Economist
The Jakarta Post , Jakarta Tue, 09/15/2009 12:12 PM World
Indonesia has not only survived the catastrophic financial crisis and a political calamity in 1998, it has now turned into a stable democracy with a robust economy, The Economist says.
The London-based weekly newspaper gave the glowing assessment in a special report on Indonesia in its Sept. 12 edition, highlighting the success this country has made in the past decade.
"Foreigners may not realize, its boosters defensively suggest, that the world's third-largest democracy and fourth most populous country, with more Muslims than any other, is actually doing rather well," the Economist said in its 15-page report titled "A Golden Chance".
Indonesia has managed to achieve a remarkable turnaround in a relatively short period of time, and with its impressive economic growth, it can now be considered as a serious contender against the other fast-growing emerging markets, or BRIC countries: Brazil, Russia, India and China.
Yet, less than a decade ago Indonesia was considered a basket case.
The influential newspaper says the Indonesian economy has proven to be resilient enough to withstand the recent global downturn and maintain solid growth rates for years to come.
The country's economy will continue to grow with the swelling number of Indonesians living in cities serving as the engine of growth.
By next year, about half of Indonesia's population will be living in urban areas, which will lead to surging consumption, the country's main driver for growth, the newspaper says.
While its democracy is still "messy" and "needs fixing", the newspaper says Indonesia will likely enjoy political stability, a condition that will give Yudhoyono the "breathing space" needed to bring the nation out of its current state.
"Indonesian policymakers, naturally, congratulate themselves on having steered the country away from the abyss." The newspaper however warns against complacency, as Indonesia is not yet out of the woods. "Instead, policymakers should be worrying about the fragility of the gains they have made, and about how far the country still is from realizing its potential."
Indonesia has not only survived the catastrophic financial crisis and a political calamity in 1998, it has now turned into a stable democracy with a robust economy, The Economist says.
The London-based weekly newspaper gave the glowing assessment in a special report on Indonesia in its Sept. 12 edition, highlighting the success this country has made in the past decade.
"Foreigners may not realize, its boosters defensively suggest, that the world's third-largest democracy and fourth most populous country, with more Muslims than any other, is actually doing rather well," the Economist said in its 15-page report titled "A Golden Chance".
Indonesia has managed to achieve a remarkable turnaround in a relatively short period of time, and with its impressive economic growth, it can now be considered as a serious contender against the other fast-growing emerging markets, or BRIC countries: Brazil, Russia, India and China.
Yet, less than a decade ago Indonesia was considered a basket case.
The influential newspaper says the Indonesian economy has proven to be resilient enough to withstand the recent global downturn and maintain solid growth rates for years to come.
The country's economy will continue to grow with the swelling number of Indonesians living in cities serving as the engine of growth.
By next year, about half of Indonesia's population will be living in urban areas, which will lead to surging consumption, the country's main driver for growth, the newspaper says.
While its democracy is still "messy" and "needs fixing", the newspaper says Indonesia will likely enjoy political stability, a condition that will give Yudhoyono the "breathing space" needed to bring the nation out of its current state.
"Indonesian policymakers, naturally, congratulate themselves on having steered the country away from the abyss." The newspaper however warns against complacency, as Indonesia is not yet out of the woods. "Instead, policymakers should be worrying about the fragility of the gains they have made, and about how far the country still is from realizing its potential."
Saturday 19 September 2009
Shipping finds itself at the crest and the bottom of a wave
Friday, 18 September 2009
On Monday morning the full complement of new trainees arrived at Ince & Co, the maritime law specialist. Unlike the picture at many other City law firms, there had been no need for deferrals. In fact, it took on two more young lawyers than last year. There is a similar picture at Holman Fenwick Willan, another great maritime firm, where recruitment has held up well. Partners, senior associates and even three to four-year qualified assistants say they need more trainees to help them to cope with the volume of work.In other words, business is booming for shipping-based law firms.
And so it is highly pertinent that this week Norton Rose has published The Way Ahead for Transport, a heavyweight report that analyses the state of the market for shipping, aviation and rail as seen by industry insiders.It comes, unsurprisingly, to gloomy conclusions — especially about shipping. “Shipping respondents appear to be the biggest victims of the drop in global trade while also suffering from the lack of available finance,” it says.So what is going on? The Norton Rose figures point to a sector in which two thirds of the industry expect widespread bank enforcement of troubled shipping loans and 80 per cent predict that it will be at least 12 months before the number of banks actively lending to the sector increases. A similar number expect no return to pre-crisis levels of available bank debt within three years. Almost 70 per cent of the sector regard the market as poor.
It is this crisis in confidence that is fuelling the unprecedented level of activity among law firms. Shipping lawyers take no pleasure in the problems facing their clients. Yet now that the sector has slid into crisis their services are urgently needed to sort out the tangled wrecks into which many shipping businesses have collapsed.“I’ve been in the shipping field for 26 years and the downturn took me totally by surprise,” says Harry Theochari, the Norton Rose asset finance partner who inspired the survey.
“The fallout has been striking. For example, on behalf of our clients we have arrested more ships in the past six weeks than in the past six years.”Although shipping is the preeminent global business with the leading players coming from countries such as Greece, Norway, China and Singapore, the preferred jurisdiction for contracts and dispute resolution is England. Nigel Thomas, of Watson, Farley & Williams, says: “English law works better than any other system and it gives us, as English lawyers, a tremendous advantage. Recently there have been pressures from the Norwegians to use Norwegian law but international clients don’t want to use it.”
London’s position as a financial centre reinforces the primacy of English law given that, as Theochari points out, this is a sector that has heavily relied upon bank debt for most of its history. Moreover, the complex network of relationships of those who charter, sub-charter and sub-sub-charter means that once something goes wrong there is a massive knock-on effect luring more and more people into the web of litigation. So it is very convenient for everyone to be operating under the same code (especially given New York law’s absence from the international shipping business).
One of the biggest things to have gone wrong, of course, over the past year is the extraordinary slump in the rates that owners can charge. For large bulk carriers the drop has been from $200,000 (£121,000) a day to just $10,000. This has left parties with gaping holes in their income in relation to their outgoings. Ben Knowles, of Clyde & Co, says: “Last autumn there was an unprecedented collapse in the dry shipping market. The fallout of that collapse has benefited many of London’s medium-sized shipping and trading practitioners.”For James Wilson, of Ince & Co, the imperative is to ensure that legal advice is delivered in a wholly commercial — not purely legalistic — way. “There is no point in this market to adopt a rottweiller approach if the people on the other side do not have the money to hand over and therefore your client, the claimant, cannot effect the claim,” he says. “So you need a pragmatic approach to mediation or negotiation in order to get a result.
The original agreement for a charter may be for $100,000 a day but if $25,000 is all the party can afford to pay then it’s better to negotiate for $30,000 than end up with nothing by not being prepared to compromise.”Pragmatism is also starting to bite in the distressed shipbuilding market. The boom years lead to a massive over-ordering of ships that in many cases are being mothballed as soon as they are launched. However, Marcus Bowman, of Holman Fenwick Willan, says that there are some signs that bargains are starting to come on the market and being snapped up. “What’s important for us is to have activity in the market,” he says. “Ships are now cheap. It’s not all gloom and doom.”
Source: Times Online
On Monday morning the full complement of new trainees arrived at Ince & Co, the maritime law specialist. Unlike the picture at many other City law firms, there had been no need for deferrals. In fact, it took on two more young lawyers than last year. There is a similar picture at Holman Fenwick Willan, another great maritime firm, where recruitment has held up well. Partners, senior associates and even three to four-year qualified assistants say they need more trainees to help them to cope with the volume of work.In other words, business is booming for shipping-based law firms.
And so it is highly pertinent that this week Norton Rose has published The Way Ahead for Transport, a heavyweight report that analyses the state of the market for shipping, aviation and rail as seen by industry insiders.It comes, unsurprisingly, to gloomy conclusions — especially about shipping. “Shipping respondents appear to be the biggest victims of the drop in global trade while also suffering from the lack of available finance,” it says.So what is going on? The Norton Rose figures point to a sector in which two thirds of the industry expect widespread bank enforcement of troubled shipping loans and 80 per cent predict that it will be at least 12 months before the number of banks actively lending to the sector increases. A similar number expect no return to pre-crisis levels of available bank debt within three years. Almost 70 per cent of the sector regard the market as poor.
It is this crisis in confidence that is fuelling the unprecedented level of activity among law firms. Shipping lawyers take no pleasure in the problems facing their clients. Yet now that the sector has slid into crisis their services are urgently needed to sort out the tangled wrecks into which many shipping businesses have collapsed.“I’ve been in the shipping field for 26 years and the downturn took me totally by surprise,” says Harry Theochari, the Norton Rose asset finance partner who inspired the survey.
“The fallout has been striking. For example, on behalf of our clients we have arrested more ships in the past six weeks than in the past six years.”Although shipping is the preeminent global business with the leading players coming from countries such as Greece, Norway, China and Singapore, the preferred jurisdiction for contracts and dispute resolution is England. Nigel Thomas, of Watson, Farley & Williams, says: “English law works better than any other system and it gives us, as English lawyers, a tremendous advantage. Recently there have been pressures from the Norwegians to use Norwegian law but international clients don’t want to use it.”
London’s position as a financial centre reinforces the primacy of English law given that, as Theochari points out, this is a sector that has heavily relied upon bank debt for most of its history. Moreover, the complex network of relationships of those who charter, sub-charter and sub-sub-charter means that once something goes wrong there is a massive knock-on effect luring more and more people into the web of litigation. So it is very convenient for everyone to be operating under the same code (especially given New York law’s absence from the international shipping business).
One of the biggest things to have gone wrong, of course, over the past year is the extraordinary slump in the rates that owners can charge. For large bulk carriers the drop has been from $200,000 (£121,000) a day to just $10,000. This has left parties with gaping holes in their income in relation to their outgoings. Ben Knowles, of Clyde & Co, says: “Last autumn there was an unprecedented collapse in the dry shipping market. The fallout of that collapse has benefited many of London’s medium-sized shipping and trading practitioners.”For James Wilson, of Ince & Co, the imperative is to ensure that legal advice is delivered in a wholly commercial — not purely legalistic — way. “There is no point in this market to adopt a rottweiller approach if the people on the other side do not have the money to hand over and therefore your client, the claimant, cannot effect the claim,” he says. “So you need a pragmatic approach to mediation or negotiation in order to get a result.
The original agreement for a charter may be for $100,000 a day but if $25,000 is all the party can afford to pay then it’s better to negotiate for $30,000 than end up with nothing by not being prepared to compromise.”Pragmatism is also starting to bite in the distressed shipbuilding market. The boom years lead to a massive over-ordering of ships that in many cases are being mothballed as soon as they are launched. However, Marcus Bowman, of Holman Fenwick Willan, says that there are some signs that bargains are starting to come on the market and being snapped up. “What’s important for us is to have activity in the market,” he says. “Ships are now cheap. It’s not all gloom and doom.”
Source: Times Online
Tuesday 15 September 2009
Indonesia: Local shipbuilders to benefit from oil and gas sector needs
Monday, 07 September 2009
The local shipbuilding industry expects its currently idle shipping capacity, which has now reached about 50 percent, to be fully exploited under a new government rule that requires the oil and gas sector to rely on Indonesian vessels for its shipping needs. Industry Ministry director for maritime and engineering Soerjono, who like many Indonesian uses only one name, has said the new rule would allow the industry to recover next year from the negative impacts of the financial crisis which started to hit the industry in the second half of last year. Soerjono said under the new rule, production sharing contractors in the oil and gas sector could reclaim expenses made for renting vessels to support their operations as long as the vessels were constructed in Indonesia.
He further explained that these shipping expenses would be eligible items as part of the oil and gas cost recovery scheme to be reimbursed by the government on the approval of the upstream oil and gas regulator BPMigas. "BPMigas has the authority to request PSCs to hire locally produced vessels if they want to recover costs they spend (on vessels for their operations)," Soerjono told The Jakarta Post recently. A memorandum of understanding for the implementation of the new rule, based on the 2008 Maritime Law, was signed by the Industry Ministry and BPMigas last month, he said.
Iperindo chairman Harsusanto previously said it was estimated that the industry could benefit by up to 20 percent of US$1.5 billion in average annual charter costs spent by oil and gas contractors. According to ministry data, at present there are 631 vessels comprising 541 national-flag vessels and 90 foreign-flag vessels working in support of the sector. Prior to the amendment of the maritime law, which introduced the local shipping quota, foreign operators once controlled 90 percent of vessels operating in Indonesian waters. Echoing Soerjono, Indonesian National Shipbuilding Industry Association (Iperindo) secretary-general Wing Wirjawan said he expected "as much as possible" to benefit from the MoU. He said the domestic shipbuilding industry was able to build almost all 20 types of vessels needed by oil and gas contractors, for example anchor handling tugs, tug boats, mooring boats, barges and utility vessels.
"What we are incapable of is to build FSOs *floating storage and offloading facilities* and FPSO *floating production, storage and offloading facilities*. They are too big at this time. Our shipbuilding production facilities are not *big* enough yet," he told the Post. He said the domestic industry would be able to start producing FSOs and FPSOs with a capacity of between 300,000 and 400,000 dead weight tons within three to four years at the shipyards being developed at Lamongan in East Java. Currently, China, Japan and South Korea are the main countries able to build these facilities.
Source: The Hellenic
The local shipbuilding industry expects its currently idle shipping capacity, which has now reached about 50 percent, to be fully exploited under a new government rule that requires the oil and gas sector to rely on Indonesian vessels for its shipping needs. Industry Ministry director for maritime and engineering Soerjono, who like many Indonesian uses only one name, has said the new rule would allow the industry to recover next year from the negative impacts of the financial crisis which started to hit the industry in the second half of last year. Soerjono said under the new rule, production sharing contractors in the oil and gas sector could reclaim expenses made for renting vessels to support their operations as long as the vessels were constructed in Indonesia.
He further explained that these shipping expenses would be eligible items as part of the oil and gas cost recovery scheme to be reimbursed by the government on the approval of the upstream oil and gas regulator BPMigas. "BPMigas has the authority to request PSCs to hire locally produced vessels if they want to recover costs they spend (on vessels for their operations)," Soerjono told The Jakarta Post recently. A memorandum of understanding for the implementation of the new rule, based on the 2008 Maritime Law, was signed by the Industry Ministry and BPMigas last month, he said.
Iperindo chairman Harsusanto previously said it was estimated that the industry could benefit by up to 20 percent of US$1.5 billion in average annual charter costs spent by oil and gas contractors. According to ministry data, at present there are 631 vessels comprising 541 national-flag vessels and 90 foreign-flag vessels working in support of the sector. Prior to the amendment of the maritime law, which introduced the local shipping quota, foreign operators once controlled 90 percent of vessels operating in Indonesian waters. Echoing Soerjono, Indonesian National Shipbuilding Industry Association (Iperindo) secretary-general Wing Wirjawan said he expected "as much as possible" to benefit from the MoU. He said the domestic shipbuilding industry was able to build almost all 20 types of vessels needed by oil and gas contractors, for example anchor handling tugs, tug boats, mooring boats, barges and utility vessels.
"What we are incapable of is to build FSOs *floating storage and offloading facilities* and FPSO *floating production, storage and offloading facilities*. They are too big at this time. Our shipbuilding production facilities are not *big* enough yet," he told the Post. He said the domestic industry would be able to start producing FSOs and FPSOs with a capacity of between 300,000 and 400,000 dead weight tons within three to four years at the shipyards being developed at Lamongan in East Java. Currently, China, Japan and South Korea are the main countries able to build these facilities.
Source: The Hellenic
Chinese economy may keep 8% growth for two years: economist
Tuesday, 08 September 2009
The Chinese economy is experiencing a "V" shape recovery and the growth rate may reach 8 percent both this year and next year, said Chinese economist Fan Gang said. Fan, a monetary policy adviser to China's central bank, said at the 2009 annual conference of CEO in Beijing, that the economy will see a sustainable recovery and will be back to normal in 2011,according to a report of the China News Service.
He predicted that the real estate investment will increase by around 30 percent in 2010, which will add one percentage point to economic growth. Corporate investment is expected to grow prominently next year and as the global trade is warming up, Chinese export, which still enjoys the cost advantage, will recover. "After the economy is back to normal in 2010, the government will adjust the macro-economic policy. But before that happens, the current stimulus policy should stay to sustain the recovery," he said. Fan said people should adjust their expectation of economic growth and not regard recovery simply as a double-digit growth. A growth grate of 8 percent to 9 percent is sustainable growth.
Source: Xinhua
The Chinese economy is experiencing a "V" shape recovery and the growth rate may reach 8 percent both this year and next year, said Chinese economist Fan Gang said. Fan, a monetary policy adviser to China's central bank, said at the 2009 annual conference of CEO in Beijing, that the economy will see a sustainable recovery and will be back to normal in 2011,according to a report of the China News Service.
He predicted that the real estate investment will increase by around 30 percent in 2010, which will add one percentage point to economic growth. Corporate investment is expected to grow prominently next year and as the global trade is warming up, Chinese export, which still enjoys the cost advantage, will recover. "After the economy is back to normal in 2010, the government will adjust the macro-economic policy. But before that happens, the current stimulus policy should stay to sustain the recovery," he said. Fan said people should adjust their expectation of economic growth and not regard recovery simply as a double-digit growth. A growth grate of 8 percent to 9 percent is sustainable growth.
Source: Xinhua
World oil demand to grow again in 2010: OPEC
Wednesday, 16 September 2009
World oil demand will decline slightly in 2009 but start growing again next year, the OPEC oil producers' cartel said on Tuesday in its monthly report, standing by its previous forecast. World oil demand in 2009 this year was expected to contract by 1.56 million barrels per day (bpd) to 84.05 million bpd, the Organization of Petroleum Exporting Countries said in its September report.A month ago, OPEC had been pencilling in a fractionally bigger contraction of 1.65 million bpd for this year.
Then, "in 2010, global demand is forecast to return to growth following two years of consecutive declines, increasing 0.5 million bpd to stand at 84.6 million bpd," the cartel said.That figure was unchanged from the previous report.Improved economic activity in the United States last month was helping world oil demand to stabilise, OPEC said."The US is playing a significant role in world oil demand, showing a comeback and reducing the contraction from 0.7 million bpd in July to almost flat in August. This is due to improved economic activity, summer driving consumption and the low base in the same month of 2008," the report explained.
On top of this, oil demand was strong in developing countries such as China, India and the Middle East.Those same regions would remain the driving force behind world oil demand growth next year, OPEC continued."As seen in recent years, most of the growth will take place in non-OECD (Organisation for Economic Cooperation and Development), mainly China, India, the Middle East and Latin America," it said.Overall, "in anticipation of a slow economic recovery next year, world oil demand growth is expected at 500,000 bpd," the report said.
Source: AFP
World oil demand will decline slightly in 2009 but start growing again next year, the OPEC oil producers' cartel said on Tuesday in its monthly report, standing by its previous forecast. World oil demand in 2009 this year was expected to contract by 1.56 million barrels per day (bpd) to 84.05 million bpd, the Organization of Petroleum Exporting Countries said in its September report.A month ago, OPEC had been pencilling in a fractionally bigger contraction of 1.65 million bpd for this year.
Then, "in 2010, global demand is forecast to return to growth following two years of consecutive declines, increasing 0.5 million bpd to stand at 84.6 million bpd," the cartel said.That figure was unchanged from the previous report.Improved economic activity in the United States last month was helping world oil demand to stabilise, OPEC said."The US is playing a significant role in world oil demand, showing a comeback and reducing the contraction from 0.7 million bpd in July to almost flat in August. This is due to improved economic activity, summer driving consumption and the low base in the same month of 2008," the report explained.
On top of this, oil demand was strong in developing countries such as China, India and the Middle East.Those same regions would remain the driving force behind world oil demand growth next year, OPEC continued."As seen in recent years, most of the growth will take place in non-OECD (Organisation for Economic Cooperation and Development), mainly China, India, the Middle East and Latin America," it said.Overall, "in anticipation of a slow economic recovery next year, world oil demand growth is expected at 500,000 bpd," the report said.
Source: AFP
Monday 14 September 2009
World Bank Raised GDP Growth For Indonesia
The World Bank has raised its 2009 Indonesia growth forecast to 4.3 percent from 3.5 percent, largely due to the strong domestic market and increased government spending on stimulus measures, the bank’s quarterly report released on Monday said.
“Indonesia’s large domestic market, along with the fact that it was never highly dependent on exports, has always been the country’s saving grace in this global financial crisis,” said Joachim von Amsberg, the World Bank’s country director for Indonesia. “These factors, coupled with a strong banking sector and prudent macroeconomic management, have allowed Indonesia to weather the storm on a much stronger footing than its regional neighbors.”
The anticipated recovery is in line with an improving global economy, he said. Most of the nation’s major export markets exited recession by mid-year and prices for the country’s commodity exports have gradually recovered from their late-2008 declines. “The mid-2009 trend of gradual recovery is to continue over the coming year and a half,” said World Bank senior economist Shubham Chauduri, who was one of the principal authors of the quarterly report.
“Domestic demand is likely to continue as the main driver of growth, as the government continues to disburse its fiscal stimulus and, in 2010, investors regain confidence.” The report says that the domestic financial sector is going from strength to strength, with a robust banking industry and the return of foreign investors. Employment is also expected to grow faster than the labor force. The bank’s 2009 growth forecast is in line with the government’s estimate of 4.3 percent. It expects growth to reach 5.4 percent in 2010, also up from its earlier prediction of 5 percent, although still lower than the government’s forecast of 5.5 percent.
The World Bank also said the budget deficit would be lower this year, estimating it at 2.2 percent, compared with the government’s earlier forecast of 2.5 percent. However, the bank also sees inflation rising to 9 percent by the end of year, compared with the government’s forecast of 5 percent.
“Indonesia’s large domestic market, along with the fact that it was never highly dependent on exports, has always been the country’s saving grace in this global financial crisis,” said Joachim von Amsberg, the World Bank’s country director for Indonesia. “These factors, coupled with a strong banking sector and prudent macroeconomic management, have allowed Indonesia to weather the storm on a much stronger footing than its regional neighbors.”
The anticipated recovery is in line with an improving global economy, he said. Most of the nation’s major export markets exited recession by mid-year and prices for the country’s commodity exports have gradually recovered from their late-2008 declines. “The mid-2009 trend of gradual recovery is to continue over the coming year and a half,” said World Bank senior economist Shubham Chauduri, who was one of the principal authors of the quarterly report.
“Domestic demand is likely to continue as the main driver of growth, as the government continues to disburse its fiscal stimulus and, in 2010, investors regain confidence.” The report says that the domestic financial sector is going from strength to strength, with a robust banking industry and the return of foreign investors. Employment is also expected to grow faster than the labor force. The bank’s 2009 growth forecast is in line with the government’s estimate of 4.3 percent. It expects growth to reach 5.4 percent in 2010, also up from its earlier prediction of 5 percent, although still lower than the government’s forecast of 5.5 percent.
The World Bank also said the budget deficit would be lower this year, estimating it at 2.2 percent, compared with the government’s earlier forecast of 2.5 percent. However, the bank also sees inflation rising to 9 percent by the end of year, compared with the government’s forecast of 5 percent.
Eitzen Chemical Bondholders grand temporary waiver
Eitzen Chemical bondholders grant temporary waiver(Sep 11 2009) Eitzen Chemical has won an important decision to postpone loan repayments.
At a bondholders' meeting held on 8th September 2009, Eitzen Chemical obtained consent for a proposed temporary waiver of bond loan covenants.
This is in relation to the bond loan consisting of a US dollar tranche and a Norwegian kroner tranche, which the company proposed a temporary waiver until 1st October 2009 of certain loan covenants, including the value adjusted equity ratio.
At a bondholders' meeting held on 8th September 2009, Eitzen Chemical obtained consent for a proposed temporary waiver of bond loan covenants.
This is in relation to the bond loan consisting of a US dollar tranche and a Norwegian kroner tranche, which the company proposed a temporary waiver until 1st October 2009 of certain loan covenants, including the value adjusted equity ratio.
OSG gets loan from Chinese Ex-Im Bank
Overseas Shipholding Group Inc. said it has entered into a $389 million loan agreement for new ships with the Export-Import Bank of China. OSG said this is the first financing arrangement that the China Ex-Im Bank has extended to a U.S. company. Borrowings under the 12-year secured facility will be used toward financing three very large crude carriers and two Aframax crude oil tankers constructed in China. The two Aframaxes are the Overseas Yosemite and Overseas Yellowstone, delivered in the first half of this year.
Thursday 3 September 2009
MISC liquidates 4 chemical tankers
MISC Bhd has completed the en-bloc sale of its Anggerik Class vessels comprising four 29,900 deadweight tonne (DWT) single-hull chemical tankers for US$14 million.These vessels are built between 1989 and 1991.
Jacob Stolt-Nielsen to step down as Chairman of the Stolt-Nielsen S.A. Board of Directors
LONDON, September 1, 2009 - Stolt-Nielsen S.A. (Oslo Børs: SNI)
announced today that Jacob Stolt-Nielsen, who founded the Company and
served as its Chairman since 1959, will step down as Chairman
effective December 15, 2009, the 50 year anniversary date of the
Company. He will continue to serve as a Director of the Board.
Christer Olsson, who has been a Director of SNSA since 1993, has been
nominated to succeed Mr. Stolt-Nielsen.
Mr. Olsson is Vice Chairman of Wallenius Lines AB and has extensive
shipping-industry experience.
Commenting on the transition, Mr. Stolt-Nielsen, said, "It has been
my privilege to lead this Company and its people for the last 50
years. I step down as Chairman with sadness, but at the same time
with an extraordinary sense of satisfaction and confidence, knowing
that Mr. Olsson as Chairman, and Niels G. Stolt-Nielsen, the Chief
Executive Officer, and his management team, will continue to capably
operate the Company going forward. I anticipate this transition with
the peace of mind that comes from knowing that SNSA is in good hands
and in good order."
Mr. Olsson said, "Jacob's remarkable achievements speak for
themselves. I enthusiastically look forward to the opportunity to
carry forth his legacy of success."
In addition to his responsibilities at Wallenius, Mr. Olsson also
serves as a director on the boards of Transatlantic AB, Atlantic
Container Line AB, United European Car Carriers and Singapore
Shipping Corporation. He holds a Bachelor of Law degree from
Stockholm University and is a Swedish citizen.
Source: Stolt-Neilsen
announced today that Jacob Stolt-Nielsen, who founded the Company and
served as its Chairman since 1959, will step down as Chairman
effective December 15, 2009, the 50 year anniversary date of the
Company. He will continue to serve as a Director of the Board.
Christer Olsson, who has been a Director of SNSA since 1993, has been
nominated to succeed Mr. Stolt-Nielsen.
Mr. Olsson is Vice Chairman of Wallenius Lines AB and has extensive
shipping-industry experience.
Commenting on the transition, Mr. Stolt-Nielsen, said, "It has been
my privilege to lead this Company and its people for the last 50
years. I step down as Chairman with sadness, but at the same time
with an extraordinary sense of satisfaction and confidence, knowing
that Mr. Olsson as Chairman, and Niels G. Stolt-Nielsen, the Chief
Executive Officer, and his management team, will continue to capably
operate the Company going forward. I anticipate this transition with
the peace of mind that comes from knowing that SNSA is in good hands
and in good order."
Mr. Olsson said, "Jacob's remarkable achievements speak for
themselves. I enthusiastically look forward to the opportunity to
carry forth his legacy of success."
In addition to his responsibilities at Wallenius, Mr. Olsson also
serves as a director on the boards of Transatlantic AB, Atlantic
Container Line AB, United European Car Carriers and Singapore
Shipping Corporation. He holds a Bachelor of Law degree from
Stockholm University and is a Swedish citizen.
Source: Stolt-Neilsen
Wednesday 2 September 2009
All bad things must end - economists say recession is over
Wednesday, 02 September 2009
The most severe economic recession since the Great Depression is history, economists said Tuesday, after key early data for economic conditions in August came in much stronger than expected. Early on Tuesday, there was a report of a sharp jump in the Institute for Supply Management's factory index. The index rose above the key psychological 50% threshold indicating expansion for the first time since Jan. 2008.
"The rise in the ISM manufacturing overall activity index to a level firmly above 50 and the surge in the new orders index to the highest level since December 2004 are the clearest signs yet that the recession is over," said John Ryding, economist at RDQ Economics in New York.
Millan Mulraine, economics strategist at TD Securities agreed.
"Given the very good historical performance of this indicator in predicting U.S. economy activity, the [ISM] report provided further evidence that the U.S. economic recession may have now come to an end," Mulraine said in a note to clients.
Economists are calling for an inventory-driven recovery. With goods on their shelves now at low levels, businesses will have to order more in order to restock. This could turn into a virtuous cycle leading to more and more production.
"Even if it is slow and cautious, the change from drawdown to build up will require additional production and the process will take a long time to complete," said Joel Naroff, president of Naroff Economic Advisors.
Once purchasing managers are confident in stronger demand, "not only will they restock, but they should also begin to unleash pent-up hiring, capital spending, etc," said Steve Stanley, chief economist at RBS Capital.
"In our view, if/when we get to that point, the recovery will have crossed the point of no return," Stanley said.
Hold your horses
No official timing of the end of the downturn is expected for more than a year.
The National Bureau of Economic Research in Cambridge Mass. is the independent group given the responsibility for calling the end to recession. The firm is known to be very deliberate.
In the past two recessions, the NBER waited 20 months before pinpointing the trough.
That's because the NBER is mandated to certify a turning point, not forecast one, said Ed McKelvey, a senior economist at Goldman Sachs Group
For his part, McKelvey thinks the recession might have ended in June.
The nature of this recovery may delay the NBER further, economists said.
Economic research from Harvard professor Kenneth Rogoff suggests that economies are very slow to recover following severe financial crises.
Consumer demand, which accounts for more than half of U.S. economic activity, is expected to remain weak. And businesses are not expected to hire workers until they "see the whites in the eyes" of a vibrant economy, analysts said. The most recent forecasts from the White House, Federal Reserve, and the Congressional Budget Office all point to a "jobless recovery."
Questions about the durability of this recovery will remain on the radar screen for several months, according to Asha Bangalore, economist at Northern Trust in Chicago.
Pick a letter - W, V, or U. (with apologies to West Virginia University)
Letters are a quick short-hand for economists discussing the road ahead.
Analysts expecting the economy to weaken again speak in terms of a W-shape growth path. A quick turnaround is called a V-shape recovery, while a slow but steady recovery might look like a U.
There are strong arguments for each letter.
Some analysts are worried about a W or double dip. They note the recovery has been boosted by short-term initiatives like "cash for clunkers" in the auto sector, which has ended, and the first-time homebuyers tax credit that ends in November.
These programs can "pull spending forward," at the risk of a subsequent re-weakening of activity, said Joseph LaVorgna, chief U.S. economist at Deutsche Bank.
"It is possible this may happen to some degree, but we are confident the economy, as a whole, will not double-dip, because the drag from housing has dissipated and government stimulus spending is likely to add substantially to output over the next few quarters," LaVorgna wrote in a note to clients.
Sam Stovall, the chief investment strategist at Standard and Poor's Equity Research, says the improving economic is likely "to take root and actually make for more of a firm recovery." However, Stovall still looks for this recovery to take time and be a gradual improvement, and be more of "an elongated 'U'," as opposed to a 'V' shape bounce back.
Source: Marketwatch
The most severe economic recession since the Great Depression is history, economists said Tuesday, after key early data for economic conditions in August came in much stronger than expected. Early on Tuesday, there was a report of a sharp jump in the Institute for Supply Management's factory index. The index rose above the key psychological 50% threshold indicating expansion for the first time since Jan. 2008.
"The rise in the ISM manufacturing overall activity index to a level firmly above 50 and the surge in the new orders index to the highest level since December 2004 are the clearest signs yet that the recession is over," said John Ryding, economist at RDQ Economics in New York.
Millan Mulraine, economics strategist at TD Securities agreed.
"Given the very good historical performance of this indicator in predicting U.S. economy activity, the [ISM] report provided further evidence that the U.S. economic recession may have now come to an end," Mulraine said in a note to clients.
Economists are calling for an inventory-driven recovery. With goods on their shelves now at low levels, businesses will have to order more in order to restock. This could turn into a virtuous cycle leading to more and more production.
"Even if it is slow and cautious, the change from drawdown to build up will require additional production and the process will take a long time to complete," said Joel Naroff, president of Naroff Economic Advisors.
Once purchasing managers are confident in stronger demand, "not only will they restock, but they should also begin to unleash pent-up hiring, capital spending, etc," said Steve Stanley, chief economist at RBS Capital.
"In our view, if/when we get to that point, the recovery will have crossed the point of no return," Stanley said.
Hold your horses
No official timing of the end of the downturn is expected for more than a year.
The National Bureau of Economic Research in Cambridge Mass. is the independent group given the responsibility for calling the end to recession. The firm is known to be very deliberate.
In the past two recessions, the NBER waited 20 months before pinpointing the trough.
That's because the NBER is mandated to certify a turning point, not forecast one, said Ed McKelvey, a senior economist at Goldman Sachs Group
For his part, McKelvey thinks the recession might have ended in June.
The nature of this recovery may delay the NBER further, economists said.
Economic research from Harvard professor Kenneth Rogoff suggests that economies are very slow to recover following severe financial crises.
Consumer demand, which accounts for more than half of U.S. economic activity, is expected to remain weak. And businesses are not expected to hire workers until they "see the whites in the eyes" of a vibrant economy, analysts said. The most recent forecasts from the White House, Federal Reserve, and the Congressional Budget Office all point to a "jobless recovery."
Questions about the durability of this recovery will remain on the radar screen for several months, according to Asha Bangalore, economist at Northern Trust in Chicago.
Pick a letter - W, V, or U. (with apologies to West Virginia University)
Letters are a quick short-hand for economists discussing the road ahead.
Analysts expecting the economy to weaken again speak in terms of a W-shape growth path. A quick turnaround is called a V-shape recovery, while a slow but steady recovery might look like a U.
There are strong arguments for each letter.
Some analysts are worried about a W or double dip. They note the recovery has been boosted by short-term initiatives like "cash for clunkers" in the auto sector, which has ended, and the first-time homebuyers tax credit that ends in November.
These programs can "pull spending forward," at the risk of a subsequent re-weakening of activity, said Joseph LaVorgna, chief U.S. economist at Deutsche Bank.
"It is possible this may happen to some degree, but we are confident the economy, as a whole, will not double-dip, because the drag from housing has dissipated and government stimulus spending is likely to add substantially to output over the next few quarters," LaVorgna wrote in a note to clients.
Sam Stovall, the chief investment strategist at Standard and Poor's Equity Research, says the improving economic is likely "to take root and actually make for more of a firm recovery." However, Stovall still looks for this recovery to take time and be a gradual improvement, and be more of "an elongated 'U'," as opposed to a 'V' shape bounce back.
Source: Marketwatch
Odfjell buys and sells vessels with time charter swap
Wednesday, 02 September 2009
Odfjell yesterday, September 1st 2009, signed an agreement with Star Tankers Ltd, Isle of Man for the purchase of Jo Brevik (1986) built at Aker Florø Norway, 33,190 dwt with 17 stainless steel cargo tanks and 14 coated cargo tanks. Jo Brevik is a sister vessel of Bow Viking (1981). In addition, the agreement includes sales to Star Tanker Ltd. of Bow Pioneer (1982) and Bow Hunter (1983), 23,000 dwt with time charter back to Odfjell. At the same time, Odfjell terminates the current time charter agreement, also with Star Tankers Ltd., concerning Bow Asir (1982) and Bow Arar (1982). Star Tankers Ltd. is a company controlled by Torkel Alendal.The Odfjell Group is a leading participant in the global market of the seaborne transportation and storage of chemicals and other speciality bulk liquids. The Odfjell fleet exceeds 90 ships, trading both globally and regionally. The tank terminal division consists of eight fully or partially owned tank terminals and nine associated tank terminals strategically located. The Odfjell Group is headquarted in Bergen, Norway and has about 20 offices located world wide. Odfjell has about 3 700 employees and an annual gross revenue of about USD 1,5 billion.
Source: Odfjell
Odfjell yesterday, September 1st 2009, signed an agreement with Star Tankers Ltd, Isle of Man for the purchase of Jo Brevik (1986) built at Aker Florø Norway, 33,190 dwt with 17 stainless steel cargo tanks and 14 coated cargo tanks. Jo Brevik is a sister vessel of Bow Viking (1981). In addition, the agreement includes sales to Star Tanker Ltd. of Bow Pioneer (1982) and Bow Hunter (1983), 23,000 dwt with time charter back to Odfjell. At the same time, Odfjell terminates the current time charter agreement, also with Star Tankers Ltd., concerning Bow Asir (1982) and Bow Arar (1982). Star Tankers Ltd. is a company controlled by Torkel Alendal.The Odfjell Group is a leading participant in the global market of the seaborne transportation and storage of chemicals and other speciality bulk liquids. The Odfjell fleet exceeds 90 ships, trading both globally and regionally. The tank terminal division consists of eight fully or partially owned tank terminals and nine associated tank terminals strategically located. The Odfjell Group is headquarted in Bergen, Norway and has about 20 offices located world wide. Odfjell has about 3 700 employees and an annual gross revenue of about USD 1,5 billion.
Source: Odfjell
Nordea acquires Fionia Bank
Tuesday, 01 September 2009
Nordea continues to execute on its growth strategy and acquires the Danish Fionia Bank from Finansiel Stabilitet A/S. Nordea has signed an agreement to acquire Fionia Bank, excluding the ‘bad bank’ part, and thereby further strengthens its position and gets a very strong market position in the Funen region in Denmark. Nordea takes over leases and employees in the 29 branches, in total 400 employees.
In one go Nordea doubles its market share in the Funen region and will introduce its broad product offering to Fionia Bank’s customer base. By introducing Nordea’s operating model, sizeable cost synergies will be realised. Additional synergies will be achieved through Nordea’s competitive funding position.
The credit quality in the acquired bank is solid, since the ‘bad bank’ is separated out and is kept by Finansiel Stabilitet A/S. Impaired loans in the acquired portfolios are in line with the ratio in Nordea’s own Danish portfolio. – We have captured a unique opportunity. By acquiring Fionia we continue our growth in Denmark and get a very strong market position in the Funen region, to the benefit of both Fionia’s and Nordea’s customers and our shareholders, says Peter Schütze, Head of Nordic Banking.
In total the transaction means that Nordea acquires a customer portfolio comprising: 75,000 household customers 9,500 corporate customers Total lending of approx EUR 874m (DKK 6.5bn) The acquisition price is EUR 121m (DKK 900m). In addition Nordea will re-capitalise the bank. Nordea's lending in Nordic Banking Denmark amounted to EUR 68.9bn end-June, which means that the transaction increases the loan portfolio by approx. 1%. The deal is expected to have a clearly positive return on investment from 2011. The transaction is subject to approval from the Danish FSA and other relevant authorities. Nordea Corporate Finance has acted as financial adviser in connection with the transaction.
Source: Nordea
Nordea continues to execute on its growth strategy and acquires the Danish Fionia Bank from Finansiel Stabilitet A/S. Nordea has signed an agreement to acquire Fionia Bank, excluding the ‘bad bank’ part, and thereby further strengthens its position and gets a very strong market position in the Funen region in Denmark. Nordea takes over leases and employees in the 29 branches, in total 400 employees.
In one go Nordea doubles its market share in the Funen region and will introduce its broad product offering to Fionia Bank’s customer base. By introducing Nordea’s operating model, sizeable cost synergies will be realised. Additional synergies will be achieved through Nordea’s competitive funding position.
The credit quality in the acquired bank is solid, since the ‘bad bank’ is separated out and is kept by Finansiel Stabilitet A/S. Impaired loans in the acquired portfolios are in line with the ratio in Nordea’s own Danish portfolio. – We have captured a unique opportunity. By acquiring Fionia we continue our growth in Denmark and get a very strong market position in the Funen region, to the benefit of both Fionia’s and Nordea’s customers and our shareholders, says Peter Schütze, Head of Nordic Banking.
In total the transaction means that Nordea acquires a customer portfolio comprising: 75,000 household customers 9,500 corporate customers Total lending of approx EUR 874m (DKK 6.5bn) The acquisition price is EUR 121m (DKK 900m). In addition Nordea will re-capitalise the bank. Nordea's lending in Nordic Banking Denmark amounted to EUR 68.9bn end-June, which means that the transaction increases the loan portfolio by approx. 1%. The deal is expected to have a clearly positive return on investment from 2011. The transaction is subject to approval from the Danish FSA and other relevant authorities. Nordea Corporate Finance has acted as financial adviser in connection with the transaction.
Source: Nordea
Saturday 29 August 2009
Nordic Tankers not out of the woods
(Aug 28 2009)
Nordic Tankers blamed its negative result for first half of this year on the negative developments in the global economy and the consequent decline in freight rates.
The result was a loss of $2.8 mill, before the reversal of $0.7 mill concerning transactions made by the previous board.
In 1H09, the market value of the company's ships fell sharply and the board has therefore considered it appropriate to write down the value of its fleet by $25.8 mill. Thus the bottom line for 1H09 came in at minus $27.9 mill after tax.
The board said that it had lowered its expectations for the whole year to between minus $32 and $36 mill, of which operations were expected to contribute negatively by between minus $6 and $10 mill.
The company's ceo Jens Pontoppidan said that after a brief rebound early this year, Nordic Tankers was seriously hit by falling rates in the product tanker market.
"Unfortunately, the rates remain very low and with the uncertainty still plaguing the global economy, we have found it necessary to lower expectations for 2009 as a whole," he said.
He also said that the board would continue to work actively to implement the strategic plan, which was presented at the Annual General Meeting in April 2009.
Nordic Tankers owns all or part of 10 ships with an average age of only 2.6 years. The company has currently no vessels on order and has no plans to order any in the near future. All the ships operate in pools with established partners.
Nordic Tankers blamed its negative result for first half of this year on the negative developments in the global economy and the consequent decline in freight rates.
The result was a loss of $2.8 mill, before the reversal of $0.7 mill concerning transactions made by the previous board.
In 1H09, the market value of the company's ships fell sharply and the board has therefore considered it appropriate to write down the value of its fleet by $25.8 mill. Thus the bottom line for 1H09 came in at minus $27.9 mill after tax.
The board said that it had lowered its expectations for the whole year to between minus $32 and $36 mill, of which operations were expected to contribute negatively by between minus $6 and $10 mill.
The company's ceo Jens Pontoppidan said that after a brief rebound early this year, Nordic Tankers was seriously hit by falling rates in the product tanker market.
"Unfortunately, the rates remain very low and with the uncertainty still plaguing the global economy, we have found it necessary to lower expectations for 2009 as a whole," he said.
He also said that the board would continue to work actively to implement the strategic plan, which was presented at the Annual General Meeting in April 2009.
Nordic Tankers owns all or part of 10 ships with an average age of only 2.6 years. The company has currently no vessels on order and has no plans to order any in the near future. All the ships operate in pools with established partners.
Nordic Tankers not out of the woods
(Aug 28 2009)
Nordic Tankers blamed its negative result for first half of this year on the negative developments in the global economy and the consequent decline in freight rates.
The result was a loss of $2.8 mill, before the reversal of $0.7 mill concerning transactions made by the previous board.
In 1H09, the market value of the company's ships fell sharply and the board has therefore considered it appropriate to write down the value of its fleet by $25.8 mill. Thus the bottom line for 1H09 came in at minus $27.9 mill after tax.
The board said that it had lowered its expectations for the whole year to between minus $32 and $36 mill, of which operations were expected to contribute negatively by between minus $6 and $10 mill.
The company's ceo Jens Pontoppidan said that after a brief rebound early this year, Nordic Tankers was seriously hit by falling rates in the product tanker market.
"Unfortunately, the rates remain very low and with the uncertainty still plaguing the global economy, we have found it necessary to lower expectations for 2009 as a whole," he said.
He also said that the board would continue to work actively to implement the strategic plan, which was presented at the Annual General Meeting in April 2009.
Nordic Tankers owns all or part of 10 ships with an average age of only 2.6 years. The company has currently no vessels on order and has no plans to order any in the near future. All the ships operate in pools with established partners.
Nordic Tankers blamed its negative result for first half of this year on the negative developments in the global economy and the consequent decline in freight rates.
The result was a loss of $2.8 mill, before the reversal of $0.7 mill concerning transactions made by the previous board.
In 1H09, the market value of the company's ships fell sharply and the board has therefore considered it appropriate to write down the value of its fleet by $25.8 mill. Thus the bottom line for 1H09 came in at minus $27.9 mill after tax.
The board said that it had lowered its expectations for the whole year to between minus $32 and $36 mill, of which operations were expected to contribute negatively by between minus $6 and $10 mill.
The company's ceo Jens Pontoppidan said that after a brief rebound early this year, Nordic Tankers was seriously hit by falling rates in the product tanker market.
"Unfortunately, the rates remain very low and with the uncertainty still plaguing the global economy, we have found it necessary to lower expectations for 2009 as a whole," he said.
He also said that the board would continue to work actively to implement the strategic plan, which was presented at the Annual General Meeting in April 2009.
Nordic Tankers owns all or part of 10 ships with an average age of only 2.6 years. The company has currently no vessels on order and has no plans to order any in the near future. All the ships operate in pools with established partners.
Eitzen Chemical to concentrate on shoring up finances
(Aug 28 2009)
Eitzen Chemical reported EBITDA, excluding profit/loss sale of assets, of $16.4 mill for 2Q09, compared to $20.6 mill in previous quarter.
Eitzen said that full focus would be given on the delivery of a long term financial plan and to the strengthening of the company's financial position.
The 2Q09 TCE rates for the company's fleet below 30,000 dwt were down by 0.9 % compared to the previous quarter, while the vessels above 30,000 dwt reported average rate decreases of 1.2% compared to 1Q09.
Eitzen said that it continued to expect challenging market conditions in the short to medium term with an improvement dependent on a more broad based recovery in industrial production.
The company said that it was in the process of developing its long term financial plan, which will be presented to its lenders in the coming weeks. The plan will include a proposal for a new debt repayment schedule and covenant structure as well as a strengthening of the company's balance sheet and cash position through an issue of new equity.
During the quarter, several contracts of affreightment were renewed securing critical volumes and six additional vessels have come under the company's management through the City Class pool.
Terje Askvig, Eitzen Chemical ceo, said: "Following the successful execution of our strategy to eliminate our newbuilding commitments earlier in the year, we have been working on the development of a long term financial plan together with our advisors. The objective of the financial plan is to create a financially robust platform for the company. The plan will include, inter alia, a proposal for a new debt repayment schedule and an amended covenant structure to better fit the current market environment and outlook.
“Furthermore, an integral part of the financial plan is assumed to be the strengthening of the company's balance sheet through an issue of new equity. We believe that a robust financial structure coupled with the company's modern fleet and strong market position should form a solid basis for creating shareholder value and safeguarding our various stakeholders going forward. It is envisaged that the financial plan will be concluded in the fourth quarter, subject to relevant approvals," he concluded.
Eitzen Chemical reported EBITDA, excluding profit/loss sale of assets, of $16.4 mill for 2Q09, compared to $20.6 mill in previous quarter.
Eitzen said that full focus would be given on the delivery of a long term financial plan and to the strengthening of the company's financial position.
The 2Q09 TCE rates for the company's fleet below 30,000 dwt were down by 0.9 % compared to the previous quarter, while the vessels above 30,000 dwt reported average rate decreases of 1.2% compared to 1Q09.
Eitzen said that it continued to expect challenging market conditions in the short to medium term with an improvement dependent on a more broad based recovery in industrial production.
The company said that it was in the process of developing its long term financial plan, which will be presented to its lenders in the coming weeks. The plan will include a proposal for a new debt repayment schedule and covenant structure as well as a strengthening of the company's balance sheet and cash position through an issue of new equity.
During the quarter, several contracts of affreightment were renewed securing critical volumes and six additional vessels have come under the company's management through the City Class pool.
Terje Askvig, Eitzen Chemical ceo, said: "Following the successful execution of our strategy to eliminate our newbuilding commitments earlier in the year, we have been working on the development of a long term financial plan together with our advisors. The objective of the financial plan is to create a financially robust platform for the company. The plan will include, inter alia, a proposal for a new debt repayment schedule and an amended covenant structure to better fit the current market environment and outlook.
“Furthermore, an integral part of the financial plan is assumed to be the strengthening of the company's balance sheet through an issue of new equity. We believe that a robust financial structure coupled with the company's modern fleet and strong market position should form a solid basis for creating shareholder value and safeguarding our various stakeholders going forward. It is envisaged that the financial plan will be concluded in the fourth quarter, subject to relevant approvals," he concluded.
Jo Tankers to lay off Dutch officers and reflag vessels
(Aug 28 2009) According to Lloyd’s List, Jo Tankers, is to make around 50 Dutch officers redundant.
At the same time, the parcel tanker operator is likely to reflag four of its vessels from the Dutch register to Singapore, Lloyd’s List said.
According to its website, Jo Tankers has four vessels flying the Dutch flag with the remaining 13 under the NIS flag.
At the same time, the parcel tanker operator is likely to reflag four of its vessels from the Dutch register to Singapore, Lloyd’s List said.
According to its website, Jo Tankers has four vessels flying the Dutch flag with the remaining 13 under the NIS flag.
Fleet expansion - Offen Tankers
(Aug 28 2009)
The first of the eight Offen Tankers’ newbuilding 52,000 dwt product carriers – ‘CPO Korea’ - is currently on her maiden voyage to Rotterdam with a cargo of palm oil.
‘CPO Korea’ is commercially operated by Glencore’s ST Shipping pool. Three more sisters are due to be delivered from Hyundai Mipo next year with the next four scheduled for 2011.
This vessel represents the first in the second batch of newbuildings for CP Offen's tanker arm.
The first tranche of eight 36,000 dwt ice class vessels already in service was chartered to Brostrom for operation in the Handytankers pool, managed by Maersk Tankers.
The first of the eight Offen Tankers’ newbuilding 52,000 dwt product carriers – ‘CPO Korea’ - is currently on her maiden voyage to Rotterdam with a cargo of palm oil.
‘CPO Korea’ is commercially operated by Glencore’s ST Shipping pool. Three more sisters are due to be delivered from Hyundai Mipo next year with the next four scheduled for 2011.
This vessel represents the first in the second batch of newbuildings for CP Offen's tanker arm.
The first tranche of eight 36,000 dwt ice class vessels already in service was chartered to Brostrom for operation in the Handytankers pool, managed by Maersk Tankers.
Concordia Maritime Sells Shareholding in US Shipping Company General Maritime
Saturday, 29 August 2009
Concordia Maritime has sold its holding of 1.5 million shares in the US shipping company General Maritime. As the shares had already been written down to their market value, the sale only marginally affects the company’s equity and total comprehensive income. However, in accordance with IFRS’ accounting rules, the effect on the result will be reported in the Income statement and not, as was previously the case, under Other total comprehensive income.
The sale has generated a cash infusion of approx. USD 11.5 million corresponding to approx. SEK 80 million. The realized loss of approx. SEK 145 million results in a transfer from Other total comprehensive income to the Income statement. Thus the forecasted Result before tax for the full year of SEK 45 million (SEK 0.94 per share) has changed to SEK -100 million (SEK -2.10 per share). “The decision to sell the holding in General Maritime was made in view of the weak prospects for tanker shipping.
There is a growing structural problem on the supply side due to large-scale deliveries of new tonnage and a too large order book. Our assessment is that tanker shipping companies, which are active solely or partly in the so-called open market, have a difficult time ahead of them generally speaking. We had previously written down the value of the shares so that the loss now realised does not affect the company’s position and we get cash infusion of more than USD 11 million.
As regards the trend of the market, we are not at all affected to the same extent since our whole fleet is signed to long-term charters”, says Hans Norén, President of Concordia Maritime. “It is important to emphasise that the sale does not affect the company’s financial position and that its investment capacity remains intact. On 30 June, our shareholding in General Maritime accounted for about 3.5% of the company’s total assets. Since 2004, we have classed the holding as an asset that can be sold, as a result of which write-ups and write-downs have been made against equity on an ongoing basis based on the market value of the shares.
This means that, in conjunction with the sale, the change in equity is relatively small since it mainly involves a transfer to the “normal” Income statement of an item previously accounted for in the report on the total comprehensive result.”, says Göran Hermansson, Financial Manager.
Concordia Maritime AB (publ) is an international tanker shipping company listed on the Nasdaq OMX Nordic Exchange in Stockholm. The company has ordered ten tankers, which are being built in accordance with the MAX concept. Six P-MAX-vessels have been delivered and four will be delivered during 2009/2010. These vessels, P-MAX, are product tankers of about 65,200 dwt. The MAX concept means that the vessels are designed for maximum loading capacity in shallow waters. They have been designed according to a new concept for safer oil transportation with double main engines in two completely separate engine rooms, double rudders and steering gear, two propellers and double control systems.
Source: Concordia Maritime
Concordia Maritime has sold its holding of 1.5 million shares in the US shipping company General Maritime. As the shares had already been written down to their market value, the sale only marginally affects the company’s equity and total comprehensive income. However, in accordance with IFRS’ accounting rules, the effect on the result will be reported in the Income statement and not, as was previously the case, under Other total comprehensive income.
The sale has generated a cash infusion of approx. USD 11.5 million corresponding to approx. SEK 80 million. The realized loss of approx. SEK 145 million results in a transfer from Other total comprehensive income to the Income statement. Thus the forecasted Result before tax for the full year of SEK 45 million (SEK 0.94 per share) has changed to SEK -100 million (SEK -2.10 per share). “The decision to sell the holding in General Maritime was made in view of the weak prospects for tanker shipping.
There is a growing structural problem on the supply side due to large-scale deliveries of new tonnage and a too large order book. Our assessment is that tanker shipping companies, which are active solely or partly in the so-called open market, have a difficult time ahead of them generally speaking. We had previously written down the value of the shares so that the loss now realised does not affect the company’s position and we get cash infusion of more than USD 11 million.
As regards the trend of the market, we are not at all affected to the same extent since our whole fleet is signed to long-term charters”, says Hans Norén, President of Concordia Maritime. “It is important to emphasise that the sale does not affect the company’s financial position and that its investment capacity remains intact. On 30 June, our shareholding in General Maritime accounted for about 3.5% of the company’s total assets. Since 2004, we have classed the holding as an asset that can be sold, as a result of which write-ups and write-downs have been made against equity on an ongoing basis based on the market value of the shares.
This means that, in conjunction with the sale, the change in equity is relatively small since it mainly involves a transfer to the “normal” Income statement of an item previously accounted for in the report on the total comprehensive result.”, says Göran Hermansson, Financial Manager.
Concordia Maritime AB (publ) is an international tanker shipping company listed on the Nasdaq OMX Nordic Exchange in Stockholm. The company has ordered ten tankers, which are being built in accordance with the MAX concept. Six P-MAX-vessels have been delivered and four will be delivered during 2009/2010. These vessels, P-MAX, are product tankers of about 65,200 dwt. The MAX concept means that the vessels are designed for maximum loading capacity in shallow waters. They have been designed according to a new concept for safer oil transportation with double main engines in two completely separate engine rooms, double rudders and steering gear, two propellers and double control systems.
Source: Concordia Maritime
Buyers gear up for ship fire sales
Wednesday, 26 August 2009
Ship acquisitions are set to gather pace in the coming months as buyers with war chests hunt for bargains while the sea freight sector grapples with weak demand, fleet oversupply and tougher credit conditions. Around 90 percent of the world's traded goods by volume are transported by sea and the international economic downturn has hit the shipping industry hard since October 2008.
It has also meant that both new and second hand ship values have fallen, opening up opportunities for investors."Broadly speaking, all these prices reached an all-time high last year and they have very quickly crashed by as much as 50 percent or more from their peak last year," said John Luke, global head of shipping with advisory firm KPMG."The bubble has burst and it must be intuitively a good time to buy into the asset."Container shipping, which transports finished goods from electronics to toys, has been the worst affected sector due to poor demand, especially on key routes from Asia to consumers in the West.
Analysts estimate the value of a second hand five-year old container ship, able to carry the theoretical equivalent of up to 2,000 twenty-foot containers, has plunged 65 percent from 2008 to around $15 million.In the dry bulk sector shipping commodities, the value of a five-year old Capesize vessel, the largest size of dry bulk ship typically hauling iron ore or coal, has plummeted to around $55 million from as much as $180 million last year.Some analysts predict the price could drop to $40 million to $45 million in the coming months.
A new Capesize vessel is estimated to be valued with a slightly higher price tag."There is potentially more (activity) in the second hand market, but obviously there may well be opportunities also on the resale market for newbuildings (new ships)," said Nigel Gardiner, managing director of maritime consultancy Drewry.
BUYER'S MARKET
Greek dry bulk carrier Diana Shipping said this month it aimed to start buying ships within the next couple of quarters with a focus on Capesize and smaller Panamax vessels."If we plan our acquisitions carefully and with some elements of good luck, we will succeed in coming out of the downturn with a strong balance sheet and a larger fleet," its president Anastassis Margaronis told analysts in August.
Some buyers hope to replace or shore up existing fleets at falling prices. Others seek to lease purchased ships to an operator for a long period, guaranteeing an income stream.While others such as distressed investment and vulture funds would aim to sell when the upturn in shipping returns. There has also talk private equity groups will also step in.
TIGHTER CREDIT
Analysts and industry officials say timing will be crucial."Prices are still too high compared with what they will be in 3 to 6 months. It's a waiting game," a shipping analyst said.The shipping unit of German financial services company HCI Capital has set up a new fund with global shipping group Peter Doehle.HCI Capital plans to inject 20 million euros ($28.61 million) in investor capital into the fund with a co-investment of at least 1 million euros by Peter Doehle planned.
It will be targeting bulk and container ships and oil tankers hoping to look at its first project by the end of 2009."If the fund is well received we are more than happy to increase it," said Malte Schulte-Trux, managing director of HCI Capital's shipping unit.The boom period before the 2008 crash in freight rates spurred demand for new ships, leading to an expected glut of vessels coming on stream. But falling cash reserves, due to weaker earnings, has pressured some with vessel orders creating forced sale circumstances.
"We will see the opportunities directly from the shipyards because a potential buyer cannot take delivery of the vessel, or a buyer who has taken delivery of the vessel cannot fulfil his further commitments, and we will see distressed sales from ships which are already in operation," said Schulte-Trux.Analysts said traditional German, UK and north American bank lenders to the industry sought to reduce their exposure."Good operators who have not overextended themselves on credit will still be making money in this market. But some won't have the option because they won't have access to credit," said KPMG's Luke.
Source: Reuters
Ship acquisitions are set to gather pace in the coming months as buyers with war chests hunt for bargains while the sea freight sector grapples with weak demand, fleet oversupply and tougher credit conditions. Around 90 percent of the world's traded goods by volume are transported by sea and the international economic downturn has hit the shipping industry hard since October 2008.
It has also meant that both new and second hand ship values have fallen, opening up opportunities for investors."Broadly speaking, all these prices reached an all-time high last year and they have very quickly crashed by as much as 50 percent or more from their peak last year," said John Luke, global head of shipping with advisory firm KPMG."The bubble has burst and it must be intuitively a good time to buy into the asset."Container shipping, which transports finished goods from electronics to toys, has been the worst affected sector due to poor demand, especially on key routes from Asia to consumers in the West.
Analysts estimate the value of a second hand five-year old container ship, able to carry the theoretical equivalent of up to 2,000 twenty-foot containers, has plunged 65 percent from 2008 to around $15 million.In the dry bulk sector shipping commodities, the value of a five-year old Capesize vessel, the largest size of dry bulk ship typically hauling iron ore or coal, has plummeted to around $55 million from as much as $180 million last year.Some analysts predict the price could drop to $40 million to $45 million in the coming months.
A new Capesize vessel is estimated to be valued with a slightly higher price tag."There is potentially more (activity) in the second hand market, but obviously there may well be opportunities also on the resale market for newbuildings (new ships)," said Nigel Gardiner, managing director of maritime consultancy Drewry.
BUYER'S MARKET
Greek dry bulk carrier Diana Shipping said this month it aimed to start buying ships within the next couple of quarters with a focus on Capesize and smaller Panamax vessels."If we plan our acquisitions carefully and with some elements of good luck, we will succeed in coming out of the downturn with a strong balance sheet and a larger fleet," its president Anastassis Margaronis told analysts in August.
Some buyers hope to replace or shore up existing fleets at falling prices. Others seek to lease purchased ships to an operator for a long period, guaranteeing an income stream.While others such as distressed investment and vulture funds would aim to sell when the upturn in shipping returns. There has also talk private equity groups will also step in.
TIGHTER CREDIT
Analysts and industry officials say timing will be crucial."Prices are still too high compared with what they will be in 3 to 6 months. It's a waiting game," a shipping analyst said.The shipping unit of German financial services company HCI Capital has set up a new fund with global shipping group Peter Doehle.HCI Capital plans to inject 20 million euros ($28.61 million) in investor capital into the fund with a co-investment of at least 1 million euros by Peter Doehle planned.
It will be targeting bulk and container ships and oil tankers hoping to look at its first project by the end of 2009."If the fund is well received we are more than happy to increase it," said Malte Schulte-Trux, managing director of HCI Capital's shipping unit.The boom period before the 2008 crash in freight rates spurred demand for new ships, leading to an expected glut of vessels coming on stream. But falling cash reserves, due to weaker earnings, has pressured some with vessel orders creating forced sale circumstances.
"We will see the opportunities directly from the shipyards because a potential buyer cannot take delivery of the vessel, or a buyer who has taken delivery of the vessel cannot fulfil his further commitments, and we will see distressed sales from ships which are already in operation," said Schulte-Trux.Analysts said traditional German, UK and north American bank lenders to the industry sought to reduce their exposure."Good operators who have not overextended themselves on credit will still be making money in this market. But some won't have the option because they won't have access to credit," said KPMG's Luke.
Source: Reuters
Thursday 20 August 2009
Pertamina Import of Fuel will Increase
State oil and gas company PT Pertamina will increase its Premium gasoline imports by a total of 1.2 million barrels in August and September to anticipate the usually higher demand in the upcoming fasting month. Hanung Budya, Pertamina’s deputy director for marketing, said that the demand for Premium gasoline might increase by 3.5 percent during the Ramadan fasting month which will start at the end of this week.
“Therefore, there will be more Premium gasoline imports in August and September. The imports will be done by Petral [Pertamina Energy Trading Limited]” Hanung told reporters Wednesday. Pertamina’s spokesperson Basuki Trikora Putra said that in normal conditions Pertamina imported 5.6 million barrels of Premium gasoline a month. But, these imports will be increased by one million barrels in August and 200,000 barrels in September, he added. “Thus, Pertamina will import about 6.6 million barrels in August and 5.8 million barrels in September,” Trikora said.
Premium gasoline is one of subsidized fuels in Indonesia for which Pertamina acts as the sole distributor. Demand for the fuel reaches 55,000 kiloliters, or about 345,939 barrels per day. Hanung said that as of today the national stock for Premium gasoline reached 1,042,720 kiloliters which is enough for 18.4 days. “We have a very safe stock,” he said. The average security level for fuel stock is at 22 days.Hanung added that Pertamina would again operate round-the-clock fuel stations along the traditional route across the northern part of Java which is usually busy during holidays, to anticipate possible fuel shortages.“We are also preparing fuel deposits in strategic locations,” he said.
Hanung pointed out that weather conditions, especially El Nino, might become a factor that could disrupt fuel distribution. “In several areas, our tankers must wait between two and three days to dock due the El Nino. To anticipate this, we will fill our main depots earlier. We will accumulate fuel as much as possible in the [target]areas,” he said.
Source: The Jakarta Post
“Therefore, there will be more Premium gasoline imports in August and September. The imports will be done by Petral [Pertamina Energy Trading Limited]” Hanung told reporters Wednesday. Pertamina’s spokesperson Basuki Trikora Putra said that in normal conditions Pertamina imported 5.6 million barrels of Premium gasoline a month. But, these imports will be increased by one million barrels in August and 200,000 barrels in September, he added. “Thus, Pertamina will import about 6.6 million barrels in August and 5.8 million barrels in September,” Trikora said.
Premium gasoline is one of subsidized fuels in Indonesia for which Pertamina acts as the sole distributor. Demand for the fuel reaches 55,000 kiloliters, or about 345,939 barrels per day. Hanung said that as of today the national stock for Premium gasoline reached 1,042,720 kiloliters which is enough for 18.4 days. “We have a very safe stock,” he said. The average security level for fuel stock is at 22 days.Hanung added that Pertamina would again operate round-the-clock fuel stations along the traditional route across the northern part of Java which is usually busy during holidays, to anticipate possible fuel shortages.“We are also preparing fuel deposits in strategic locations,” he said.
Hanung pointed out that weather conditions, especially El Nino, might become a factor that could disrupt fuel distribution. “In several areas, our tankers must wait between two and three days to dock due the El Nino. To anticipate this, we will fill our main depots earlier. We will accumulate fuel as much as possible in the [target]areas,” he said.
Source: The Jakarta Post
Torm reports first half results
“The result for the first half of 2009 reflects that freight rates were at a historic low due to lower than expected global oil consumption. Our strategic view of the product tanker market is unchanged, and although the number of newbuildings is a challenge short-term, we are positive on the future prospects of the segment,” says CEO Mikael Skov.
The second quarter of 2009 showed a gross profit of USD 39 million, against USD 146 million for the corresponding quarter of 2008. Profit before depreciation (EBITDA) for the period was USD 31 million, against USD 189 million for the second quarter of 2008. The decline in gross profit and EBITDA was primarily due to substantially lower freight rates in both the Tanker Division and the Bulk Division. In the second quarter of 2009, depreciation amounted to USD 34 million.
An operating loss of USD 3 million was posted in the second quarter of 2009, against an operating profit of USD 158 million in the same quarter of 2008. The Tanker and Bulk Divisions contributed a loss of USD 12 million and a profit of USD 10 million respectively, whereas a loss of USD 1 million is unallocated. There was a total negative effect from mark-to-market non-cash adjustments of USD 25 million in the second quarter with USD 20 million on financial instruments and USD 5 million on FFA/bunker derivatives.
The mark-to-market adjustments on financial instruments were primarily due to a writedown of USD 23 million on options related to vessel values taken over in connection with the acquisition of OMI. In the second quarter of 2009, financials amounted to an expense of USD 30 million, against an expense of USD 12 million in the same quarter of 2008. The difference was primarily due to the above-mentioned mark-to-market non-cash adjustments.
A loss after tax of USD 34 million was posted in the second quarter of 2009, including a profit of USD 13 million on the sale of vessels, against a profit of USD 145 million in the second quarter of 2008, where a profit of USD 52 million was recognised on the sale of vessels. Assets Total assets fell from USD 3,287 million to USD 3,256 million in the second quarter of 2009. TORM receives quarterly valuations on its fleet value from three internationally acknowledged shipbrokers and calculates a value in use derived from discounted cash flow valuations.
Based on the broker valuations, the market value of TORM’s fleet was below book value at 30 June 2009. However, as the market for product tanker vessels is currently illiquid, broker valuations are uncertain. Liabilities During the second quarter of 2009, the Company’s net interest bearing debt rose from USD 1,615 million to USD 1,670 million. The item mainly comprises net borrowing in connection with the delivery of vessels, the cash effect of the distribution of dividend and positive cash.
Source: TORM
The second quarter of 2009 showed a gross profit of USD 39 million, against USD 146 million for the corresponding quarter of 2008. Profit before depreciation (EBITDA) for the period was USD 31 million, against USD 189 million for the second quarter of 2008. The decline in gross profit and EBITDA was primarily due to substantially lower freight rates in both the Tanker Division and the Bulk Division. In the second quarter of 2009, depreciation amounted to USD 34 million.
An operating loss of USD 3 million was posted in the second quarter of 2009, against an operating profit of USD 158 million in the same quarter of 2008. The Tanker and Bulk Divisions contributed a loss of USD 12 million and a profit of USD 10 million respectively, whereas a loss of USD 1 million is unallocated. There was a total negative effect from mark-to-market non-cash adjustments of USD 25 million in the second quarter with USD 20 million on financial instruments and USD 5 million on FFA/bunker derivatives.
The mark-to-market adjustments on financial instruments were primarily due to a writedown of USD 23 million on options related to vessel values taken over in connection with the acquisition of OMI. In the second quarter of 2009, financials amounted to an expense of USD 30 million, against an expense of USD 12 million in the same quarter of 2008. The difference was primarily due to the above-mentioned mark-to-market non-cash adjustments.
A loss after tax of USD 34 million was posted in the second quarter of 2009, including a profit of USD 13 million on the sale of vessels, against a profit of USD 145 million in the second quarter of 2008, where a profit of USD 52 million was recognised on the sale of vessels. Assets Total assets fell from USD 3,287 million to USD 3,256 million in the second quarter of 2009. TORM receives quarterly valuations on its fleet value from three internationally acknowledged shipbrokers and calculates a value in use derived from discounted cash flow valuations.
Based on the broker valuations, the market value of TORM’s fleet was below book value at 30 June 2009. However, as the market for product tanker vessels is currently illiquid, broker valuations are uncertain. Liabilities During the second quarter of 2009, the Company’s net interest bearing debt rose from USD 1,615 million to USD 1,670 million. The item mainly comprises net borrowing in connection with the delivery of vessels, the cash effect of the distribution of dividend and positive cash.
Source: TORM
MISC Sees Higher Bunker Rates Increasing Operating Cost
MISC Bhd, the largest single owner operator of liquefied natural gas (LNG) tankers, expects higher bunker rates to increase it operating cost for the financial year ending March 31, 2010.
"We now see bunker prices, which are a major portion of our cost, moving up," MISC chairman Tan Sri Mohd Hassan Marican said on Thursday.
Last year, the bunker price breached almost US$700 per tonne, easing in the middle of 2008 to US$200 per tonne and is now close to US$400 per tonne.
However, the impact is cushioned by the nature of MISC's business, which is 70 percent on long-term contracts with major energy companies, Mohd Hassan said at a press conference after the company's 40th annual general meeting here.
"As far as being exposed to volatility of freight rates in the present downturn, only 30 percent of our business is affected," he said. Mohd Hassan said that MISC would continue to expand and grow organically, and consider merger and acquisition (M&A) opportunities when these arose. "These are not off the radar screen but there is none at the moment," he said, adding that any M&A would need to fit with MISC strategies.
On the latest joint venture to construct an oil terminal in Tanjung Bin, Johor, Mohd Hassan said the oil terminal is expected to come into operations in 2012.
MISC's unit MISC International (L) Ltd yesterday entered into a joint venture agreement with VTTI Tanjung Bin SA to set up Asia Tank Terminal Ltd (ATTL) with the purpose of constructing, commissioning and operating an oil terminal with a base capacity of 741,200 cubic metres in Tanjung Bin. MISC International and VTTI Tanjung Bin will take up a 50 percent stake each in ATTL, to be incorporated in Bermuda. On its liner business, Mohd Hassan said MISC will exit from the Grand Alliance by end of 2009 and will focus on the intra-Asia and Oceania sectors and built on its halal routes.
As part of the reengineering of the liner business, a total of 11 vessels were laid off, he said. "It cost us less to lay off than to keep them going," he added. On other developments, Mohd Hassan said MISC was in discussions with China LNG Shipping (Holdings) Co on a joint venture but declined to disclose further details.
A recent news report stated that MISC Bhd is to partner China LNG Co to build and supply a tanker to transport LNG from Bintulu in Sarawak to Shanghai in China.
It said that both parties will hold equal stake in the joint venture to build the LNG vessel estimated at US$150 million to US$200 million in Shanghai.
For the financial year ended March 31, 2009, MISC's revenue rose 21.9 percent to RM15.78 billion from RM12.95 billion previously while net profit declined by 39.5 percent to RM1.53 billion. This was attributed to earnings from petroleum, offshore and LNG businesses being weighted down by the highly adverse performance of the container shipping division amid lower volume, depressed rates and high costs.
At 3.20pm today, the MISC share price dropped half sen to RM8.75.
Source: Bernama
"We now see bunker prices, which are a major portion of our cost, moving up," MISC chairman Tan Sri Mohd Hassan Marican said on Thursday.
Last year, the bunker price breached almost US$700 per tonne, easing in the middle of 2008 to US$200 per tonne and is now close to US$400 per tonne.
However, the impact is cushioned by the nature of MISC's business, which is 70 percent on long-term contracts with major energy companies, Mohd Hassan said at a press conference after the company's 40th annual general meeting here.
"As far as being exposed to volatility of freight rates in the present downturn, only 30 percent of our business is affected," he said. Mohd Hassan said that MISC would continue to expand and grow organically, and consider merger and acquisition (M&A) opportunities when these arose. "These are not off the radar screen but there is none at the moment," he said, adding that any M&A would need to fit with MISC strategies.
On the latest joint venture to construct an oil terminal in Tanjung Bin, Johor, Mohd Hassan said the oil terminal is expected to come into operations in 2012.
MISC's unit MISC International (L) Ltd yesterday entered into a joint venture agreement with VTTI Tanjung Bin SA to set up Asia Tank Terminal Ltd (ATTL) with the purpose of constructing, commissioning and operating an oil terminal with a base capacity of 741,200 cubic metres in Tanjung Bin. MISC International and VTTI Tanjung Bin will take up a 50 percent stake each in ATTL, to be incorporated in Bermuda. On its liner business, Mohd Hassan said MISC will exit from the Grand Alliance by end of 2009 and will focus on the intra-Asia and Oceania sectors and built on its halal routes.
As part of the reengineering of the liner business, a total of 11 vessels were laid off, he said. "It cost us less to lay off than to keep them going," he added. On other developments, Mohd Hassan said MISC was in discussions with China LNG Shipping (Holdings) Co on a joint venture but declined to disclose further details.
A recent news report stated that MISC Bhd is to partner China LNG Co to build and supply a tanker to transport LNG from Bintulu in Sarawak to Shanghai in China.
It said that both parties will hold equal stake in the joint venture to build the LNG vessel estimated at US$150 million to US$200 million in Shanghai.
For the financial year ended March 31, 2009, MISC's revenue rose 21.9 percent to RM15.78 billion from RM12.95 billion previously while net profit declined by 39.5 percent to RM1.53 billion. This was attributed to earnings from petroleum, offshore and LNG businesses being weighted down by the highly adverse performance of the container shipping division amid lower volume, depressed rates and high costs.
At 3.20pm today, the MISC share price dropped half sen to RM8.75.
Source: Bernama
Wednesday 19 August 2009
Product Tanker Players have shown Distress signals
Specialist ships that carry oil products are increasingly facing seizure by banks or being laid up as the sector becomes the latest to be hit by the crisis in the shipping industry. The problems these specialist tankers are facing are the same as those confronting all kinds of tankers , including large crude oil carriers. But there had been hopes that changes in the oil-refining market would protect this segment from the worst of the downturn.
Short-term spot-market charter rates for medium-range product tankers were $6,240 a day on Europe-North America routes on August 12, according to Dahlman Rose, a New York shipbroker. A year ago, rates were close to $30,000 a day. Stolt-Nielsen Conditions in the product tanker market prompted Denmark's Torm, one of the sector's leaders, to warn on August 12 that it would only break even for 2009, instead of making the expected $100m-$140m profit.
Difficult market conditions are also likely to affect AP Moller-Maersk, another Danish company, which is announcing half-year results on August 21.Maersk, the world's biggest container ship operator, became the world's biggest product tanker operator when it completed its takeover of Sweden's Broström earlier this year."We are experiencing historically low freight rates for product tankers at the moment," said Mikael Skov, Torm's chief executive, as he announced the profit warning last Wednesday.
At the heart of the sector's problems is a simple fall-off in demand for oil and oil products, according to Greg McGrath, an oil industry veteran and finance director of New York-listed Omega Navigation."Demand is down 2.7 per cent year-on-year when it had been increasing 2.3 per cent," he said. However, companies with significant exposure to the short-term spot market are the worst affected. Many operators run their ships on long-term contracts with refiners or traders and are still benefiting from deals struck at the height of the sector's boom.
Marco Fiori, chief executive of New York-listed d'Amico International Shipping, which operates nearly 40 product tankers, said spot-market rates compared poorly with those for longer-term time charters."It's below operating costs," he said of the spot market. "But time charter rates are not really down." Tanker Pacific, a Singapore-based shipowner, has laid up some vessels rather than accept current rates, according to Lloyd's List, the shipping newspaper. Tanker is the first product tanker operator to admit such a step, now common in the container ship and car carrier markets .
Harry Theochari, head of the shipping practice at Norton Rose, a London-based law firm, said the sector's poor performance had led to the impounding of increasing numbers of ships belonging to financially weaker operators. Banks are particularly concerned about sudden falls in product tanker sale prices, which are eroding their value as collateral. "The product tankers are really struggling right now," Mr Theochari said. "It's only going to be the very good, well-run companies that are going to get through this."
There remains some optimism that the construction of new oil refineries in the Middle East and Asia, away from the main consuming countries in Europe and North America, will eventually drive new demand for both product tankers and some chemical segments. Many new tankers have been ordered to serve that market.However, for the moment, as a broker at London-based ACM Shipping pointed out, there is too little demand even to keep the existing oil refineries working at full stretch."It's entirely and fully dependent on demand for energy consumption and therefore oil consumption," he said."If that demand picks up again, then the market will grow again as well."
Source: Financial Times
Short-term spot-market charter rates for medium-range product tankers were $6,240 a day on Europe-North America routes on August 12, according to Dahlman Rose, a New York shipbroker. A year ago, rates were close to $30,000 a day. Stolt-Nielsen Conditions in the product tanker market prompted Denmark's Torm, one of the sector's leaders, to warn on August 12 that it would only break even for 2009, instead of making the expected $100m-$140m profit.
Difficult market conditions are also likely to affect AP Moller-Maersk, another Danish company, which is announcing half-year results on August 21.Maersk, the world's biggest container ship operator, became the world's biggest product tanker operator when it completed its takeover of Sweden's Broström earlier this year."We are experiencing historically low freight rates for product tankers at the moment," said Mikael Skov, Torm's chief executive, as he announced the profit warning last Wednesday.
At the heart of the sector's problems is a simple fall-off in demand for oil and oil products, according to Greg McGrath, an oil industry veteran and finance director of New York-listed Omega Navigation."Demand is down 2.7 per cent year-on-year when it had been increasing 2.3 per cent," he said. However, companies with significant exposure to the short-term spot market are the worst affected. Many operators run their ships on long-term contracts with refiners or traders and are still benefiting from deals struck at the height of the sector's boom.
Marco Fiori, chief executive of New York-listed d'Amico International Shipping, which operates nearly 40 product tankers, said spot-market rates compared poorly with those for longer-term time charters."It's below operating costs," he said of the spot market. "But time charter rates are not really down." Tanker Pacific, a Singapore-based shipowner, has laid up some vessels rather than accept current rates, according to Lloyd's List, the shipping newspaper. Tanker is the first product tanker operator to admit such a step, now common in the container ship and car carrier markets .
Harry Theochari, head of the shipping practice at Norton Rose, a London-based law firm, said the sector's poor performance had led to the impounding of increasing numbers of ships belonging to financially weaker operators. Banks are particularly concerned about sudden falls in product tanker sale prices, which are eroding their value as collateral. "The product tankers are really struggling right now," Mr Theochari said. "It's only going to be the very good, well-run companies that are going to get through this."
There remains some optimism that the construction of new oil refineries in the Middle East and Asia, away from the main consuming countries in Europe and North America, will eventually drive new demand for both product tankers and some chemical segments. Many new tankers have been ordered to serve that market.However, for the moment, as a broker at London-based ACM Shipping pointed out, there is too little demand even to keep the existing oil refineries working at full stretch."It's entirely and fully dependent on demand for energy consumption and therefore oil consumption," he said."If that demand picks up again, then the market will grow again as well."
Source: Financial Times
Fewer cargo ships sailing on Suez Canal
The world-famous Suez Canal, whose construction was completed in 1869, has all along been one of Egypt’s largest foreign exchange earners. The imposing canal has always had a curious, subtle fascination. Its dazzling brilliance, nevertheless, has somewhat dimmed because of an impact brought to Egypt by the global finance crisis.My job on the canal is the easiest and most relaxed this year, but it is no happy thing at all, said Sayyid, a manager to supervise the operation of ferries at the canal’s Ismailyah section for eight full years.
Standing on the bank of the Suez Canal, I seemed to see a vivid, magnificent show of ships coming from all nations around the world, said Halim, a canal water level surveyor for nearly six years. But there has been no scene of “a thousand sails passing by” as a popular classic Chinese saying vividly depicts since the later half of 2008.According to Abd El Fatah Ahmed Aly, an administration sector director of the Suez Canal, the revenue of the canal merely came to 4.74 billion U.S. dollars, down by 7.2 percent over the preceding fiscal year.
In March 2009, only 1,439 cargo ships used the canal, a decrease of 260 ships year-on-year; and the navigation tolls in the month amounted only to 328 million dollars, a drop of 21 percent over the same period a year ago.Fatah attributed the sluggish shipping industry chiefly to the sliding world trade amid global financial crisis. The Egyptian economic mix, he acknowledged, is composed mainly of the export-oriented economy and, as the back-end part of the “trade-ships-canal-ports” industry chain amid the current financial crisis, it shows symptoms of certain delays from the onslaught of the crisis.Another “chief culprit” is the Somali piracy that has negatively affected the revenue for the Suez Canal. Pirates attacked more than 100 ships off the Somali coast over the last year, reaping an estimated 1 million US dollars in ransom for each hijacking, and about 40 ships carrying 600 crew members were hijacked in the first 11 months of 2008, according to analysts and country experts.
Noting that every captain very much hopes to make shipping safe and sound, Fatah said that many cargo vessels are most likely to sail to Europe and elsewhere around the Cape of Good Hope, so as to avert possible encounters with pirates. A large number of shipping companies opt to follow this route despite a much longer distance and much higher costs involved, he added.The Suez Canal offers a splendid view of the sea, and it is as elegant as the nearby pyramid, and its beautiful scene is as legendary as the enchanting, magnificent view of the Ancient Nile River.
The Suez Canal is often alive with a glittering, sun-shading awning scene at its Ismailyah section. Today, tourism has negatively affected or decreased drastically nevertheless with a growing impact from the “frigid” financial crisis.In the second quarter of 2009, Egypt’s pub sector income was only 2.46 billion dollars, down 10 percent year-on-year, as the Egyptian hotel business quarterly statistics have indicated. Some luxurious restaurants and hotels in the city of Ismailyah have even reduced their employment.
Upon the eruption of financial crisis, the Egyptian government approved a stimulus package of 15 billion Egyptian ponds (2.7 billion US dollars) for the current fiscal year. Egypt dedicated additional 30 billion Egyptian pounds (5.4 billion dollars) to further stimulate economy in the first half of 2009. Moreover, the Egyptian government has taken viable measures to help the tourism industry to recover by reducing tourism costs and attracting more tourists.
Source: People’s Daily Online
Standing on the bank of the Suez Canal, I seemed to see a vivid, magnificent show of ships coming from all nations around the world, said Halim, a canal water level surveyor for nearly six years. But there has been no scene of “a thousand sails passing by” as a popular classic Chinese saying vividly depicts since the later half of 2008.According to Abd El Fatah Ahmed Aly, an administration sector director of the Suez Canal, the revenue of the canal merely came to 4.74 billion U.S. dollars, down by 7.2 percent over the preceding fiscal year.
In March 2009, only 1,439 cargo ships used the canal, a decrease of 260 ships year-on-year; and the navigation tolls in the month amounted only to 328 million dollars, a drop of 21 percent over the same period a year ago.Fatah attributed the sluggish shipping industry chiefly to the sliding world trade amid global financial crisis. The Egyptian economic mix, he acknowledged, is composed mainly of the export-oriented economy and, as the back-end part of the “trade-ships-canal-ports” industry chain amid the current financial crisis, it shows symptoms of certain delays from the onslaught of the crisis.Another “chief culprit” is the Somali piracy that has negatively affected the revenue for the Suez Canal. Pirates attacked more than 100 ships off the Somali coast over the last year, reaping an estimated 1 million US dollars in ransom for each hijacking, and about 40 ships carrying 600 crew members were hijacked in the first 11 months of 2008, according to analysts and country experts.
Noting that every captain very much hopes to make shipping safe and sound, Fatah said that many cargo vessels are most likely to sail to Europe and elsewhere around the Cape of Good Hope, so as to avert possible encounters with pirates. A large number of shipping companies opt to follow this route despite a much longer distance and much higher costs involved, he added.The Suez Canal offers a splendid view of the sea, and it is as elegant as the nearby pyramid, and its beautiful scene is as legendary as the enchanting, magnificent view of the Ancient Nile River.
The Suez Canal is often alive with a glittering, sun-shading awning scene at its Ismailyah section. Today, tourism has negatively affected or decreased drastically nevertheless with a growing impact from the “frigid” financial crisis.In the second quarter of 2009, Egypt’s pub sector income was only 2.46 billion dollars, down 10 percent year-on-year, as the Egyptian hotel business quarterly statistics have indicated. Some luxurious restaurants and hotels in the city of Ismailyah have even reduced their employment.
Upon the eruption of financial crisis, the Egyptian government approved a stimulus package of 15 billion Egyptian ponds (2.7 billion US dollars) for the current fiscal year. Egypt dedicated additional 30 billion Egyptian pounds (5.4 billion dollars) to further stimulate economy in the first half of 2009. Moreover, the Egyptian government has taken viable measures to help the tourism industry to recover by reducing tourism costs and attracting more tourists.
Source: People’s Daily Online
Tuesday 18 August 2009
Long term charters buoy Concordia
Swedish tanker giant Concordia Maritime has reported what it called 'good earnings in a weak market'. In the second quarter of this year, the Gothenburg-based company said that total turnover amounted to SEK162.5 mill with an EBITDA of SEK44 mill.
President Hans Noren said that despite the weak tanker markets, all of the vessels were on timecharter contracts, resulting in higher revenues that if the vessels had been trading on the spot market.
First half EBITDA was reported as $11.4 mill and Concordia posted an operating profit of SEK46.5 mill. The 2Q09 financial net was SEK6.2 mill, which reflected the lower loan costs due to lower interest rates. Investments generated income according to plan and the company reported a positive effect of the US dollar/SEK currency exchange of SEK8.2 mill.
Total financial net for 1H09 was minus SEK21.1 mill. However, this figure included the complete write down of the value of the comlany's fund share in the UK hedge fund Weavering Capital, which amounted to $3.6 mill.
Last Month, Concordia decided not to exercise charter options on the VLCCs 'Stena Victory' and 'Stena Vision'. They will therefore handed back to owner General Maritime at the end of this year. Noren said that following many years of record high tanker rates, his assessment was that for the next few years, the market would remain weak.
"The trend of the market is a reminder of the importance of a long term approach and of having a stable economy and a strong financial position," he said.
"At Concordia Maritime, we have been planning for the current market situation for several years. The whole fleet is signed to long term charters, which means that we have secured our cash flow for some years. This will enable us to act swiftly when opportunities for new business deals arise in a weak market," Noren explained in the first half review.
The company also forecast that for this financial year, the result before tax was expected to reach SEK45 mill, wich would be the equivalent of SEK0.94 per share.
President Hans Noren said that despite the weak tanker markets, all of the vessels were on timecharter contracts, resulting in higher revenues that if the vessels had been trading on the spot market.
First half EBITDA was reported as $11.4 mill and Concordia posted an operating profit of SEK46.5 mill. The 2Q09 financial net was SEK6.2 mill, which reflected the lower loan costs due to lower interest rates. Investments generated income according to plan and the company reported a positive effect of the US dollar/SEK currency exchange of SEK8.2 mill.
Total financial net for 1H09 was minus SEK21.1 mill. However, this figure included the complete write down of the value of the comlany's fund share in the UK hedge fund Weavering Capital, which amounted to $3.6 mill.
Last Month, Concordia decided not to exercise charter options on the VLCCs 'Stena Victory' and 'Stena Vision'. They will therefore handed back to owner General Maritime at the end of this year. Noren said that following many years of record high tanker rates, his assessment was that for the next few years, the market would remain weak.
"The trend of the market is a reminder of the importance of a long term approach and of having a stable economy and a strong financial position," he said.
"At Concordia Maritime, we have been planning for the current market situation for several years. The whole fleet is signed to long term charters, which means that we have secured our cash flow for some years. This will enable us to act swiftly when opportunities for new business deals arise in a weak market," Noren explained in the first half review.
The company also forecast that for this financial year, the result before tax was expected to reach SEK45 mill, wich would be the equivalent of SEK0.94 per share.
Broström appoints new managing director
Robert Uggla will take on the position as managing director of Broström, a division in Maersk Tankers, effective 21st September this year.
Maersk Tankers acquired Broström in January 2009 for SEK7.3 bill forming the world’s leading product tanker company with a combined fleet of around 275 product tankers.
Gothenburg-based Broström remains an individual brand responsible for the combined fleet of product tankers below 25,000 dwt, currently totalling 85 vessels.
“Our key priority is to ensure that Broström continues as the leading brand in the small product tanker markets and that we further build on the strong Broström heritage. Robert has proven management skills, and a strong international experience in shipping which is required for this job”, said Kristian Mørch, Maersk Tankers ceo.
Uggla has been with the AP Moller - Maersk Group since 2004 and was previously head of Maersk Line in UAE, Oman and Qatar based in Dubai.
Maersk Tankers acquired Broström in January 2009 for SEK7.3 bill forming the world’s leading product tanker company with a combined fleet of around 275 product tankers.
Gothenburg-based Broström remains an individual brand responsible for the combined fleet of product tankers below 25,000 dwt, currently totalling 85 vessels.
“Our key priority is to ensure that Broström continues as the leading brand in the small product tanker markets and that we further build on the strong Broström heritage. Robert has proven management skills, and a strong international experience in shipping which is required for this job”, said Kristian Mørch, Maersk Tankers ceo.
Uggla has been with the AP Moller - Maersk Group since 2004 and was previously head of Maersk Line in UAE, Oman and Qatar based in Dubai.
Berg wins chemical tanker orders
(Aug 14 2009)
Berg Propulsion is to deliver the first examples of the new Berg Controllable Pitch Propeller (BCP) with feathering capability to two 100 m chemical tankers, plus a ferry.
The company said that the inherent flexibility, redundancy and better manoeuvrability claimed by twin screw operations when compared to single screw solutions have increasingly been accepted across the shipping industry.
A single engine driving a single propeller achieves maximum efficiency at a fixed level in the design condition. At lower power, whether working in combination with fixed pitch or controllable pitch propellers, engine working pressure decreases and engine efficiency is lost.
Greater flexibility can be achieved by operating two smaller engines driving two propellers because, at lower speeds, the ship’s master has the option to operate on one engine alone, working at its optimum efficiency.
Furthermore, the greater propulsion area covered by two smaller propellers is calculated to equate to about a 10% efficiency gain when compared to a single screw solution.
The concept of feathering one of two propellers at lower speeds, so that the other can run at higher output, closer to optimum efficiency, is by no means new.
Developed as a more efficient alternative to locking or clutching out an unneeded shaft line, ‘feathering’ sees the propeller blades rotated through 90 deg so that they are in parallel to flow.
Putting a propeller in the feathered position during an emergency, or at low speed, minimises drag, with consequent fuel savings, Berg said.
However, feathering techniques to date have featured a complex and often cumbersome mechanical solution, or hubs that cannot offer astern pitch due to their internal mechanical limits. Thus the attractions of feathered hubs have been limited to ships operating within complicated mission profiles.
Berg claimed that its new BCP design offers the capability to feather propeller blades within its standard hydraulic hub. The result is an expansion in the propeller’s operating pitch range. A patent application on this aspect of the design is currently pending.
The tankers, under construction at the Dingheng (Jiangsu) Shipbuilding in China, will be constructed to Germanischer Lloyd Ice Class E3 and will each feature two 3,600 mm diameter, BCP950 propellers, driven by 1,600kW engines at 136.1 rev/min.
Berg Propulsion said that the feathering option is now available across its complete range of BCP hubs.
Berg Propulsion is to deliver the first examples of the new Berg Controllable Pitch Propeller (BCP) with feathering capability to two 100 m chemical tankers, plus a ferry.
The company said that the inherent flexibility, redundancy and better manoeuvrability claimed by twin screw operations when compared to single screw solutions have increasingly been accepted across the shipping industry.
A single engine driving a single propeller achieves maximum efficiency at a fixed level in the design condition. At lower power, whether working in combination with fixed pitch or controllable pitch propellers, engine working pressure decreases and engine efficiency is lost.
Greater flexibility can be achieved by operating two smaller engines driving two propellers because, at lower speeds, the ship’s master has the option to operate on one engine alone, working at its optimum efficiency.
Furthermore, the greater propulsion area covered by two smaller propellers is calculated to equate to about a 10% efficiency gain when compared to a single screw solution.
The concept of feathering one of two propellers at lower speeds, so that the other can run at higher output, closer to optimum efficiency, is by no means new.
Developed as a more efficient alternative to locking or clutching out an unneeded shaft line, ‘feathering’ sees the propeller blades rotated through 90 deg so that they are in parallel to flow.
Putting a propeller in the feathered position during an emergency, or at low speed, minimises drag, with consequent fuel savings, Berg said.
However, feathering techniques to date have featured a complex and often cumbersome mechanical solution, or hubs that cannot offer astern pitch due to their internal mechanical limits. Thus the attractions of feathered hubs have been limited to ships operating within complicated mission profiles.
Berg claimed that its new BCP design offers the capability to feather propeller blades within its standard hydraulic hub. The result is an expansion in the propeller’s operating pitch range. A patent application on this aspect of the design is currently pending.
The tankers, under construction at the Dingheng (Jiangsu) Shipbuilding in China, will be constructed to Germanischer Lloyd Ice Class E3 and will each feature two 3,600 mm diameter, BCP950 propellers, driven by 1,600kW engines at 136.1 rev/min.
Berg Propulsion said that the feathering option is now available across its complete range of BCP hubs.
Chemical tanker aground
(Aug 14 2009) The German chemical tanker ‘W-O Budmo’ grounded off Kaohsiung, during last week’s typhoon ‘Morakot’.
Reports suggested that a Lloyd’s Open Form (LOF) salvage contract had been signed with US salvage experts Titan.
The Marshall Islands-flagged 2006-built 7,654 dwt ‘W-O Budmo’ is a double-hulled chemical/products tanker, owned by Germany's FAFA Capital and managed by OMCI, the shipmanagement arm of the W-O group.
A statement released on behalf of OMCI said the ship grounded off the Taiwanese southeastern coast early last Saturday morning.
The ship's master and chief officer were reported to be slightly injured, but were released from a local hospital. All 17 crew members were reported to have been safely evacuated.
The ‘W-O Budmo’, which is classed by Lloyd's Register and has P&I cover with the North of England, was reportedly en-route from Haikou in China to Taiwan on a ballast leg when she grounded.
Reports suggested that a Lloyd’s Open Form (LOF) salvage contract had been signed with US salvage experts Titan.
The Marshall Islands-flagged 2006-built 7,654 dwt ‘W-O Budmo’ is a double-hulled chemical/products tanker, owned by Germany's FAFA Capital and managed by OMCI, the shipmanagement arm of the W-O group.
A statement released on behalf of OMCI said the ship grounded off the Taiwanese southeastern coast early last Saturday morning.
The ship's master and chief officer were reported to be slightly injured, but were released from a local hospital. All 17 crew members were reported to have been safely evacuated.
The ‘W-O Budmo’, which is classed by Lloyd's Register and has P&I cover with the North of England, was reportedly en-route from Haikou in China to Taiwan on a ballast leg when she grounded.
Newbuilding chemical tanker joins Hellespont fleet
(Aug 14 2009)
Hamburg-based Hellespont Tankers has taken delivery of the ‘Hellespont Centurion’, the first of a series of eight 17,000 dwt IMO II type chemical tankers.
Hellespont Tankers commercially manages the vessel, which has been entered into the Hamburg-based Seatramp Intermediate Tanker Pool. Technical management is carried out by Hellespont Hammonia.
Built at South Korea's Sekwang Shipbuilding yard, the vessel is able to load 15 different grades in epoxy coated tanks.
‘Hellespont Centurion’ is currently on her maiden voyage to load her first cargo in southeast Asia for Europe.
The Marshall Islands flag vessel is of 11,551 gt, loa - 144 m, beam - 22.6 m and a summer draft of 9 m.
The Seatramp Intermediate Tanker Pool commercially manages three 13,000 dwt and one 17,000 dwt chemical tankers. Hellespont has committed a further seven 17,000 dwt newbuildings due to be delivered between 2009 and 2011 to the pool.
Hellespont Hammonia manages 18 modern crude, product and chemical tankers plus a series of platform supply vessels.
Hamburg-based Hellespont Tankers has taken delivery of the ‘Hellespont Centurion’, the first of a series of eight 17,000 dwt IMO II type chemical tankers.
Hellespont Tankers commercially manages the vessel, which has been entered into the Hamburg-based Seatramp Intermediate Tanker Pool. Technical management is carried out by Hellespont Hammonia.
Built at South Korea's Sekwang Shipbuilding yard, the vessel is able to load 15 different grades in epoxy coated tanks.
‘Hellespont Centurion’ is currently on her maiden voyage to load her first cargo in southeast Asia for Europe.
The Marshall Islands flag vessel is of 11,551 gt, loa - 144 m, beam - 22.6 m and a summer draft of 9 m.
The Seatramp Intermediate Tanker Pool commercially manages three 13,000 dwt and one 17,000 dwt chemical tankers. Hellespont has committed a further seven 17,000 dwt newbuildings due to be delivered between 2009 and 2011 to the pool.
Hellespont Hammonia manages 18 modern crude, product and chemical tankers plus a series of platform supply vessels.
Odfjell absorbs losses
(Aug 14 2009)
Parcel tanker and terminal specialist Odfjell reported a second quarter 2009 consolidated net result of $11 mill and a first six months’ net result of $3 mill.
EBITDA for 1H09 was $103 mill against $149 mill in 1H08. EBIT was $31 mill against $82 mill in the first six months of last year.
Operating and general administrative costs were lower this year compared with 2008, partly due to cost reductions and a stronger US dollar. The net financial expenses were $18 mill for 1H09, compared with $43 mill in 1H08.
In the parcel tanker sector, 1H09 EBITDA came in at $49 mill, compared with $101 mill in 1H08. However, 1H09 EBIT amounted to a loss of $9 mill, compared to again of $47 mill in 1H08.
Per day timecharter results declined by 6% in 1H09 and by the same amount from the first quarter of this year to the second.
The volume was only marginally lower during the second quarter of this year, while the coa business recovered to previous levels. Odfjell said that coas were crucial during the current market conditions and the company would be concentrating on increasing its coa coverage further.
The outlook for parcel tankers is uncertain, Odfjell said. The net supply of vessels will increase this year as newbuildings continue to be delivered, although contracting has stopped and many newbuildings are being delayed.
Activity remains good in certain sectors and volumes under coas are recovering. “We expect that the typical parcel trades where we have good coa coverage will continue to deliver acceptable results,” Odfjell said.
Coated vessels are more vulnerable as they depend heavily on CPP, vegoil and ethanol. The same applies to the smaller deepsea stainless steel vessels, where competition is described as extremely tough. Rising bunker prices are an additional concern, the company said.
Parcel tanker and terminal specialist Odfjell reported a second quarter 2009 consolidated net result of $11 mill and a first six months’ net result of $3 mill.
EBITDA for 1H09 was $103 mill against $149 mill in 1H08. EBIT was $31 mill against $82 mill in the first six months of last year.
Operating and general administrative costs were lower this year compared with 2008, partly due to cost reductions and a stronger US dollar. The net financial expenses were $18 mill for 1H09, compared with $43 mill in 1H08.
In the parcel tanker sector, 1H09 EBITDA came in at $49 mill, compared with $101 mill in 1H08. However, 1H09 EBIT amounted to a loss of $9 mill, compared to again of $47 mill in 1H08.
Per day timecharter results declined by 6% in 1H09 and by the same amount from the first quarter of this year to the second.
The volume was only marginally lower during the second quarter of this year, while the coa business recovered to previous levels. Odfjell said that coas were crucial during the current market conditions and the company would be concentrating on increasing its coa coverage further.
The outlook for parcel tankers is uncertain, Odfjell said. The net supply of vessels will increase this year as newbuildings continue to be delivered, although contracting has stopped and many newbuildings are being delayed.
Activity remains good in certain sectors and volumes under coas are recovering. “We expect that the typical parcel trades where we have good coa coverage will continue to deliver acceptable results,” Odfjell said.
Coated vessels are more vulnerable as they depend heavily on CPP, vegoil and ethanol. The same applies to the smaller deepsea stainless steel vessels, where competition is described as extremely tough. Rising bunker prices are an additional concern, the company said.
Monday 17 August 2009
BLT - 2Q09 IndoGAAP Financial Statements
Dear All,
Please find below the link to BLT IndoGAAP 2Q09 Financials
http://rapidshare.com/files/268424290/BLTA_INDOGAAP_2Q09.pdf
Regards
Please find below the link to BLT IndoGAAP 2Q09 Financials
http://rapidshare.com/files/268424290/BLTA_INDOGAAP_2Q09.pdf
Regards
BLT - 2Q09 IFRS Financial Statements
Dear All,
Please find below the link for the BLT IFRS 2Q09 financial statements.
http://rapidshare.com/files/268422763/BLTA_IFRS_2Q09.pdf
Regards
Peter
Please find below the link for the BLT IFRS 2Q09 financial statements.
http://rapidshare.com/files/268422763/BLTA_IFRS_2Q09.pdf
Regards
Peter
Global Confidence Increases on Signs Recession Is Nearing End
Friday, 14 August 2009
Confidence in the world economy surged to a 22-month high in August on signs the worst global recession since World War II is approaching an end, a Bloomberg survey of users on six continents showed. The Bloomberg Professional Global Confidence Index jumped to 58.12 this month from 39.13 in July. It is the first time the reading exceeded 50, which means optimists outnumber pessimists. A measure of U.S. participants’ confidence in the world’s largest economy rose to 47.3 from 29.5, the survey showed. “It’s clear the recession is over and some kind of recovery is underway,” said Nick Kounis, chief European economist at Fortis Bank Nederland Holding NV in Amsterdam, and a regular survey participant.
“We have the biggest monetary and fiscal stimulus policy in history, globally, and we’re starting to see it work. Probably the next debate will be about how strong and sustainable the recovery is.” The MSCI World Index has increased 12 percent in the past month and President Barack Obama said last week’s unexpected drop in the U.S. unemployment rate indicates the worst may be over. Nobel Prize-winner Paul Krugman said Aug. 10 that the world, now in a “rough stabilization” mode, has averted another Great Depression. The survey of more than 2,300 Bloomberg users was conducted between Aug. 3 and Aug. 7. Since the previous survey, the U.S. jobless rate declined, second-quarter growth in the U.S. and China was better than expected, and the European Central Bank held interest rates at a record low. Jobless Rate U.S. payrolls fell by 247,000 in July, after a 443,000 loss in June.
The jobless rate unexpectedly dropped to 9.4 percent from 9.5 percent. The Standard & Poor’s 500 Index closed above 1,000 for the first time since November last week. The U.S. economy will expand 2 percent or more in four straight quarters through June, the first such streak in more than four years, according to the median forecast in the monthly Bloomberg News survey. Analysts lifted their estimate for the third quarter by 1.2 percentage points compared with July, the biggest such boost in surveys dating from May 2003. In Europe, a recession is also showing signs of bottoming out. ECB President Jean-Claude Trichet said on Aug. 6 that the euro-region economy will show a “gradual recovery” followed by a return to growth in 2010. The gauge for Western Europe rose to 41.1 from 31. Slowing Contraction Manufacturing and service industries in Europe contracted at a slower pace in July and business confidence in Germany, its largest economy, rose for a fourth month.
Linde AG, the world’s second-largest maker of industrial gases, forecast business to pick up in the second half of 2009 from the previous six months, it said Aug. 3. “Government and central bank measures are starting to show an impact,” said Peter Leonhardt, an analyst at Dekabank in Frankfurt, and a regular survey participant. “Sentiment is improving much faster than expected. There’s a need to catch up after a deep slump.” In Asia, respondents were more optimistic, with the index reaching 74.2 from 59.4. Goldman Sachs Group Inc. this week raised its forecast for China’s 2009 economic growth to 9.4 percent, and said Asian nations excluding Japan will expand faster than earlier expected as well. The CLSA China Purchasing Managers’ Index reached the highest level in a year last month. Samsung Electronics Co., Hyundai Motor Co. and LG Electronics Inc. are among South Korean exporters that reported increased profits last quarter.
Asia’s Recovery
“A lot of the recovery we see in Asia is driven by government spending and restocking,” said Tai Hui, head of Southeast Asian economic research at Standard Chartered Plc in Singapore. “We need a genuine recovery or stabilization in consumer spending and private investment to ensure the slack will be picked up when the fiscal policy fades away and the restocking phenomenon disappears.” Confidence also rose in Japan, where the economy is forecast to have expanded for the first time in more than a year last quarter. Elections in the world’s second-largest economy at the end of the month may result in a victory for the opposition Democratic Party of Japan, which has never held power. The index for Japan climbed to 50 from 34.1. Bloomberg users became more optimistic on the outlook for their equity markets in the next six months. Respondents in Japan, the U.K. and Italy predict stocks will extend gains, while those in the U.S. and Germany are mixed about the direction of their markets. The global equity rally has added more than $15 trillion to the value of global stocks since this year’s low on March 9. ‘Risk Appetite’ “Risk appetite is returning to a much more normal level,” Standard Chartered’s Hui said. The U.S. dollar may weaken in the next six months against the world’s most active currencies, with the index falling to 38.8 from 43.8 in July, the survey showed. Users in Japan are divided on the direction of the yen against the dollar, with the index dropping to 50.3 from 59.6. Most respondents in Western Europe are more optimistic the euro will strengthen against its U.S. counterpart. Survey participants in the U.S., Japan and Western Europe are also more confident short- and long-term interest rates will rise in the next six months, the survey showed.
The Federal Reserve will forego raising its benchmark rate until the third quarter of 2010, according to the monthly Bloomberg survey. Bank of England Governor Mervyn King yesterday said inflation may miss the central bank’s target over the next three years, signaling investors may have to rein in expectations for interest rate increases. Globally, “it’s too early to start tightening policy,” Kounis of Fortis Bank said. “In general, it’s not something that should be considered this year.”
Source: Bloomberg
Confidence in the world economy surged to a 22-month high in August on signs the worst global recession since World War II is approaching an end, a Bloomberg survey of users on six continents showed. The Bloomberg Professional Global Confidence Index jumped to 58.12 this month from 39.13 in July. It is the first time the reading exceeded 50, which means optimists outnumber pessimists. A measure of U.S. participants’ confidence in the world’s largest economy rose to 47.3 from 29.5, the survey showed. “It’s clear the recession is over and some kind of recovery is underway,” said Nick Kounis, chief European economist at Fortis Bank Nederland Holding NV in Amsterdam, and a regular survey participant.
“We have the biggest monetary and fiscal stimulus policy in history, globally, and we’re starting to see it work. Probably the next debate will be about how strong and sustainable the recovery is.” The MSCI World Index has increased 12 percent in the past month and President Barack Obama said last week’s unexpected drop in the U.S. unemployment rate indicates the worst may be over. Nobel Prize-winner Paul Krugman said Aug. 10 that the world, now in a “rough stabilization” mode, has averted another Great Depression. The survey of more than 2,300 Bloomberg users was conducted between Aug. 3 and Aug. 7. Since the previous survey, the U.S. jobless rate declined, second-quarter growth in the U.S. and China was better than expected, and the European Central Bank held interest rates at a record low. Jobless Rate U.S. payrolls fell by 247,000 in July, after a 443,000 loss in June.
The jobless rate unexpectedly dropped to 9.4 percent from 9.5 percent. The Standard & Poor’s 500 Index closed above 1,000 for the first time since November last week. The U.S. economy will expand 2 percent or more in four straight quarters through June, the first such streak in more than four years, according to the median forecast in the monthly Bloomberg News survey. Analysts lifted their estimate for the third quarter by 1.2 percentage points compared with July, the biggest such boost in surveys dating from May 2003. In Europe, a recession is also showing signs of bottoming out. ECB President Jean-Claude Trichet said on Aug. 6 that the euro-region economy will show a “gradual recovery” followed by a return to growth in 2010. The gauge for Western Europe rose to 41.1 from 31. Slowing Contraction Manufacturing and service industries in Europe contracted at a slower pace in July and business confidence in Germany, its largest economy, rose for a fourth month.
Linde AG, the world’s second-largest maker of industrial gases, forecast business to pick up in the second half of 2009 from the previous six months, it said Aug. 3. “Government and central bank measures are starting to show an impact,” said Peter Leonhardt, an analyst at Dekabank in Frankfurt, and a regular survey participant. “Sentiment is improving much faster than expected. There’s a need to catch up after a deep slump.” In Asia, respondents were more optimistic, with the index reaching 74.2 from 59.4. Goldman Sachs Group Inc. this week raised its forecast for China’s 2009 economic growth to 9.4 percent, and said Asian nations excluding Japan will expand faster than earlier expected as well. The CLSA China Purchasing Managers’ Index reached the highest level in a year last month. Samsung Electronics Co., Hyundai Motor Co. and LG Electronics Inc. are among South Korean exporters that reported increased profits last quarter.
Asia’s Recovery
“A lot of the recovery we see in Asia is driven by government spending and restocking,” said Tai Hui, head of Southeast Asian economic research at Standard Chartered Plc in Singapore. “We need a genuine recovery or stabilization in consumer spending and private investment to ensure the slack will be picked up when the fiscal policy fades away and the restocking phenomenon disappears.” Confidence also rose in Japan, where the economy is forecast to have expanded for the first time in more than a year last quarter. Elections in the world’s second-largest economy at the end of the month may result in a victory for the opposition Democratic Party of Japan, which has never held power. The index for Japan climbed to 50 from 34.1. Bloomberg users became more optimistic on the outlook for their equity markets in the next six months. Respondents in Japan, the U.K. and Italy predict stocks will extend gains, while those in the U.S. and Germany are mixed about the direction of their markets. The global equity rally has added more than $15 trillion to the value of global stocks since this year’s low on March 9. ‘Risk Appetite’ “Risk appetite is returning to a much more normal level,” Standard Chartered’s Hui said. The U.S. dollar may weaken in the next six months against the world’s most active currencies, with the index falling to 38.8 from 43.8 in July, the survey showed. Users in Japan are divided on the direction of the yen against the dollar, with the index dropping to 50.3 from 59.6. Most respondents in Western Europe are more optimistic the euro will strengthen against its U.S. counterpart. Survey participants in the U.S., Japan and Western Europe are also more confident short- and long-term interest rates will rise in the next six months, the survey showed.
The Federal Reserve will forego raising its benchmark rate until the third quarter of 2010, according to the monthly Bloomberg survey. Bank of England Governor Mervyn King yesterday said inflation may miss the central bank’s target over the next three years, signaling investors may have to rein in expectations for interest rate increases. Globally, “it’s too early to start tightening policy,” Kounis of Fortis Bank said. “In general, it’s not something that should be considered this year.”
Source: Bloomberg
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