Thursday, 30 July 2009
Shipping tycoon John Fredriksen is considering moving several ships into the Norwegian international shipping (NIS) register after the Nordic country's taxation for the industry has turned more favourable, daily newspaper Dagens Naeringsliv reported on Wednesday. Fredriksen, the owner of dry bulk shipper Golden Ocean and the world's biggest independent oil tanker shipping group Frontline already has seven ships registered under the Norwegian flag. "We have 30-40 new vessels, bulk and tankers, for which we have not decided on any flag yet," Fredriksen, who controls a fleet of about 200 vessels, told the business daily. "We are considering moving some of these to Norway," he said, adding that it would start with one or two vessels and then evaluate how it is going. "We have so much business in Norway, so it is natural for us to have some ships there." Fredriksen described the new tax system, which has aligned to those of the European Union and is meant to keep the shipping industry competitive under the Norwegian flag, as "not bad". Under the new Norwegian scheme, the Labour-led government also imposed 14 billion crowns ($2.28 billion) in back taxes on undistributed profits retained by shippers over many years, but the industry is opposing the move. Three companies, BW Gas, Farstad Shipping) and Bergshav Tankers have taken the case to court, which is expected to go all the way to the supreme court and possibly further to the EU court system. Deputy minister Rikke Lind from the Ministry of Trade and Industry was quoted in Dagens Naeringsliv as saying that it was important to register ships in Norway because it would benefit the whole maritime industry through increased activity and jobs.
Fredriksen has holdings in many other companies, including oil driller Seadrill and the world's largest fish farmer Marine Harvest. On Tuesday, shipping group Siem Offshore said it would transfer 25 vessels into the Norwegian scheme and set up a base for its international operations in Kristiansand in Norway.
Source: Reuters
Thursday 30 July 2009
Teekay Offshore Partners Announces Public Offering of 6,500,000 Common Units
Thursday, 30 July 2009
Teekay Offshore Partners L.P. (Teekay Offshore or the Partnership) announced today that it plans to offer 6,500,000 common units, representing limited partner interests, in a public offering. Teekay Offshore expects to grant the underwriters a 30-day option to purchase an additional 975,000 common units to cover over-allotments, if any. The Partnership expects to use the net proceeds from the public offering to repay amounts outstanding on one of its revolving credit facilities.
Source: Teekay Offshore
Teekay Offshore Partners L.P. (Teekay Offshore or the Partnership) announced today that it plans to offer 6,500,000 common units, representing limited partner interests, in a public offering. Teekay Offshore expects to grant the underwriters a 30-day option to purchase an additional 975,000 common units to cover over-allotments, if any. The Partnership expects to use the net proceeds from the public offering to repay amounts outstanding on one of its revolving credit facilities.
Source: Teekay Offshore
Tuesday 28 July 2009
High Correlation Between Stock Markets and Oil Prices
Monday, 27 July 2009
Who really cares about oil market’s basic fundamentals like demand and supply at this moment? Probably no one as during last week the tone was given by the stock markets. The optimism sentiment that recession is closing to an end and world economy is heading to recovery were supported by the better than estimates corporate results for the second quarter of the year.
During last week Dow Jones Industrial Average earned about 3,72% closing over 9.000 points, the Standard & Poor’s 500 Index rose to the highest level since President Barack Obama was elected on Nov. 4, FTSE 100 Index gain 3,21% and Nikkei 5,84%. Crude oil increased 7.1 percent last week, the biggest gain since May and climbed to a three-week high of $68.05 a barrel in New York.
According to market analysts this optimism can sent stock markets and oil prices to even higher levels as there’s a belief that any signs of economic growth are good for both fuel demand and equities. That means that if economic recovery is a reality for the stock markets it must also be the same for oil markets. This correlation between oil and equities, which is not the norm historically works like a domino for the markets but this time has a positive direction.
Some financial experts, among them professor Nouriel Roubini, warn that this rally is not supported by the basic economic fundamentals as the recovery is still very vulnerable and not sustainable. They warn about a great storm in the near future as the unemployment rising and public deficits in the United States and Eurozone countries loom in very high levels. And the same time, consumer spendings are still very weak.
But all this can not destroy, for the moment, the party in equities markets and high correlation between stocks and oil prices seems to be the case for this year.But what will be happened when the announcements of corporation results will end? Nobody knows with accuracy the answer but the most likely is that stock markets wiil focus again to the basic indices of world economy, that means the would be time for correction.
Then oil market will focus again to the main bearish factors like weak demand and high stockpiles. Falling demand remain the main problem for sustainable prices near the $70-$75 per barrel as OPEC’s members wish. Major forecasters, including the Organisation of the Petroleum Exporting Countries, the International Energy Agency and the US government's Energy Information Administration, have all said demand this year will be lower than last year. They expect consumption to begin growing again next year, but demand for OPEC crude is expected to stay low.
In its medium term outlook published this month, the group said it did not expect demand for its crude to recover to approximately last year's levels until 2013.Inventories, especially in the U.S is another factor that can push oil prices to lower levels. Weak demand has generated huge stockpiles. Even well into the US summer driving season, inventories of motor fuel have been climbing.US distillate stocks, which include diesel, are at their highest levels for 25 years and gasoline stocks have risen to the top of their five-year range, according to US government data.
In addition to the large amounts of fuel storage on land, traders have built up fleets of floating of storage at sea. The latest estimates peg the amount of crude held on tankers at 57 million barrels, down from 82 million at the beginning of June, but the amount of refined products held on vessels at sea has risen.Shipbrokers last week estimated the amount of distillates held on tankers had climbed to 50 million barrels in early July from 34 million barrels at the start of June.
The oil has been stored on vessels rather than on land as traders have taken advantage of cheap freight rates and market structure.High volumes of crude at sea coincided with a deep contango on the crude futures market - meaning prompt contracts were cheaper than those for later delivery and traders could make a profit from buying oil now and selling it later.
The contango on the crude market has narrowed, but distillates are still in a deep contango. Decisions for oil producers nations will be critical in the coming months. OPEC members will be called for one time to consider their policy under unceetain circumstances. Faced with rising stocks and weak demand, OPEC agreed to reduce supply by 4.2 million barrels per day compared with last September's output.At its most disciplined earlier this year, OPEC compliance was around 80 percent. It has since slipped to nearer 70 percent, according to analyst estimates.
At its meeting in March, the group said it would limit its action to tighter compliance with existing curbs, rather than introducing new ones.To help heal the world economy, it said it was willing to accept a price lower than its preferred level of around $75 a barrel.At a follow-up meeting in May, it said the world could be ready for prices of around $75 later this year, but some analysts have said insipid US gasoline demand has shown how price sensitive consumers have become. They argue around $70 is too expensive for now.OPEC next meets in Vienna on Sept 9 to reconsider its output policy.
Makis Theodoratos, Hellenic Shipping News Worldwide
Who really cares about oil market’s basic fundamentals like demand and supply at this moment? Probably no one as during last week the tone was given by the stock markets. The optimism sentiment that recession is closing to an end and world economy is heading to recovery were supported by the better than estimates corporate results for the second quarter of the year.
During last week Dow Jones Industrial Average earned about 3,72% closing over 9.000 points, the Standard & Poor’s 500 Index rose to the highest level since President Barack Obama was elected on Nov. 4, FTSE 100 Index gain 3,21% and Nikkei 5,84%. Crude oil increased 7.1 percent last week, the biggest gain since May and climbed to a three-week high of $68.05 a barrel in New York.
According to market analysts this optimism can sent stock markets and oil prices to even higher levels as there’s a belief that any signs of economic growth are good for both fuel demand and equities. That means that if economic recovery is a reality for the stock markets it must also be the same for oil markets. This correlation between oil and equities, which is not the norm historically works like a domino for the markets but this time has a positive direction.
Some financial experts, among them professor Nouriel Roubini, warn that this rally is not supported by the basic economic fundamentals as the recovery is still very vulnerable and not sustainable. They warn about a great storm in the near future as the unemployment rising and public deficits in the United States and Eurozone countries loom in very high levels. And the same time, consumer spendings are still very weak.
But all this can not destroy, for the moment, the party in equities markets and high correlation between stocks and oil prices seems to be the case for this year.But what will be happened when the announcements of corporation results will end? Nobody knows with accuracy the answer but the most likely is that stock markets wiil focus again to the basic indices of world economy, that means the would be time for correction.
Then oil market will focus again to the main bearish factors like weak demand and high stockpiles. Falling demand remain the main problem for sustainable prices near the $70-$75 per barrel as OPEC’s members wish. Major forecasters, including the Organisation of the Petroleum Exporting Countries, the International Energy Agency and the US government's Energy Information Administration, have all said demand this year will be lower than last year. They expect consumption to begin growing again next year, but demand for OPEC crude is expected to stay low.
In its medium term outlook published this month, the group said it did not expect demand for its crude to recover to approximately last year's levels until 2013.Inventories, especially in the U.S is another factor that can push oil prices to lower levels. Weak demand has generated huge stockpiles. Even well into the US summer driving season, inventories of motor fuel have been climbing.US distillate stocks, which include diesel, are at their highest levels for 25 years and gasoline stocks have risen to the top of their five-year range, according to US government data.
In addition to the large amounts of fuel storage on land, traders have built up fleets of floating of storage at sea. The latest estimates peg the amount of crude held on tankers at 57 million barrels, down from 82 million at the beginning of June, but the amount of refined products held on vessels at sea has risen.Shipbrokers last week estimated the amount of distillates held on tankers had climbed to 50 million barrels in early July from 34 million barrels at the start of June.
The oil has been stored on vessels rather than on land as traders have taken advantage of cheap freight rates and market structure.High volumes of crude at sea coincided with a deep contango on the crude futures market - meaning prompt contracts were cheaper than those for later delivery and traders could make a profit from buying oil now and selling it later.
The contango on the crude market has narrowed, but distillates are still in a deep contango. Decisions for oil producers nations will be critical in the coming months. OPEC members will be called for one time to consider their policy under unceetain circumstances. Faced with rising stocks and weak demand, OPEC agreed to reduce supply by 4.2 million barrels per day compared with last September's output.At its most disciplined earlier this year, OPEC compliance was around 80 percent. It has since slipped to nearer 70 percent, according to analyst estimates.
At its meeting in March, the group said it would limit its action to tighter compliance with existing curbs, rather than introducing new ones.To help heal the world economy, it said it was willing to accept a price lower than its preferred level of around $75 a barrel.At a follow-up meeting in May, it said the world could be ready for prices of around $75 later this year, but some analysts have said insipid US gasoline demand has shown how price sensitive consumers have become. They argue around $70 is too expensive for now.OPEC next meets in Vienna on Sept 9 to reconsider its output policy.
Makis Theodoratos, Hellenic Shipping News Worldwide
Monday 27 July 2009
Chemical Rate - Week 31
Friday 24 July 2009
Indonesia Tangguh LNG Plant To Ship 56 Cargoes In '09
Thursday, 23 July 2009
Indonesia's Tangguh gas liquefaction plant will ship 56 cargoes of liquefied natural gas this year to overseas buyers, a government official said Wednesday. Raden Priyono, chairman of upstream oil and gas regulator BP Migas, told reporters that 17 cargoes will be dispatched to the Fujian receiving terminal in China, eight to South Korea's Posco, 12 to K-Power and 19 to Sempra Energy.
One cargo is equal to 150,000 cubic meters of LNG. The plant, which is owned by a consortium led by BP Plc (BP), made its first gas delivery to South Korea last month and to Fujian earlier this month. Priyono said the first LNG delivery to Sempra's receiving terminal in Baja California, Mexico, will be made in August.
Source: Dow Jones
Indonesia's Tangguh gas liquefaction plant will ship 56 cargoes of liquefied natural gas this year to overseas buyers, a government official said Wednesday. Raden Priyono, chairman of upstream oil and gas regulator BP Migas, told reporters that 17 cargoes will be dispatched to the Fujian receiving terminal in China, eight to South Korea's Posco, 12 to K-Power and 19 to Sempra Energy.
One cargo is equal to 150,000 cubic meters of LNG. The plant, which is owned by a consortium led by BP Plc (BP), made its first gas delivery to South Korea last month and to Fujian earlier this month. Priyono said the first LNG delivery to Sempra's receiving terminal in Baja California, Mexico, will be made in August.
Source: Dow Jones
Wednesday 22 July 2009
Nigerian militants attack chemical tanker
(July 10 2009)
A leading militant group in the Niger Delta has attacked a Chevron oil facility and hijacked some of the crew of a chemical vessel.
The Movement for the Emancipation for the Niger Delta (MEND) issued a press statement saying that for disregarding their warning to oil, gas and chemical tankers to keep away from the Niger Delta waters, six crew members from the chemical tanker ‘Sichem Peace’ were seized about 20 nautical miles from Escravos on 5th July.
MEND’s statement said that the captives will be held until further notice. The six crew members included three Russians (master, chief engineer and 2nd engineer), an Indian cadet and two Philippino seafarers.
The movement said that this was meant to serve as a warning to others that there are root issues that have to be resolved with the Nigerian government before normality can resume.
This news came hard on the heels of a statement released earlier the same day about another Chervon facility being attacked by MEND.
According to the statement, the strategic Okan manifold, which controls about 80% Chevron Nigeria’s offshore crude oil to its BOP crude loading platform was blown up at about 8.45 pm on the same day.
MEND also said that the next tanker that they will intercept will not be this lucky, as it will be set on fire after the crew had been evacuated.
A leading militant group in the Niger Delta has attacked a Chevron oil facility and hijacked some of the crew of a chemical vessel.
The Movement for the Emancipation for the Niger Delta (MEND) issued a press statement saying that for disregarding their warning to oil, gas and chemical tankers to keep away from the Niger Delta waters, six crew members from the chemical tanker ‘Sichem Peace’ were seized about 20 nautical miles from Escravos on 5th July.
MEND’s statement said that the captives will be held until further notice. The six crew members included three Russians (master, chief engineer and 2nd engineer), an Indian cadet and two Philippino seafarers.
The movement said that this was meant to serve as a warning to others that there are root issues that have to be resolved with the Nigerian government before normality can resume.
This news came hard on the heels of a statement released earlier the same day about another Chervon facility being attacked by MEND.
According to the statement, the strategic Okan manifold, which controls about 80% Chevron Nigeria’s offshore crude oil to its BOP crude loading platform was blown up at about 8.45 pm on the same day.
MEND also said that the next tanker that they will intercept will not be this lucky, as it will be set on fire after the crew had been evacuated.
Tuesday 21 July 2009
BP Says North Sea Oil, Gas Production Will Drop 9% This Year
Wednesday, 22 July 2009
BP Plc, Europe’s second-largest oil and gas company, said its North Sea output will drop about 9 percent this year, almost double the U.K.’s estimated overall decline. Production from BP’s fields in Norway and the U.K. will be the equivalent of about 320,000 barrels of oil a day in 2009, compared with 350,000 barrels a day last year, the London-based company said on its Web site.
BP said it plans to maintain output at 300,000 barrels a day for the next decade. “For the majors like BP, Shell and Exxon, the North Sea is becoming less important,” said Alex Kemp, professor of petroleum economics at Aberdeen University. “The fields are relatively small. They are not terribly exciting for a mega- major.” BP, which made the North Sea’s first discovery in 1965, said it remains committed to the region as rising costs and shrinking reserves encourage some explorers to scale back operations.
BP operates more than 30 fields in the North Sea as well as 10 pipeline systems and the Sullom Voe oil terminal. The company estimates that it still has reserves equivalent to 3 billion barrels of oil in the region, according to its Web site. “We want people to know that we are not leaving, and we intended to be here when the last drop of oil is recovered from the North Sea,” Bernard Looney, the head of BP’s North Sea business said on the company’s Web site. Once the world’s fourth-largest oil and gas producer, the U.K. has been in decline since 1999, with energy output shrinking 5 percent last year as oil prices fell and the credit- market crisis hurt investment in energy exploration.
The U.K. government is counting on North Sea oil and gas for tax revenue as the financial industry suffers in the worst recession since World War II. Lobby Group Industry lobby group Oil & Gas UK forecasts that oil and gas production will average about 2.5 million barrels a day in 2009, down 5 percent from 2008. Norway, the world’s fifth-largest oil exporter and third- biggest natural-gas supplier, is seeking to boost output of natural gas and is opening more of its unexplored northern waters to drilling to counter a decline in oil output at maturing fields.
Norwegian crude output will fall to about 1.9 million barrels a day in 2009 from about 2.11 million barrels a day last year, according to Bloomberg calculations based on data from the country’s Petroleum Directorate. Natural gas output is forecast to rise to 102.9 billion cubic meters this year, the directorate said in January. ‘Remain Committed’ “North Sea assets are still very important parts in the overall portfolio mix,” for BP, said Tom Ellacott, London-based corporate analyst at Wood Mackenzie Consultants Ltd. “They have to remain committed now.” BP plans to invest a record 21.66 billion kroner ($3.4 billion), in Norwegian projects this year, 64 percent more than in 2008, it said in January.
It intends to raise its Norwegian oil output to 80,000 barrels of oil equivalent a day by 2012, through the development of the Valhall, Skarv and Ula projects. In the U.K., where BP is the largest producer, the company is seeking to boost oil recovery at its Foinaven discovery in the West of Shetlands region. It has drilled three new wells as part of its Foinaven Panel 2 South project, the first of which started production last year. “There is a lot going in to make sure that the decline in as little as that,” said BP spokesman Robert Wine. “Some of our fields are some of the oldest ones. We have to struggle harder to keep the older ones from decline.” Royal Dutch Shell Plc, Europe’s largest oil producer, sold some U.K. assets last year, including its share of the South Cormorant, Cormorant North, Tern, Eider, Kestrel and Pelican licenses, non-operated interests in the Hudson license and interests in the Brent System and Sullom Voe terminal.
Source: Bloomberg
BP Plc, Europe’s second-largest oil and gas company, said its North Sea output will drop about 9 percent this year, almost double the U.K.’s estimated overall decline. Production from BP’s fields in Norway and the U.K. will be the equivalent of about 320,000 barrels of oil a day in 2009, compared with 350,000 barrels a day last year, the London-based company said on its Web site.
BP said it plans to maintain output at 300,000 barrels a day for the next decade. “For the majors like BP, Shell and Exxon, the North Sea is becoming less important,” said Alex Kemp, professor of petroleum economics at Aberdeen University. “The fields are relatively small. They are not terribly exciting for a mega- major.” BP, which made the North Sea’s first discovery in 1965, said it remains committed to the region as rising costs and shrinking reserves encourage some explorers to scale back operations.
BP operates more than 30 fields in the North Sea as well as 10 pipeline systems and the Sullom Voe oil terminal. The company estimates that it still has reserves equivalent to 3 billion barrels of oil in the region, according to its Web site. “We want people to know that we are not leaving, and we intended to be here when the last drop of oil is recovered from the North Sea,” Bernard Looney, the head of BP’s North Sea business said on the company’s Web site. Once the world’s fourth-largest oil and gas producer, the U.K. has been in decline since 1999, with energy output shrinking 5 percent last year as oil prices fell and the credit- market crisis hurt investment in energy exploration.
The U.K. government is counting on North Sea oil and gas for tax revenue as the financial industry suffers in the worst recession since World War II. Lobby Group Industry lobby group Oil & Gas UK forecasts that oil and gas production will average about 2.5 million barrels a day in 2009, down 5 percent from 2008. Norway, the world’s fifth-largest oil exporter and third- biggest natural-gas supplier, is seeking to boost output of natural gas and is opening more of its unexplored northern waters to drilling to counter a decline in oil output at maturing fields.
Norwegian crude output will fall to about 1.9 million barrels a day in 2009 from about 2.11 million barrels a day last year, according to Bloomberg calculations based on data from the country’s Petroleum Directorate. Natural gas output is forecast to rise to 102.9 billion cubic meters this year, the directorate said in January. ‘Remain Committed’ “North Sea assets are still very important parts in the overall portfolio mix,” for BP, said Tom Ellacott, London-based corporate analyst at Wood Mackenzie Consultants Ltd. “They have to remain committed now.” BP plans to invest a record 21.66 billion kroner ($3.4 billion), in Norwegian projects this year, 64 percent more than in 2008, it said in January.
It intends to raise its Norwegian oil output to 80,000 barrels of oil equivalent a day by 2012, through the development of the Valhall, Skarv and Ula projects. In the U.K., where BP is the largest producer, the company is seeking to boost oil recovery at its Foinaven discovery in the West of Shetlands region. It has drilled three new wells as part of its Foinaven Panel 2 South project, the first of which started production last year. “There is a lot going in to make sure that the decline in as little as that,” said BP spokesman Robert Wine. “Some of our fields are some of the oldest ones. We have to struggle harder to keep the older ones from decline.” Royal Dutch Shell Plc, Europe’s largest oil producer, sold some U.K. assets last year, including its share of the South Cormorant, Cormorant North, Tern, Eider, Kestrel and Pelican licenses, non-operated interests in the Hudson license and interests in the Brent System and Sullom Voe terminal.
Source: Bloomberg
Hin Leong unit gets US$28m Stanchart loan facility
Wednesday, 22 July 2009
STANDARD Chartered Bank has granted a US$28 million loan facility to Xihe Holdings, the vessel-owning arm of Ocean Tankers. Ocean Tankers is a major South-east Asian oil and product tanker operator, with a fleet in excess of 80 vessels. It is part of the Hin Leong Group, the largest independent oil trader in Singapore and a leading player in the oil and oil-products trading and logistics markets in South-east Asia.
This loan enables the Hin Leong Group to take advantage of market cycles to continue growing its fleet.Lim Huey Ching, finance director of Xihe Holdings, said: 'The loan facility that Standard Chartered has provided us with not only cements the integral role we play in the global energy market, but is also testament to the bank's commitment to its clients even in difficult times.'Nigel Anton, managing director and head of shipping finance at Stanchart, said: 'The Hin Leong Group is an important and long-standing customer of Standard Chartered Bank. Our ongoing partnership with the Hin Leong Group allows us to provide strategic support to their integrated oil trading and logistics business.'
Philippe Touati, head of origination and client coverage at Stanchart, said: 'As local corporates grow and take their business into the regions, Stanchart is proud to offer our unique footprint in Africa, Asia and the Middle East to support their expansion.'
Source: Business Times Singapore
STANDARD Chartered Bank has granted a US$28 million loan facility to Xihe Holdings, the vessel-owning arm of Ocean Tankers. Ocean Tankers is a major South-east Asian oil and product tanker operator, with a fleet in excess of 80 vessels. It is part of the Hin Leong Group, the largest independent oil trader in Singapore and a leading player in the oil and oil-products trading and logistics markets in South-east Asia.
This loan enables the Hin Leong Group to take advantage of market cycles to continue growing its fleet.Lim Huey Ching, finance director of Xihe Holdings, said: 'The loan facility that Standard Chartered has provided us with not only cements the integral role we play in the global energy market, but is also testament to the bank's commitment to its clients even in difficult times.'Nigel Anton, managing director and head of shipping finance at Stanchart, said: 'The Hin Leong Group is an important and long-standing customer of Standard Chartered Bank. Our ongoing partnership with the Hin Leong Group allows us to provide strategic support to their integrated oil trading and logistics business.'
Philippe Touati, head of origination and client coverage at Stanchart, said: 'As local corporates grow and take their business into the regions, Stanchart is proud to offer our unique footprint in Africa, Asia and the Middle East to support their expansion.'
Source: Business Times Singapore
Monday 20 July 2009
Chemical Rate Continues to be Resilient - July 2009
Dear Stakeholders,
Please find below the performance of the chemical rate as of early July 2009. this has shown that the chemical rates continue to be resilient in the facing of the crisis and maintain its sturdy characteristics from the global recession.
Source: DnBNor Market Shipping Review.
Regards
BOC shipping finance sails forth in Shanghai
Thursday, 09 July 2009
BANK of China has established its first shipping finance service center in Shanghai enhancing the city's future as a finance and shipping center. The shipping finance center, under the Shanghai branch of the bank, is on the Bund in the Huangpu District of Shanghai, which is home to the Chinese offices of most of the leading international shipping companies.
"We set up the center on the Bund to get closer to the needs of shipping companies," said Dong Weijian, president of the Shanghai branch of the Beijing-based bank. "We will also reach more overseas shipping companies with our broad international network."China's shipping finance services are in their infancy at this stage and offer few sophisticated products."We hope we, as industry players, can introduce more global practices and express the needs of shipping companies to the bank with the set-up of the center," said Jeff Xu, vice president and chief finance office of ZIM Integrated Shipping Services (China) Co.
Xu said Chinese banks would have to go further in offering financial services and offer a broader supply of financial products for overseas shipping players. The State Council has set guidelines for Shanghai to emerge as an international financial and shipping hub by 2020.Shipping finance, including banking and insurance services, is expected to play a major role.In China, insurance for cargo owners is popular but insurance services for cargo carriers and agents are limited.
Source: Shanghai Daily
BANK of China has established its first shipping finance service center in Shanghai enhancing the city's future as a finance and shipping center. The shipping finance center, under the Shanghai branch of the bank, is on the Bund in the Huangpu District of Shanghai, which is home to the Chinese offices of most of the leading international shipping companies.
"We set up the center on the Bund to get closer to the needs of shipping companies," said Dong Weijian, president of the Shanghai branch of the Beijing-based bank. "We will also reach more overseas shipping companies with our broad international network."China's shipping finance services are in their infancy at this stage and offer few sophisticated products."We hope we, as industry players, can introduce more global practices and express the needs of shipping companies to the bank with the set-up of the center," said Jeff Xu, vice president and chief finance office of ZIM Integrated Shipping Services (China) Co.
Xu said Chinese banks would have to go further in offering financial services and offer a broader supply of financial products for overseas shipping players. The State Council has set guidelines for Shanghai to emerge as an international financial and shipping hub by 2020.Shipping finance, including banking and insurance services, is expected to play a major role.In China, insurance for cargo owners is popular but insurance services for cargo carriers and agents are limited.
Source: Shanghai Daily
Thursday 16 July 2009
Malaysian LNG exports slump, gas demand down
Tuesday, 14 July 2009
Malaysia, the world’s second-biggest exporter of liquefied natural gas, supplied fewer cargoes in the first five months of this year as the global recession curbed demand for the cleaner-burning fuel. Shipments of LNG, the nation’s third-largest export commodity, dropped 5.3 per cent from a year earlier to 9.4 million metric tons between January and May, the Department of Statistics said on its Web site. The value of LNG shipments rose 13 per cent to RM15.3 billion (US$4.26 billion).Malaysia increased exports of LNG to a record 22.87 million tons last year, valued at RM40.7 billion, from its LNG complex in Borneo, according to Bank Negara Malaysia, the central bank. Supplies are falling this year as Japan and South Korea, the world’s two biggest LNG consumers, slash fuel imports, because of lower demand for from power plants and manufacturers.Malaysian LNG unit prices, typically linked to crude oil, climbed by 20 per cent to RM1,618 a ton during the five months, the statistics department said. New York oil reached an eight-month high of US$73.38 a barrel on June 30, after rising 37 per cent in the preceding two months on optimism about a global economic recovery.Only Qatar supplies more LNG, which is natural gas chilled to liquid form. The fuel’s reduced to one-six-hundredth of its original volume at minus 161 degrees Celsius (minus 258 degrees Fahrenheit) for transportation by ship to destinations not connected by pipeline and turned back into gas for distribution to users.
Source: Bloomberg
Malaysia, the world’s second-biggest exporter of liquefied natural gas, supplied fewer cargoes in the first five months of this year as the global recession curbed demand for the cleaner-burning fuel. Shipments of LNG, the nation’s third-largest export commodity, dropped 5.3 per cent from a year earlier to 9.4 million metric tons between January and May, the Department of Statistics said on its Web site. The value of LNG shipments rose 13 per cent to RM15.3 billion (US$4.26 billion).Malaysia increased exports of LNG to a record 22.87 million tons last year, valued at RM40.7 billion, from its LNG complex in Borneo, according to Bank Negara Malaysia, the central bank. Supplies are falling this year as Japan and South Korea, the world’s two biggest LNG consumers, slash fuel imports, because of lower demand for from power plants and manufacturers.Malaysian LNG unit prices, typically linked to crude oil, climbed by 20 per cent to RM1,618 a ton during the five months, the statistics department said. New York oil reached an eight-month high of US$73.38 a barrel on June 30, after rising 37 per cent in the preceding two months on optimism about a global economic recovery.Only Qatar supplies more LNG, which is natural gas chilled to liquid form. The fuel’s reduced to one-six-hundredth of its original volume at minus 161 degrees Celsius (minus 258 degrees Fahrenheit) for transportation by ship to destinations not connected by pipeline and turned back into gas for distribution to users.
Source: Bloomberg
Bombs Exploded at the Ritz and Marriott Hotels
Today heard that bombs have exploded at Ritz and Marriots and 7 people died instantaneously.
My simpathy to those affected with the blast. Was myself at Marriott last night for business leaders meeting representing our President Director so I am lucky I am still one piece.
I guess the terrorists hate SBY to the bone. He has captured loads of them for the past 5 years, so with landslide win in the election, the terrorists want to show that they are strong and very much alive. I expect SBY to intensify of his focus on combating these terrorists. Budget spending for military advancement have been increased and therefore the portion allocated for terrorism eradication will increase and the process of hunting down the terrorists will be intensified. SBY could impose more regulations on the running of islamic schools. SBY will now have a lot more enemies e.g. terrorists, corruptors, slackers, islamic extreme spiritual leaders and many opposition parties.
Rupiah may fall to around Rp.11,000 level and to counter further decline the government may pour in more liquidity in the market to uphold such decline and interest rate declining trend could be halted momentarily until things have stabalisized somewhat. Stock market will see some volatility for the next few weeks until really good news come back to the market.
Obviously there was a knee jerk reaction but I couldn’t fathom that the stock market managed to flip to positive late morning although slide down slightly close to mid day closing. I had expected the stock market to crash. It could be that the negativity of this news to be short lived and I guess fundamentally, Indonesia will not change and will continue to be the next important market after China and India. So, business as usual, guys!
My simpathy to those affected with the blast. Was myself at Marriott last night for business leaders meeting representing our President Director so I am lucky I am still one piece.
I guess the terrorists hate SBY to the bone. He has captured loads of them for the past 5 years, so with landslide win in the election, the terrorists want to show that they are strong and very much alive. I expect SBY to intensify of his focus on combating these terrorists. Budget spending for military advancement have been increased and therefore the portion allocated for terrorism eradication will increase and the process of hunting down the terrorists will be intensified. SBY could impose more regulations on the running of islamic schools. SBY will now have a lot more enemies e.g. terrorists, corruptors, slackers, islamic extreme spiritual leaders and many opposition parties.
Rupiah may fall to around Rp.11,000 level and to counter further decline the government may pour in more liquidity in the market to uphold such decline and interest rate declining trend could be halted momentarily until things have stabalisized somewhat. Stock market will see some volatility for the next few weeks until really good news come back to the market.
Obviously there was a knee jerk reaction but I couldn’t fathom that the stock market managed to flip to positive late morning although slide down slightly close to mid day closing. I had expected the stock market to crash. It could be that the negativity of this news to be short lived and I guess fundamentally, Indonesia will not change and will continue to be the next important market after China and India. So, business as usual, guys!
BLT - Research Report By Optima Securities
Dear Stakeholders,
Please find below the link to the recent rearch on the BLT
http://rapidshare.com/files/256692846/Research_on_BLTA_13-07-09_by_Optima_Securities.pdf
Regards
Please find below the link to the recent rearch on the BLT
http://rapidshare.com/files/256692846/Research_on_BLTA_13-07-09_by_Optima_Securities.pdf
Regards
‘Chindonesia’ to Be New Money Phrase
Jim O’Neill will long be known for coining BRICs. Ten years from now, Nicholas Cashmore may enjoy similar notoriety for another addition to the investor lexicon. The money phrase put forth in 2001 by O’Neill, London-based chief economist at Goldman Sachs Group, refers to Brazil, Russia, India and China. BRICs is now a ubiquitous term for a new wave of emerging growth stars transforming markets. Cashmore takes two of O’Neill’s BRICs — China and India — and adds Indonesia to form what the Jakarta-based CLSA Asia- Pacific Markets economist calls “Chindonesia.”
Asked if it will become as common as BRICs, Cashmore jokes: “Obviously, I’d like to think so. Adding an ‘I’ to BRIC doesn’t roll off the tongue as easily.” There’s a compelling logic to expanding the “Chindia” concept to another member. China, India and Indonesia already generate economic activity equal to 44 percent of the US economy. Within five years, Cashmore says, the group’s gross domestic product will surpass $10 trillion, even amid modest growth rates. Talk about a no-brainer for investors.
Not that there aren’t risks to consider, including social instability in China, high poverty rates in India, corruption in Indonesia and myriad speed bumps. A deeper global recession won’t help anyone, no matter how insulated from the forces of foreign capital or trade. Yet Chindonesia has just about everything value-oriented investors seek right now. Even its weakest link from a growth-rate standpoint, Indonesia, has an economy expanding at the third-fastest rate in Asia and faces brightening prospects.
Indonesia shows how, as much as these three economies may compete, they will complement each other. It’s a significant supplier of resources and can leverage the growth of Asia’s two nascent superpowers. Commodity-rich Indonesia will benefit from ultra-low interest rates in developed nations. As their easy-money policies boost inflation, Indonesia will count the profits. India and Indonesia, it’s worth pointing out, boast large and growing domestic economies that helped both sidestep the global crisis. The case for Chindonesia is really about the financial world we’re moving toward. The go-go global growth seen before 2007 is unlikely to return anytime soon.
The international balance of power is beginning to move away from New York, London and Hong Kong toward the developing world. Cities that thrive off the trading of complex financial instruments are at a disadvantage as regulators turn to the task of reining in speculation. That will put a spotlight on high- growth nations with great potential and governments committed to reform.
Chindonesia’s relative contribution to world gross domestic product will increase as America’s declines. Take India, which is on a high following Prime Minister Manmohan Singh’s recent re-election. The former central-bank governor masterminded the 1990s market changes propelling rapid growth. He now has a bigger mandate for change, free of the small-party bosses that have stymied it. The hope is that Singh will get control over India’s massive public debt, even as he improves infrastructure and education, and attacks corruption.
China’s outlook may be more complicated. Ethnic violence in Xinjiang province raises the specter of social instability. China twice last week failed to attract enough bidders in a government debt sale on speculation record bank lending will spark inflation. Talk about a bizarre challenge as the rest of the world fights deflation.
Indonesia’s challenges are equally daunting. A population roughly the size of Canada’s still lives on less than 70 cents a day per capita. Rampant corruption squanders economic growth and the risk of terrorism can’t be dismissed. The good new is that President Susilo Bambang Yudhoyono looks to have won a second term in last week’s election. The economy can expand “significantly” more than 7 percent if Yudhoyono fulfills his pledge to fix the nation’s congested roads, neglected ports and aging power plants, says Joachim von Amsberg, the World Bank’s representative in Jakarta.
Demographic trends are worth considering. As populations in the euro zone, Japan and Russia stagnate, Cashmore says China, India and Indonesia will add more than 170 million people to their work forces over the next decade. “This is Asia’s new growth triangle,” Cashmore says. That’s a double-edge sword. Swelling populations become a nightmare when you don’t create enough good-paying jobs. It’s a big “if,” of course. And much could go wrong, be it a worsening the global crisis, health pandemics or the need to address the forces of climate change. When you look at demographics, the outlook for consumer demand and public balance sheets in developed nations, though, Chindonesia’s challenges sometimes seem manageable.
William Pesek is a commentator on international economics and policy for Bloomberg News
Asked if it will become as common as BRICs, Cashmore jokes: “Obviously, I’d like to think so. Adding an ‘I’ to BRIC doesn’t roll off the tongue as easily.” There’s a compelling logic to expanding the “Chindia” concept to another member. China, India and Indonesia already generate economic activity equal to 44 percent of the US economy. Within five years, Cashmore says, the group’s gross domestic product will surpass $10 trillion, even amid modest growth rates. Talk about a no-brainer for investors.
Not that there aren’t risks to consider, including social instability in China, high poverty rates in India, corruption in Indonesia and myriad speed bumps. A deeper global recession won’t help anyone, no matter how insulated from the forces of foreign capital or trade. Yet Chindonesia has just about everything value-oriented investors seek right now. Even its weakest link from a growth-rate standpoint, Indonesia, has an economy expanding at the third-fastest rate in Asia and faces brightening prospects.
Indonesia shows how, as much as these three economies may compete, they will complement each other. It’s a significant supplier of resources and can leverage the growth of Asia’s two nascent superpowers. Commodity-rich Indonesia will benefit from ultra-low interest rates in developed nations. As their easy-money policies boost inflation, Indonesia will count the profits. India and Indonesia, it’s worth pointing out, boast large and growing domestic economies that helped both sidestep the global crisis. The case for Chindonesia is really about the financial world we’re moving toward. The go-go global growth seen before 2007 is unlikely to return anytime soon.
The international balance of power is beginning to move away from New York, London and Hong Kong toward the developing world. Cities that thrive off the trading of complex financial instruments are at a disadvantage as regulators turn to the task of reining in speculation. That will put a spotlight on high- growth nations with great potential and governments committed to reform.
Chindonesia’s relative contribution to world gross domestic product will increase as America’s declines. Take India, which is on a high following Prime Minister Manmohan Singh’s recent re-election. The former central-bank governor masterminded the 1990s market changes propelling rapid growth. He now has a bigger mandate for change, free of the small-party bosses that have stymied it. The hope is that Singh will get control over India’s massive public debt, even as he improves infrastructure and education, and attacks corruption.
China’s outlook may be more complicated. Ethnic violence in Xinjiang province raises the specter of social instability. China twice last week failed to attract enough bidders in a government debt sale on speculation record bank lending will spark inflation. Talk about a bizarre challenge as the rest of the world fights deflation.
Indonesia’s challenges are equally daunting. A population roughly the size of Canada’s still lives on less than 70 cents a day per capita. Rampant corruption squanders economic growth and the risk of terrorism can’t be dismissed. The good new is that President Susilo Bambang Yudhoyono looks to have won a second term in last week’s election. The economy can expand “significantly” more than 7 percent if Yudhoyono fulfills his pledge to fix the nation’s congested roads, neglected ports and aging power plants, says Joachim von Amsberg, the World Bank’s representative in Jakarta.
Demographic trends are worth considering. As populations in the euro zone, Japan and Russia stagnate, Cashmore says China, India and Indonesia will add more than 170 million people to their work forces over the next decade. “This is Asia’s new growth triangle,” Cashmore says. That’s a double-edge sword. Swelling populations become a nightmare when you don’t create enough good-paying jobs. It’s a big “if,” of course. And much could go wrong, be it a worsening the global crisis, health pandemics or the need to address the forces of climate change. When you look at demographics, the outlook for consumer demand and public balance sheets in developed nations, though, Chindonesia’s challenges sometimes seem manageable.
William Pesek is a commentator on international economics and policy for Bloomberg News
Wednesday 15 July 2009
Qatari Oil Firm Eyes Chemicals Investment
Qatar-based Gulf Petroleum, part-owned by the Middle Eastern nation’s royal family, plans to establish a joint venture with a local company to construct a coal-based petrochemical plant in South Sumatra this year, officials from the two firms said late on Tuesday, although Gulf’s president acknowledged that the project still needed to win approval from its head office in Qatar. “In principal, both parties have agreed to join forces.
The total investment will be about $2 billion,” said Djan Faridz, the president director of Priamanaya Group, Gulf’s local partner, after a closed-door meeting on Tuesday with the Doha-based company at the Four Seasons Hotel in Jakarta. “We’re in the final stages before the signing of a memorandum of understanding with them. We hope that it’ll be this week,” Djan said. Gulf’s president, Abdul Aziz H. al-Dulaimi, who left for Doha after the meeting, confirmed that the project would be developed on a joint-venture basis. But he said he still had to discuss the matter with his colleagues in Qatar. “If they agree, obviously we will sign the agreement,” he said.
The announcement comes after reports on Monday said that Gulf and Priamanaya planned to build a separate coal gasification plant in Lahat, South Sumatra, at a cost of some $1 billion. If the proposed projects go forward, Gulf will become the third major firm from the oil and gas-rich state to set up shop in Indonesia, following in the footsteps of Qatar Telecom, which acquired a 65 percent stake last year in the country’s second-biggest telecommunications operator, PT Indosat Qatar Islamic Bank has also established a local presence and is in talks with state-owned PT Bank Negara Indonesia about setting up a new Shariah bank.
Qatar Holdings, the direct investment arm of the Qatar Investment Authority, says it plans to establish a wholly owned investment firm in Indonesia by the end of the year, with up to $1 billion available for local projects. Priamanaya’s Djan said the joint-venture company would likely be established in the fourth quarter so as to allow the plant to be completed in 2011. He said that Gulf would be the majority shareholder, but declined to elaborate further. “The plant will be located in Patra Tani in South Sumatra,” Djan said, adding that the coal to feed the plant, which is to produce products similar to ethylene and polyethylene, would come from Priamanaya’s mines in Prabumulih and Muara Enim. Priamanaya Group is a holding company for a number of firms that are primarily focused on power plant construction and operations. One of their current projects is building the coal-fired Rembang power plant in Central Java.
Alwi Shihab, the president’s special envoy to the Middle East, who was also present at the Jakarta meeting, said his role was to help steer the talks toward a successful conclusion. “Both sides have clearly arrived at an agreement,” Alwi said. “So there are only minor issues that need to be finalized before the project begins.” The petrochemical plant would be Gulf’s second foray into Indonesia. In 2007, the company took part in a $450 million tender for the construction and operation of a coal-fired power plant in Indragiri Hulu, Riau. That project, however, had to be put out to tender again this year because there were only two bidders.
The total investment will be about $2 billion,” said Djan Faridz, the president director of Priamanaya Group, Gulf’s local partner, after a closed-door meeting on Tuesday with the Doha-based company at the Four Seasons Hotel in Jakarta. “We’re in the final stages before the signing of a memorandum of understanding with them. We hope that it’ll be this week,” Djan said. Gulf’s president, Abdul Aziz H. al-Dulaimi, who left for Doha after the meeting, confirmed that the project would be developed on a joint-venture basis. But he said he still had to discuss the matter with his colleagues in Qatar. “If they agree, obviously we will sign the agreement,” he said.
The announcement comes after reports on Monday said that Gulf and Priamanaya planned to build a separate coal gasification plant in Lahat, South Sumatra, at a cost of some $1 billion. If the proposed projects go forward, Gulf will become the third major firm from the oil and gas-rich state to set up shop in Indonesia, following in the footsteps of Qatar Telecom, which acquired a 65 percent stake last year in the country’s second-biggest telecommunications operator, PT Indosat Qatar Islamic Bank has also established a local presence and is in talks with state-owned PT Bank Negara Indonesia about setting up a new Shariah bank.
Qatar Holdings, the direct investment arm of the Qatar Investment Authority, says it plans to establish a wholly owned investment firm in Indonesia by the end of the year, with up to $1 billion available for local projects. Priamanaya’s Djan said the joint-venture company would likely be established in the fourth quarter so as to allow the plant to be completed in 2011. He said that Gulf would be the majority shareholder, but declined to elaborate further. “The plant will be located in Patra Tani in South Sumatra,” Djan said, adding that the coal to feed the plant, which is to produce products similar to ethylene and polyethylene, would come from Priamanaya’s mines in Prabumulih and Muara Enim. Priamanaya Group is a holding company for a number of firms that are primarily focused on power plant construction and operations. One of their current projects is building the coal-fired Rembang power plant in Central Java.
Alwi Shihab, the president’s special envoy to the Middle East, who was also present at the Jakarta meeting, said his role was to help steer the talks toward a successful conclusion. “Both sides have clearly arrived at an agreement,” Alwi said. “So there are only minor issues that need to be finalized before the project begins.” The petrochemical plant would be Gulf’s second foray into Indonesia. In 2007, the company took part in a $450 million tender for the construction and operation of a coal-fired power plant in Indragiri Hulu, Riau. That project, however, had to be put out to tender again this year because there were only two bidders.
Tuesday 14 July 2009
BLT - Announcement on OIS Lodgement at SGX-ST
Dear Stakeholders,
Please find below the announcement made on the SGX-ST on the OIS lodgement.
http://rapidshare.com/files/255972853/2009.07.15_Announcement_of_BLT_OIS_Lodgment_to_MAS.pdf
Regards
Please find below the announcement made on the SGX-ST on the OIS lodgement.
http://rapidshare.com/files/255972853/2009.07.15_Announcement_of_BLT_OIS_Lodgment_to_MAS.pdf
Regards
Monday 13 July 2009
BLT - Prospectus for Rights Offering (Translated)
Dear Stakeholders,
Please find attached the above document with regard to our recent Rights Offering IV 2009.
http://rapidshare.com/files/255585209/Translated_Prospectus_BLT_Rights_Issue_IV.pdf
Regards
Please find attached the above document with regard to our recent Rights Offering IV 2009.
http://rapidshare.com/files/255585209/Translated_Prospectus_BLT_Rights_Issue_IV.pdf
Regards
BLT - OIS Document
Dear Stakeholders,
Please find attached the link to the OIS document for your perusal.
http://rapidshare.com/files/255582623/2.3.1_Neptune_-_OIS.pdf
Please also find the link to the previous information.
http://chemicaltankers.blogspot.com/2009/07/blt-ois-lodgement-to-mas.html
Regards
Please find attached the link to the OIS document for your perusal.
http://rapidshare.com/files/255582623/2.3.1_Neptune_-_OIS.pdf
Please also find the link to the previous information.
http://chemicaltankers.blogspot.com/2009/07/blt-ois-lodgement-to-mas.html
Regards
BLT - OIS lodgement to MAS
Dear Stakeholders,
This is to inform that BLT will lodge the OIS (Offer Information Statement) on the Rights Issue IV 2009 with the MAS today on 14 July 2009.
Following this, the trading period of the Rights in Indonesia and S'pore will start. For S'pore the trading period will end on 24 July 2009 and the exercise period will end on 30 July 2009. For Indonesian shareholders, the trading and exercise can be done simulataneously and will end on 4 Aug 2009.
Regards
This is to inform that BLT will lodge the OIS (Offer Information Statement) on the Rights Issue IV 2009 with the MAS today on 14 July 2009.
Following this, the trading period of the Rights in Indonesia and S'pore will start. For S'pore the trading period will end on 24 July 2009 and the exercise period will end on 30 July 2009. For Indonesian shareholders, the trading and exercise can be done simulataneously and will end on 4 Aug 2009.
Regards
BLT - Issuance of Quarterly Report
Dear All Stakeholders,
This is to inform that BLT will issue its 2Q09 financials around mid August 2009.
Thanks & Regards
This is to inform that BLT will issue its 2Q09 financials around mid August 2009.
Thanks & Regards
Tuesday 7 July 2009
Chinese-Saudi tit for tat seen on Chemical
SAUDI companies are urging Riyadh to impose tariffs on Chinese imports in reaction to Beijing’s inquiry into allegations of Saudi dumping of methanol in China. Saudi Arabia and three other countries are suspected of dumping methanol transported to China below production prices, said a report by IHS Global Insight, which added that Chinese producers were left with the National Centre for the Development of Saudi Exports and other Saudi bodies have urged Riyadh to apply the same principles and place duties on Chinese imports, the report added. “The stakes remain particularly high, given that methanol exports to China account for an estimated 10% of Saudi petrochemical exports, a trade estimated to be worth $2Bn in 2008,” Global Insight commented. Saudi companies meantime have long complained about Chinese products flooding Saudi markets, including steel, plastics and electrical goods.
Oslo, Singapore plan dual listings
ENERGY, offshore and shipping stocks on the Singapore and Oslo bourses will be the first to be listed jointly under a deal between the exchanges. The dual listing arrangement that will eventually cover all listed companies will be formalised at an MOU to be signed on 8 July, the Singapore Exchange said. “Singapore Exchange Ltd has concluded its discussions with Oslo Bors ASA on proposed co-operation relating to dual listings of companies listed on each other’s exchange,” the exchange stated on Friday. The proposed co-operation will initially focus on the energy, offshore and shipping sectors, which are key sectors common to both exchanges, the statement added.
Monday 6 July 2009
BLT - Issue Price in S'pore Dollar for Rights Issue
Dear Shareholders,
Please find attached the information regarding the issue price of the Rights Issue in Singapore Dollar.
http://rapidshare.com/files/252899505/2009.07.07_BLTA_-_S__Issue_Price__06.07.09__final2_.pdf
Regards
Peter
Please find attached the information regarding the issue price of the Rights Issue in Singapore Dollar.
http://rapidshare.com/files/252899505/2009.07.07_BLTA_-_S__Issue_Price__06.07.09__final2_.pdf
Regards
Peter
Thursday 2 July 2009
Banks give CECO more time
NORWAY’S CECO has today been given a reprieve to allow it more time to sort out its finances. The banks have granted Camillo Eitzen & Co a temporary waiver of covenants and postponements and a reduction of instalments “in order for the company to present a long-term financial plan”, according to today's company statement. The agreement will end on 1 October. CECO will give an update on its financial status when it presents its 2Q results. The company owns Eitzen Chemical and Eitzen Maritime Services and involves in Dry and Gas as well.
Maersk Tankers sees pick-up in M&A
Friday, 03 July 2009
Maersk Tankers, the largest product tanker group, expects merger and acquisition activity to pick up at the expense of commercial pools, allowing shippers to cut costs and boost vessel usage, the company's chief said. Maersk Tankers, which is part of Danish shipping and oil group A.P. Moller-Maersk and operates 180 tankers, also expects rivals to pursue it in a quest for larger fleet sizes and cost savings, Chief Executive Soren Skou said.
"I believe the industry will see more balance sheet consolidation in the coming years rather than more pools," Skou told Reuters in an interview. "That way we'll get the large-scale advantage on overhead costs, administration and technical issues."Commercial pools enable shippers to gain marketing clout and volume but do not give participants the same economies of scale as being a big fleet owner like Maersk.In 2008, Maersk Tankers' partner, fellow Danish shipper Torm , bought part of U.S. shipper OMI.
Maersk Tankers bought Swedish shipper Brostrom in January for 3.62 billion Swedish crowns ($473.6 million) and expects to complete the integration this year.Skou said the company may make more acquisitions."If we can demonstrate this (Brostrom acquisition) was a sensible thing to do, to shareholders and our board, I'm sure we'll go down that road again," he said.
Maersk Tankers, which controls about 7 percent of the world product tanker fleet, does not expect to cancel any of the 48 vessels it has on order and sees no need for lay-ups despite projects adding 20 percent capacity to its fleet in the next few years, Skou said.
TANKERS FARE BETTER
International shipping has been knocked hard by the global economic downturn largely due to overcapacity caused by a construction boom that took place before the slump began.But unlike container shipping -- the cornerstone of Maersk shipping, making up 15 percent of world boxship capacity -- tanker markets have suffered less despite a slump in global oil consumption.
Global shippers have placed orders equivalent to 40 percent of current world product tanker tonnage, but with 16 percent of tonnage being scrapped due to a ban on single-hull ships before 2012, overcapacity does not present the same problem to tanker shippers as bulk and container shipping.Offshore crude storage, due to higher forward crude rates versus spot rates, has absorbed 10 percent of global capacity, while an increase in refinery capacity in the Persian Gulf has underpinned transport needs.
"We're coming off the lows," Skou said, referring to a rebound in tanker rates from lows not seen since the post-9/11 economic slump."I've given up on predicting how rates move. That entirely depends on when the world economy recovers and when the wheels start running," Skou said, noting an increased need for transport in emerging markets such as China and India.Maersk Tankers 2008 sales were $1.0 billion and its pretax profit was $325 million.
Source: Reuters
Maersk Tankers, the largest product tanker group, expects merger and acquisition activity to pick up at the expense of commercial pools, allowing shippers to cut costs and boost vessel usage, the company's chief said. Maersk Tankers, which is part of Danish shipping and oil group A.P. Moller-Maersk and operates 180 tankers, also expects rivals to pursue it in a quest for larger fleet sizes and cost savings, Chief Executive Soren Skou said.
"I believe the industry will see more balance sheet consolidation in the coming years rather than more pools," Skou told Reuters in an interview. "That way we'll get the large-scale advantage on overhead costs, administration and technical issues."Commercial pools enable shippers to gain marketing clout and volume but do not give participants the same economies of scale as being a big fleet owner like Maersk.In 2008, Maersk Tankers' partner, fellow Danish shipper Torm , bought part of U.S. shipper OMI.
Maersk Tankers bought Swedish shipper Brostrom in January for 3.62 billion Swedish crowns ($473.6 million) and expects to complete the integration this year.Skou said the company may make more acquisitions."If we can demonstrate this (Brostrom acquisition) was a sensible thing to do, to shareholders and our board, I'm sure we'll go down that road again," he said.
Maersk Tankers, which controls about 7 percent of the world product tanker fleet, does not expect to cancel any of the 48 vessels it has on order and sees no need for lay-ups despite projects adding 20 percent capacity to its fleet in the next few years, Skou said.
TANKERS FARE BETTER
International shipping has been knocked hard by the global economic downturn largely due to overcapacity caused by a construction boom that took place before the slump began.But unlike container shipping -- the cornerstone of Maersk shipping, making up 15 percent of world boxship capacity -- tanker markets have suffered less despite a slump in global oil consumption.
Global shippers have placed orders equivalent to 40 percent of current world product tanker tonnage, but with 16 percent of tonnage being scrapped due to a ban on single-hull ships before 2012, overcapacity does not present the same problem to tanker shippers as bulk and container shipping.Offshore crude storage, due to higher forward crude rates versus spot rates, has absorbed 10 percent of global capacity, while an increase in refinery capacity in the Persian Gulf has underpinned transport needs.
"We're coming off the lows," Skou said, referring to a rebound in tanker rates from lows not seen since the post-9/11 economic slump."I've given up on predicting how rates move. That entirely depends on when the world economy recovers and when the wheels start running," Skou said, noting an increased need for transport in emerging markets such as China and India.Maersk Tankers 2008 sales were $1.0 billion and its pretax profit was $325 million.
Source: Reuters
Wednesday 1 July 2009
BLT - Book Closure Date
Dear Shareholders,
Please find attached the announcement of our Book Closure Date on the Rights Issue Process.
Regards
Please find attached the announcement of our Book Closure Date on the Rights Issue Process.
Regards
BLT - Announcement on Resolutions of EGM
Dear All Shareholders,
Please find attached the announcement on the Resolutions passed at the EGM conducted on 30 June 2009.
Regards
Please find attached the announcement on the Resolutions passed at the EGM conducted on 30 June 2009.
Regards
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