Saturday, 30 May 2009
What might feel like a global shipping meltdown will, in hindsight, be viewed as a worldwide shift to an Asian domination of the maritime industry. Such was the conclusion of a recent shipping finance forum in Tokyo. Asia's determination to protect its shipbuilding industries and to secure its means of supply through nationally owned tonnage has destroyed predictions that a lack of finance would mitigate the impact of an over-exuberant newbuilding market through cancellations.
FSL Trust Management president and chief executive Philip Clausius told a gathering of international shipping financiers that the widely-predicted massive cancellation of the orderbook will happen while state-owned Chinese shipowners are being offered 17% subsidies to soak up cancellations from foreign owners."Ship deliveries may be delayed a year or so. They may not go to the original owners, but they will come. And the massive oversupply hangover will not go away any time soon," he said. In a similar vein, Marine Money Asia's financial analyst Rodericks Wong pointed to the speed of Asian governments, primarily in South Korea and China, in initiating larger financial stimulus packages than elsewhere to support both their domestic shipbuilders and owners.
This was a leading driver that would shift the balance of shipowning primacy eastward, he said.Since the beginning of 2009, South Korea had offered in excess of Won23trn ($18.2bn) in the form of guarantees or direct finance through buy-and-leaseback arrangements to ensure that domestic orders did not slip into the hands of foreign owners at rock bottom prices, Wong said.
HSH Nordbank senior economist Mattias Umlauf said the global reduction in bank capitalisation outside Asia had led to China's banks taking the top three places as the richest source of debt financing.China has made no secret of the fact that it intends to secure the supply of natural resources through the development of its own transport. This was reinforced by the sting of exorbitant shipping costs incurred through the dry bulk boom in 2007-2008.
China's Export-Import Bank has provided $22.5bn in support to the local state-owned shipbuilding industry since 1994 and more recently offered $3.7bn to private shipbuilder Jiangsu Ronsheng. As Western banks teetered on the edge of insolvency, traditional global financiers in Norway and Germany would retrench, offering what credit they had to their domestic owners under the direction of their respective governments, with Greek owners suffering the biggest impact.
Source: Motor Ship
Saturday 30 May 2009
Thursday 28 May 2009
Petrochemical Plants in the Middle East
Some petrochemical plants in Middle East that is still in the pipeline.
New Middle East petrochemical capacities will upset the market
Capacity tsunami set to strike
12 November 2008 20:35 [Source: ICB]
The tidal wave of Middle Eastern supply may have been slow to arrive, but it is still on its way. Now, the economic downturn means the flood will be even worse
THE INEVITABLE increase in Middle East capacity has been delayed for a long time - first because of equipment delivery delays and other resource constraints. Then, more recently, there have been suggestions that Middle East plant start-ups have been pushed back on the mistaken belief that markets would improve.
But this huge wave of capacity will be fully commissioned soon, and it will wreak more havoc on liquids-based producers who will have to shut down and could even be forced into bankruptcy or government rescue.
To put this into the context of overall numbers, ethylene capacity in the Middle East and China will account for 14.8% of worldwide installed capacity in 2008 (see chart).
Some 63% of global capacity additions in 2008-2012 are happening in the Middle East and China, raising their share of global production to 27.6%.
However, few projects beyond the current capacity boost have been announced.
"I can't see the need for any new capacity for possibly as long as the next 10-15 years. Why build anything?" says one industry source.
"Too much has been added on easy credit on the assumption that demand growth would continue at 2002-2007 levels. We are now facing an industry crisis as bad as 1980.
"The focus will instead need to be on maximizing efficiency of the companies that remain in operation. A big adjustment of existing supply has to happen, based on much lower demand growth."
This may turn out to be far too bleak an outlook and goes beyond the more moderate caution toward petrochemicals that's being displayed by the banks and other lenders (see page 26).
The extra supply will have significant implications to the way markets behave.
The Middle East plants could run at high operating rates, regardless of market conditions, because of low fixed and feedstock costs. China could also decide to maximize production because of a strategic desire to substitute imports.
Nobody is realistically expecting that petrochemical pricing will be driven by advantaged gas-based producers. The Middle East players would be committing virtual financial suicide if they were to do so, no matter how bad demand gets.
But the cost curve could still move so far to the left that the marginal producers are the well integrated oil-to-petrochemical majors. Anybody with poor refinery integration, or no refinery integration at all, could be out of the game altogether. The standalone producers - meaning those that have polymer plants but no captive ethylene or propylene supply - will be beyond hope.
Feedstock flexibility will be another key to survival. A cracker operator that can swing between naphtha and liquefied petroleum gas (LPG) feedstock, for example, might be in a stronger position. But the investments necessary to achieve this kind of flexibility will be much harder to make now than a few months ago, because of the credit crunch.
NOW FOR THE GOOD NEWS
This year was supposed to mark the big build-up in propane dehydrogenation-to-polypropylene (PDH/PP) capacity in the Middle East, but it hasn't happened.
Several plants have been delayed for technical reasons, including the 700,000 tonne/year plant from Saudi major PetroRabigh. It had been due online in the fourth quarter (Q4) this year but is now expected to start up in Q1 2009 at the earliest.
Two big Saudi Arabian cracker complexes with a great deal of associated PP, polyethylene (PE) and monoethylene glycol (MEG) capacity also look as if they have been pushed back to 2009 start-ups from this year.
Eastern Petrochemical (SHARQ) and Yanbu National Petrochemical (Yansab) - affiliates of Saudi petrochemical giant SABIC each with ethylene capacities of 1.3m tonnes/year - are again forecast be on stream some time in the first quarter.
But one project that is on track is the Saudi Ethylene and Polyethylene Co. (SEPC) 1m tonne/year cracker with downstream plants including 400,000 tonnes/year each of low density polyethylene (LDPE) and high density polyethylene (HDPE).
Propylene from the cracker, at Al-Jubail, in Saudi Arabia, will feed a 250,000 tonne/year PP expansion at Saudi Polyolefins Co. (SPC). SEPC is a joint venture (JV) between Sahara Olefins, with 24.4% equity National Industrialization (TASNEE), with 50.6% and global chemical group LyondellBasell, with a 25% stake. SPC is a JV between Tasnee and LyondellBasell.
Sahara Olefins and LyondellBasell are also due to start up 450,000 tonnes/year of PDH-based propylene and 460,000 tonnes/year of PP at Al-Jubail in the first quarter of next year under their Al-Waha Petrochemical JV.
Kuwait Olefins, the JV between US major Dow Chemical and Kuwait's Petrochemical Industries Co. and Al-Qurain Petrochemical, is due on stream in December this year. The 850,000 tonne/year cracker complex had been scheduled for start-up in August.
The final olefins and derivatives complex on the immediate horizon is Ras Laffan Olefins, the JV involving France's Total Petrochemicals, US-based Chevron Phillips and Qatar Petroleum, in Qatar. The 1.3m tonne/year cracker and downstream units are rescheduled to start up in Q1 2009. But demand could be even worse by the time product from the delayed and on-time units hits the market.
And demand has already been slashed, with the behemoth China alone expected to see zero or even negative growth in PE, PP and polyester in 2008. The danger is that the feedback effect on the real economy from the financial sector will drive consumption growth even lower. Beyond next year, even further volumes are due to hit the market.
Plastics major Borouge, a JV between Abu Dhabi National Oil Co. (Adnoc) and Austrian polyolefin producer Borealis be is scheduled to bring on stream a 1.5m tonne/year cracker and PE and PP plants in Q3 2010. Chevron Phillips and the private company Saudi International Investment Group are due to start up a 1.2m tonne/year cracker and downstream plants in Saudi Arabia in early 2011.
Commercial bids were due to be submitted for the technology provision and building of the Honam Petrochemical and Qatar Petroleum ethane/naphtha cracker complex in Qatar by the end of September this year. Start-up is due in the second half of 2011 for the South Korean/Qatari JV. But after that, things go very quiet indeed.
THE OUTLOOK
The industry source's scenario implies that even post-2012 projects backed by the sound, state-owned companies and international oil and chemical companies are at risk.
These include the giant Saudi Aramco and US-based Dow Chemical project at Ras Tanura, Saudi Arabia, and the Shell/Qatar Petroleum cracker project in Qatar. US-oil major ExxonMobil also has an ethylene project in the same country, with Total still interested in what would be its third cracker investment in Qatar.
But beyond another PDH-PP project being announced - which would be operated by SABIC subsidiary Arabian Industrial Fibers Company (Ibn Rushd) at Yanbu, Saudi Arabia - there is not a great deal more that's been announced for the Gulf Cooperation Council (GCC) region. The main reason is the well-documented ethane gas feedstock shortages and strong alternative values for the gas that is available.
There are many projects still listed for Iran - where feedstock is plentiful - but progress seems unlikely because of political problems (see page 30). Bureaucracy could also hinder investments in less-established petrochemical-producing countries, such as Egypt, which are again rich in cheap ethane.
A shift in government attitudes toward foreign investors has raised doubts over whether Algeria will become an alternative to the GCC. Total has an ethane cracker project in Algeria, which it hopes to complete within the next five years.
For firms that want to build in the GCC, the only route might be through integrating a petrochemical complex to the myriad refinery projects underway. But doubts have been raised over whether there is any advantage to using naphtha as a feedstock.
Ethylene capacities 2012 (m tonnes)
Current End 2012
Middle East/China 23.4 59.5
Rest of World 135.3 156.3
Total 158.7 215.8
Source: ICIS Training
12 November 2008 20:35 [Source: ICB]
The tidal wave of Middle Eastern supply may have been slow to arrive, but it is still on its way. Now, the economic downturn means the flood will be even worse
THE INEVITABLE increase in Middle East capacity has been delayed for a long time - first because of equipment delivery delays and other resource constraints. Then, more recently, there have been suggestions that Middle East plant start-ups have been pushed back on the mistaken belief that markets would improve.
But this huge wave of capacity will be fully commissioned soon, and it will wreak more havoc on liquids-based producers who will have to shut down and could even be forced into bankruptcy or government rescue.
To put this into the context of overall numbers, ethylene capacity in the Middle East and China will account for 14.8% of worldwide installed capacity in 2008 (see chart).
Some 63% of global capacity additions in 2008-2012 are happening in the Middle East and China, raising their share of global production to 27.6%.
However, few projects beyond the current capacity boost have been announced.
"I can't see the need for any new capacity for possibly as long as the next 10-15 years. Why build anything?" says one industry source.
"Too much has been added on easy credit on the assumption that demand growth would continue at 2002-2007 levels. We are now facing an industry crisis as bad as 1980.
"The focus will instead need to be on maximizing efficiency of the companies that remain in operation. A big adjustment of existing supply has to happen, based on much lower demand growth."
This may turn out to be far too bleak an outlook and goes beyond the more moderate caution toward petrochemicals that's being displayed by the banks and other lenders (see page 26).
The extra supply will have significant implications to the way markets behave.
The Middle East plants could run at high operating rates, regardless of market conditions, because of low fixed and feedstock costs. China could also decide to maximize production because of a strategic desire to substitute imports.
Nobody is realistically expecting that petrochemical pricing will be driven by advantaged gas-based producers. The Middle East players would be committing virtual financial suicide if they were to do so, no matter how bad demand gets.
But the cost curve could still move so far to the left that the marginal producers are the well integrated oil-to-petrochemical majors. Anybody with poor refinery integration, or no refinery integration at all, could be out of the game altogether. The standalone producers - meaning those that have polymer plants but no captive ethylene or propylene supply - will be beyond hope.
Feedstock flexibility will be another key to survival. A cracker operator that can swing between naphtha and liquefied petroleum gas (LPG) feedstock, for example, might be in a stronger position. But the investments necessary to achieve this kind of flexibility will be much harder to make now than a few months ago, because of the credit crunch.
NOW FOR THE GOOD NEWS
This year was supposed to mark the big build-up in propane dehydrogenation-to-polypropylene (PDH/PP) capacity in the Middle East, but it hasn't happened.
Several plants have been delayed for technical reasons, including the 700,000 tonne/year plant from Saudi major PetroRabigh. It had been due online in the fourth quarter (Q4) this year but is now expected to start up in Q1 2009 at the earliest.
Two big Saudi Arabian cracker complexes with a great deal of associated PP, polyethylene (PE) and monoethylene glycol (MEG) capacity also look as if they have been pushed back to 2009 start-ups from this year.
Eastern Petrochemical (SHARQ) and Yanbu National Petrochemical (Yansab) - affiliates of Saudi petrochemical giant SABIC each with ethylene capacities of 1.3m tonnes/year - are again forecast be on stream some time in the first quarter.
But one project that is on track is the Saudi Ethylene and Polyethylene Co. (SEPC) 1m tonne/year cracker with downstream plants including 400,000 tonnes/year each of low density polyethylene (LDPE) and high density polyethylene (HDPE).
Propylene from the cracker, at Al-Jubail, in Saudi Arabia, will feed a 250,000 tonne/year PP expansion at Saudi Polyolefins Co. (SPC). SEPC is a joint venture (JV) between Sahara Olefins, with 24.4% equity National Industrialization (TASNEE), with 50.6% and global chemical group LyondellBasell, with a 25% stake. SPC is a JV between Tasnee and LyondellBasell.
Sahara Olefins and LyondellBasell are also due to start up 450,000 tonnes/year of PDH-based propylene and 460,000 tonnes/year of PP at Al-Jubail in the first quarter of next year under their Al-Waha Petrochemical JV.
Kuwait Olefins, the JV between US major Dow Chemical and Kuwait's Petrochemical Industries Co. and Al-Qurain Petrochemical, is due on stream in December this year. The 850,000 tonne/year cracker complex had been scheduled for start-up in August.
The final olefins and derivatives complex on the immediate horizon is Ras Laffan Olefins, the JV involving France's Total Petrochemicals, US-based Chevron Phillips and Qatar Petroleum, in Qatar. The 1.3m tonne/year cracker and downstream units are rescheduled to start up in Q1 2009. But demand could be even worse by the time product from the delayed and on-time units hits the market.
And demand has already been slashed, with the behemoth China alone expected to see zero or even negative growth in PE, PP and polyester in 2008. The danger is that the feedback effect on the real economy from the financial sector will drive consumption growth even lower. Beyond next year, even further volumes are due to hit the market.
Plastics major Borouge, a JV between Abu Dhabi National Oil Co. (Adnoc) and Austrian polyolefin producer Borealis be is scheduled to bring on stream a 1.5m tonne/year cracker and PE and PP plants in Q3 2010. Chevron Phillips and the private company Saudi International Investment Group are due to start up a 1.2m tonne/year cracker and downstream plants in Saudi Arabia in early 2011.
Commercial bids were due to be submitted for the technology provision and building of the Honam Petrochemical and Qatar Petroleum ethane/naphtha cracker complex in Qatar by the end of September this year. Start-up is due in the second half of 2011 for the South Korean/Qatari JV. But after that, things go very quiet indeed.
THE OUTLOOK
The industry source's scenario implies that even post-2012 projects backed by the sound, state-owned companies and international oil and chemical companies are at risk.
These include the giant Saudi Aramco and US-based Dow Chemical project at Ras Tanura, Saudi Arabia, and the Shell/Qatar Petroleum cracker project in Qatar. US-oil major ExxonMobil also has an ethylene project in the same country, with Total still interested in what would be its third cracker investment in Qatar.
But beyond another PDH-PP project being announced - which would be operated by SABIC subsidiary Arabian Industrial Fibers Company (Ibn Rushd) at Yanbu, Saudi Arabia - there is not a great deal more that's been announced for the Gulf Cooperation Council (GCC) region. The main reason is the well-documented ethane gas feedstock shortages and strong alternative values for the gas that is available.
There are many projects still listed for Iran - where feedstock is plentiful - but progress seems unlikely because of political problems (see page 30). Bureaucracy could also hinder investments in less-established petrochemical-producing countries, such as Egypt, which are again rich in cheap ethane.
A shift in government attitudes toward foreign investors has raised doubts over whether Algeria will become an alternative to the GCC. Total has an ethane cracker project in Algeria, which it hopes to complete within the next five years.
For firms that want to build in the GCC, the only route might be through integrating a petrochemical complex to the myriad refinery projects underway. But doubts have been raised over whether there is any advantage to using naphtha as a feedstock.
Ethylene capacities 2012 (m tonnes)
Current End 2012
Middle East/China 23.4 59.5
Rest of World 135.3 156.3
Total 158.7 215.8
Source: ICIS Training
Wednesday 27 May 2009
BLT - 1Q09 Financials
Below is the financial performance for 1Q09 of BLT as compared to the same period last year.
BLT - Goldman Sachs Transportation Review
Please find below the link to the research report.
http://rapidshare.com/files/237763954/2009.05.20_Goldman_Sachs_Transportation_Review.pdf
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http://rapidshare.com/files/237763954/2009.05.20_Goldman_Sachs_Transportation_Review.pdf
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BLT - Kim Eng Securities Research Report
Please find below the link to the research report.
http://rapidshare.com/files/237763781/2009.05.19_Kim_Eng_Securities.pdf
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http://rapidshare.com/files/237763781/2009.05.19_Kim_Eng_Securities.pdf
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BLT - JPMorgan Asian Shipping Credits Research Report
Please find below link to the research report
http://rapidshare.com/files/237763545/2009.05.20_JPM_Asian_Shipping_Credits.pdf
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http://rapidshare.com/files/237763545/2009.05.20_JPM_Asian_Shipping_Credits.pdf
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Monday 25 May 2009
Shanghai Secco starts naphtha cracker expansion
Shanghai Secco Petrochemical has shut down its 900,000 tonne/year naphtha cracker in Caojing for expansion, a company source said on Wednesday.
The 75-day shutdown, which started on 19 May, aims to expand the plant's capacity to 1.2 m tonnes/year, the source said.
The firm's 500,000 tonne/year styrene monomer (SM) unit was shut on 16 May for a 75-day expansion work. The unit’s capacity would be increased by 30% to 650,000 tonnes/year, the source added.
The Secco units are located in Shanghai Chemical Industry Park, Caojing, Shanghai.
IRPC has decided to delay the expansion of its refinery as well as its acrylonitrile butadiene styrene (ABS) unit at Rayong due to the economic slowdown, the Thai integrated refinery and petrochemicals producer said on Wednesday.
“Due to the economic slowdown, the company had adjusted the strategies on investments and postponed the investment in non-urgent projects,” IRPC said in a filing to the Stock Exchange of Thailand. The company did not specify for how long the expansion had been delayed.
The filing said the company has decided to postpone Euro IV Standard Compliance Project and Port Dredging Project.
However, IRPC has decided to push through with $88m (€64.2m) expansion of its propylene facility that is expected to increase the production capacity of Rayong unit by 100,000 tonnes/year to 412,000-432,000 tonnes/year. The expansion should be completed by 2011.
The company had announced in August 2008 that it would invest an estimated $158m to boost output from its 117,000 tonne/year ABS unit to 200,000 tonnes/year by 2011, while the refining capacity of its 215,000 bbls/day refinery would be increased to 258,000 bbls/day to meet an expected rise in demand in the automobile and electrical appliance industries.
Source: Taiwan Brilliant Shipping Agency
The 75-day shutdown, which started on 19 May, aims to expand the plant's capacity to 1.2 m tonnes/year, the source said.
The firm's 500,000 tonne/year styrene monomer (SM) unit was shut on 16 May for a 75-day expansion work. The unit’s capacity would be increased by 30% to 650,000 tonnes/year, the source added.
The Secco units are located in Shanghai Chemical Industry Park, Caojing, Shanghai.
IRPC has decided to delay the expansion of its refinery as well as its acrylonitrile butadiene styrene (ABS) unit at Rayong due to the economic slowdown, the Thai integrated refinery and petrochemicals producer said on Wednesday.
“Due to the economic slowdown, the company had adjusted the strategies on investments and postponed the investment in non-urgent projects,” IRPC said in a filing to the Stock Exchange of Thailand. The company did not specify for how long the expansion had been delayed.
The filing said the company has decided to postpone Euro IV Standard Compliance Project and Port Dredging Project.
However, IRPC has decided to push through with $88m (€64.2m) expansion of its propylene facility that is expected to increase the production capacity of Rayong unit by 100,000 tonnes/year to 412,000-432,000 tonnes/year. The expansion should be completed by 2011.
The company had announced in August 2008 that it would invest an estimated $158m to boost output from its 117,000 tonne/year ABS unit to 200,000 tonnes/year by 2011, while the refining capacity of its 215,000 bbls/day refinery would be increased to 258,000 bbls/day to meet an expected rise in demand in the automobile and electrical appliance industries.
Source: Taiwan Brilliant Shipping Agency
Six Taiwanese companies to build 1m t/yr cracker in China
Six Taiwanese chemical companies, in partnership with a local Chinese government, are planning to build a 1m tonne/year naphtha cracker in Quanzhou, south eastern Fujian province, an industry official said on Thursday.
Jack J. H. Shieh, executive manager of Petrochemical Industry Association of Taiwan, said that the six companies would hold a 80% stake in the cracker that would cost about $1.5bn (€1.08bn).
These include, Ho Tung Chemical Co, Dairen Chemical Corp, Lee Chang Yung Chemical Industry Co, Chang Chun Plastic Co, Grand Pacific Petrochemical Co and Taiwan Synthetic Rubber Corporation (TSRC). The project still needs approval by the governments of China and Taiwan, If such an approval is given, it would be the first cracker to be built by Taiwan in China, signifying a breakthrough in bilateral ties. Previous attempts by Taiwanese companies such as state-owned CPC Corp and petrochemical giant Formosa have been unsuccessful in lobbying for a cracker on the mainland.
“We have set up a preparation and construction office in Quangang petrochemical industry park,” Shieh said. “We just signed the cooperation agreement on 18 May and definitely expect to kick off the cracker’s construction as soon as possible.”
Shieh said he was quite optimistic that they would get the approval from the Chinese and Taiwanese governments. The feasibility study and the Environmental Impact Assessment (EIA) for the proposed cracker project was underway, he added.
The feedstock naphtha for the cracker would be mainly provided by foreign suppliers and the products would be used by associated downstream plants that were to be built by the six companies, the executive manager said.
The Chinese government had allocated a special area for Taiwanese businesses in Quangang petrochemical industry park, where downstream chemical plants including polypropylene (PP) and styrene monomer (SM) would be built besides the 1m tonne/year cracker, a local Chinese official said.
Zhong Yunfeng, an official from the Quangang Bureau of Foreign Trade and Economic Cooperation, said a total investment of around $6bn would be needed for the cracker and the associated plants to be set up.
These included a 400,000 tonne/year PP plant, a 500,000 tonne/year SM unit, a 160,000 tonne/year methyl tert-butyl ether (MTBE) facility, a 60,000 tonne/year methyl ethyl ketone (MEK) plant, a 350,000 tonne/year vinyl acetate monomer (VAM) unit and a 30,000 tonne/year acrylonitrile butadiene rubber (NBR) plant, Zhong added.
Source: Taiwan Brilliance Shipping Agency
Jack J. H. Shieh, executive manager of Petrochemical Industry Association of Taiwan, said that the six companies would hold a 80% stake in the cracker that would cost about $1.5bn (€1.08bn).
These include, Ho Tung Chemical Co, Dairen Chemical Corp, Lee Chang Yung Chemical Industry Co, Chang Chun Plastic Co, Grand Pacific Petrochemical Co and Taiwan Synthetic Rubber Corporation (TSRC). The project still needs approval by the governments of China and Taiwan, If such an approval is given, it would be the first cracker to be built by Taiwan in China, signifying a breakthrough in bilateral ties. Previous attempts by Taiwanese companies such as state-owned CPC Corp and petrochemical giant Formosa have been unsuccessful in lobbying for a cracker on the mainland.
“We have set up a preparation and construction office in Quangang petrochemical industry park,” Shieh said. “We just signed the cooperation agreement on 18 May and definitely expect to kick off the cracker’s construction as soon as possible.”
Shieh said he was quite optimistic that they would get the approval from the Chinese and Taiwanese governments. The feasibility study and the Environmental Impact Assessment (EIA) for the proposed cracker project was underway, he added.
The feedstock naphtha for the cracker would be mainly provided by foreign suppliers and the products would be used by associated downstream plants that were to be built by the six companies, the executive manager said.
The Chinese government had allocated a special area for Taiwanese businesses in Quangang petrochemical industry park, where downstream chemical plants including polypropylene (PP) and styrene monomer (SM) would be built besides the 1m tonne/year cracker, a local Chinese official said.
Zhong Yunfeng, an official from the Quangang Bureau of Foreign Trade and Economic Cooperation, said a total investment of around $6bn would be needed for the cracker and the associated plants to be set up.
These included a 400,000 tonne/year PP plant, a 500,000 tonne/year SM unit, a 160,000 tonne/year methyl tert-butyl ether (MTBE) facility, a 60,000 tonne/year methyl ethyl ketone (MEK) plant, a 350,000 tonne/year vinyl acetate monomer (VAM) unit and a 30,000 tonne/year acrylonitrile butadiene rubber (NBR) plant, Zhong added.
Source: Taiwan Brilliance Shipping Agency
BLT - Bond Issuance (Progress)
BLT has finalised the issuance of the IDR Conventional BLT IV 2009 and Islamic Bonds - Sukuk Ijarah II 2009 amounting to Rp.400bio and Rp.100bio respectively and the result will be announced to the public soon.
BLT - Credit Suisse Research Report
Please find below the link to the above research report
http://rapidshare.com/files/237280446/2009.05.25_Credit_Suisse_Research_Report.PDF
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http://rapidshare.com/files/237280446/2009.05.25_Credit_Suisse_Research_Report.PDF
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BLT - CIMB Research Report
Please find below the link to the research report
http://rapidshare.com/files/237280194/2009.05.25_CIMB_Research.pdf
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http://rapidshare.com/files/237280194/2009.05.25_CIMB_Research.pdf
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Downloading File from the Link
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BLT - Additional Announcement & Translation of Prospectus
Please find below additional announcement and the unofficial translated doc of the Prospectus
http://rapidshare.com/files/236963548/2009.05.25_02_Announcement_-_Indonesia_Press_Announcement.pdf
http://rapidshare.com/files/236963426/2009.05.25_Translated_Brief_Prospectus.pdf
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http://rapidshare.com/files/236963548/2009.05.25_02_Announcement_-_Indonesia_Press_Announcement.pdf
http://rapidshare.com/files/236963426/2009.05.25_Translated_Brief_Prospectus.pdf
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BLT - Rights Issue Prospectus (Indonesian)
Please find below the link to the above doc
http://rapidshare.com/files/236959685/2009.05.25_Prospektus_BLT_Final.pdf
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http://rapidshare.com/files/236959685/2009.05.25_Prospektus_BLT_Final.pdf
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BLT - Rights Issue Announcement 2009
Please find below the link to the doc
http://rapidshare.com/files/236956561/2009.05.25_BLT_Announcement_-_Rights_Issue.pdf
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http://rapidshare.com/files/236956561/2009.05.25_BLT_Announcement_-_Rights_Issue.pdf
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Saturday 23 May 2009
Friday 22 May 2009
BLT Won the Most Improved GCG Award 2009
The award was presented by Centre for International Private Enterprises, Washington D.C, Business Review and Indonesian Institute for Corporate Directorships
Thursday 21 May 2009
BLT - Research Report from Goldman Sachs
Please find below the link to the report
http://rapidshare.com/files/235813480/2009.05.20_Goldman_Sachs_Transportation_Review.pdf
http://rapidshare.com/files/235813480/2009.05.20_Goldman_Sachs_Transportation_Review.pdf
BLT - Research Report from CIMB
Please find attached the link to the above report.
http://rapidshare.com/files/235807772/2009.05.18_CIMB_Research_on_BLT.pdf
http://rapidshare.com/files/235807772/2009.05.18_CIMB_Research_on_BLT.pdf
BLT - Research Report from Danareksa
Please find below the link to the report.
http://rapidshare.com/files/235808862/2009.04.27_Danareksa_Update_BLTA.pdf
http://rapidshare.com/files/235808862/2009.04.27_Danareksa_Update_BLTA.pdf
Ports show recovery has begun, says economist
Andrew Spurrier reports from the European Sea Ports Organisation 2009 conference in Marseilles
Andrew Spurrier, Paris - Tuesday 19 May 2009
A SENIOR European port economist has added his weight to the gathering body of expert opinion that believes the process of economic recovery has begun.
Port of Rotterdam corporate strategy adviser Peter de Langen warned, however, that the process could be long.
“It is not very probable that we are going to end up with business as usual any time soon,” he told the European Sea Ports Organisation 2009 conference in Marseilles, France.
Dr de Langen, who was presenting an assessment on the impact of the economic crisis on the European port system, opened with the bad news that throughput in the leading ports of the European Union had fallen 14% in the first quarter.
He said that dry bulk cargo and containers had been particularly hard hit, with reductions of 30% and 21%-22% respectively, while liquid bulks had held up relatively well, losing just 3% in relation to the first quarter of last year. He noted that the drop in traffic was closely related to the fall in industrial output — 20.2% in the euro zone and 18.8% over the EU as a whole.
He said it was partly attributable to destocking, which had been experienced by all EU ports.
“If that is true, then we should expect some recovery and I guess that there are some signs of that recovery appearing,” he added.
He cited the results of public confidence surveys as one sign of economic turnaround. “We are not really very confident yet, but we are more confident than we were a year ago.”
Another sign of better times ahead, he said, was the recovery in stock market indexes.
“It [the stock market] generally rises ahead of economic recovery and the stock market has been rising for the last two months,” he said.
He said that it was nevertheless vital for the European port sector that industrial production in the EU recovered, and ports could contribute to the recovery process by helping to improve efficiency in supply chains.
“We need to make sure that Europe remains a very competitive location for worldscale industry because it is industrial production that is still driving these trade flows,” he said.
Source: Lloyd's List
Andrew Spurrier, Paris - Tuesday 19 May 2009
A SENIOR European port economist has added his weight to the gathering body of expert opinion that believes the process of economic recovery has begun.
Port of Rotterdam corporate strategy adviser Peter de Langen warned, however, that the process could be long.
“It is not very probable that we are going to end up with business as usual any time soon,” he told the European Sea Ports Organisation 2009 conference in Marseilles, France.
Dr de Langen, who was presenting an assessment on the impact of the economic crisis on the European port system, opened with the bad news that throughput in the leading ports of the European Union had fallen 14% in the first quarter.
He said that dry bulk cargo and containers had been particularly hard hit, with reductions of 30% and 21%-22% respectively, while liquid bulks had held up relatively well, losing just 3% in relation to the first quarter of last year. He noted that the drop in traffic was closely related to the fall in industrial output — 20.2% in the euro zone and 18.8% over the EU as a whole.
He said it was partly attributable to destocking, which had been experienced by all EU ports.
“If that is true, then we should expect some recovery and I guess that there are some signs of that recovery appearing,” he added.
He cited the results of public confidence surveys as one sign of economic turnaround. “We are not really very confident yet, but we are more confident than we were a year ago.”
Another sign of better times ahead, he said, was the recovery in stock market indexes.
“It [the stock market] generally rises ahead of economic recovery and the stock market has been rising for the last two months,” he said.
He said that it was nevertheless vital for the European port sector that industrial production in the EU recovered, and ports could contribute to the recovery process by helping to improve efficiency in supply chains.
“We need to make sure that Europe remains a very competitive location for worldscale industry because it is industrial production that is still driving these trade flows,” he said.
Source: Lloyd's List
Eitzen order cancellations reduce first quarter losses
Talks over liquidity continue with lenders
Craig Eason - Thursday 21 May 2009
NORWAY’s Camillo Eitzen Group has reported a first quarter net loss of $5.9m, an improvement on its last quarter loss of $495m and $12.9m in the same period a year ago.
The Oslo-listed group is still, however, in discussions with lenders regarding cash flows and liquidity for the rest. Within Eitzen Chemical and Eitzen Gas it has reached agreement on the waiver of covenants for the last two quarters.
Both the chemical and gas divisions have also reached agreement regarding cancellations of newbuilding orders during the first quarter.
Eitzen Chemical, a separately listed company that Eitzen Group controls with a 52% stake, incurred a $7.5m cancellation fee when it walked away from five orders. It has no newbuildings left on its books. Eitzen Gas cancelled all of its remaining newbuilding orders, six 2,500 cu m ships, incurring a $2.5m cancellation fee.
Camillo Eitzen said petrochemical demand remained low, affecting Eitzen Gas, which reported first quarter earnings before interest, taxes, depreciation and amortisation of $8m. The division has implemented a cost reduction plan that has resulted in redundancies and the closure of its Dubai office.
The company’s bulk division has shown a glimmer of hope. Ebitda for the division was $2.1m, compared with a $5.9m loss during the last quarter of 2009 when the economic crisis began to be felt.
The company said that though 2009 started badly, trade picked up, especially dry bulk commodities into China, after the Chinese new year as companies rebuilt their inventories. This upturn had a positive effect on time charter rates for its supramax vessels particularly, which saw rates rise from $4,000 per day to $16,000.
However, the company said that business would continue to be under pressure for the rest of the year. It expects raw material prices to remain low, although dry bulk demand by China and India will have a short-term positive effect.
Eitzen said it recognised that all the sectors where it operates were facing weak markets and it would continue the implementation of the action plan it announced with its 2008 results.
Source: Lloyd's List
Craig Eason - Thursday 21 May 2009
NORWAY’s Camillo Eitzen Group has reported a first quarter net loss of $5.9m, an improvement on its last quarter loss of $495m and $12.9m in the same period a year ago.
The Oslo-listed group is still, however, in discussions with lenders regarding cash flows and liquidity for the rest. Within Eitzen Chemical and Eitzen Gas it has reached agreement on the waiver of covenants for the last two quarters.
Both the chemical and gas divisions have also reached agreement regarding cancellations of newbuilding orders during the first quarter.
Eitzen Chemical, a separately listed company that Eitzen Group controls with a 52% stake, incurred a $7.5m cancellation fee when it walked away from five orders. It has no newbuildings left on its books. Eitzen Gas cancelled all of its remaining newbuilding orders, six 2,500 cu m ships, incurring a $2.5m cancellation fee.
Camillo Eitzen said petrochemical demand remained low, affecting Eitzen Gas, which reported first quarter earnings before interest, taxes, depreciation and amortisation of $8m. The division has implemented a cost reduction plan that has resulted in redundancies and the closure of its Dubai office.
The company’s bulk division has shown a glimmer of hope. Ebitda for the division was $2.1m, compared with a $5.9m loss during the last quarter of 2009 when the economic crisis began to be felt.
The company said that though 2009 started badly, trade picked up, especially dry bulk commodities into China, after the Chinese new year as companies rebuilt their inventories. This upturn had a positive effect on time charter rates for its supramax vessels particularly, which saw rates rise from $4,000 per day to $16,000.
However, the company said that business would continue to be under pressure for the rest of the year. It expects raw material prices to remain low, although dry bulk demand by China and India will have a short-term positive effect.
Eitzen said it recognised that all the sectors where it operates were facing weak markets and it would continue the implementation of the action plan it announced with its 2008 results.
Source: Lloyd's List
Saturday 16 May 2009
BLT - Indonesia’s world-class tanker operation
Marcus Hand charts the rise and rise of Berlian Laju Tankers
The success story in Indonesian shipping is Berlian Laju Tankers, which has grown from a domestic owner and operator to a global player with a leading position in the chemical tanker business.
Looking back on the evolution of the company, Kevin Wong, BLT’s chief financial officer, says: “The home market is good for a start, but only after we got beyond [Indonesia] could we realise the company’s full potential.”
Starting out with two tankers chartered out to Indonesian state oil and gas firm Pertamina in 1981, BLT today owns and operates a fleet of 85 tankers, totalling 2m dwt with an average age of nine years. The company’s core business is in chemical tankers, which account for 70% of its business, oil tankers make up around 25%, with gas tankers at 5%.
Acquisition trail
Late 2007 BLT realised a long-planned move to acquire another tanker owner to expand its geographic coverage, with the $850m purchase of US-based Chembulk Carriers further boosting its chemical tanker business. The acquisition of Chembulk saw BLT expand into the North American market for the first time, making it a truly global player.
With Chembulk, the Indonesian shipowner has also expanded into South America, with an office in Sao Paulo, Brazil, where it sees major opportunities for its chemical tanker business, in particular in the biofuels sector.
The purchase made BLT the world’s third largest owner and operator of chemical tankers with a fleet of 59 vessels totalling 920,586 dwt. While the acquisition was made at close to the top of the market, with ship prices having fallen off sharply as the global financial crisis has bitten, BLT believes it was the right move.
Peter Chayson, general manager of investor relations BLT, says that it is an opportunity that only comes along once and if the company had not taken it, most likely one of its competitors would have.
The company remains confident about the outlook for its chemical tanker business and expects freight rates to remain stable and possibly rise 10%-15% over the next few years.
In terms of fleet expansion, BLT has 13 chemical tankers on order, four liquefied petroleum gas carriers and one liquefied natural gas carrier in a joint venture with Teekay.
Opportunities in LPG sector
The company is particularly keen on expanding its presence in the LPG carrier sector, where it sees strong demand in the sub-9,000 cu m category in which it largely operates. “The sector in which we are interested to grow is the gas sector,” says Mr Chayson.
In Indonesia, the government is encouraging its citizens to make greater use of LPG as the country looks to reduce its dependency on oil. The four LPG carriers BLT has on order are a pair of 5,000 cu m tankers and two 3,500 cu m vessels ideally suited to the domestic market.
The one area in which the company has no expansion plans is in the oil tanker sector. However, it remains reasonably optimistic about this oil transportation despite some pressure on rates now being seen.
“We think there is reason to believe oil tanker rates won’t crash,” says Mr Wong.
As vessel prices and the value of companies come down across the board, BLT will also be eyeing opportunities for acquisitions over the next year. “If a shipping company grows in a depressed market, it can grow at a cheaper rate,” says Mr Chayson.
Source: Lloyd's List
The success story in Indonesian shipping is Berlian Laju Tankers, which has grown from a domestic owner and operator to a global player with a leading position in the chemical tanker business.
Looking back on the evolution of the company, Kevin Wong, BLT’s chief financial officer, says: “The home market is good for a start, but only after we got beyond [Indonesia] could we realise the company’s full potential.”
Starting out with two tankers chartered out to Indonesian state oil and gas firm Pertamina in 1981, BLT today owns and operates a fleet of 85 tankers, totalling 2m dwt with an average age of nine years. The company’s core business is in chemical tankers, which account for 70% of its business, oil tankers make up around 25%, with gas tankers at 5%.
Acquisition trail
Late 2007 BLT realised a long-planned move to acquire another tanker owner to expand its geographic coverage, with the $850m purchase of US-based Chembulk Carriers further boosting its chemical tanker business. The acquisition of Chembulk saw BLT expand into the North American market for the first time, making it a truly global player.
With Chembulk, the Indonesian shipowner has also expanded into South America, with an office in Sao Paulo, Brazil, where it sees major opportunities for its chemical tanker business, in particular in the biofuels sector.
The purchase made BLT the world’s third largest owner and operator of chemical tankers with a fleet of 59 vessels totalling 920,586 dwt. While the acquisition was made at close to the top of the market, with ship prices having fallen off sharply as the global financial crisis has bitten, BLT believes it was the right move.
Peter Chayson, general manager of investor relations BLT, says that it is an opportunity that only comes along once and if the company had not taken it, most likely one of its competitors would have.
The company remains confident about the outlook for its chemical tanker business and expects freight rates to remain stable and possibly rise 10%-15% over the next few years.
In terms of fleet expansion, BLT has 13 chemical tankers on order, four liquefied petroleum gas carriers and one liquefied natural gas carrier in a joint venture with Teekay.
Opportunities in LPG sector
The company is particularly keen on expanding its presence in the LPG carrier sector, where it sees strong demand in the sub-9,000 cu m category in which it largely operates. “The sector in which we are interested to grow is the gas sector,” says Mr Chayson.
In Indonesia, the government is encouraging its citizens to make greater use of LPG as the country looks to reduce its dependency on oil. The four LPG carriers BLT has on order are a pair of 5,000 cu m tankers and two 3,500 cu m vessels ideally suited to the domestic market.
The one area in which the company has no expansion plans is in the oil tanker sector. However, it remains reasonably optimistic about this oil transportation despite some pressure on rates now being seen.
“We think there is reason to believe oil tanker rates won’t crash,” says Mr Wong.
As vessel prices and the value of companies come down across the board, BLT will also be eyeing opportunities for acquisitions over the next year. “If a shipping company grows in a depressed market, it can grow at a cheaper rate,” says Mr Chayson.
Source: Lloyd's List
Braemar reports record results
(May 15 2009)
Last Monday, UK listed shipping services group Braemar reported the best set of annual results in its history.
Pre-tax profit before amortisation was up by 14% to £17.3 mill (2008: £15.2 mill), while pre-tax profit soared by 10% to £16.2 mill (2008: £14.7 mill). Cash generated from operating activities was £21 mill (2008: £21.2 mill).
Cash at 28th February 2009, the end of Braemar’s financial year, was £25.2 mill (29th Feb 2008: £21.6 mill).
The Final dividend paid was 15.5p per share (up 3%) and for the full fiscal year was 24p (2008: 23p) up 4%.
During the year, Braemar increased its diversification policy by adding to its marine services portfolio resulting in the non-broking side of the business accounting for 25% of the group’s operating profits, before amortisation and central costs.
The estimated forward orderbook deliverable in 2009/10 stood at £29 mill ($42 mill, compared to the 2008 fiscal year forward orderbook of £27 mill ($53 mill).
Braemar’s traditional shipbroking arm enjoyed a very strong first half in buoyant markets. However, this situation rapidly changed from August 2008 with the onset of the credit crisis and global recession.
Global trade experienced a significant slowdown in the final calendar quarter of 2008, since when there has been a stabilisation in shipping rates at pre-boom levels. More recently the reduction in oil demand has led to a fall in the demand for tankers.
While there are renegotiations and cancellations taking place of some charters and newbuildings in the wider market place, to date Braemar claimed that its forward order book has not suffered significantly. The group said that it was set to expand the shipbroking office network overseas.
Braemar’s deepsea tanker chartering department continued to grow market share during the year and in combination with the strong freight rates of 2008, the department produced a significant increase in revenue over the financial year.
However, since the beginning of its fiscal year (1st March, 2009), the rates in all sectors have fallen dramatically due to lower demand for crude oil and products as a result of the global economic downturn.
In the LNG sector, Braemar said that it had secured additional consultancy contracts, as well as an increase in broking short-term period and spot shipments. As in the other tanker markets, the overall volumes transported have reduced, but the utilisation of surplus LNG tonnage is expected as and when the larger projects are completed over the next 24 months.
The specialised tanker sections continued to grow their fixing volumes and Braemar is now operating tonnage on the spot markets and under significant oil company contracts throughout northwest and continental Europe. Petrochemical gas and LPG shipping rates remained consistent during the past year but the excess tonnage in relation to the requirement has diminished the returns for the owners and operators alike.
Braemar took a further step to expand its market position in the VLGC sector by establishing Braemar LPG Connect as a gas product broking business. Together with dedicated VLGC brokers, volumes were expected to grow in this segment.
Source: Tanker Operator
Last Monday, UK listed shipping services group Braemar reported the best set of annual results in its history.
Pre-tax profit before amortisation was up by 14% to £17.3 mill (2008: £15.2 mill), while pre-tax profit soared by 10% to £16.2 mill (2008: £14.7 mill). Cash generated from operating activities was £21 mill (2008: £21.2 mill).
Cash at 28th February 2009, the end of Braemar’s financial year, was £25.2 mill (29th Feb 2008: £21.6 mill).
The Final dividend paid was 15.5p per share (up 3%) and for the full fiscal year was 24p (2008: 23p) up 4%.
During the year, Braemar increased its diversification policy by adding to its marine services portfolio resulting in the non-broking side of the business accounting for 25% of the group’s operating profits, before amortisation and central costs.
The estimated forward orderbook deliverable in 2009/10 stood at £29 mill ($42 mill, compared to the 2008 fiscal year forward orderbook of £27 mill ($53 mill).
Braemar’s traditional shipbroking arm enjoyed a very strong first half in buoyant markets. However, this situation rapidly changed from August 2008 with the onset of the credit crisis and global recession.
Global trade experienced a significant slowdown in the final calendar quarter of 2008, since when there has been a stabilisation in shipping rates at pre-boom levels. More recently the reduction in oil demand has led to a fall in the demand for tankers.
While there are renegotiations and cancellations taking place of some charters and newbuildings in the wider market place, to date Braemar claimed that its forward order book has not suffered significantly. The group said that it was set to expand the shipbroking office network overseas.
Braemar’s deepsea tanker chartering department continued to grow market share during the year and in combination with the strong freight rates of 2008, the department produced a significant increase in revenue over the financial year.
However, since the beginning of its fiscal year (1st March, 2009), the rates in all sectors have fallen dramatically due to lower demand for crude oil and products as a result of the global economic downturn.
In the LNG sector, Braemar said that it had secured additional consultancy contracts, as well as an increase in broking short-term period and spot shipments. As in the other tanker markets, the overall volumes transported have reduced, but the utilisation of surplus LNG tonnage is expected as and when the larger projects are completed over the next 24 months.
The specialised tanker sections continued to grow their fixing volumes and Braemar is now operating tonnage on the spot markets and under significant oil company contracts throughout northwest and continental Europe. Petrochemical gas and LPG shipping rates remained consistent during the past year but the excess tonnage in relation to the requirement has diminished the returns for the owners and operators alike.
Braemar took a further step to expand its market position in the VLGC sector by establishing Braemar LPG Connect as a gas product broking business. Together with dedicated VLGC brokers, volumes were expected to grow in this segment.
Source: Tanker Operator
BLT - Q1 2009 Financials
Please refer to below link for the financials.
http://rapidshare.com/files/233280652/BLTA_INDOGAAP_Q1_2009.pdf
http://rapidshare.com/files/233281054/BLTA_IFRS_Q1_2009.pdf
Regards
http://rapidshare.com/files/233280652/BLTA_INDOGAAP_Q1_2009.pdf
http://rapidshare.com/files/233281054/BLTA_IFRS_Q1_2009.pdf
Regards
More VLCCs for storage?
(May 15 2009)
A subsidiary of Abu Dhabi National Oil Company (ADNOC) is looking into the possibility of chartering VLCCs to store the company’s excess crude oil, due to the slump in global demand.
ADNOC has begun making enquiries with shipbrokers saying that it might require two or three vessels, according to a Reuters report. Each tanker will have a capacity of 2 mill barrels.
“They are asking for extremely flexible options at the moment with an eye on possible storage options in the West or the East. They are not ready to move yet, but they can move to make the booking with very little notice they want us to be ready to go,” Reuters reported a shipbroker as saying.
Meanwhile, recently there were 23 tankers anchored off Southwold on the east coast of the UK.
Of these 18 were VLCCs, or large tankers and nine were smaller vessels. All were loaded.
There are also three Smit-operated vessels based at Lowestoft servicing the anchorage with crews and provisions.
Source: Tanker Operator
A subsidiary of Abu Dhabi National Oil Company (ADNOC) is looking into the possibility of chartering VLCCs to store the company’s excess crude oil, due to the slump in global demand.
ADNOC has begun making enquiries with shipbrokers saying that it might require two or three vessels, according to a Reuters report. Each tanker will have a capacity of 2 mill barrels.
“They are asking for extremely flexible options at the moment with an eye on possible storage options in the West or the East. They are not ready to move yet, but they can move to make the booking with very little notice they want us to be ready to go,” Reuters reported a shipbroker as saying.
Meanwhile, recently there were 23 tankers anchored off Southwold on the east coast of the UK.
Of these 18 were VLCCs, or large tankers and nine were smaller vessels. All were loaded.
There are also three Smit-operated vessels based at Lowestoft servicing the anchorage with crews and provisions.
Source: Tanker Operator
Saturday 9 May 2009
Ship scrap prices could plummet to $100 per ldt
Main points:
1. Increase demand for scrapping from tankers following 2010 deadline.
2. Oil Tanker rate sets to rise as supply will be limited as currently around 20% of oil tankers are non double hulls.
Steve Matthews - Friday 8 May 2009
PRICES for ships sold for recycling could fall as low as $100 per ldt in the coming months, as demand for ship demolition continues to grow. Demand in increasing at a time when shipbreaking facilities are full to capacity and could increase if more tanker owners look to sell vessels for scrap. A broker, who preferred not to be identified, told Lloyd’s List: “We believe the main trend will be for prices to go down further to below $200 per ldt.
Up to now, despite huge supply, prices have remained above $200 and relatively firm by historic standards. “The average price between 1988 and 2001 was about $170 per ldt and prices are still above that level. But in the late 1990s yards were buying vessels for demolition for as little as $100 per ldt and we could see such prices back again.” The broker told Lloyd’s List that downward pressure on prices was indicated late last week when two bulk carriers came back on to the market because of non-performance by the buyers at the original prices.
These included a panamax bulker that had been committed to China for $225 per ldt and a 15,000 dwt vessel that was previously sold to Indian breakers for $260 per ldt. To date most of the ships being sold for recycling have been bulk carriers, containerships and other dry cargo vessels, but relatively few tankers. In the first four months of 2009, some 120 dry bulk carriers and 51 containerships were sold for scrapping, but only 33 tankers. Demand for scrapping could be boosted by increased interest from tanker owners, as tanker freight rates have fallen sharply and more single hull ships are phased out in advance of the 2010 deadline.
“We are seeing big potential for tankers seeking demolition and we have recently seen a massive amount of enquiries for pre-advice for demolition from tanker owners. So overall we expect to see very strong ongoing demand for demolition but capacity will remain limited,” the broker told Lloyd’s List. Anil Sharma, president and chief executive of US-based cash buyer GMS, was more cautious. “Currently, market fundamentals do not support a big fall in prices,” he said. “Indeed, we get a sense that the market may have bottomed out in the low $200s.” The main problem has been in Bangladesh, where gas and electricity shortages have forced prices down. But demolition prices have stabilised in India and Pakistan and even risen slightly in China. But Mr Sharma agreed that if tankers start to seek demolition sales in significant numbers “that could drive prices down”.
There is still a price differential for owners seeking a sale for green recycling in China. The average dismantling price in China is about $220 per ldt, but a ship sold last week for green recycling there earned about $180 per ldt. The actual differential depends on the size and type of individual vessels and other factors such as the hazardous material content onboard.
Shipbreakers in the Indian sub-continent are facing increased pressure to adopt greener and safer shipbreaking methods. The Bangladesh High Court has threatened to close down ship recycling yards there unless they meet certain environmental requirements. During the first four months of 2009, some 339 ships were sold for demolition. This compares with a total of 487 during the whole of 2008. In deadweight terms, more was scrapped in the four months to April 2009 than in any of the three years from 2005-2007. The total scrapped in period from January to April this year was some 2.9m ldt. At an average price of $250 per ldt, that would equate to an aggregate value of nearly $750m.
Source: Lloyd's List
1. Increase demand for scrapping from tankers following 2010 deadline.
2. Oil Tanker rate sets to rise as supply will be limited as currently around 20% of oil tankers are non double hulls.
Steve Matthews - Friday 8 May 2009
PRICES for ships sold for recycling could fall as low as $100 per ldt in the coming months, as demand for ship demolition continues to grow. Demand in increasing at a time when shipbreaking facilities are full to capacity and could increase if more tanker owners look to sell vessels for scrap. A broker, who preferred not to be identified, told Lloyd’s List: “We believe the main trend will be for prices to go down further to below $200 per ldt.
Up to now, despite huge supply, prices have remained above $200 and relatively firm by historic standards. “The average price between 1988 and 2001 was about $170 per ldt and prices are still above that level. But in the late 1990s yards were buying vessels for demolition for as little as $100 per ldt and we could see such prices back again.” The broker told Lloyd’s List that downward pressure on prices was indicated late last week when two bulk carriers came back on to the market because of non-performance by the buyers at the original prices.
These included a panamax bulker that had been committed to China for $225 per ldt and a 15,000 dwt vessel that was previously sold to Indian breakers for $260 per ldt. To date most of the ships being sold for recycling have been bulk carriers, containerships and other dry cargo vessels, but relatively few tankers. In the first four months of 2009, some 120 dry bulk carriers and 51 containerships were sold for scrapping, but only 33 tankers. Demand for scrapping could be boosted by increased interest from tanker owners, as tanker freight rates have fallen sharply and more single hull ships are phased out in advance of the 2010 deadline.
“We are seeing big potential for tankers seeking demolition and we have recently seen a massive amount of enquiries for pre-advice for demolition from tanker owners. So overall we expect to see very strong ongoing demand for demolition but capacity will remain limited,” the broker told Lloyd’s List. Anil Sharma, president and chief executive of US-based cash buyer GMS, was more cautious. “Currently, market fundamentals do not support a big fall in prices,” he said. “Indeed, we get a sense that the market may have bottomed out in the low $200s.” The main problem has been in Bangladesh, where gas and electricity shortages have forced prices down. But demolition prices have stabilised in India and Pakistan and even risen slightly in China. But Mr Sharma agreed that if tankers start to seek demolition sales in significant numbers “that could drive prices down”.
There is still a price differential for owners seeking a sale for green recycling in China. The average dismantling price in China is about $220 per ldt, but a ship sold last week for green recycling there earned about $180 per ldt. The actual differential depends on the size and type of individual vessels and other factors such as the hazardous material content onboard.
Shipbreakers in the Indian sub-continent are facing increased pressure to adopt greener and safer shipbreaking methods. The Bangladesh High Court has threatened to close down ship recycling yards there unless they meet certain environmental requirements. During the first four months of 2009, some 339 ships were sold for demolition. This compares with a total of 487 during the whole of 2008. In deadweight terms, more was scrapped in the four months to April 2009 than in any of the three years from 2005-2007. The total scrapped in period from January to April this year was some 2.9m ldt. At an average price of $250 per ldt, that would equate to an aggregate value of nearly $750m.
Source: Lloyd's List
BLT - Development on 2009 Bond Issuance
The latest development of the bond issuance following the successful book-building is as follows:
IDR 400 billion :Conventional Bond (consist of 3 Series i.e. 1 year, 3 years, 5 years)
IDR 100 billion : Islamic Bonds (consist of 2 Series i.e. 3 years and 5 years)
IDR 400 billion :Conventional Bond (consist of 3 Series i.e. 1 year, 3 years, 5 years)
IDR 100 billion : Islamic Bonds (consist of 2 Series i.e. 3 years and 5 years)
BLT - Presentation File of Merrill Lynch Asian Stars Conference
Please refer to link below to get the presentation file of the above event.
http://rapidshare.com/files/230925637/2009.05.07_Merrill_Lynch_Asian_Stars_Conference.pdf
Regards
http://rapidshare.com/files/230925637/2009.05.07_Merrill_Lynch_Asian_Stars_Conference.pdf
Regards
BLT - Debt Maturity Profile 2009
8 May 2009
As of now the debt maturity profile for 2009 is as follows:
Loan Servicing USD120 - 130 million
Bridge Loan USD50 million
Working Capital Loan USD150million
Regards
As of now the debt maturity profile for 2009 is as follows:
Loan Servicing USD120 - 130 million
Bridge Loan USD50 million
Working Capital Loan USD150million
Regards
Bernanke: Economy should grow again later in 2009
Wednesday, 06 May 2009
Federal Reserve Chairman Ben Bernanke told Congress Tuesday that the economy should pull out of a recession and start growing again later this year. But in testimony to Congress' Joint Economic Committee, Bernanke warned that even after a recovery gets under way, economic activity is likely to be subpar. That means businesses will stay cautious about hiring, driving up the nation's unemployment rate and causing "further sizable job losses" in the coming months, he said.The recession, which started in December 2007, already has snatched a net total of 5.1 million jobs.
The unemployment rate "could remain high for a time, even after economic growth resumes," Bernanke said.But while some economists believe unemployment could hit 10 percent by the end of this year, the Fed doesn't share that view. The unemployment rate will probably climb "somewhere" in the 9 percent range, Bernanke said."The loss of jobs is one of the most distressing aspects of this whole episode," he said.Even with all the cautionary notes, the Fed chief offered a far less dour assessment of the economy.
"We continue to expect economic activity to bottom out, then to turn up later this year," he told lawmakers. "We expect that the recovery will only gradually gain momentum."Recent data suggest the recession may be loosening its grip on the country, Bernanke said."The pace of contraction may be slowing," he said. It was similar to an observation the Fed made last week in deciding not to take any additional steps to shore up the economy.
The housing market, which has been in a slump for three years, has shown some signs of bottoming, he said. Consumer spending, which collapsed in the second half of last year, came back to life in the first quarter.In the months ahead, consumer spending should be lifted by tax cuts contained in President Barack Obama's larger $787 billion stimulus package. Still, rising unemployment, sinking home values and cracked nest eggs will still weigh on consumers willingness to spend freely, Bernanke said.In the latest sign the downturn could be easing, activity in the services sector contracted at a slower pace in April, the Institute for Supply Management reported Tuesday.
Its service sector index came in at 43.7 in April, up from 40.8 in March. Any reading below 50 indicates the service sector, where most Americans work, is contracting.Meanwhile, business investment remains "extremely weak," and conditions in the commercial real estate market are "poor," the Fed chief said.Still, Bernanke said he was hopeful that production would pick up later this year to replenish stockpiles of goods that have been slashed. And there's been tentative signs that the declines in other countries' economic activity may be moderating, which could help sales of U.S. exports. They have been falling sharply, a key factor behind the drag on U.S. manufacturing, he said.
Private analysts are predicting the economy won't shrink nearly as much as it had been — anywhere from a pace of 1 to 3 percent — in the current quarter. As Obama's economic stimulus package of tax cuts and increased government spending takes hold, analysts think the economy could start growing again in the third or forth quarter of this year.The economy's rate of decline topped 6 percent in both the final three months of 2008 and in the first quarter of this year. It marked the worst six-month performance since the late 1950s.Many economists expect the jobless rate will jump to 8.9 percent in April from a quarter-century high of 8.5 percent in March as employers slash hundreds of thousands more jobs. The government releases that report on Friday.
On the financial front, Bernanke said there have been signs of improvements in easing some credit stresses. However, financial markets remain under considerable strain.As Bernanke has said in the past, the Fed's forecast for a recovery hinges on the government's ability to gradually repair the financial system."A relapse ... would be a significant drag on economic activity and could cause the incipient recovery to stall," he warned.Bernanke didn't provide details about how 19 large banks fared on "stress tests." Results, to be released Thursday, should shed light on which banks may need government support if the recession were to worsen.He did say that after the results are released, banks will be required to develop "comprehensive capital plans for establishing the required buffers" to protect against future losses. They will have six months to execute those plans or get help from the government.Bernanke said there are "significant opportunities for capital raising outside government programs," and that many banks should be able to do so by selling assets or taking other steps.
The International Monetary Fund estimated that $275 billion more in capital would be needed to cushion against further losses at U.S. banks. While refusing to provide any numbers, Bernanke said he thought the IMF's figure overestimated any additional capital needs.Responding to lawmakers' concerns about secrecy in its lending and bailout programs, Bernanke said the Fed will start providing information on the number of borrowers under each plan, details of credit extended and information on the collateral put up for the loans.But Bernanke didn't say the Fed would release the identity of borrowers, something lawmakers have pushed for.
Source: Associated Press
Federal Reserve Chairman Ben Bernanke told Congress Tuesday that the economy should pull out of a recession and start growing again later this year. But in testimony to Congress' Joint Economic Committee, Bernanke warned that even after a recovery gets under way, economic activity is likely to be subpar. That means businesses will stay cautious about hiring, driving up the nation's unemployment rate and causing "further sizable job losses" in the coming months, he said.The recession, which started in December 2007, already has snatched a net total of 5.1 million jobs.
The unemployment rate "could remain high for a time, even after economic growth resumes," Bernanke said.But while some economists believe unemployment could hit 10 percent by the end of this year, the Fed doesn't share that view. The unemployment rate will probably climb "somewhere" in the 9 percent range, Bernanke said."The loss of jobs is one of the most distressing aspects of this whole episode," he said.Even with all the cautionary notes, the Fed chief offered a far less dour assessment of the economy.
"We continue to expect economic activity to bottom out, then to turn up later this year," he told lawmakers. "We expect that the recovery will only gradually gain momentum."Recent data suggest the recession may be loosening its grip on the country, Bernanke said."The pace of contraction may be slowing," he said. It was similar to an observation the Fed made last week in deciding not to take any additional steps to shore up the economy.
The housing market, which has been in a slump for three years, has shown some signs of bottoming, he said. Consumer spending, which collapsed in the second half of last year, came back to life in the first quarter.In the months ahead, consumer spending should be lifted by tax cuts contained in President Barack Obama's larger $787 billion stimulus package. Still, rising unemployment, sinking home values and cracked nest eggs will still weigh on consumers willingness to spend freely, Bernanke said.In the latest sign the downturn could be easing, activity in the services sector contracted at a slower pace in April, the Institute for Supply Management reported Tuesday.
Its service sector index came in at 43.7 in April, up from 40.8 in March. Any reading below 50 indicates the service sector, where most Americans work, is contracting.Meanwhile, business investment remains "extremely weak," and conditions in the commercial real estate market are "poor," the Fed chief said.Still, Bernanke said he was hopeful that production would pick up later this year to replenish stockpiles of goods that have been slashed. And there's been tentative signs that the declines in other countries' economic activity may be moderating, which could help sales of U.S. exports. They have been falling sharply, a key factor behind the drag on U.S. manufacturing, he said.
Private analysts are predicting the economy won't shrink nearly as much as it had been — anywhere from a pace of 1 to 3 percent — in the current quarter. As Obama's economic stimulus package of tax cuts and increased government spending takes hold, analysts think the economy could start growing again in the third or forth quarter of this year.The economy's rate of decline topped 6 percent in both the final three months of 2008 and in the first quarter of this year. It marked the worst six-month performance since the late 1950s.Many economists expect the jobless rate will jump to 8.9 percent in April from a quarter-century high of 8.5 percent in March as employers slash hundreds of thousands more jobs. The government releases that report on Friday.
On the financial front, Bernanke said there have been signs of improvements in easing some credit stresses. However, financial markets remain under considerable strain.As Bernanke has said in the past, the Fed's forecast for a recovery hinges on the government's ability to gradually repair the financial system."A relapse ... would be a significant drag on economic activity and could cause the incipient recovery to stall," he warned.Bernanke didn't provide details about how 19 large banks fared on "stress tests." Results, to be released Thursday, should shed light on which banks may need government support if the recession were to worsen.He did say that after the results are released, banks will be required to develop "comprehensive capital plans for establishing the required buffers" to protect against future losses. They will have six months to execute those plans or get help from the government.Bernanke said there are "significant opportunities for capital raising outside government programs," and that many banks should be able to do so by selling assets or taking other steps.
The International Monetary Fund estimated that $275 billion more in capital would be needed to cushion against further losses at U.S. banks. While refusing to provide any numbers, Bernanke said he thought the IMF's figure overestimated any additional capital needs.Responding to lawmakers' concerns about secrecy in its lending and bailout programs, Bernanke said the Fed will start providing information on the number of borrowers under each plan, details of credit extended and information on the collateral put up for the loans.But Bernanke didn't say the Fed would release the identity of borrowers, something lawmakers have pushed for.
Source: Associated Press
Jakarta looks to cut ship age limits
Wednesday, 06 May 2009
The government may reduce the maximum age of ships allowed for import because of safety concerns and the domestic shipyard industry's increasing ability to manufacture internationally standardized ships. Budi Darmadi, the Industry Ministry's director general for transportation and telecommunications and informatics industries, said last week the ministry was in talks with the Trade Ministry over the plan, which will require a Trade Ministry regulation for enforcement.
"At present, imported secondhand ships with a maximum age of 25 years are still allowed in. We plan to reduce that age limit to 20 years next year and 15 years the following year," he told The Jakarta Post."Our first concern is safety. Second, our shipyard industry is already capable of building new ships."Imports of secondhand ships aged up to 25 years are permissible under a 1998 presidential decree on imports of new and used commercial and fishing ships, and a 2007 Trade Ministry regulation on imports of used capital goods.
Budi said the maximum age of 15 years was determined based on "common practice" in many countries around the globe, although it might change in the future in accordance with technological developments.He said the country's shipyard industry, unlike other industries, was relatively more resilient to the global economic crisis, and could grow by as much as 7 percent to 8 percent in output this year, a slight decline from nearly 10 percent recorded last year.
The growth of the industry is also attributable in part to the government's policy requiring all passenger ships sailing in Indonesian waters to be produced locally, and thanks to crowded manufacturers in China and South Korea that caused some buyers to divert their orders to Indonesia.According to Budi, there are six shipyard companies planning to invest soon in the industry, while another two have realized their plans recently.One of them is located in Belawan, North Sumatra, already in full operation since last December, with a production capacity of 50,000 dead weight tons (DWT).
The second is in Cilegon, Banten, already running but not yet at full operation, with a production capacity of 140,000 DWT.Other companies planning to invest are one located in Batam, Riau Islands, with a planned capacity of 30,000 to 50,000 DWT; one in Lampung that has been receiving orders for 3,000-DWT ships and is planning to build a 30,000-DWT drafting dock (a pool where a ship is built); three in Lamongan, East Java, with a planned capacity of 20,000 to 30,000 DWT each; and one in Gorontalo, with a planned capacity of 10,000 DWT.Another company, PT Mariana Bahagia, plans to spend Rp 200 billion for a 60,000-DWT shipyard at one side of the Musi River, South Sulawesi, next year.Budi earlier said a local company specializing in passenger ships also planned to build 170-meter drafting dock.
Source: SeatradeAsia-Online
For reference, please also click the link below.
http://chemicaltankers.blogspot.com/2009/04/importation-of-used-vessels-max-15-year.html
The government may reduce the maximum age of ships allowed for import because of safety concerns and the domestic shipyard industry's increasing ability to manufacture internationally standardized ships. Budi Darmadi, the Industry Ministry's director general for transportation and telecommunications and informatics industries, said last week the ministry was in talks with the Trade Ministry over the plan, which will require a Trade Ministry regulation for enforcement.
"At present, imported secondhand ships with a maximum age of 25 years are still allowed in. We plan to reduce that age limit to 20 years next year and 15 years the following year," he told The Jakarta Post."Our first concern is safety. Second, our shipyard industry is already capable of building new ships."Imports of secondhand ships aged up to 25 years are permissible under a 1998 presidential decree on imports of new and used commercial and fishing ships, and a 2007 Trade Ministry regulation on imports of used capital goods.
Budi said the maximum age of 15 years was determined based on "common practice" in many countries around the globe, although it might change in the future in accordance with technological developments.He said the country's shipyard industry, unlike other industries, was relatively more resilient to the global economic crisis, and could grow by as much as 7 percent to 8 percent in output this year, a slight decline from nearly 10 percent recorded last year.
The growth of the industry is also attributable in part to the government's policy requiring all passenger ships sailing in Indonesian waters to be produced locally, and thanks to crowded manufacturers in China and South Korea that caused some buyers to divert their orders to Indonesia.According to Budi, there are six shipyard companies planning to invest soon in the industry, while another two have realized their plans recently.One of them is located in Belawan, North Sumatra, already in full operation since last December, with a production capacity of 50,000 dead weight tons (DWT).
The second is in Cilegon, Banten, already running but not yet at full operation, with a production capacity of 140,000 DWT.Other companies planning to invest are one located in Batam, Riau Islands, with a planned capacity of 30,000 to 50,000 DWT; one in Lampung that has been receiving orders for 3,000-DWT ships and is planning to build a 30,000-DWT drafting dock (a pool where a ship is built); three in Lamongan, East Java, with a planned capacity of 20,000 to 30,000 DWT each; and one in Gorontalo, with a planned capacity of 10,000 DWT.Another company, PT Mariana Bahagia, plans to spend Rp 200 billion for a 60,000-DWT shipyard at one side of the Musi River, South Sulawesi, next year.Budi earlier said a local company specializing in passenger ships also planned to build 170-meter drafting dock.
Source: SeatradeAsia-Online
For reference, please also click the link below.
http://chemicaltankers.blogspot.com/2009/04/importation-of-used-vessels-max-15-year.html
Hope for LNG
Friday 8 May 2009
THE liquefied natural gas industry continues to develop at a rapid pace but the process is not without its growing pains. New trades are opening up at an impressive rate as the industry matures, although the spot and short-term market last year shrank for the first time since the turn of the century. In its latest report, the International Group of Liquefied Natural Gas Importers says 17 new country-to-country trades were established last year, bringing the total to 93.
This trend appears to be continuing into this year with, for example, Qatar’s RasGas recently sending a first cargo to Turkey. Worryingly for shipowners with idle LNG carriers, however, the report indicates that the spot and short-term imports (based on contracts with a duration of four years or less) declined in absolute terms and also as percentage of the global trade with 506 cargoes against 568 cargoes in 2007. Undoubtedly, charterers are becoming spoilt for choice as the mismatch between supply and demand in LNG shipping increases at a time of an economic recession and falling energy consumption in some key markets. Essentially, the short-term market is being squeezed by a combination of shipyard efficiency and the inability of project sponsors to start production on schedule.
Last year, a record number of newbuilding LNG carriers — 48 — joined the fleet, many for projects that are suffering delays. It is now generally estimated that about 40 LNG carriers are idle. There will be little respite for the rest of the year as the flow of newbuilding will continue at a historically high level. Although vessels may be idle, it does not necessarily follow that they are a drain on cash-flow for their owners. LNG carriers without employment because the projects for which they were built are delayed should still be earning: project charter payments normally commence on delivery from the yard or arrival at a specified loading destination. Many long-term LNG charters are not thought to be particularly favourable to owners, but compared to some of the problems being experienced in the container and bulk trades they are a form of security which some owners in other sectors may now envy. Read more
Source: Lloyd's list
THE liquefied natural gas industry continues to develop at a rapid pace but the process is not without its growing pains. New trades are opening up at an impressive rate as the industry matures, although the spot and short-term market last year shrank for the first time since the turn of the century. In its latest report, the International Group of Liquefied Natural Gas Importers says 17 new country-to-country trades were established last year, bringing the total to 93.
This trend appears to be continuing into this year with, for example, Qatar’s RasGas recently sending a first cargo to Turkey. Worryingly for shipowners with idle LNG carriers, however, the report indicates that the spot and short-term imports (based on contracts with a duration of four years or less) declined in absolute terms and also as percentage of the global trade with 506 cargoes against 568 cargoes in 2007. Undoubtedly, charterers are becoming spoilt for choice as the mismatch between supply and demand in LNG shipping increases at a time of an economic recession and falling energy consumption in some key markets. Essentially, the short-term market is being squeezed by a combination of shipyard efficiency and the inability of project sponsors to start production on schedule.
Last year, a record number of newbuilding LNG carriers — 48 — joined the fleet, many for projects that are suffering delays. It is now generally estimated that about 40 LNG carriers are idle. There will be little respite for the rest of the year as the flow of newbuilding will continue at a historically high level. Although vessels may be idle, it does not necessarily follow that they are a drain on cash-flow for their owners. LNG carriers without employment because the projects for which they were built are delayed should still be earning: project charter payments normally commence on delivery from the yard or arrival at a specified loading destination. Many long-term LNG charters are not thought to be particularly favourable to owners, but compared to some of the problems being experienced in the container and bulk trades they are a form of security which some owners in other sectors may now envy. Read more
Source: Lloyd's list
North Sea Oseberg Crude Daily Shipments to Drop 53% in June
North Sea Oseberg Crude Daily Shipments to Drop 53% in June
Saturday, 09 May 2009
Daily shipments of North Sea Oseberg crude, part of the price benchmark for almost two-thirds of the world’s oil, will decline 53 percent next month. Tankers are set to load 100,000 barrels a day of Oseberg crude in June, down from 214,516 barrels a day planned in May, according to the loading schedule of operator StatoilHydro ASA.
A total of 3 million barrels will be shipped in June, compared with 6.7 million barrels in May. StatoilHydro has said it plans maintenance at the Oseberg fields this June.
Oseberg is one of the four North Sea oil varieties used to price crude from the Middle East, Africa and Russia. The other grades are Brent, operated by Royal Dutch Shell Plc, Forties, operated by BP Plc, and ConocoPhillips’s Ekofisk.
Source: Bloomberg
Saturday, 09 May 2009
Daily shipments of North Sea Oseberg crude, part of the price benchmark for almost two-thirds of the world’s oil, will decline 53 percent next month. Tankers are set to load 100,000 barrels a day of Oseberg crude in June, down from 214,516 barrels a day planned in May, according to the loading schedule of operator StatoilHydro ASA.
A total of 3 million barrels will be shipped in June, compared with 6.7 million barrels in May. StatoilHydro has said it plans maintenance at the Oseberg fields this June.
Oseberg is one of the four North Sea oil varieties used to price crude from the Middle East, Africa and Russia. The other grades are Brent, operated by Royal Dutch Shell Plc, Forties, operated by BP Plc, and ConocoPhillips’s Ekofisk.
Source: Bloomberg
Thursday 7 May 2009
BLT - Shareholdings April 09
Shareholders Name No of Shares %
PT Tunggaladhi Baskara 2,447,724,764 53.34%
Public (Indonesian Stock Exchange) 1,543,598,212 33.62%
Public (Singapore Stock Exchange) 182,924,000 3.99%
Treasury Stock 412,351,000 8.99%
Directors 2,683,200 0.06%
Total 4,589,281,176 100.00%
PT Tunggaladhi Baskara 2,447,724,764 53.34%
Public (Indonesian Stock Exchange) 1,543,598,212 33.62%
Public (Singapore Stock Exchange) 182,924,000 3.99%
Treasury Stock 412,351,000 8.99%
Directors 2,683,200 0.06%
Total 4,589,281,176 100.00%
Tuesday 5 May 2009
Eitzen sells three newbuildings
(May 5 2009)
Eitzen Chemical has sold through novation three newbuildings from Croatia, in a move which completed its newbuilding programme.
Eitzen has entered into an agreement with clients of Laurin Maritime to sell its three remaining newbuildings from Brodotrogir in Croatia through a novation agreement, whereby the buyer will assume all rights and obligation the company has towards the yard, including all further payment obligations.
The basis for the agreement is a total price of $124 mill (including extras). It is conditional on approval from the yard and its refund guarantors.
Eitzen Chemical has also increased the impairment charge as of year end 2008 to $313 mill, up from $156 mill previously reported.
The company said that it did not expect to record a loss from the above transaction, nor did it expect to record a loss from the cancellations in Japan reported earlier, except for the $7.5 mill cancellation fee payable.
Source: Tanker Operator
Eitzen Chemical has sold through novation three newbuildings from Croatia, in a move which completed its newbuilding programme.
Eitzen has entered into an agreement with clients of Laurin Maritime to sell its three remaining newbuildings from Brodotrogir in Croatia through a novation agreement, whereby the buyer will assume all rights and obligation the company has towards the yard, including all further payment obligations.
The basis for the agreement is a total price of $124 mill (including extras). It is conditional on approval from the yard and its refund guarantors.
Eitzen Chemical has also increased the impairment charge as of year end 2008 to $313 mill, up from $156 mill previously reported.
The company said that it did not expect to record a loss from the above transaction, nor did it expect to record a loss from the cancellations in Japan reported earlier, except for the $7.5 mill cancellation fee payable.
Source: Tanker Operator
Gulf Navigation takes a hit
(May 5 2009)
Gulf Navigation Holding reported an 85% drop in its first quarter profit this year on the back of weak shipping conditions.
The company reported a Dh6.4 mill profit for 1Q09 compared with Dh44.7 mill during the same quarter a year earlier. Revenues declined to Dh81.9 mill from Dh94.8 mill for 1Q08.
Abdullah Al Shuraim, the company's chairman, said the first quarter "has been very tough and challenging". Gulf Navigation had witnessed "extraordinary conditions" in the last six months with the decline in ship chartering business, he added.
Tanker chartering rates had halved since the second quarter of last year. In addition, Denmark-based Atlas Shipping, which had four Gulf Navigation tankers on long-term charter, filed for bankruptcy last December.
The company's shares fell 1.47% to Dh0.68 on the Dubai Financial Market immediately after the announcement made on 26th April.
Al Shuraim said in a statement that he remained optimistic about business growth as the shipping market has "always been cyclical".
"We are cautiously optimistic about the outlook for the coming months, in spite of the disappointments of the last six months; we believe that we can now draw a line against the past, and we are keenly looking forward to the future," Al Shuraim said.
Source: Tanker Operator
Gulf Navigation Holding reported an 85% drop in its first quarter profit this year on the back of weak shipping conditions.
The company reported a Dh6.4 mill profit for 1Q09 compared with Dh44.7 mill during the same quarter a year earlier. Revenues declined to Dh81.9 mill from Dh94.8 mill for 1Q08.
Abdullah Al Shuraim, the company's chairman, said the first quarter "has been very tough and challenging". Gulf Navigation had witnessed "extraordinary conditions" in the last six months with the decline in ship chartering business, he added.
Tanker chartering rates had halved since the second quarter of last year. In addition, Denmark-based Atlas Shipping, which had four Gulf Navigation tankers on long-term charter, filed for bankruptcy last December.
The company's shares fell 1.47% to Dh0.68 on the Dubai Financial Market immediately after the announcement made on 26th April.
Al Shuraim said in a statement that he remained optimistic about business growth as the shipping market has "always been cyclical".
"We are cautiously optimistic about the outlook for the coming months, in spite of the disappointments of the last six months; we believe that we can now draw a line against the past, and we are keenly looking forward to the future," Al Shuraim said.
Source: Tanker Operator
Odfjell CEO steps down
(May 5 2009)
Due to ill-health, Haakon Ringdal has asked for a leave of absence from his post of ceo of Odfjell until later this year.
As a consequence Jan Hammer, currently coo, will be constituted as ceo.
Source: Tanker Operators
Due to ill-health, Haakon Ringdal has asked for a leave of absence from his post of ceo of Odfjell until later this year.
As a consequence Jan Hammer, currently coo, will be constituted as ceo.
Source: Tanker Operators
Difference Between Chemical Tanker Rates and Product Tankers Rates
Please refer to below graph on the difference between Chemical Tanker and Product Tanker Rates in the face of the crisis.
Chemical Tanker Rates
Product Tanker Rates
Chemical Tanker Rates
Product Tanker Rates
Why Chemical Tanker Rates continue to be Resilient
Please refer to below graph extracted from INGE STEENSLAND AS - S&P/Newbuilding/Project Dept.
Sunday 3 May 2009
BLT - BCP Presentation Material
Please find below the link to the above presentation material.
http://rapidshare.com/files/228906569/2009.04.23_BCP_Presentation.pdf
http://rapidshare.com/files/228906569/2009.04.23_BCP_Presentation.pdf
BLT - Merill Lynch Asian Stars Conference
Now in the process of preparing the presentation for the event which is slotted for 6 - 8 May 09. BLT will make the presentation to all investors on 7 May 09 and the event will take place at the Ritz Carlton Hotel Singapore.
Will take the first flight from Jakarta and will come back at night. This is going to be the second non deal road show done in 2009 following the crisis. As the market has seen some light in the tunnel as the stock market has started to take a big turnaround, hope the event will be a success.
Cheers,
For the presentation file, please refer to below link
http://chemicaltankers.blogspot.com/2009/05/blt-presentation-file-of-merrill-lynch.html
Will take the first flight from Jakarta and will come back at night. This is going to be the second non deal road show done in 2009 following the crisis. As the market has seen some light in the tunnel as the stock market has started to take a big turnaround, hope the event will be a success.
Cheers,
For the presentation file, please refer to below link
http://chemicaltankers.blogspot.com/2009/05/blt-presentation-file-of-merrill-lynch.html
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