Local Currency News

Thousands of mourners and protesters marched in the Lebanese capital on Friday to remember those killed in a huge port blast three years ago, as religious leaders and rights groups decried the lack of accountability amid a stalled investigation.The explosion killed at least 220 people and wounded thousands when hundreds of tonnes of ammonium nitrate stored in a warehouse detonated just after 6 p.m. (1600 GMT) on Aug. 4, 2020, sending a huge cloud over the city.Despite the devastation…

International  exploration & production (E&P) are struggling to make money from offshore investments made during the latest investment upturn, according to a new study by Rystad Energy.Rystad Energy has evaluated all offshore oil fields sanctioned since 2010 and ranked them by estimated value per barrel of oil (boe) under various oil price scenarios. The return on investment (RoI) figures were not up to the mark.The sanctioning activity was record-high during the strong investment cycle from 2010 to 2014, when energy companies reached final investment decisions on offshore oil fields collectively representing close to 40 billion boe of total resources…

Container industry revenues are contracting faster than carriers can cut costs. First-half results so far suggest sales are down by around 18%, increasing the pressure to reduce costs. The container shipping industry is currently enduring a severe revenue contraction that is placing carriers under enormous pressure to squeeze more savings wherever they can and is driving the latest round of M&A activity. The first-half 2016 financial results that have been published so far from a handful of major carriers paint a very depressing picture for the industry. First-half revenue from the sample companies listed in Table 1 was down by 18% on average, which if it holds true for the industry across the full year would mean that carrier income will shrink by approximately $29 billion against 2015.

International Container Terminal Services, Inc. (ICTSI) reported audited consolidated financial results for the year ended December 31, 2015 posting revenue from port operations of US$1.051 billion, one percent lower compared to US$1.061 billion the year earlier; Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of US$450.0 million, two percent higher than the US$443.0 million generated the previous year; and reported Net Income attributable to equity holders of US$58.5 million, down 68 percent compared to the US$182.0 million earned in 2014. Diluted earnings per share for the period declined 85 percent to US$0.011 from US$0.075 in 2014.

Brazil sugar and ethanol producer Tonon Bioenergia SA, which operates three mills with a total capacity to process 8.2 million tonnes of cane per year, has sought court protection against creditors, the company said late on Wednesday. Tonon said its debt, largely denominated in dollars, soared following the recent weakening of Brazil's currency. The sugar group's debt in Brazilian reais jumped by 69 percent by the end of September to 2.66 billion ($707 million) compared to the same time a year earlier. "The main objective of this request is to restore the capital structure and preserve business continuity," the company said in a statement.

A ship carrying corn was scheduled to leave Brazil for the United States on Monday, three shipping agents said, as a strong dollar and plentiful South American supply makes importing corn attractive to U.S. buyers. The ship owned by Bunge Ltd, carrying 54,000 tonnes of corn, was scheduled to depart Itacoatiara Port on the Amazon river, data from Williams Shipping agents and Brazil-based Cargonave showed. A third source, who declined to be named, said the cargo was bound for the port of Wilmington, in North Carolina. Bunge did not respond to a request for comment. The sale reflects the increasing competitiveness of grains from Brazil, which has drastically increased output over the past decade and more recently has improved shipping logistics. Brazil, the world's No.

Venezuela's 2015 budget will be based on a target oil price of $60 dollars per barrel, President Nicolas Maduro said on Friday night, but he repeated expectations that prices will recover. Venezuela routinely underestimates oil prices when planning its budget to permit more spending later with fewer budget restrictions. The OPEC country's 2014 budget proposal also put oil prices at $60 dollars. Oil has dropped more than 25 percent since June on strong supply, signs of weak demand growth and indications that key oil producers, particularly Saudi Arabia, have a limited appetite to cut output to bolster prices. U.S. November crude settled at $82.75 on Friday.

Moody's Investors Service says it has confirmed the Ba2 corporate family rating (CFR) and the Ba2-PD probability of default rating (PDR) of Sovcomflot JSC with $800 million of rated debt affected. Concurrently, Moody's has confirmed Sovcomflot's Ba3 senior unsecured issuer rating and the Ba3 senior unsecured rating assigned to the $800 million Eurobond issued by SCF Capital Limited, which is a 100% indirect subsidiary of Sovcomflot (Sovcomflot guarantees the Eurobond). The outlook on all ratings is negative. This confirmation of Sovcomflot's ratings reflects Moody's expectation that the company will be able to improve its financial metrics over the next 12-18 months…

Brazil's state-run oil company Petrobras moved to check years of missed targets, soaring costs and rising debt by scaling back near-term investments and setting a limit on long-term growth. Petroleo Brasileiro SA, as Petrobras is formally known, cut its five-year investment outlook for the 2014-2018 period to $221 billion, 6.8 percent less than its previous 2013-2017 plan, after reporting a 19 percent drop in fourth-quarter profit late on Tuesday. The company said production would still more than double to 5.2 million barrels of oil and natural gas a day (bpd) in 2020…

Globe Wireless announced an exclusive worldwide sales and marketing relationship with CrewCash, LLC (CrewCash), a payments company offering comprehensive prepaid solutions to the commercial maritime industry. CrewCash and ShipMoney is a new prepaid Visa® card program for captains and crew members. The program provides a very efficient and cost effective alternative to the delivery of currency to ships. It is based on reducing the number of cash deliveries and the amount of cash held onboard, thereby significantly reducing costs.

Shipbuilding & allied marine industries provider Austal publishes its financial report for year ended 30, June 2012. The Group operating profit after tax for the year was $11.043 million compared with the previous year of $21.890 million. Revenue has increased by $149.140 million over the previous year while operating profit before tax has decreased by $7.235 million. This year’s results reflect some of the challenges Austal faces. Rapid growth and the difficulties of producing a new ship type undermined efficient program delivery at Austal’s busy US shipyard.In contrast…

Demolition Prices for elderly ships have fallen by a quarter in 2012 to date, and owners are encouraged to dispose of recycling candidates sooner rather than later, says Mark Williams of Braemar Seascope. Addressing the 7th Annual Ship Recycling Conference in London on 19th June, the Braemar Seascope Research Director told delegates that deflating international steel prices were likely to translate into lower offers for recycling tonnage in the coming quarters. Meanwhile, rapid reductions in the value of the Indian…

Zurich, Switzerland - ABB reported higher orders and revenues in the first quarter of 2012, led by growth in North America. Operational EBITDA declined 7 percent compared to the same quarter a year earlier while net income was up 5 percent. Orders were 2 percent above the very high levels in the first quarter of 2011, driven mainly by utility investments in power distribution and industrial demand for automation solutions that increase productivity. Order growth mirrored regional economic trends and was weakest in China and southern Europe. Service orders were up 9 percent and represented 20 percent of total orders, reflecting progress in implementing the service growth strategy.

A report from Bloomberg sited a bondholder who met with Vietnam Shipbuilding Industry Group, saying the state-owned company, with more than $4b in debt, asked holders of a local-currency bond it defaulted on in April to write off as much as 90% of the money owed. Source: Bloomberg

According to reports, Asian Development Bank has signed an agreement to offer $169 million in local currency debt to India's Petronet LNG Ltd. to help fund its expansion. Earlier this week, International Finance Corp. and other banks offered $300m loans to help Petronet build a liquefied natural gas import-and-regassification terminal in southern India. Petronet LNG has a similar facility in Dahej in the western state of Gujarat. (Source: Reuters)

South Korean stocks hit a fresh closing high Thursday as investors picked up shipbuilding and machinery shares, taking a cue from overnight gains in U.S. markets, analysts said. The South Korean won fell against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) rose 14.98 points, or 0.94 percent, to 1,615.58. Volume was moderate at 445.7 million shares worth 4.67 trillion won (US$5.03 billion), with winners outpacing losers 544 to 226. Shipbuilders led the gain with top shipyard Hyundai Heavy Industries rising 6.53 percent to 285,500 won. Steel shares gained ground. No. 2 steelmaker Hyundai Steel advanced 2.45 percent to 48,150 won after a local brokerage raised its price estimate for the shares. Tech blue chips traded in negative territory.

According to reports, Hyundai Heavy Industries Co and two other South Korean shipbuilders said they won orders for 10 LNG carriers from Qatar Gas Transport totaling $2.5b. The announcement comes a day after Qatargas ordered the tankers from Hyundai Heavy, Daewoo Shipbuilding & Marine Engineering Co and Samsung Heavy Industries Co to ship the fuel to markets in the US, Asia and Europe. South Korean shipyards’ profit fell in the last two years because higher prices of steel plates used in vessels and the stronger won against the US dollar made the value of the orders secured smaller when converted to the local currency. Hyundai Heavy will build three ships, which can each carry 216,000cu m of LNG, for 713bn won, according to the Ulsan-based company in a statement to the Korea stock exchange.

Carnival Corporation & plc reported record net income of $353 million, or $0.43 diluted EPS, on revenues of $2.6 billion for its fourth quarter ended November 30, 2005. Net income for the fourth quarter of 2004 was $294 million, or $0.36 diluted EPS, on revenues of $2.2 billion. Net income for the year ended November 30, 2005 was $2.3 billion, or $2.70 diluted EPS, on revenues of $11.1 billion, compared to net income of $1.9 billion, or $2.24 diluted EPS, on revenues of $9.7 billion for the same period in 2004. Fourth quarter revenues increased by 14.4 percent driven by both a 9.1 percent increase in cruise capacity and a significant increase in cruise revenue yields (revenue per available lower berth day), partially offset by a stronger U.S. dollar relative to the euro and sterling.

Moody's Investors Service has placed the Baa2 foreign and local currency issuer ratings of Malaysia International Shipping Corporation Berhad (MISC) on review for possible downgrade. requirements. secured debt. This may lead to legal and structural subordination for creditors at the MISC level. incurred, it will in fact lead to structural and/or legal subordination for unsecured creditors at the MISC level. Moody's will take a close look at the structure of the new financing and assess the impact of such on the financial profile of MISC.

Moody's Investors Service has assigned Baa2 foreign currency and local currency issuer ratings to Malaysia International Shipping Corporation Berhad (MISC). The outlook for the ratings is stable. The ratings of MISC are assigned on a stand-alone basis. Moody's ratings reflect the strong and stable cash flow of MISC derived from long-term contracts. The long-term nature of these contracts ensures MISC a stable revenue stream. Moody's recognises that the LNG shipping contracts of MISC for MLNG and MLNG2 are long-term contracts on a "take-or-pay" basis. Moody's further expects MISC to enter into similar long-term "take-or-pay" contracts for MLNG3. The inherently highly profitable LNG business, which reflects high demand for LNG, in Moody's opinion, is likely to persist for some time.

Transocean Inc announced that Statoil on behalf of a consortium consisting of Statoil, Eni, Norsk Hydro and Shell has awarded multi-year contracts valued at an estimated $700 million in revenues for the company's High-Specification semisubmersible rigs Transocean Arctic and Polar Pioneer. The Transocean Arctic has been awarded an estimated 50-month contract for drilling, completion and intervention work on the Norwegian Continental Shelf. The contract is expected to commence in the third quarter of 2006 following completion of the rig's current contract offshore Norway, also with Statoil. Revenues of approximately $395 million could be generated over the estimated 50-month contract period.