Oil Plunge Deepens High-yield Gloom
US crude fell to a more than six-year low this week, clouding the picture for a high-yield energy sector that already faces a significant cull when credit lines are reevaluated in autumn. Lower-quality names, especially in exploration and production, are already struggling to stay afloat, and with crude dipping below US$38 per barrel, a bad scenario has got worse. According to CreditSights, E&P companies typically obtain credit lines worth around 55%-65% of the estimated value of their reserves, which is redetermined by banks semi-annually. Since the last one in spring, US crude prices have fallen by nearly a third - meaning many companies now face steep cuts to the amount they can borrow. Many are likely to default, and some could well go under.
Fiera Axium Consortium Buys Montreal Terminals
A consortium led by Fiera Axium Infrastructure Inc. The consortium includes Desjardins Group, via its insurance subsidiaries and its pension plan, Manulife, Fonds de solidarité FTQ and Industrial Alliance. Fiera Axium, an independent portfolio management firm focused on infrastructure investments in Canada and the United States, joined co-operative Desjardins Group, financial services provider Manulife, labour fund Fonds de solidarité FTQ and Industrial Alliance to buy the facility, known as Montreal Gateway Terminals. “Montreal Gateway Terminals represents an essential infrastructure asset” so fits with Fiera Axium’s investment strategy, Stéphane Mailhot, president of Fiera Axium, said in a statement.
Veson Nautical Opens New Office
Veson Nautical announced at the 23rd Asia-Pacific Petroleum Conference (APPEC) the opening of its newest location in Singapore and the addition of Jesse DiIanni, who will be leading the company’s project management team. Veson’s staff and location expansions are part of its ongoing Customer Care Program, which includes training, staff and post-implementation initiatives designed to provide enhanced support and services to its customer base. Jesse DiIanni, Veson’s Project Manager, has an understanding of project lifecycles, customer management, and product implementations. Prior to joining Veson, Jesse was Project Manager for MFC Global Investment Systems, which is part of John Hancock.
