Major Buyers of Russian Oil Struggle with Bank Guarantees
The global oil market was thrown into chaos on Thursday after Russia invaded Ukraine, with top buyers of Russian oil struggling to secure guarantees at Western banks or find ships to take crude from one of the world's largest producers.At least three major buyers of Russian oil have been unable to open letters of credit from Western banks to cover purchases on Thursday, four trading sources said, citing market uncertainty after the Russian invasion.Russia produces every 10th barrel in the world and oil prices jumped to above $105 per barrel on Thursday, their highest since 2014, due to fears of disruptions.In the Black Sea, a Turkish-owned ship was hit by a bomb off the coast of Ukraine's port city Odessa…
Ship Repair: A Financial Balancing Act
Shipowners have limited options to access financing for ship repair, given the capital-intensive nature of vessel repairs also represents a financial risk for shipyards, according to ship finance expert Ingmar Loges of UK-based ship repair group Newport Shipping.Loges, who joined Newport in early 2020 as Managing Director for the Hamburg office, has a 25-year track record in ship finance having served as global head of shipping and offshore finance with leading financial institutions.Money TightTypically…
Irish Ferries Orders New Ship for Dublin-Holyhead Route
Irish Continental Group plc (ICG) said it has ordered a new cruise ferry set to be the world’s largest in terms of vehicle capacity, due for delivery in 2020. The new €165.2 million ($199.4 million) cruise ferry is being built by German shipbuilder Flensburger Schiffbau-Gesselschaft & Co.KG (FSG), specifically for Irish Ferries’ Dublin - Holyhead services. It is expected to replace the schedule of the MV Ulysses, which in turn will replace the chartered-in vessel MV Epsilon. This will allow for the deployment of the W.B. Yeats (arriving mid 2018) full-time on the direct Ireland - France route alongside the MV Oscar Wilde. ICG said the new 67,300 gross ton cruise ferry will increase Irish Ferries’ freight and tourism carrying capacity on the fast-growing Dublin - Holyhead route.
Court Orders Swiber to Stop Payment of Bank Guarantees
Swiber Offshore Construction, part of troubled Singapore oilfield services firm Swiber Holdings, has received an interim court order to halt payment of bank guarantees for projects it was involved in, a stock exchange filing showed. Parent company Swiber Holdings last month applied to place itself under judicial management, after initially filing for liquidation, becoming the largest local company to fall victim to the slump in oil prices. Judicial management allows for a company to be nursed back to health under the supervision of the Singapore Court.
Qatar Onslaught of LNG Supply to Shake-up the Market
Gas giant Qatar is the world’s top supplier of liquefied natural gas (LNG), but in the coming five years it could be surpassed by Australia, a shift which could weigh on its dominance in Asia, reports Reuters. Asia accounts for almost three quarters of the global market and has paid the highest prices. And Qatar is becoming commercially sharper, using traders and tenders to grab new customers, and fighting to hold on to its share in the prized Asian market. According to Noel Tomnay, head of global gas and LNG research at Wood Mackenzie, previously, Qatar’s strategy had been about retaining price, in future it’s going to be about retaining market share. As lots of Australian LNG comes into the market, it’s inevitably going to push out some Qatari volumes from Asia.
Mingde Heavy is Bankrupt
Nantong’s Tongzhou District People’s Court has put an end to the restructuring appeal by debt-ridden Nantong Mingde Heavy Industry, and officially declared it bankrupt. A a request by Mingde to extend the submission of its restructuring plan, after it lapsed on 25 June, was not successful. Hence, Mingde itself applied for bankruptcy. Mingde was a leading shipyard for chemical tankers. Due to its financial difficulties Mingde was unable to receive bank guarantees, and had to team up with Shenzhen-listed Sainty Marine on new orders. Sainty Marine had applied to help restructure Mingde via a debt-for-equity rescue deal. But the rescue plan failed to make any progress as Sainty Marine is itself mired in financial troubles.
Scandlines Cancel P+S WERFTEN Ferry Contract
P+S WERFTEN's insolvency administrator unfazed by Scandlines' decision to cancel construction contract for two ferries. "I am unperturbed, because I had included the cancellation by Scandlines in my calculations. In recent weeks we had made the two ships, the shipbuilding premises, staff and all construction plans available to Scandlines as well as to other shipbuilders and sub-contractors and in addition we conducted tests ourselves on the ships. Scandlines did not inform us to the scope agreed on about the results of the negotiations with the other shipbuilders. Nonetheless, the commercial offer made by Scandlines is also not acceptable. We presented the offer to the board of creditors this past Thursday. The board of creditors was also not willing to engage in this offer.
Moody's Downgrades Cammell Laird
Moody's downgraded to Caa2 from B2 the rating for the Euro 125 million senior notes of Cammell Laird Holdings plc following the announcement of its key customer Costa Crociere to terminate a high value contract with CLH to convert the cruise ship Costa Classica. CLH has rejected Costa's right to terminate the contract and has stated that it will take all necessary action to protect its commercial position. At the time of the original rating assignment, the Costa contract was already in an advanced stage and considered to be a reference contract for the flow of future orders. Cash flows from those future orders were expected to provide the means for servicing the company's debt.
