vlcc tanker stocks: Jefferies raises tanker estimates on strengthened earnings power By Investing com

Both Mumbai and Visakh Refineries have been upgraded to produce BS-VI compliant transportation fuels. Rates are expected to be supported by oil companies shifting towards more fuel-efficient younger ships – those less than 15 years old – leading to a large number of older vessels being retired from shipping and used for other purposes. “Unfortunately, shipowners have a talent for shooting themselves in the foot.

The 20-year old VLCC New Diamond, sailing under the Panama flag, was on fire since Thursday morning, about 37 nautical miles off the Sri Lankan coast and in the Sri Lankan Exclusive Economic Zone. The Indian coastal security agency added that the fire on-board of the very large crude carrier New Diamond is still on but on a reduced scale and there is no oil slick. “Our customers prefer younger tonnage – this trend is increasing.

Nagarjuna Oil Corporation Ltd to commission Cuddalore refinery by 2015-end

Usually tankers are used to transport oil whose demand should come down due to demand destruction because of Covid. However, crude oil production continues to be at all time high . While crude demand has reduced from 100mbpd to 70mbpd production has only come off a little. Even after opec cuts and economies opening up demand isnt going to come close to supply. This has caused land storage to fill up and floating storage to be used. “Tanker equities are currently valued at a free cash flow yield of 25% on 2023 earnings. We find this quite attractive as the majority of tanker companies have highlighted return of capital as the key priority going forward.”

Standardized containers transformed global trade by making it possible to get stuff on and off of ships much, much more cheaply and quickly than before. Also, the fixed cost of running a fleet of ships now cost more than the freight in some cases, depending on the fleet allocation . We collect, retain, and use your contact information for legitimate business purposes only, to contact you and to provide you information & latest updates regarding our products & services. We do not sell or rent your contact information to third parties. Ideally, one application per PAN is recommended as applying multiple times does not necessarily increase the chance of securing share allotment.

Great Eastern Shipping owns 3.44 million dwt shipping capacity at the end of the September 2022 quarter. The company had reported a consolidated net profit of Rs 7.6 billion in the September 2022 quarter vis-a-vis Rs 2.2 bn a year earlier. Shipping Corporation owned 5.31 million dwt shipping capacity as on 1 May 2022. It has been a truly record-breaking start to the year for containership contracting, with 2.2m TEU being ordered. This is more than 12 times higher than the 184,254 TEU ordered in the first five months of 2020 and more than 60% higher than the previous record dating back to the start of 2005. Visakh Refinery was the first East Coast Oil refinery of India, commissioned in 1957 by Caltex Oil Refining India Ltd. with a crude processing capacity of 0.675 MMTPA.

• Visakh Refinery, till 1985, used to receive indigenous and imported crude through tankers cargo up to 30 TMT from the Oil Wharf Jetties located in Visakhapatnam Port Trust .
• Indian shipping companies typically have 25-30% of their total shipping capacity dedicated to the dry bulk segment.
• “Should this widening contango trend continue, we expect more charterer interest for hiring VLCCs as floating storage,” said analyst Omar Nokta of Clarkson Capital Markets.
• The rest of the public issue will comprise an offer for sale by existing shareholders and promoters.
• This is because most banks do not always process initial public applications made through current accounts.

Mangalore Refinery and Petrochemicals Ltd. is a joint venture of HPCL. HMEL is a joint venture between HPCL and Mittal Energy Investments Pte Ltd. The Lube Refinery was commissioned in 1969 as a joint venture between ESSO & the Government of India. Get the news updates on WhatsApp & Telegram by subscribing to our channels.

IOC to import Iraqi oil for India’s maiden strategic reserve

Click here to go to economictimes.com Site will load in seconds. Essar Shipping today said its vessel, detained by Singapore authorities, will sail out tomorrow following settlement of a dispute. The project was originally planned to be commissioned in 2012 but was delayed due to cyclone that hit east coast two years back. “We are very committed now to the Indian market. It’s very promising. India’s GDP is about 7%, which is excellent compared to any other country’s growth. Analysts believe it will be 6%-7% for the next 4-5 years,” Ibrahim Al-Omar told. Located along the west coast in Ratnagiri, Maharashtra, Jaigarh Port inaugurated a 42 km road between Jaigarh Port and Nivali. A source from the National Iranian Tanker Company said more than 20 mn barrels of oil will be shipped to China.

Typically, you can https://1investing.in/rove your Seven Islands IPO mandate request on your UPI app. Click here to understand the steps involved to approve the mandate on different UPI apps. You are likely to receive a UPI mandate request on your UPI app within minutes of bidding for the Seven Islands IPO on Angel One app. However, there might be some delay in receiving the mandate request from your designated bank. Seven Islands will be reserving portions of the public issue for qualified institutional buyers , non-Institutional investors and retail individual investors .

The project is expected to be mechanically completed within 4 years from the last date of receipt of all statutory approvals. According to reports, another oil products tanker Helen M, sailing under the Panama flag, had reached the location of New Diamond for rescue after receiving a distress message. Helen M was sailing from Mangaluru to Kakinada in Andhra Pradesh. The oil tanker was expected to reach Paradip in Odisha on September 5 where the IOC has a large refinery.

Indian Oil Corp buys first shale oil from US

The growth in volumes can be attributed to the company’s increased coastal cargo movement, says CEO Ranjit Singh. It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website. I have read and understood Investing.com India’s comments guidelines and agree to the terms described. Don’t Monopolize the Conversation.We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended.

Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more. The government, in the budget unveiled in February, increased its capex, excluding grants to states for capital spending, to ₹10 lakh crore for FY24 from the ₹7.5 lakh crore target set for the ongoing fiscal year. Beauty & wellness co expected to spend Rs 100 crore on acquisition, integration and category development of on-demand beauty services startup.

GE Shipping trades at nearly 4 times consolidated FY23 earnings, while Shipping Corporation of India trades at 14 times. The three big shipbuilding nations are the only ones to have cashed in on the high containership contracting, with China winning the most deals , South Korea in second place and Japan rounding out the trio . So far 43.6m DWT of orders have been placed at shipyards, towering above the 19.8m DWT at the start of 2020, when order levels were lower due to uncertainty at the start of the pandemic. In all of 2020, 49m DWT was ordered, a level which is only 5.5m DWT above the level reached in just the first five months of 2021. The capital adequacy ratio is a measure of how much capital a bank has available, reported as a percentage of a bank’s risk-weighted credit exposures.

The Coast Guard was working on a multi-pronged strategy to prevent an oil spill from the massive vessel, which would be a huge environmental disaster if it occurs. According to Coast Guard, with the coordinated efforts of the Sri Lankan ships and aircraft, the ALP Winger vessel successfully towed New Diamond more than 35 nautical miles away from the island nation’s coast. “If we survive the storm of deliveries of this year and next, from 2018 onwards it could actually be much more smoother sailing for the supertanker market,” said Bancosta’s Leszczynski.

“The vast amount of money pouring into container shipping is finding its way into the shipyards, with the current tightness in the supply of ships incentivising some owners to expand their fleets. Although also making good money in the current market, dry bulk owners have been more reluctant to order new tonnage, with the second-hand market proving more popular,” says BIMCO’s Chief Shipping Analyst, Peter Sand. VLCC freight rates are likely to be lower this year than in 2015, due to the new tonnage, but won’t fall back as far as 2014’s daily average of $27,500 given demand levels, said Peter Sand, chief shipping analyst of industry group BIMCO.

BS-VI Gasoline & BS-VI Diesel, Sulfur, Polypropylene, Linear Low Density Polyethylene, High Density Polyethylene, Benzene, Toluene and 1,3 Butadiene. HPCL Rajasthan Refinery Ltd. was incorporated on 18th September, 2013, as a Joint Venture between Hindustan Petroleum Corporation Limited and Government of Rajasthan with an equity participation of 74% and 26% respectively. BS-VI Gasoline & BS-VI Diesel, Sulfur, Polypropylene, Linear Low-Density Polyethylene, High-Density Polyethylene, Benzene, Toluene and 1,3 Butadiene. The project involves setting up 9 MMTPA Greenfield Refinery cum Petrochemical Complex at Pachpadra in Barmer district of Rajasthan, with flexibility to process a mix of local and imported crudes.

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At a particular point of vlcc tanker stocks there is a fixed fleet of ships floating in the oceans. This is being led by the increase in the Baltic dry freight index, apparently at a 10 year high. However, the biggest concern in the industry is lack of talent. Being a merchant navy used to be a posh career choice – a captain used to earn enough to buy a house on a single shipping assignment now typically earns a pittance, barely just enough to make EMIs and put food on the table.

If any unfavourable change materialises in relation to the tanker division, the Cabotage Law, in particular, the company’s risk profile could be impacted severely. This company has judicious risk management policies, which include acquiring a vessel only after assurance of deployment. Route, SCIL is planning to place higher capacity vessels on the route. Thus, the overall fleet position remained 99 ships the end of the year. As a precursor to renew the contract for the transportation of crude.

• Brent oil prices have managed to rally over USD 61 a barrel, the highest since December, off the lows under USD 49 touched last month, but they remain sharply down from their level over USD 115 a barrel in mid-June of last year.
• By using older vessels, oil traders have been able to hire VLCCs for less than $40,000 a day.
• However, crude oil production continues to be at all time high .

The New York-listed shares of Frontline, which operates a Very Large Crude Carrier fleet, closed at around USD 2.96 on Friday after spiking as high as USD 5.05 in January, up from lows around USD 1.21 in November of last year. “They are now pricing in our expectations of long-dated oil prices,” Goldman said in a note Friday. Regional oil plays are implying a long-dated Brent oil price of USD 65-USD 70 a barrel, in line with the bank`s USD 70 a barrel forecast and the generic 24-month futures contract pricing of USD 70, it said. While New Delhi has not shown its full hand in revealing its intentions, the first reports that SPRs might provide 90 days of net import coverage had stoked industry hopes of an important new pillar of oil demand. On top of rate rises, using older vessels for storage is seen as a boon for tanker owners.