Wednesday, June 26th, 2019

 

Pound edges back towards five-month lows on no-deal Brexit fears

LONDON, June 26 — Sterling edged back towards five-month lows today after the top contender to replace Prime Minister Theresa May reaffirmed his desire to take Britain out of the European Union with or without an agreement. Boris Johnson told the…


US stocks gain as market awaits G20 talks

NEW YORK, June 26 — After two down days, Wall Street stocks climbed early today ahead of a crucial US-China trade encounter at this week’s Group of 20 summit in Japan. US Treasury Secretary Steven Mnuchin said he was looking forward to the G20…


Trump says he would impose additional tariffs on China

WASHINGTON, June 26 — US President Donald Trump said today he would impose additional tariffs on China if he did not reach a trade deal with Chinese leader Xi Jinping. “I would do additional tariffs, very substantial additional tariffs, if that…


Trump says Fed should cut US rates; Powell doing ‘bad job’

WASHINGTON, June 26 — US President Donald Trump today called on the Federal Reserve to lower interest rates so the United States can compete with countries that he said are devaluing their currencies. Trump said Fed Chair Jerome Powell was doing a…


US business spending appears to stabilise; goods trade gap widens

WASHINGTON, June 26 — New orders for key US-made capital goods rose more than expected in May and shipments increased solidly, suggesting some stabilising in business spending on equipment after a drop early in the year. Other data today showed a…


HK anti-graft agency arrests former senior stock exchange official

HONG KONG, June 26 — Hong Kong’s anti-corruption watchdog has arrested a former senior figure at the Hong Kong Stock Exchange operator for suspected misconduct linked to two listings. The Independent Commission Against Corruption (ICAC) said in…


Trump suggests EU is out of line with lawsuits against US tech firms

WASHINGTON, June 26 — US President Donald Trump today suggested the European Union was out of line bringing lawsuits against US technology companies like Facebook and Alphabet Inc’s Google, saying legal action against those firms should be the…


Moody’s downgrades ratings of Petronas LNG

PETALING JAYA: Moody’s Investors Service has downgraded Petronas LNG Ltd’s (PLL) foreign and local currency issuer ratings to “Baa1” from “A3” following the downgrade of PLL’s ultimate parent Petroliam Nasional Bhd’s (Petronas) rating to “A2” from “A1” last week.

The rating outlook for PLL has also been changed from negative to stable.

“PLL’s ratings downgrade to ‘Baa1’ was driven by the one-notch downgrade of its ultimate parent Petronas’ rating to ‘A2’. PLL’s ratings continue to be positioned two notches below the ‘A2’ ratings of Petronas,“ said Moody’s senior vice-president Vikas Halan.

Petronas indirectly owns 100% of PLL and continues to have strong operational and financial integration with PLL. PLL enjoys ongoing liquidity support from Petronas and it can draw from Petronas’ umbrella credit facility for liquidity management. Petronas has continued to support PLL financially through cash injections of almost US$400 million (RM1.66 billion) since 2015.

Petronas also provides PLL with significant management support and oversight, including monthly reporting on risk and governance to a committee chaired by Petronas. PLL also has an integrated treasury function with Petronas, where its cash is held centrally by Petronas and cash flow requirements are shared with its parent.

“The rating outlook is stable, reflecting the stable outlook on Petronas’ ratings and our expectation of continued strong support and linkages with its ultimate parent Petronas, Moody’s said, adding it will only consider an upgrade if Petronas’ rating is upgraded.


Yinson earnings drop 17.5% in Q1

PETALING JAYA: Yinson Holdings Bhd’s net profit for the first quarter ended April 30, 2019 fell 17.5% to RM49.85 million from RM60.43 million a year ago on higher impairment loss on trade and other receivables of RM2.8 million and higher tax expenses of RM3.1 million.

Revenue fell by 11.1% to RM209 million from RM235.18 million as a result of the charter for floating, production, storage and offloading (FPSO) Allan in Gabon ending in the last financial year.

Yinson group executive chairman Lim Han Weng said overall, it is optimistic of the outlook as FPSO Allan, which completed its charter in January 2019, will be redeployed as FPSO Abigail-Joseph for operations at the Anyala and Madu Fields, Nigeria.

“The group’s balance sheet for the reporting quarter has also been further strengthened with total cash and bank balances of RM1.7 billion, enabling us to cater for investments needed in prospect projects. Addax Petroleum has extended our contract for FPSO Adoon for an additional four years to Oct 16, 2022 with an estimated contract value of US$137.5 million (RM574.1 million),“ Lim said in a statement.

Yinson recently participated in a number of FPSO project tenders in a bid to broaden its market share.

“With Yinson’s strong track record and healthy balance sheet, we are optimistic that we are able to compete alongside other global FPSO operators for the bids that we have entered into, particularly in the Brazil and African region.”


Marine & General in the red in April

PETALING JAYA: Marine & General Bhd (M&G) saw a net loss of RM22.51 million for the month of April due to an additional vessel impairment charge of RM18 million.

It posted RM16.21 million in revenue on the back of strong charter activities.

For the 16-month period, the group reported a net loss of RM76.35 million, while revenue came in at RM232.75 million.

M&G has changed its financial year end from Dec 31 to April 30 and that the financial period ending April 30, 2019 covers a 16-month period from Jan 1, 2018 to April 30, 2019.

In its upstream division, M&G said the decline in oil price which started in mid-2014 has had a direct and adverse impact on the offshore support vessel industry. Consequently, its operating subsidiary Jasa Merin (Malaysia) Sdn Bhd’s (JMM) vessel utilisation fell from an average of 88% in 2014 to an average of 51% and 48% for 2016 and 2017 respectively. Furthermore, the daily charter rate (DCR) for its vessels also fell by 38% from 2014.

M&G said the admission of JMM’s upstream division to the Corporate Debt Restructuring Committee (CDRC) of Bank Negara Malaysia is consistent with the group’s strategy to streamline its operations and optimise its financial resources to focus and proactively enhance both its upstream and downstream marine logistics business.

Whilst the mediation through CDRC continues, JMM is actively pursuing available opportunities, including securing additional charters that would enable it to improve its vessel utilisation, which has risen from 48% in 2017 to 62% in 2019.

“The board however, remains cautious on the prospects of the upstream division amidst the continuing weak DCR,” it said.

In its downstream division, M&G said its liquid bulk carriers has been fairly robust throughout 2017 and 2018, mirroring the demand for clean petroleum products.