Latest news with #VLGC
The Sun
31-05-2025
- Business
- The Sun
US ethane exports to China hit new road block with license requirement
SINGAPORE/HOUSTON: U.S. exporters face potential disruption to their shipments of petrochemical feedstock ethane after the Commerce Department told them to seek licenses to export to top buyer China, according to trade sources and shipping data. Chinese petrochemical producers rely on the United States for almost all their ethane imports, buying about half of the total U.S. exports of the gas. Washington ordered a broad swath of companies to stop shipping goods to China without a license and revoked licenses already granted to some suppliers, Reuters reported on Wednesday. Those goods included ethane, as well as butane gas. If U.S. exporters are unable to obtain licenses quickly, they will need to seek alternative buyers. Costs for Chinese petrochemical makers will rise as they compete for alternative sources of ethane or switch to another more expensive petrochemical feedstock such as naphtha. China imported a record 230,000 barrels per day (bpd) of ethane from the United States last year, according to the U.S. Energy Information Administration. Ethane is a byproduct of oil and gas production and is primarily used to make plastics. The exports have been caught in the trade war between the U.S. and China. Last month, China increased levies on imports of U.S. goods to 125% but waived the tariff for petrochemical producers. At least two Very Large Gas Carriers (VLGC) were waiting at U.S. ports to load ethane this week while 15 more tankers are headed to, or waiting off, the U.S. Gulf Coast, to load about 284,000 bpd of ethane in June, Kpler data showed. 'It's going to be a major issue if all exports are suspended,' said a Chinese ethane importer, who sought anonymity because he is not authorized to speak to media. 'We are cautiously watching if exporters can obtain new export licenses soon.' Petrochemical producer Ineos was scheduled to load ethane on VLGC Pacific Ineos Grenadier from Enterprise Products Partners' terminal in Morgan's Point, Texas, on May 24 for export to China, according to Kpler shipping tracking data. The ship docked on May 24 but has yet to load, according to LSEG tracking data. Enterprise, a top exporter of ethane, said in a regulatory filing on Thursday that it had received a letter from the Commerce Department on May 23 requiring a license to export ethane and butane to China. Enterprise said it was evaluating its procedures and internal controls and could not determine if it would be able to obtain a license. Enterprise and Ineos did not respond to requests for comment. The U.S. Commerce Department did not immediately respond to a request for comment. Ineos may divert the cargo to one of its European plants if it cannot ship it to China, one trade source said. The next vessel expected to load for ethane exports to China is the Stl Qianjiang, which is anchored near Energy Transfer's Nederland terminal, the data showed. That vessel is scheduled to ship ethane to Chinese petrochemical firm Satellite Chemical. Energy Transfer did not respond to requests for comment, while Satellite Chemical could not be reached for comment. 'We will continue working with the administration to ensure there are no unnecessary obstacles to these important trade flows,' said Dustin Meyer, senior vice president of Policy, Economics and Regulatory Affairs at the American Petroleum Institute trade group. 'The market disruption could be immediate,' Julian Renton, an analyst at East Daley Analytics, said in a note. Traders said there may be limited near-term impact on Chinese operators, as they have sufficient stocks to keep operations going for now. East Daley's Renton said that if the restriction holds, Chinese petrochemical plants could face critical feedstock shortfalls, while projects may stall. Shares of Enterprise were down 1.12% on Friday, while Energy Transfer shares were down 1.4%. Shares of ethane importers Satellite Chemical were down 3.1% earlier on Friday, while Wanhua Chemical stock lost 1.3%.
The Sun
31-05-2025
- Business
- The Sun
US ethane exports to China face new licensing hurdles
SINGAPORE/HOUSTON: U.S. exporters face potential disruption to their shipments of petrochemical feedstock ethane after the Commerce Department told them to seek licenses to export to top buyer China, according to trade sources and shipping data. Chinese petrochemical producers rely on the United States for almost all their ethane imports, buying about half of the total U.S. exports of the gas. Washington ordered a broad swath of companies to stop shipping goods to China without a license and revoked licenses already granted to some suppliers, Reuters reported on Wednesday. Those goods included ethane, as well as butane gas. If U.S. exporters are unable to obtain licenses quickly, they will need to seek alternative buyers. Costs for Chinese petrochemical makers will rise as they compete for alternative sources of ethane or switch to another more expensive petrochemical feedstock such as naphtha. China imported a record 230,000 barrels per day (bpd) of ethane from the United States last year, according to the U.S. Energy Information Administration. Ethane is a byproduct of oil and gas production and is primarily used to make plastics. The exports have been caught in the trade war between the U.S. and China. Last month, China increased levies on imports of U.S. goods to 125% but waived the tariff for petrochemical producers. At least two Very Large Gas Carriers (VLGC) were waiting at U.S. ports to load ethane this week while 15 more tankers are headed to, or waiting off, the U.S. Gulf Coast, to load about 284,000 bpd of ethane in June, Kpler data showed. 'It's going to be a major issue if all exports are suspended,' said a Chinese ethane importer, who sought anonymity because he is not authorized to speak to media. 'We are cautiously watching if exporters can obtain new export licenses soon.' Petrochemical producer Ineos was scheduled to load ethane on VLGC Pacific Ineos Grenadier from Enterprise Products Partners' terminal in Morgan's Point, Texas, on May 24 for export to China, according to Kpler shipping tracking data. The ship docked on May 24 but has yet to load, according to LSEG tracking data. Enterprise, a top exporter of ethane, said in a regulatory filing on Thursday that it had received a letter from the Commerce Department on May 23 requiring a license to export ethane and butane to China. Enterprise said it was evaluating its procedures and internal controls and could not determine if it would be able to obtain a license. Enterprise and Ineos did not respond to requests for comment. The U.S. Commerce Department did not immediately respond to a request for comment. Ineos may divert the cargo to one of its European plants if it cannot ship it to China, one trade source said. The next vessel expected to load for ethane exports to China is the Stl Qianjiang, which is anchored near Energy Transfer's Nederland terminal, the data showed. That vessel is scheduled to ship ethane to Chinese petrochemical firm Satellite Chemical. Energy Transfer did not respond to requests for comment, while Satellite Chemical could not be reached for comment. 'We will continue working with the administration to ensure there are no unnecessary obstacles to these important trade flows,' said Dustin Meyer, senior vice president of Policy, Economics and Regulatory Affairs at the American Petroleum Institute trade group. 'The market disruption could be immediate,' Julian Renton, an analyst at East Daley Analytics, said in a note. Traders said there may be limited near-term impact on Chinese operators, as they have sufficient stocks to keep operations going for now. East Daley's Renton said that if the restriction holds, Chinese petrochemical plants could face critical feedstock shortfalls, while projects may stall. Shares of Enterprise were down 1.12% on Friday, while Energy Transfer shares were down 1.4%. Shares of ethane importers Satellite Chemical were down 3.1% earlier on Friday, while Wanhua Chemical stock lost 1.3%.
Yahoo
23-05-2025
- Business
- Yahoo
Dorian LPG Ltd (LPG) Q4 2025 Earnings Call Highlights: Strong Cash Flow and Strategic ...
Free Cash: $317 million as of March 31, 2025, up sequentially from the previous quarter. Cash Flow from Operations: Increased from $24 million to $50.3 million quarter over quarter. Dividend: $0.50 per share, totaling approximately $21 million, with over $155 million paid in dividends for the fiscal year. Debt Balance: $557.4 million at quarter end, with a debt to total book capitalization of 34.8% and net debt to total capitalization of 15%. Time Charter Equivalent (TCE) Revenue: $35,300 per available day for the fourth quarter. Adjusted EBITDA: $36.6 million for the quarter. Daily Operating Expenses (OpEx): $11,000 per day, excluding dry-docking related expenses. Total G&A Expenses: $8.3 million for the quarter, with cash G&A at $6.8 million. Interest Expense: Total cash interest expense was $6.7 million for the quarter. Scrubber Vessel Savings: $1.37 million for the first quarter of 2025, or about $1,174 per calendar day per vessel. Warning! GuruFocus has detected 5 Warning Sign with LPG. Release Date: May 22, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Dorian LPG Ltd (NYSE:LPG) declared a dividend of $0.50 per share, totaling $21.3 million, reflecting a commitment to returning capital to shareholders. The company reported a strong financial position with $317 million in free cash and a significant increase in cash flow from operations. US LPG exports remained strong, with more than 300 VLGCs loading over 14 million tonnes in the last quarter, supporting a balanced freight market. Dorian LPG Ltd (NYSE:LPG) is investing in energy-saving devices and performance optimization, with plans to convert some VLGCs to facilitate ammonia carriage. The company has a well-structured and attractively priced debt capital, with a debt to total book capitalization of 34.8% and net debt to total capitalization at 15%. The LPG market faced volatility due to trade tensions between the US and China, impacting freight rates and market stability. Dorian LPG Ltd (NYSE:LPG) experienced a challenging LPG product environment, with reported TCE revenue per available day marginally lower than the prior quarter. The company faced increased operational expenses, with daily OpEx rising to $11,000 per day, excluding dry-docking related expenses. The market experienced disruptions due to repeated cold spells in the US, affecting domestic LPG demand and leading to increased costs. The potential impact of future trade tensions remains uncertain, posing risks to market stability and demand for LPG exports. Q: Could you explain the recent strength in the VLGC market and any trade pattern changes following the US-China trade developments? A: Tim Hansen, Chief Commercial Officer, explained that the market strength is driven by altered trade flows due to tariffs, with cargoes going from the US to India and Southeast Asia, increasing ton miles. Despite the tariffs, demand remains strong, and the market outlook for 2025 was already positive due to limited newbuilding deliveries and high production levels. Q: Have you noticed a significant increase in inquiries or fixtures from Chinese buyers since the recent US-China trade deal? A: Tim Hansen noted that while the trade routes have shifted, there hasn't been a flood of inquiries from Chinese buyers. The market seems to have settled, with US cargoes still being directed to India, maintaining a balance and avoiding surprises from potential tariff changes. Q: Given the recent rate improvements, is there potential for a higher dividend in the future? A: Theodore Young, CFO, stated that while the rate outlook has improved, the Board's decision on dividends will depend on the environment at the time of their next meeting. The decision will be made with the best available information, acknowledging that market conditions can change. Q: What are the current financial highlights and liquidity position of Dorian LPG? A: Theodore Young reported a free cash balance of $317 million as of March 31, 2025, with cash flow from operations more than doubling quarter over quarter. The company has a debt balance of $557.4 million, with a debt to total book capitalization of 34.8% and net debt to total capitalization at 15%. Q: How is Dorian LPG addressing sustainability and operational efficiency? A: John Lycouris, CEO, highlighted ongoing efforts to improve energy efficiency and sustainability, including optimizing vessel operations, utilizing scrubbers, and upgrading vessels to carry ammonia cargo. These initiatives align with long-term value creation and environmental responsibility. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Time of India
08-05-2025
- Business
- Time of India
Japan's Mitsui O.S.K. Lines expands Indian flag fleet with a Very Large Gas Carrier
MUMBAI: Japan's Mitsui O.S.K. Lines , Ltd (MOL), the world's second largest ship owner by fleet size, has added a Very Large Gas Carrier (VLGC) to the fleet run by its Indian unit, reinforcing a rising trend among foreign fleet owners to register some of their ships in the world's fastest growing major economy. The 2010-built liquefied petroleum gas tanker named 'Green Sachi' and earlier flagged in Liberia was converted to the Indian flag recently and inducted into the fleet of MOL (India) Pvt Ltd, the ship owner said. MOL (India) runs 11 Indian flagged gas, product and crude tankers, making it the fourth largest Indian ship owner by fleet size. MOL (India), formed in the Domestic Tariff Area (DTA), is also engaged in car carrier transportation and ship management, further expanding its footprint in India. Separately, MOL has opened a unit – MOL Shipping IFSC Pvt Ltd - in the Gujarat International Finance Tec-City ( GIFT City ), India's first and currently the only International Financial Services Centre (IFSC) operating under the Special Economic Zone Act, for leasing and operating ships. On April 28, Marseille, France-based CMA CGM S A, the world's third largest container shipping line, converted one of its foreign flag container ships to the Indian flag, making it the first big global container carrier to register a container ship in India. The carrier is in the process of converting three more of its foreign flag container ships to the Indian flag. The four container ships will be owned by CMA CGM's Indian unit - CMA CGM Shipping Assets India IFSC Pvt Ltd – set up in the GIFT City. On March 31, Oslo and New York-listed BW LPG Ltd, the world's top owner and operator of LPG vessels, including VLGC, said it will sell two modern VLGCs to its Indian unit – BW LPG India – in a deal worth $150 million. The ship purchase will help BW LPG India - the largest owner and operator of Indian-flagged VLGCs – expand its fleet to nine LPG carriers. Both MOL and BW LPG India have benefitted from a so-called right of first refusal (RoFR) available to Indian flag ships for moving state-owned cargo along with the subsidy given by the government to Indian shipping companies in global tenders floated by ministries, departments and Central Public Sector Enterprises (CPSEs) for importing some specified cargo. Under the Cabinet approved subsidy scheme, Indian fleet owners get a 5-15 per cent extra on charter rates, depending on age slabs, on ships registered in India after February 1, 2021. The government has budgeted a corpus of Rs 1,624 crore to be disbursed as subsidy for moving crude oil, LPG, coal, and fertiliser cargo for state-run firms, over five years till 2026, to boost Indian tonnage .
Time of India
08-05-2025
- Business
- Time of India
Japan's Mitsui O.S.K. Lines expands Indian flag fleet with a Very Large Gas Carrier, ET EnergyWorld
Advt Advt By , ETInfra Join the community of 2M+ industry professionals Subscribe to our newsletter to get latest insights & analysis. Download ETEnergyworld App Get Realtime updates Save your favourite articles Scan to download App Japan's Mitsui O.S.K. Lines , Ltd (MOL), the world's second largest ship owner by fleet size, has added a Very Large Gas Carrier (VLGC) to the fleet run by its Indian unit, reinforcing a rising trend among foreign fleet owners to register some of their ships in the world's fastest growing major 2010-built liquefied petroleum gas tanker named 'Green Sachi' and earlier flagged in Liberia was converted to the Indian flag recently and inducted into the fleet of MOL (India) Pvt Ltd, the ship owner (India) runs 11 Indian flagged gas, product and crude tankers, making it the fourth largest Indian ship owner by fleet size. MOL (India), formed in the Domestic Tariff Area (DTA), is also engaged in car carrier transportation and ship management, further expanding its footprint in MOL has opened a unit – MOL Shipping IFSC Pvt Ltd - in the Gujarat International Finance Tec-City ( GIFT City ), India's first and currently the only International Financial Services Centre (IFSC) operating under the Special Economic Zone Act, for leasing and operating April 28, Marseille, France-based CMA CGM S A , the world's third largest container shipping line, converted one of its foreign flag container ships to the Indian flag, making it the first big global container carrier to register a container ship in India. The carrier is in the process of converting three more of its foreign flag container ships to the Indian four container ships will be owned by CMA CGM 's Indian unit - CMA CGM Shipping Assets India IFSC Pvt Ltd – set up in the GIFT March 31, Oslo and New York-listed BW LPG Ltd, the world's top owner and operator of LPG vessels, including VLGC, said it will sell two modern VLGCs to its Indian unit – BW LPG India – in a deal worth $150 ship purchase will help BW LPG India - the largest owner and operator of Indian-flagged VLGCs – expand its fleet to nine LPG MOL and BW LPG India have benefitted from a so-called right of first refusal (RoFR) available to Indian flag ships for moving state-owned cargo along with the subsidy given by the government to Indian shipping companies in global tenders floated by ministries, departments and Central Public Sector Enterprises (CPSEs) for importing some specified the Cabinet approved subsidy scheme, Indian fleet owners get a 5-15 per cent extra on charter rates, depending on age slabs, on ships registered in India after February 1, government has budgeted a corpus of Rs 1,624 crore to be disbursed as subsidy for moving crude oil, LPG, coal, and fertiliser cargo for state-run firms, over five years till 2026, to boost Indian tonnage
