Tanker Market and IMO 2020 Sulfur Emissions. ASBA Cargo Conference September 2018

Transcription

1 Tanker Market and IMO 2020 Sulfur Emissions ASBA Cargo Conference September 2018

2 Navig8 Group Overview Jason Klopfer 170+ vessels under management 6 tanker, 5 chemical, 2 OSV pools World s largest independently managed fleet 40 pool members from 19 countries 18 offices worldwide 2 asset-owning platforms with 100+ vessels seafarers under management 5,400,000+ metric tons of bunkers supplied last year 100+ newbuildings supervised 1

3 International Seaways (NYSE: INSW) Leading diversified tanker owner with exposure to market recovery in crude and product sectors 53 vessel fleet with balanced mix of contracted cash flows and spot market upside Two joint ventures that provide stable cash flows and significantly contribute to INSW book values Conventional Tanker Fleet 47 Ships 2

4 Mjølner Shipping Turnkey Vessel Management solutions for Shipowners, Principals and Investors with Oil Tanker Assets INNOVATIVE Commercial Management service with customized fee structures to meet our Principals needs PREMIUM RETURNS Premium rates of return through focused trading strategies that optimize asset utilization FREIGHT SOLUTIONS Trusted transportation provider for Traders, Refiners and Oil Majors FULL SERVICE Marketing Operations Financial Reporting Chartering Post Fixture Cash Management Key Mjølner Participants Our Current Fleet A mix of modern tankers totaling over 2.3 million tons deadweight VLCC CLASS (300,000 DWT) Silver Glory Gulf Glory New Prosperity Seaways Mulan Seaways Sakura SUEZMAX CLASS (159,000 DWT) 17 February AFRAMAX CLASS (115,000 DWT) Aljalaa Alyarmouk Alqadisia Lady M PANAMAX CLASS (75,000 DWT) Gulf Pearl Gulf Stream 3

5 Monjasa Global Shipping Partner Since 2002 One brand business Bunker trading and physical supply by our fleet of 20 tankers deployed in Panama, the Arabian Gulf, Northwest Europe and West Africa. Local and personal 8 global offices, including Stamford and Panama City. In total, 500 employees and a yearly supply volume of 4 million mts of bunkers. Strong financial position Total revenue of USD 1.4 billion in 2017 and consolidated equity of USD 125 million. 4

6 Americas Europe Middle East & Africa Southeast Asia 2020 Sulfur Cap a Fuel Supplier s Perspective by Rasmus Jacobsen, Managing Director

7 A Defining Moment Implementation of IMO s 2020 Sulfur Cap will prevent 200,000 premature deaths globally 250 mio metric tonnes to change from 3.5% to 0.5% sulfur content A defining moment for shipping and the oil industry. Positive Environmental Impact Cleansing & Aligning Industry Standards Enforcing Global Quality & Compliance

8 Main Challenges Ahead Availability Pricing Quality Financing

9 1 Availability Compliant fuel will be available, while HSFO storage capacity will diminish Oil Majors are ready and have been working to meet demand for years 2 Pricing The financial incentive for non-compliance appears significant Geographic and pricing perspectives are still not firm Global availability of VLSFO HSFO is likely to be available in main ports Contract sales will determine HSFO availability in less developed ports/regions Oil analysts expect a VLSFO / HSFO price spread of USD 425/mts by 2020 Marine Gas Oil prices expected to increase Limited regional availability of HSFO may lead to higher prices locally

10 3 Quality Increased complexity ahead as we await firm specifications 4 Financing Across the board implications. Further consolidation unavoidable Quality and compatibility challenges are still unknown ISO specifications on VLSFO unknown until 2020/2021 Interim guidance via ISO Publicly Available Specification (PAS) Technical complexities solved through collaboration and solid seamanship Increasing demand for documentation trail for future claims handling USD 25-60bn of additional funds needed across owners, charterers, banks and fuel suppliers Owners and charterers looking for additional financing in an already tough market Credit insurance companies needed to adjust their cover Oil majors and large commodity trading companies are well positioned Some bunker suppliers are already reducing standard credit terms from 30 to 21 days

11 Monjasa Believes in Setting New Industry Standards Compliance Transparency Cooperation IMO 2020 Ensuring sustainable availability of compliant fuel. Playing with open cards & enforcing clear document trails. Working with all enforcement stakeholders to create an even playing field. Using IMO 2020 rule as a lever to increase quality & transparency within the industry.