CLARIFICATION IN RELATION TO ARTICLE
CLARIFICATION IN RELATION TO THE ARTICLE ENTITLED "RM10B BONDS TO FUND CABLE
PROJECT - FIRST ISSUANCE TO COMMENCE EARLY NEXT YEAR" DATED 4 SEPTEMBER 2009
PUBLISHED BY STAR BIZ
We wish to clarify that Tenaga Nasional Berhad ("TNB") and Sarawak Energy Berhad ("SEB") (collectively referred to as the Consortium) are currently exploring various options with regards to the proposed financing for the implementation of the undersea cable from Sarawak to Peninsular Malaysia.
The abovesaid bond issuance as quoted in Star Biz article on 4 September 2009, is only one of the options being explored by the Consortium.
The Consortium has yet to finalise and decide on the preferred option and details.
The Consortium will make the necessary announcement to Bursa once the decision
on the preferred option has been made.
This announcement is dated 7 September 2009.
*
Monday, September 7, 2009
BNM Reserves ~ 28 Aug 09 : RM 329.1 b
International Reserves of BNM as at 28 August 2009The international reserves of Bank Negara Malaysia amounted to RM329.1 billion (equivalent to USD93.3 billion) as at 28 August 2009.
The reserves position is sufficient to finance 9.3 months of retained imports and is 3.8 times the short-term external debt.
*
The reserves position is sufficient to finance 9.3 months of retained imports and is 3.8 times the short-term external debt.
*
Palm Oil Posts Biggest Weekly Drop in Seven Months on Soybeans
September 5, 2009 9:02 UTC+8
Palm Oil Posts Biggest Weekly Drop in Seven Months on Soybeans
Palm oil posted the biggest weekly decline in seven months on concern a record U.S. soybean harvest will push soybean oil prices lower, encouraging substitution.
The U.S., the world’s largest soybean grower and exporter, may harvest as much as 3.372 billion bushels in the marketing year that began Sept. 1, Informa Economics Inc. said yesterday. That compares with a government estimate of 3.199 billion bushels and FCStone Group Inc.’s forecast of 3.266 billion.
“Palm oil prices have been dragged down” by reports of the record harvest, Ivy Ng, an analyst at CIMB Securities in Kuala Lumpur, said by phone. “There’s been some short-term news flow that’s not favoring a further uptrend in prices.”
November-delivery palm oil dropped 1 percent to 2,197 ringgit ($623) a metric ton on the Malaysia Derivatives Exchange, completing a decline of 7.3 percent this week, the biggest since the week ended Feb. 20.
Palm oil and soybean oil, the world’s two most-consumed edible oils, are used in food and bio-fuel production.
Soybean oil for December delivery gained 0.2 percent to 34.72 cents a pound in after-hours electronic trading on the Chicago Board of Trade at 6:09 p.m. Singapore time. The futures, down 5.4 percent this week, were headed for the biggest tumble since the week ended July 10.
Inventory Outlook
Palm oil exports from Malaysia, the world’s second-biggest producer, fell 7.9 percent to 1.298 million tons in August from a month earlier, according to data tracked by Societe Generale de Surveillance and released Sept. 1.
Intertek, another independent surveyor, said Sept. 1 it tracked shipments of 1.33 million tons of palm oil from Malaysia, down 4.9 percent from a month earlier.
Falling exports may lift stockpiles, analysts say. Official August data will be released by the Malaysian Palm Oil Board next week.
Palm oil stockpiles in Malaysia, the world’s second-biggest producer, dropped in July for the first time in three months to 1.33 million tons on an export surge, the board’s data showed.
“Any correction in crude palm oil prices from here is likely to be limited,” supported by “a likely month-on-month pick-up in August 2009 crude palm oil inventory levels for Malaysia,” according to a report by JPMorgan Securitites (Malaysia) led by Simone Yeoh, a plantation analyst in Kuala Lumpur.
She forecasts inventory rising to more than 1.4 million tons, which will still be 20 percent below the same month last year. She maintained her average forecast of 2,450 ringgit in the second half of this year.
Palm Oil Posts Biggest Weekly Drop in Seven Months on Soybeans
Palm oil posted the biggest weekly decline in seven months on concern a record U.S. soybean harvest will push soybean oil prices lower, encouraging substitution.
The U.S., the world’s largest soybean grower and exporter, may harvest as much as 3.372 billion bushels in the marketing year that began Sept. 1, Informa Economics Inc. said yesterday. That compares with a government estimate of 3.199 billion bushels and FCStone Group Inc.’s forecast of 3.266 billion.
“Palm oil prices have been dragged down” by reports of the record harvest, Ivy Ng, an analyst at CIMB Securities in Kuala Lumpur, said by phone. “There’s been some short-term news flow that’s not favoring a further uptrend in prices.”
November-delivery palm oil dropped 1 percent to 2,197 ringgit ($623) a metric ton on the Malaysia Derivatives Exchange, completing a decline of 7.3 percent this week, the biggest since the week ended Feb. 20.
Palm oil and soybean oil, the world’s two most-consumed edible oils, are used in food and bio-fuel production.
Soybean oil for December delivery gained 0.2 percent to 34.72 cents a pound in after-hours electronic trading on the Chicago Board of Trade at 6:09 p.m. Singapore time. The futures, down 5.4 percent this week, were headed for the biggest tumble since the week ended July 10.
Inventory Outlook
Palm oil exports from Malaysia, the world’s second-biggest producer, fell 7.9 percent to 1.298 million tons in August from a month earlier, according to data tracked by Societe Generale de Surveillance and released Sept. 1.
Intertek, another independent surveyor, said Sept. 1 it tracked shipments of 1.33 million tons of palm oil from Malaysia, down 4.9 percent from a month earlier.
Falling exports may lift stockpiles, analysts say. Official August data will be released by the Malaysian Palm Oil Board next week.
Palm oil stockpiles in Malaysia, the world’s second-biggest producer, dropped in July for the first time in three months to 1.33 million tons on an export surge, the board’s data showed.
“Any correction in crude palm oil prices from here is likely to be limited,” supported by “a likely month-on-month pick-up in August 2009 crude palm oil inventory levels for Malaysia,” according to a report by JPMorgan Securitites (Malaysia) led by Simone Yeoh, a plantation analyst in Kuala Lumpur.
She forecasts inventory rising to more than 1.4 million tons, which will still be 20 percent below the same month last year. She maintained her average forecast of 2,450 ringgit in the second half of this year.
Baltic Dry Index ~ wikipedia
Baltic Dry Index
From Wikipedia, the free encyclopedia
The Baltic Dry Index (BDI) is a number issued daily by the London-based Baltic Exchange. Not restricted to Baltic Sea countries, the Index tracks worldwide international shipping prices of various dry bulk cargoes.
The index provides "an assessment of the price of moving the major raw materials by sea. Taking in 26 shipping routes measured on a timecharter and voyage basis, the index covers Handymax, Panamax, and Capesize dry bulk carriers carrying a range of commodities including coal, iron ore and grain.
Content :
1 Historical origin
2 How it works
3 Why economists and stock markets read it
4 Impact of 2008 financial crisis
5 References
6 External links
Historical origin
The BDI traces its roots to the Virginia and Baltick Coffeehouse in London's financial district in 1744.
How it works
Every working day, the Baltic canvasses brokers around the world and asks how much it would cost to book various cargoes of raw materials on various routes (e.g. 100,000 tons of iron ore from San Francisco to Hong Kong, or 1,000,000 metric tons of rice from Bangkok to Tokyo). [2]
The index is made up of an average of the Baltic Supramax, Panamax, and Capesize indices. These indices are based on professional assessments made by a panel of international shipbroking companies.
The BDI factors in the four different sizes of oceangoing dry bulk transport vessels
The BDI is based on US dollars, so may also be influenced by changes in the value of the US dollar.
The index can be accessed on a subscription basis directly from the Baltic Exchange as well as from major financial information and news services such as Thomson Reuters and Bloomberg L.P..
Why economists and stock markets read it
Most directly, the index measures the demand for shipping capacity versus the supply of dry bulk carriers. The demand for shipping varies with the amount of cargo that is being traded or moved in various markets (supply and demand).
The supply of cargo ships is generally both tight and inelastic — it takes two years to build a new ship, and ships are too expensive to take out of circulation the way airlines park unneeded jets in the Arizona desert. So marginal increases in demand can push the index higher quickly, and marginal demand decreases can cause the index to fall rapidly. e.g. "if you have 100 ships competing for 99 cargoes, rates go down, whereas if you've 99 ships competing for 100 cargoes, rates go up. in other words, small fleet changes and logistical matters can crash rates..."[6] The index indirectly measures global supply and demand for the commodities shipped aboard dry bulk carriers, such as building materials, coal, crude oil, metallic ores, and grains.
Because dry bulk primarily consists of materials that function as raw material inputs to the production of intermediate or finished goods, such as concrete, electricity, steel, and food, the index is also seen as an efficient economic indicator of future economic growth and production. The BDI is termed a leading economic indicator because it predicts future economic activity.[7]
Because it provides "an assessment of the price of moving the major raw materials by sea," according to The Baltic, "... it provides both a rare window into the highly opaque and diffuse shipping market and an accurate barometer of the volume of global trade -- devoid of political and other agenda concerns."[2]
Another index, the HARPEX, focuses on containers freight. It provides an insight on the transport of a much wider base of commercial goods than commodities alone.
Other leading economic indicators — which serve as the foundation of important political and economic decisions - are often massaged to serve narrow interests, and subjected to adjustments or revisions. Payroll or employment numbers are often estimates; consumer confidence appears to measure nothing more than sentiment, often with no link to actual consumer behavior; gross national product figures are consistently revised, and so forth. Unlike stock and bond markets, the BDI "is totally devoid of speculative content," says Howard Simons, an economist and columnist at TheStreet.com. "People don't book freighters unless they have cargo to move."[2]
Impact of 2008 financial crisis
On 20 May 2008 the index reached its record high level since its introduction in 1985, reaching 11,793 points. Half a year later, on 5 December 2008, the index had dropped by 94%, to 663 points, the lowest since 1986.[8], though by 4 February 2009 it had recovered a little lost ground, back to 1,316.[9] These low rates move dangerously close to the combined operating costs of vessels, fuel, and crews.
By the end of 2008, shipping times had been already increased by reduced speeds to save fuel consumption, but lack of credit meant the reduction of letters of credit, historically required to load cargoes for departure at ports. Debt load of future ship construction was also a problem for shipping companies, with several major bankruptcies and implications for shipyards. This, combined with the collapsing price of raw commodities created a perfect storm for the world's marine commerce.
*
From Wikipedia, the free encyclopedia
The Baltic Dry Index (BDI) is a number issued daily by the London-based Baltic Exchange. Not restricted to Baltic Sea countries, the Index tracks worldwide international shipping prices of various dry bulk cargoes.
The index provides "an assessment of the price of moving the major raw materials by sea. Taking in 26 shipping routes measured on a timecharter and voyage basis, the index covers Handymax, Panamax, and Capesize dry bulk carriers carrying a range of commodities including coal, iron ore and grain.
Content :
1 Historical origin
2 How it works
3 Why economists and stock markets read it
4 Impact of 2008 financial crisis
5 References
6 External links
Historical origin
The BDI traces its roots to the Virginia and Baltick Coffeehouse in London's financial district in 1744.
How it works
Every working day, the Baltic canvasses brokers around the world and asks how much it would cost to book various cargoes of raw materials on various routes (e.g. 100,000 tons of iron ore from San Francisco to Hong Kong, or 1,000,000 metric tons of rice from Bangkok to Tokyo). [2]
The index is made up of an average of the Baltic Supramax, Panamax, and Capesize indices. These indices are based on professional assessments made by a panel of international shipbroking companies.
The BDI factors in the four different sizes of oceangoing dry bulk transport vessels
The BDI is based on US dollars, so may also be influenced by changes in the value of the US dollar.
The index can be accessed on a subscription basis directly from the Baltic Exchange as well as from major financial information and news services such as Thomson Reuters and Bloomberg L.P..
Why economists and stock markets read it
Most directly, the index measures the demand for shipping capacity versus the supply of dry bulk carriers. The demand for shipping varies with the amount of cargo that is being traded or moved in various markets (supply and demand).
The supply of cargo ships is generally both tight and inelastic — it takes two years to build a new ship, and ships are too expensive to take out of circulation the way airlines park unneeded jets in the Arizona desert. So marginal increases in demand can push the index higher quickly, and marginal demand decreases can cause the index to fall rapidly. e.g. "if you have 100 ships competing for 99 cargoes, rates go down, whereas if you've 99 ships competing for 100 cargoes, rates go up. in other words, small fleet changes and logistical matters can crash rates..."[6] The index indirectly measures global supply and demand for the commodities shipped aboard dry bulk carriers, such as building materials, coal, crude oil, metallic ores, and grains.
Because dry bulk primarily consists of materials that function as raw material inputs to the production of intermediate or finished goods, such as concrete, electricity, steel, and food, the index is also seen as an efficient economic indicator of future economic growth and production. The BDI is termed a leading economic indicator because it predicts future economic activity.[7]
Because it provides "an assessment of the price of moving the major raw materials by sea," according to The Baltic, "... it provides both a rare window into the highly opaque and diffuse shipping market and an accurate barometer of the volume of global trade -- devoid of political and other agenda concerns."[2]
Another index, the HARPEX, focuses on containers freight. It provides an insight on the transport of a much wider base of commercial goods than commodities alone.
Other leading economic indicators — which serve as the foundation of important political and economic decisions - are often massaged to serve narrow interests, and subjected to adjustments or revisions. Payroll or employment numbers are often estimates; consumer confidence appears to measure nothing more than sentiment, often with no link to actual consumer behavior; gross national product figures are consistently revised, and so forth. Unlike stock and bond markets, the BDI "is totally devoid of speculative content," says Howard Simons, an economist and columnist at TheStreet.com. "People don't book freighters unless they have cargo to move."[2]
Impact of 2008 financial crisis
On 20 May 2008 the index reached its record high level since its introduction in 1985, reaching 11,793 points. Half a year later, on 5 December 2008, the index had dropped by 94%, to 663 points, the lowest since 1986.[8], though by 4 February 2009 it had recovered a little lost ground, back to 1,316.[9] These low rates move dangerously close to the combined operating costs of vessels, fuel, and crews.
By the end of 2008, shipping times had been already increased by reduced speeds to save fuel consumption, but lack of credit meant the reduction of letters of credit, historically required to load cargoes for departure at ports. Debt load of future ship construction was also a problem for shipping companies, with several major bankruptcies and implications for shipyards. This, combined with the collapsing price of raw commodities created a perfect storm for the world's marine commerce.
*
Copper gains after data, lead hits 13-mnth high
3 September 2009
Copper gains after data, lead hits 13-mnth high
* Lead hits 13-month high on China smelter shut-downs
* European equities weak after U.S. macro data
* U.S. payrolls eyed by investors
Copper staged a late rally on Thursday, as investors digested demand prospects following a flood of economic data in the United States, while lead hit a 13-month high on Chinese smelter closure worries.
Volatile copper for three-months delivery on the London Metal Exchange closed at $6,255 a tonne from a close of $6,175 on Wednesday, when the metal hit a near two-week low of $6,025.
Lead ended at $2,280 a tonne from $2,111, having earlier soared to $2,290, its highest point since late July 2008.
Before the ISM numbers, data showed new applications for jobless benefits in the United States fell last week, while activity in the services sector was at its strongest in nearly a year in August.
Investors also took comfort from Shanghai equities, which jumped 4.6 percent after a top securities regulator pledged late on Wednesday to keep the market stable.
The pledge means China, the world's biggest copper consumer, is better poised to continue driving copper prices. Record copper imports by China have been key in driving copper above $6,000 a tonne from around $3,000 at the start of the year.
Copper has also been driven by speculative buying and signs of economic recovery. Although there is a risk of a price correction in September, analysts are cautiously bullish in the longer term. LEAD SMELTER SHUT-DOWNS
Analysts said worries were growing about lead supplies from China, where smelters were shut down last week following lead poisoning incidents."The prevention of heavy metal pollution should be put in a more urgent and more important position," Environment Minister Zhou Shengxian told a national pollution prevention meeting, Communist Party mouthpiece the People's Daily said.
Zinc closed at $1,893 from $1,828, while analysts said that the lead developments in China could also impact the metal, mainly used to galvanize steel.
Aluminium closed at $1,852 a tonne against $1,846. Latest LME data showed aluminium stocks fell 3,000 tonnes, but remained near a record 4.6 million tonnes.
Alcoa, the largest U.S. aluminium maker, said Chinese aluminium consumption would rise 8 percent in the second half from a year ago and cut its forecast drop in global demand for all 2009 to 5.5 percent from earlier forecasts of 7 percent.
Nickel ended at $18,200 from $18,100. Tin was at $14,450 from $13,950, having earlier hit $14,500, the highest in more than a week.
Metal Prices at 1610 GMT Metal Last Change Percent Move End 2008 Ytd Percent
*
Copper gains after data, lead hits 13-mnth high
* Lead hits 13-month high on China smelter shut-downs
* European equities weak after U.S. macro data
* U.S. payrolls eyed by investors
Copper staged a late rally on Thursday, as investors digested demand prospects following a flood of economic data in the United States, while lead hit a 13-month high on Chinese smelter closure worries.
Volatile copper for three-months delivery on the London Metal Exchange closed at $6,255 a tonne from a close of $6,175 on Wednesday, when the metal hit a near two-week low of $6,025.
Lead ended at $2,280 a tonne from $2,111, having earlier soared to $2,290, its highest point since late July 2008.
Before the ISM numbers, data showed new applications for jobless benefits in the United States fell last week, while activity in the services sector was at its strongest in nearly a year in August.
Investors also took comfort from Shanghai equities, which jumped 4.6 percent after a top securities regulator pledged late on Wednesday to keep the market stable.
The pledge means China, the world's biggest copper consumer, is better poised to continue driving copper prices. Record copper imports by China have been key in driving copper above $6,000 a tonne from around $3,000 at the start of the year.
Copper has also been driven by speculative buying and signs of economic recovery. Although there is a risk of a price correction in September, analysts are cautiously bullish in the longer term. LEAD SMELTER SHUT-DOWNS
Analysts said worries were growing about lead supplies from China, where smelters were shut down last week following lead poisoning incidents."The prevention of heavy metal pollution should be put in a more urgent and more important position," Environment Minister Zhou Shengxian told a national pollution prevention meeting, Communist Party mouthpiece the People's Daily said.
Zinc closed at $1,893 from $1,828, while analysts said that the lead developments in China could also impact the metal, mainly used to galvanize steel.
Aluminium closed at $1,852 a tonne against $1,846. Latest LME data showed aluminium stocks fell 3,000 tonnes, but remained near a record 4.6 million tonnes.
Alcoa, the largest U.S. aluminium maker, said Chinese aluminium consumption would rise 8 percent in the second half from a year ago and cut its forecast drop in global demand for all 2009 to 5.5 percent from earlier forecasts of 7 percent.
Nickel ended at $18,200 from $18,100. Tin was at $14,450 from $13,950, having earlier hit $14,500, the highest in more than a week.
Metal Prices at 1610 GMT Metal Last Change Percent Move End 2008 Ytd Percent
*
US Crude Oil Inventories (29 Aug 09) dropped slightly
WASHINGTON, Sept. 2 (UPI)
U.S. crude oil inventories dropped by 0.4 million barrels in the week ending Aug. 28, the U.S. Energy Information Administration said Wednesday.
Crude inventories fell from 343.8 million barrels to 343.4 million barrels during the week but remain above the upper boundary of the average range for this week of the year, EIA said.
Gasoline inventories declined by 3 million barrels to 205.1 million barrels, but remain in the upper half of the average range.
Supplies of distillate fuels, which includes heating oil, rose by 1.2 million barrels to 163.6 million barrels.
Finished gasoline inventories and stocks of gasoline blending components both fell during the week, EIA reported.
At 9.2 million barrels a day, demand for gasoline over the past four weeks is 0.5 percent higher than demand during the same period a year ago.
Distillate fuel demand has dropped 7.3 percent in the past four weeks compared to a year ago.
Jet fuel demand is also down, off 12.1 percent from a year ago, the report said.
© 2009 United Press International, Inc. All Rights Reserved.
*
U.S. crude oil inventories dropped by 0.4 million barrels in the week ending Aug. 28, the U.S. Energy Information Administration said Wednesday.
Crude inventories fell from 343.8 million barrels to 343.4 million barrels during the week but remain above the upper boundary of the average range for this week of the year, EIA said.
Gasoline inventories declined by 3 million barrels to 205.1 million barrels, but remain in the upper half of the average range.
Supplies of distillate fuels, which includes heating oil, rose by 1.2 million barrels to 163.6 million barrels.
Finished gasoline inventories and stocks of gasoline blending components both fell during the week, EIA reported.
At 9.2 million barrels a day, demand for gasoline over the past four weeks is 0.5 percent higher than demand during the same period a year ago.
Distillate fuel demand has dropped 7.3 percent in the past four weeks compared to a year ago.
Jet fuel demand is also down, off 12.1 percent from a year ago, the report said.
© 2009 United Press International, Inc. All Rights Reserved.
*
Opec Not likely to cut Output
Published: Monday September 7, 2009 MYT 7:55:00 AM
OPEC not likely to cut output at Vienna Wed meeting
VIENNA: With oil prices about where OPEC wants them and a modest economic upturn in the offing, the oil cartel isn't likely to tighten the taps when its leaders meet this week in Vienna.
Prices have been hovering near $70 a barrel, and with returning growth expected to support demand, analysts don't expect the Organization of Petroleum Exporting Countries will feel any need to cut output targets.
"Absolutely nothing," said John Hall, of John Hall Associates in London.
OPEC President Jose Botelho de Vasconcelos, who is also Angola's oil minister, said last week that signs of recovery suggest the 12-member group won't need to intervene. "Everything shows they will keep output unchanged," he said.
Kuwait also says it thinks oil prices are stable and there's no need to cut production, even though stockpiles are rising. And Algeria, Kuwait, Libya, Qatar and the United Arab Emirates have signaled they're happy with the current output quota of just under 25 million barrels a day.
Saudi Arabia, OPEC's No. 1 producer and most influential member, has said $75 a barrel is a fair price for both consumers and producers - a level that would allow for continued investments in the oil sector without undermining efforts at global economic recovery. "Unless Saudi says, 'We're going to cut by a million barrels a day,' nothing's going to happen" at Wednesday's meeting, Hall said.
Benchmark crude for October delivery crested $68 a barrel Friday in electronic trading on the New York Mercantile Exchange. Over the past six weeks, it has fluctuated in the $65-$75 range amid conflicting signs of economic recovery.
OPEC meets more than a third of the world's annual oil demand, which the International Energy Agency has put at nearly 86 million barrels a day for 2008 - about 2.5 million barrels more than for recession-ridden 2009. The economic downturn has taken such a big bite out of demand for OPEC crude, it will take four more years just to recover to 2008 levels, the cartel predicts in its latest outlook.
Still, stockpiles abound despite recent OPEC production cuts: The U.S. Energy Department said last month that U.S. crude stocks rose by 200,000 barrels for the week ended Aug. 21.
"We're swimming in this stuff," said Stephen T. Schork, president of The Schork Group in Villanova, Pa., and editor of a newsletter tracking industry trends. Schork thinks OPEC may have to rein in output next March, but for now, oil prices "have settled into a range that the market can sustain," Schork said. "Oil that's $65 to $75 per barrel translates into gasoline prices of $2.50-$2.75 a gallon, and we know the consumer can handle that," he said.
Crude prices have taken a wild ride over the past year or so: They peaked at $147 a barrel in July 2008 and plunged close to $30 this past February before settling into their current range.
OPEC's oil market report for August cautioned that "the market is still fundamentally weak amid ample stocks of crude and products." Prices in the short term, it said, "will depend largely on economic developments."
But experts agree that markets will rebound. Morgan Stanley expects oil to average $85 a barrel in 2010, and crude prices are bound to rise with demand as the northern winter home-heating season draws near. Another perennial wild-card issue that threatens to drive up prices: hurricane season, which will run until early November and has the potential to disrupt refineries in the Gulf of Mexico. Experts say the flagging U.S. dollar - which has nudged crude prices up in recent days - also could be a factor if it keeps weakening against the euro.
The 12 OPEC members are Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates and Venezuela.
Iraq is the only member not bound by the cartel's production quotas.
- AP
*
OPEC not likely to cut output at Vienna Wed meeting
VIENNA: With oil prices about where OPEC wants them and a modest economic upturn in the offing, the oil cartel isn't likely to tighten the taps when its leaders meet this week in Vienna.
Prices have been hovering near $70 a barrel, and with returning growth expected to support demand, analysts don't expect the Organization of Petroleum Exporting Countries will feel any need to cut output targets.
"Absolutely nothing," said John Hall, of John Hall Associates in London.
OPEC President Jose Botelho de Vasconcelos, who is also Angola's oil minister, said last week that signs of recovery suggest the 12-member group won't need to intervene. "Everything shows they will keep output unchanged," he said.
Kuwait also says it thinks oil prices are stable and there's no need to cut production, even though stockpiles are rising. And Algeria, Kuwait, Libya, Qatar and the United Arab Emirates have signaled they're happy with the current output quota of just under 25 million barrels a day.
Saudi Arabia, OPEC's No. 1 producer and most influential member, has said $75 a barrel is a fair price for both consumers and producers - a level that would allow for continued investments in the oil sector without undermining efforts at global economic recovery. "Unless Saudi says, 'We're going to cut by a million barrels a day,' nothing's going to happen" at Wednesday's meeting, Hall said.
Benchmark crude for October delivery crested $68 a barrel Friday in electronic trading on the New York Mercantile Exchange. Over the past six weeks, it has fluctuated in the $65-$75 range amid conflicting signs of economic recovery.
OPEC meets more than a third of the world's annual oil demand, which the International Energy Agency has put at nearly 86 million barrels a day for 2008 - about 2.5 million barrels more than for recession-ridden 2009. The economic downturn has taken such a big bite out of demand for OPEC crude, it will take four more years just to recover to 2008 levels, the cartel predicts in its latest outlook.
Still, stockpiles abound despite recent OPEC production cuts: The U.S. Energy Department said last month that U.S. crude stocks rose by 200,000 barrels for the week ended Aug. 21.
"We're swimming in this stuff," said Stephen T. Schork, president of The Schork Group in Villanova, Pa., and editor of a newsletter tracking industry trends. Schork thinks OPEC may have to rein in output next March, but for now, oil prices "have settled into a range that the market can sustain," Schork said. "Oil that's $65 to $75 per barrel translates into gasoline prices of $2.50-$2.75 a gallon, and we know the consumer can handle that," he said.
Crude prices have taken a wild ride over the past year or so: They peaked at $147 a barrel in July 2008 and plunged close to $30 this past February before settling into their current range.
OPEC's oil market report for August cautioned that "the market is still fundamentally weak amid ample stocks of crude and products." Prices in the short term, it said, "will depend largely on economic developments."
But experts agree that markets will rebound. Morgan Stanley expects oil to average $85 a barrel in 2010, and crude prices are bound to rise with demand as the northern winter home-heating season draws near. Another perennial wild-card issue that threatens to drive up prices: hurricane season, which will run until early November and has the potential to disrupt refineries in the Gulf of Mexico. Experts say the flagging U.S. dollar - which has nudged crude prices up in recent days - also could be a factor if it keeps weakening against the euro.
The 12 OPEC members are Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates and Venezuela.
Iraq is the only member not bound by the cartel's production quotas.
- AP
*
Sunday, September 6, 2009
WTK ~ Current Year Prospect : 09 Q2
Current Year Prospects
Quarter 2, 2009
Timber
Japan, a major buyer for tropical hardwood timber products, returned to growth in the second quarter 2009, out of its longest recession since World War II. Growth in the world’s No. 2 economy is likely to continue in the coming quarters as companies restock inventories to meet a pick-up in demand at home and abroad. Notwithstanding this, going forward to the second half of 2009, the timber industry is projected to show improvement in both its demand and its selling prices. Selling price for round logs is expected to be firm given the dry weather condition in Sarawak. The low water level of rivers will mean a tighter supply of logs from Sarawak. Total plywood imported by Japan continued to drop during 2nd quarter 2009. This resulted in a significantly low inventory level in Japan and signs of tightening in the market are visible. Coupled with the expected improvement in housing starts, orders for plywood products are expected to increase during the second half of this year.
Given this, the Group remains cautiously optimistic of the industry and barring unforeseen circumstances, expects the Group’s results to improve second half of 2009. The group will also continue to monitor its various cost-cutting measures and its controls to conserve cash and focus on higher margin products.
Non-Timber Manufacturing & Trading
The current global economic downturn has affected the non-timber manufacturing and trading division, particularly with depressed demand in the primary export markets. With no sign of recovery in the near future, the division foresees the current weak market sentiment to continue until the end of 2009.
As the business outlook of the division remains challenging, the division shall endeavor to maintain its competitive advantage by streamlining its supply chain, focusing on its core products and strengthening branding to deliver differentiation to customers.
*
Quarter 2, 2009
Timber
Japan, a major buyer for tropical hardwood timber products, returned to growth in the second quarter 2009, out of its longest recession since World War II. Growth in the world’s No. 2 economy is likely to continue in the coming quarters as companies restock inventories to meet a pick-up in demand at home and abroad. Notwithstanding this, going forward to the second half of 2009, the timber industry is projected to show improvement in both its demand and its selling prices. Selling price for round logs is expected to be firm given the dry weather condition in Sarawak. The low water level of rivers will mean a tighter supply of logs from Sarawak. Total plywood imported by Japan continued to drop during 2nd quarter 2009. This resulted in a significantly low inventory level in Japan and signs of tightening in the market are visible. Coupled with the expected improvement in housing starts, orders for plywood products are expected to increase during the second half of this year.
Given this, the Group remains cautiously optimistic of the industry and barring unforeseen circumstances, expects the Group’s results to improve second half of 2009. The group will also continue to monitor its various cost-cutting measures and its controls to conserve cash and focus on higher margin products.
Non-Timber Manufacturing & Trading
The current global economic downturn has affected the non-timber manufacturing and trading division, particularly with depressed demand in the primary export markets. With no sign of recovery in the near future, the division foresees the current weak market sentiment to continue until the end of 2009.
As the business outlook of the division remains challenging, the division shall endeavor to maintain its competitive advantage by streamlining its supply chain, focusing on its core products and strengthening branding to deliver differentiation to customers.
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WTK ~ Review of result : 09 Q2
Review of Results
For the quarter under review, the Group’s turnover was RM133.1 million as compared to RM226.1 million in the 2Q2008, representing a decrease of RM93.0 million (41.1%). The Group recorded pre-tax loss of RM3.4 million compared to pre-tax profit of RM23.5 million registered in 2Q2008. This is mainly attributed to the timber division.
Quarter 2, 2009
Timber
For the current quarter, the Group’s timber division registered a turnover of RM104.3 million, representing decrease of 45.4% or RM86.7 million as compared with RM191.0 million in the 2Q2008. This resulted in a pre-tax loss of RM3.7 million, a decrease of 116.4% compared to 2Q2008 profit of RM22.5 million. The drop is due to the continued economic slow-down and financial crisis world-wide.
On a year-to-date (YTD) basis, the timber division registered a turnover of RM190.5 million, representing decrease of 40.8%, as compared to the previous corresponding period of RM321.7 million. This is attributed to the decrease in logs and plywood sales volume of 24.2% and 47.7% respectively. Consequently, the division recorded a net loss of RM15.6 million, a substantial decrease of 160.2% or RM41.5 million when compared to RM25.9 million pre-tax profit registered in the previous corresponding period.
On a year-on-year (YOY) basis, average round log prices dropped by approximately 9.8% compared to prices registered in 2Q2008, whilst sales volume dropped by 36.8% compared to 2Q2008. On a YTD basis, average round log prices also dropped compared to the corresponding period, that is by approximately 9.1%. The Group’s key export markets for round logs is India (66%), Vietnam (10%), Japan (5%), China (5%) and the remaining 14% exported to Asian countries including Taiwan, South Korea and Hong Kong.
As for the Group’s plywood division, sales volume for the quarter in review decreased 42.1% as compared with 2Q2008, whilst, average selling prices decreased by 18.5% as compared to 2Q2008. On a YTD basis, average plywood prices were lower by 8.6% whilst volume decreased 47.7%. The Group’s key plywood markets for the quarter in review were Japan (80%) and Taiwan (20%).
Non-Timber Manufacturing & Trading
The non-timber manufacturing and trading division recorded a turnover of RM28.1 million for the quarter under review when compared to RM34.1 million in 2Q2008, a decrease in turnover of RM6.0 million (17.6%) due to soft market conditions, particularly in the primary export markets.
It recorded pre-tax profit of RM0.4 million when compared to pre-tax profit of RM0.5 million registered in 2Q2008. The lower pre-tax profit is mainly attributed to stiff competition affecting the demand of the Group's foil division.
On a year-to date basis (YTD), the division registered a turnover of RM53.1 million as compared to RM68.0 million in the previous corresponding period. The division’s YTD pre-tax profit also dropped by RM1.0 million to RM0.3 million as compared to the corresponding period last year (RM1.3 million). The decreases in both YTD turnover and pre-tax profit were mainly due to soft export market conditions explained above.
Material Changes for the Quarter Reported on as Compared with the Preceding Quarter
Quarter 2, 2009
Timber
The Group’s timber division registered a turnover of RM104.3 million, an increase of RM18.1 million as compared to 1Q2009. Its pre-tax loss decreased from RM11.9 million to RM3.7 million, an improvement of RM8.2 million (68.9%). This is mainly due to the slight improvement in the log division.
Non-Timber Manufacturing & Trading
The non-timber manufacturing and trading division recorded a turnover of RM28.1 million, an increase of RM3.1 million as compared to 1Q2009. It recovered from pre-tax loss of RM0.1 million to pre-tax profit of RM0.4 million, an improvement of RM0.5 million. This is mainly attributed to improvement in the division's product mix.
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For the quarter under review, the Group’s turnover was RM133.1 million as compared to RM226.1 million in the 2Q2008, representing a decrease of RM93.0 million (41.1%). The Group recorded pre-tax loss of RM3.4 million compared to pre-tax profit of RM23.5 million registered in 2Q2008. This is mainly attributed to the timber division.
Quarter 2, 2009
Timber
For the current quarter, the Group’s timber division registered a turnover of RM104.3 million, representing decrease of 45.4% or RM86.7 million as compared with RM191.0 million in the 2Q2008. This resulted in a pre-tax loss of RM3.7 million, a decrease of 116.4% compared to 2Q2008 profit of RM22.5 million. The drop is due to the continued economic slow-down and financial crisis world-wide.
On a year-to-date (YTD) basis, the timber division registered a turnover of RM190.5 million, representing decrease of 40.8%, as compared to the previous corresponding period of RM321.7 million. This is attributed to the decrease in logs and plywood sales volume of 24.2% and 47.7% respectively. Consequently, the division recorded a net loss of RM15.6 million, a substantial decrease of 160.2% or RM41.5 million when compared to RM25.9 million pre-tax profit registered in the previous corresponding period.
On a year-on-year (YOY) basis, average round log prices dropped by approximately 9.8% compared to prices registered in 2Q2008, whilst sales volume dropped by 36.8% compared to 2Q2008. On a YTD basis, average round log prices also dropped compared to the corresponding period, that is by approximately 9.1%. The Group’s key export markets for round logs is India (66%), Vietnam (10%), Japan (5%), China (5%) and the remaining 14% exported to Asian countries including Taiwan, South Korea and Hong Kong.
As for the Group’s plywood division, sales volume for the quarter in review decreased 42.1% as compared with 2Q2008, whilst, average selling prices decreased by 18.5% as compared to 2Q2008. On a YTD basis, average plywood prices were lower by 8.6% whilst volume decreased 47.7%. The Group’s key plywood markets for the quarter in review were Japan (80%) and Taiwan (20%).
Non-Timber Manufacturing & Trading
The non-timber manufacturing and trading division recorded a turnover of RM28.1 million for the quarter under review when compared to RM34.1 million in 2Q2008, a decrease in turnover of RM6.0 million (17.6%) due to soft market conditions, particularly in the primary export markets.
It recorded pre-tax profit of RM0.4 million when compared to pre-tax profit of RM0.5 million registered in 2Q2008. The lower pre-tax profit is mainly attributed to stiff competition affecting the demand of the Group's foil division.
On a year-to date basis (YTD), the division registered a turnover of RM53.1 million as compared to RM68.0 million in the previous corresponding period. The division’s YTD pre-tax profit also dropped by RM1.0 million to RM0.3 million as compared to the corresponding period last year (RM1.3 million). The decreases in both YTD turnover and pre-tax profit were mainly due to soft export market conditions explained above.
Material Changes for the Quarter Reported on as Compared with the Preceding Quarter
Quarter 2, 2009
Timber
The Group’s timber division registered a turnover of RM104.3 million, an increase of RM18.1 million as compared to 1Q2009. Its pre-tax loss decreased from RM11.9 million to RM3.7 million, an improvement of RM8.2 million (68.9%). This is mainly due to the slight improvement in the log division.
Non-Timber Manufacturing & Trading
The non-timber manufacturing and trading division recorded a turnover of RM28.1 million, an increase of RM3.1 million as compared to 1Q2009. It recovered from pre-tax loss of RM0.1 million to pre-tax profit of RM0.4 million, an improvement of RM0.5 million. This is mainly attributed to improvement in the division's product mix.
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MBMR ~ highlight : 09 Q2
6 Aug 09
MBMR Board of Directors
QUARTERLY ANNOUNCEMENT
for the second quarter ended 30/06/2009
Highlights
• Revenues and profits were lower during the quarter compared with last year
but quarter-on-quarter performance improved.
• The high Japanese Yen continue to have a negative impact on operating
margins compared to last year but the pressure on a quarter-to-quarter basis
has eased.
• Volume sales recovered during the quarter with orders showing encouraging
prospects for the coming months.
• The manufacturing operations enjoyed strong deliveries as the major customers
increase production in line with improved market conditions. Price adjustments
and lower material costs helped with some margin recovery.
• Associate contribution was lower due to the high Japanese Yen and reduced
volumes but profits were substantially higher than that for the 1st quarter.
• Dividend of 3.0 sen declared against 6.0 sen (excluding special dividend) last
year.
Overview
The Malaysian motor total industry volume (TIV) of sales by registration declined in the second quarter of 2009 by 10.0% compared against the same period of 2008, but improved by 11.6%
over the preceding quarter.
Overall, the TIV for the first 6 months' sales by registration declined 9.7% compared to the
same period of 2008.
Group Financial Performance
Group revenue declined by 11.1% to RM272.9 million.
Operating profit declined by 45.3% toRM9.99 million,
whilst share of results of associated companies declined by 40.0% to RM11.09million.
Net profit attributable to equity holders declined by 45.7% to RM13.9 million.
The group's net cash position (after total borrowings) fell to RM70.9 million as at 30 June 2009
compared with RM111.9 million as at 30 June 2008.
Group revenue improved by 7.9%.
Similarly, both operating profit and share of associated companies improved by 65.7% and 81.4% respectively.
Net profit attributable to equity holdersimproved by 49.0%.
The group’s net cash position (after total borrowings) improved to RM70.9 million as at 30 June 2009 compared with RM54.7 million as at the end of 31 March 2009.
Net assets per share improved to RM3.54 as at the end of June 2009 from RM3.51 as at
preceding financial year end.
Group Business Performance
Performance of sales by operations
Group revenue declined by 11.1% to RM272.9 million.
Operating profit declined by 45.3% to RM9.99 million,
whilst share of results of associated companies declined by 40.0% to RM11.09 million.
Net profit attributable to equity holders declined by 45.7% to RM13.9 million.
The group's net cash position (after total borrowings) fell to RM70.9 million as at 30 June 2009
compared with RM111.9 million as at 30 June 2008.
Group revenue improved by 7.9%.
Similarly, both operating profit and share of associated companies improved by 65.7% and 81.4% respectively.
Net profit attributable to equity holdersimproved by 49.0%.
The group’s net cash position (after total borrowings) improved to RM70.9 million as at 30 June
2009 compared with RM54.7 million as at the end of 31 March 2009.
Net assets per share improved to RM3.54 as at the end of June 2009 from RM3.51 as at
preceding financial year end.
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MBMR Board of Directors
QUARTERLY ANNOUNCEMENT
for the second quarter ended 30/06/2009
Highlights
• Revenues and profits were lower during the quarter compared with last year
but quarter-on-quarter performance improved.
• The high Japanese Yen continue to have a negative impact on operating
margins compared to last year but the pressure on a quarter-to-quarter basis
has eased.
• Volume sales recovered during the quarter with orders showing encouraging
prospects for the coming months.
• The manufacturing operations enjoyed strong deliveries as the major customers
increase production in line with improved market conditions. Price adjustments
and lower material costs helped with some margin recovery.
• Associate contribution was lower due to the high Japanese Yen and reduced
volumes but profits were substantially higher than that for the 1st quarter.
• Dividend of 3.0 sen declared against 6.0 sen (excluding special dividend) last
year.
Overview
The Malaysian motor total industry volume (TIV) of sales by registration declined in the second quarter of 2009 by 10.0% compared against the same period of 2008, but improved by 11.6%
over the preceding quarter.
Overall, the TIV for the first 6 months' sales by registration declined 9.7% compared to the
same period of 2008.
Group Financial Performance
Group revenue declined by 11.1% to RM272.9 million.
Operating profit declined by 45.3% toRM9.99 million,
whilst share of results of associated companies declined by 40.0% to RM11.09million.
Net profit attributable to equity holders declined by 45.7% to RM13.9 million.
The group's net cash position (after total borrowings) fell to RM70.9 million as at 30 June 2009
compared with RM111.9 million as at 30 June 2008.
Group revenue improved by 7.9%.
Similarly, both operating profit and share of associated companies improved by 65.7% and 81.4% respectively.
Net profit attributable to equity holdersimproved by 49.0%.
The group’s net cash position (after total borrowings) improved to RM70.9 million as at 30 June 2009 compared with RM54.7 million as at the end of 31 March 2009.
Net assets per share improved to RM3.54 as at the end of June 2009 from RM3.51 as at
preceding financial year end.
Group Business Performance
Performance of sales by operations
Group revenue declined by 11.1% to RM272.9 million.
Operating profit declined by 45.3% to RM9.99 million,
whilst share of results of associated companies declined by 40.0% to RM11.09 million.
Net profit attributable to equity holders declined by 45.7% to RM13.9 million.
The group's net cash position (after total borrowings) fell to RM70.9 million as at 30 June 2009
compared with RM111.9 million as at 30 June 2008.
Group revenue improved by 7.9%.
Similarly, both operating profit and share of associated companies improved by 65.7% and 81.4% respectively.
Net profit attributable to equity holdersimproved by 49.0%.
The group’s net cash position (after total borrowings) improved to RM70.9 million as at 30 June
2009 compared with RM54.7 million as at the end of 31 March 2009.
Net assets per share improved to RM3.54 as at the end of June 2009 from RM3.51 as at
preceding financial year end.
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