Stena Drilling scores drillship contract in Suriname

Energy News Beat

EuropeOffshore

Stena Drilling has landed a contract with TotalEnergies for its sixth-generation harsh environment drillship, Stena DrillMax.

The 2008-built managed pressure drilling (MPD)-equipped unit, hot stacked since January, will be deployed on a one-well exploration campaign off Suriname.

The work is set to start during the second quarter of this year at an undisclosed dayrate.

The Aberdeen-based subsidiary of Sweden’s Stena with five drillships and one semisub in its fleet said the deal comes with options for up to three more wells also offshore Suriname.

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Polish duo links up for offshore wind newbuilds

Energy News Beat

Poland’s Tele-Fonika Kable and the Industrial Development Agency (ARP) have set out plans to build specialised cable laying vessels (CLVs) designed for the installation and maintenance of offshore wind farm subsea cables.

The scheme under a letter of intent signed by both parties also includes the development of support vessels to facilitate servicing and operational activities in the Baltic Sea, as well as in other regions such as the North Sea.

The investment will prioritise the use of local resources and expertise, enhancing the role of Polish shipyards and domestic businesses in the global supply chain, the companies said in a release, adding that the project will be carried out through a special purpose vehicle that will oversee the construction of installation and service vessels.

Poland is ramping up its domestic offshore wind supply chain as it looks to become the leading offshore wind player in the Baltic Sea. The country aims to have 5.9 GW of offshore wind capacity by 2030 as part of its first phase of offshore wind projects. This phase combines seven individual offshore wind farms. The Baltic Power project is set to be commissioned in 2026 and will be Poland’s first offshore wind farm.

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World’s first commercial sailing roro launched in Turkey

Energy News Beat

The world’s first commercial sailing roro vessel, Neoliner Origin, has been launched at the RMK Marine shipyard in Türkiye.

The vessel, which started construction in November 2023, is being built for the French shipping company Neoline.

It is a 136 m long and 24.2 m wide cargo ship with 3,000 sq m of sail and a pair of foldable 76 m high carbon masts. The vessel also boasts a loading capacity of 1,200 linear meters or 265 20-foot containers. The maximum cargo weight of the sailing roro is 5,300 tonnes.

RMK Marine said that the vessel would reduce fossil fuel consumption by over 80% and would “harness the power of the wind as its primary driving force”. As far as GHG emissions are concerned, they can be reduced by up to 90%.

This unique vessel will be operational in the summer of 2025 with first trials planned for the spring. It will operate on a route between Saint-Nazaire and Baltimore. On its way, it will make stops in Saint-Pierre-et-Miquelon and Halifax.

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Sun Enterprises in for DH Shipbuilding suezmaxes

Energy News Beat

Greek shipowner Sun Enterprises has returned to South Korean yards in its latest fleet expansion move.

The company, which has built most of its tankers in South Korea, has commissioned DH Shipbuilding for a pair of suezmaxes at $90.5m each.

Shipbuilding sources say the 158,000 dwt newbuilds which are the company’s first in nearly a decade, will be LNG dual-fuelled and delivered in 2027.

The tanker arm of the Livanos Group currently has 16 tankers on the water, of which three are suezmaxes. The company last placed orders in 2019 when it booked aframaxes at Daehan Shipbuilding before it rebranded to DH.

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First modern VLCC sale of the year highlights how tanker prices are easing

Energy News Beat

EuropeTankers

This year’s first modern VLCC sale is in the pipeline. Brokers report that the eight-year-old, 300,000 dwt Leicester was sold for $87m to undisclosed interests. Broking sources tell Splash that an Oslo-based private equity fund, Transportation Recovery Fund (TRF), is selling the Shanghai Waigaoqiao Shipbuilding-built tanker.

The last comparable deal is from August last year when Evangelos Marinakis-led Capital Maritime sold a one-year older supertanker named Atromitos, for $96.52m, to Saudi Arabia’s Bahri as part of a landmark $1bn deal where the Greek outfit sold nine VLCCs.

Tanker asset prices have been easing all month despite solid spot rate conditions.

Hong Kong-registered outfit Young Honest Shipping emerged as the taker of the first vintage VLCC sold this year. Young Honest bought the 20-year-old, 308,800 dwt, scrubber-fitted Rolin from Viet My Petrol Transportation with brokers suggesting a price of $31m, a significant drop in price compared to similar sales sealed only weeks ago.

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Scorpio Tankers ups stake in DHT to above 5%

Energy News Beat

Emanuele Lauro-led Scorpio Tankers has taken its shareholding in VLCC giant DHT Holdings to above 5%.

In a release to the Securities and Exchange Commission, DHT revealed Scorpio had taken its shareholding in the company from 4.9% to 7.45%, spending $131.5m to bolster its position.

Splash first reported on Scorpio’s initial 4.9% DHT investment in October last year. 

“Scorpio acquired the securities reported herein for investment purposes in the ordinary course of business because of its belief that the Issuer presents an attractive investment based on the Issuer’s business prospects and strategy,” DHT stated. 

Splash Extra, published yesterday, suggested there was a constructive outlook for VLCCsin the year ahead, with many analysts polled arguing that this particular ship type has the best prospects in the new Year of the Snake. 

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Don’t be too fixated on price to NAV

Energy News Beat

ContributionsFinance and Insurance

Pierre Aury has some advice for would be shipping investors.

An old topic for a new year. I’ve already made my opinion quite clear about the fact that shipping companies trading in competitive spot markets should not be listed. In this column we will acknowledge how wrong it is that a number of these companies are listed and that investors are looking for the best way to select which of these companies to invest in. A number of investors are hard bent on using the so-called price to net asset value (NAV) ratio. The rationale is simple and is that if the share price multiplied by the number of shares is below the NAV of a company then the shares of that company are a good purchase. I am of the opinion that relying heavily, or worse solely, on this metric is flawed.

NAV represents the book value of a company’s assets minus its liabilities. It is by definition a static and backward-looking metric. It is looking at a company from a breaking it up point of view as it fails to account for forward-looking factors such as market trends, revenue growth potential, or upcoming changes in asset values. For instance, in shipping, where asset values can fluctuate dramatically due to market conditions, NAV will not give any clue regarding future economic developments. A shipping company with a ‘great’ P/NAV ratio might look undervalued but if freight rates are in a long lasting downturn, its fleet’s market value could deteriorate rapidly, rendering the use of the P/NAV ratio misleading. The share price of a given company can be discounted to its NAV all the way down leading to a big loss in the end.

NAV is impacted by accounting policies. Valuation of vessels often involves assumptions, estimates or models. Companies might overstate their asset values creating an inflated NAV that leads to misleading P/NAV ratios. The P/NAV ratio provides no insight into a company’s profitability or cash flow generation capacity. A low P/NAV could signal undervaluation, but if the company consistently underperforms the discount could be justified.

Market sentiment can create a disconnect between share price and NAV. A low P/NAV could indicate investors concerns about governance, liquidity or market conditions. Illiquid stocks often trade at steep discounts to NAV due to the lack of buyers, even when fundamentals are sound and most shipping stocks compared to stocks in other markets, are illiquid.

NAV calculations often fail to fully account for financial risk. Some companies with significant leverage might show an attractive P/NAV ratio, but their debt levels can pose substantial risks, especially in volatile markets like shipping. Investors focusing solely on P/NAV might miss these underlying potential problems.

NAV being essentially backward looking will not account for strategic elements like potential mergers, acquisitions, or synergies. A company’s true value might come from its market position or competitive advantage, which are not captured in NAV. The P/NAV ratio fails to consider these qualitative factors that could significantly influence long-term valuation.

But the main problem is that using the P/NAV ratio implies that the price of the shares of a shipping company is driven by shipping which is only partly true. The share price of a company is driven by the overall world financial market, the local financial market where the shares are listed, the market in which the company operates and the specific circumstances of that shipping company. Would be investors in shipping should use this P/NAV metric in conjunction with other valuation tools, such as price-to-earnings (P/E) ratios, discounted cash flow (DCF) models, and qualitative analysis of market trends and competitive positioning.

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Landlocked Switzerland becomes a top 10 shipowning nation thanks to Aponte’s MSC

Energy News Beat

One family has propelled a landlocked European nation into the top shipowning countries in the world.

Gianluigi Aponte’s Geneva-based Mediterranean Shipping Co (MSC) has been on a historic fleet expansion in the 2020s, hoovering up more than 400 secondhand boxships, and ordering more than 3m teu of newbuilds, pushing MSC to the top spot in the global liner leagues, and making the Apontes – who originally hail from Italy – by some distance the richest family in Switzerland.

Online pricing portal VesselsValue has released its annual chart of the top 10 shipowning nations by total asset value, with Switzerland creeping into ninth spot thanks largely to MSC’s container and cruise fleets.

Originally hailing from Naples, Aponte, now 84, founded MSC in 1970. His family is among the top 50 on the Forbes billionaires index. 

Other notable changes about the annual national fleet value rankings from VesselsValue are at the top of the leaderboard. Whilst China retains the top spot in terms of vessels numbers, it has also taken the lead for the most valuable fleet, overtaking Japan while Greece remains in third spot.

In terms of gross tonnage, rather than value, the top 10 chart looks quite different. Clarksons Research data on global fleets – which does not include cruiseships – shows how China has stretched its lead at the top over Japan and Greece over the past year.

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Big Oil Earnings Drop

Energy News Beat

Daily Standup Top Stories

Big Oil Earnings Slump Puts Payouts to Investors Under Pressure

Fourth-quarter profit to be lowest in more than three years Oil markets weigh uncertain outlook driven by Trump’s return The flow of dividends and buybacks from the world’s largest oil companies is under pressure, with […]

Planet Earth’s natural resources are limited to its 8 billion residents

Earth has existed for more than 4 billion years without present-day humans. In the past, dinosaurs and cavemen never used its plentiful natural resources. Today, with 8 billion humans on this planet, the few wealthy […]

Ukraine Drones Hit Second Russian Oil Refinery in Less Than a Week

Ukraine early on Tuesday hit with drones an oil refinery near Nizhny Novgorod in western Russia, the General Staff of the Armed Forces of Ukraine said, announcing a second hit at a Russian oil refinery in […]

Sustainable Development Goals great on paper, not in real world

ENB Pub Note: The UN needs to be thrown out of the United States and all funding cut. They have caused the global humanitarian migration crisis and are causing more harm than good. The EU […]

Three firms seal $3.3 billion LNG-to-power deal in Philippines

The three firms announced in separate statements on Tuesday the completion of the transaction. The transaction involves the acquisition by MGen and TNGP, through Chromite Gas (CGHI), of a 67 percent equity interest in South […]

Highlights of the Podcast

00:00 – Intro

01:21 – Big Oil Earnings Slump Puts Payouts to Investors Under Pressure

03:20 – Planet Earth’s natural resources are limited to its 8 billion residents

05:36 – Ukraine Drones Hit Second Russian Oil Refinery in Less Than a Week

06:48 – Sustainable Development Goals great on paper, not in real world

08:49 – Three firms seal $3.3 billion LNG-to-power deal in Philippines

10:52 – Outro


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Video Transcription edited for grammar. We disavow any errors unless they make us look better or smarter.


Stuart Turley: [00:00:09] Hello, everybody. Welcome to the Energy News Beat daily. Stand up. My name’s Stu Turley President and CEO of the Sandstone Group. It is crazy out there on the news desk. Buckle up. Big Oil earnings Slump Puts pay Outs to Investor under Pressure. I bet they’re going to get some good returns, even though questions are looming. Planet Earth natural resources are limited to its 8 billion residents. There’s more to this story, and I absolutely love this is a Ronald Spine story. Absolutely love getting that one out there. Ukraine drones hit second Russian oil refinery in less than a week. I’ll tell you what. Let’s just end this war and stop this nonsense. Sustainable Development Goals may look great on paper, but not in the real world. I like this story. Three firms seal a $3.3 billion LNG power deal in the Philippines. I think this is actually fantastic. It’s another great episode of LNG power plants going on around the world. Hey, let’s start up with the first story here. [00:01:21][71.6]

Stuart Turley: [00:01:21] Big Oil earnings Slump Puts Payouts to Investor Under pressure. Fourth quarter profit to be the lowest in more than three years in oil markets. Way uncertain outlook driven by Trump’s return. I want to go on record and you’ve heard me say this several times. Drill, baby, drill. In the new world of big oil and private oil drilling is drill, baby when fiscally responsible. And the oil and gas companies that I talked to, I talked to the CEOs, they are all still planning on giving money back to the investors. Now, does that mean that they’re going to be drilling less? Yes. Are you still going to have great returns? No. You’re still going to get some great returns. The price of oil rebounded early in January, and ExxonMobil, Chevron, Shell and Totalenergies, as Michael and I call them, and BP, have built up their financial resilience during the boom years. But uncertainty continues. And when you take a look at generous dividends and share buybacks have come the cornerstone of big oil strategy. Well, yeah, it makes it one of the most best investments that are out there. Most of the majors have relatively low levels of debt, meaning they could easily borrow money to maintain shareholder returns. BP, however, is signaled it may reduce its buyback whether it reports on earnings February 11th or updates its strategy on February 26th. Tariffs on Colombia, which are threatened and then quickly reversed by the president of Colombia. What have also caused headaches for U.S. refiners? But I’ll tell you what, it was fantastic to see the president of Colombia cave so quickly, especially when President Trump was playing golf. And I loved his tweet out there. Why are you pressuring me to tweet or during a golf round? You got to hand it to President Trump. [00:03:20][118.4]

Stuart Turley: [00:03:20] Let’s go to the next one here. Planet Earth. Natural resources are limited to its 8 billion residents. There are four key points that this Ronald Stein article has. Earth has existed for more than 4 billion years without the present day humans. I’m not sure that we actually know our true history. Crude oil consumption is more than 35 billion years per year, with less than 50 years of known oil reserves. I still believe in my heart that there is a lot of oil that is still left to be discovered. Coal consumption is more than 8 billion tons per year, with less than 135 years left of known coal reserves. Natural gas consumption is more than 132,000,000 cubic feet per year, with about 50 years left of natural gas reserves. I think there’s a lot more than that. Similar scenarios for the exotic minerals like lithium, Cobalt magazine and copper need to go green with EV batteries. And this one I thoroughly agree with. There’s a lot of things that we can do and that would be putting in nuclear everywhere. The United States has been running nuclear capable fleet forms ever since 1955. Why don’t we go ahead and start moving everything nuclear ships? There are some real things that we could do with nuclear and protect and expand this out. The new technologies that are coming around the corner, I think could really reduce the amount of fuel, oil and gas that we do use and coal. And there is just but we’ve got to get out of the way of government and we’ve got to take a look at renewable wind and solar. And say, wait a minute. They may not actually be the best tools to use. You always want to pick your best tool and use it. Nuclear is by far the best tool, but we can’t get there. And so in the short run, natural gas is our best tool to use for power plants because it is the least pollution out there. So outstanding. Shout out to Ronald Stein for his article there. [00:05:35][135.2]

Stuart Turley: [00:05:36] And let’s roll to the next story here. Ukraine drones its second Russian oil refinery in less than a week. Ukraine early Tuesday hit drones in or near. I’m going to butcher the name and I apologize, Nancy. None of good. Novgorod in western Russia, the general staff of the armed forces of Ukraine said, announcing a second hit on a Russian oil refinery. I’ll tell you what. We need to end this war as soon as possible. There is absolutely zero reason for this war to continue on. EU and NATO brought this war upon themselves, and President Trump needs to end this war as soon as possible. A Ukrainian tanks continues to target refineries in Russia. Some of these attacks have attacked and fuel product supply from Russia refineries and reduced crude processing. This is absolutely a war that has gone on too long. And again, hats off to President Trump to try to get this solved. But he doesn’t have all the information he needs and he needs to talk to George McMillan and get the right information. So, all right. [00:06:48][72.3]

Stuart Turley: [00:06:48] Let’s go to the next story here. Sustainable Development Goals on great on paper, but not in the real world. The EU is lagging behind on sustainable development progress with lots of ambitious policies on the books, but few are real world impact, according to a new report by the UN affiliated body. A report published today from the UN Sustainable Development Solutions Network. The UN EU initially seized on the SD jegede, citing them frequently in legal text and using them to impact assessments. Here’s the bottom line You cannot reduce emissions enough with renewable energy. Let’s take Germany. Germany has had to fire up their coal plants again because they shut down their nuclear. You shut down your nuclear and you have to fire up your coal plants. What’s going to happen? You’re going to start, by the way, polluting more. But then you can’t use natural gas because you have a war going on. Well, you can fire up cheap, low cost Russian natural gas and then you can stop the de-industrialisation that’s going on. So without low cost Russian and natural gas, Germany stands to fail. And if Germany fails, so does the EU. So goes Germany. So goes the EU. And I will applaud President Trump in his decision to reach out to individual countries rather than talking to the EU.We need our sovereign nations and we need our sovereign nations making decisions for each of the sovereign nations so that there are cultures independent of everyone. And I applaud them. The EU, quite honestly, has had a miserable decision making process going on, and they quite honestly just need to go away. By the way, let’s throw the UN out of the US. You heard it here. [00:08:49][120.6]

Stuart Turley: [00:08:49] Let’s go to the last story here. Three firms seal the 3.3 billion LNG to power deal in the Philippines. This is a really cool the result. The involves Amgen and T in GP through chromite gas and 67% equity interest in sounds, premier power and excellent energy resources and in engine prime industrial estate. As a result of these acquisitions, Amgen and TNG through their 40 to 60% stake in CGI respectively, owned 767% of SPC. We’ll figure that out. But anyway, the cool thing is the Philippines completing watchdog recently approved this LNG to a power plant transaction worth $3.3 billion. This is actually very cool. And again, this goes along with this whole energy thread right here, and that is you’re going to see lower cost power coming in than coal and you’re going to see a reduction in output or pollutants because it is LNG versus coal. So hats off to the Philippines for getting this done. And I actually like. Now, I’d also like to say if you’re in Hawaii, why don’t you try to run the jump? But Chris, right over there is the hopefully in the new secretary of energy would say, I agree with this. And when he gets confirmed, that’d be pretty cool to get rid of fuel oil in Hawaii and put in a LNG to power plant. But we would need the war time exemption on the Jones Act in order to do that for the United States and keep Hawaii pristine and get rid of fuel oil. 67% of the power in Hawaii is still with fuel oil, and that is not a clean solution. [00:10:51][122.3]

Stuart Turley: [00:10:52] So with that, like subscribe and if you are a CEO, I would love to interview you at NAPE next week. Just reach out to the show. We want to get your schedule. I’ve already got some fantastic interviews lined up. Last year at night we did about 35 interviews. Is going to be crazy. Banks have an Absolutely. [00:10:52][0.0][640.3]

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Power companies pressure Trump EPA to roll back rules on toxic coal ash

Energy News BeatPower companies

​[[{“value”:”

A coalition of U.S. power companies is demanding ​“immediate action” from the Trump administration to roll back federal regulation of toxic coal ash and rescind recent enforcement actions.

Jan. 15 letter to Lee Zeldin, President Donald Trump’s nominee to head the U.S. Environmental Protection Agency, outlines specific steps the federal government should take to relieve power companies of their obligations to prevent coal ash from contaminating groundwater. The letter, which was obtained by Canary Media and has not previously been reported on, is signed by executives representing a dozen power-plant operators that collectively hold over half a billion cubic yards of the dangerous material, a byproduct of burning coal in power plants.

“These are powerful corporations asking for the administration to do their bidding even if those actions put health and the environment at risk, which they certainly will,” said Lisa Evans, senior attorney for Earthjustice, which compiled groundwater monitoring data in 2022 revealing the scope of coal-ash pollution that will remain in the U.S. even after a transition to clean electricity.

The companies represented in the letter are Duke Energy; Vistra; Southern Illinois Power Cooperative; Ohio Valley/Indiana-Kentucky Electric Corp.; Talen Energy; Louisville Gas & Electric/​Kentucky Utilities; Gavin Power LLC; City Utilities of Springfield, Missouri; Basin Electric Power Cooperative in North Dakota; and the Lower Colorado River Authority.

The federal government lacked specific coal-ash regulations until 2015, when the Obama administration adopted rules following a long, contentious process. The standards omitted ​“legacy” coal ash stored in landfills and repositories that had closed before the rules took effect, and they were barely enforced until 2022, when the Biden administration made them a priority.

After years of litigation by environmental advocates, EPA last spring expanded cleanup requirements to include legacy impoundments, closing a major loophole that helped power-plant operators skirt responsibility for toxic pollution at scores of sites nationwide. Those rules are currently in effect but are being challenged in federal court by Republican attorneys general and power-industry groups.

The industry letter calls on the EPA to drop its legal defense of the legacy impoundment rules. It also asks the agency to rescind its prohibition on scattering coal ash to build up land, a practice companies call ​“beneficial reuse” that experts say can be extremely dangerous. In Town of Pines, Indiana, for example, this practice led to a massive Superfund cleanup.

The letter demands EPA revoke its closure order and guidance on coal ash at the Gavin Power Plant in Ohio, noting that the case could provide precedent for lawsuits concerning other sites. The EPA’s decision on the Gavin plant affirms that the 2015 rules prohibit leaving coal ash in contact with groundwater; industry groups filed a lawsuit arguing the rules actually do not mean that.

The letter also calls for the Trump administration to review other previous EPA enforcement at specific sites, ​“in light of new priorities.” And it calls for review of contracts awarded for coal-ash enforcement.

A Duke Energy spokesperson declined to comment. Vistra and Southern Illinois Power Cooperative did not respond to messages and emails sent Monday evening. 

Evans disputed the letter’s contention that federal coal-ash regulations are not ​“practical and based on demonstrated risk.” 

“Their claims are nonsense and unfounded,” Evans said. ​“For the Trump administration, it doesn’t matter whether these arguments have any merit; it matters who is asking.”

The vast majority of coal-ash sites nationwide are contaminating groundwater, companies’ own data showsDuke Energy has excavated ash from a number of sites in North Carolina, following criminal charges related to the 2014 Dan River spill. Talen’s coal ash in Montana is putting the Northern Cheyenne Tribe at risk. American Electric Power, former owner of the Gavin plant, bought out the entire town of Cheshire, Ohio, because of pollution from the plant.

The industry letter also calls on Zeldin to ​“quickly rescind” a new EPA rule that would force fossil-fuel plants to install technology to drastically scale back their emissions. Dozens of states and companies are challenging that rule in federal court. As a Congress member from New York, Zeldin frequently voted against environmental protections. He also pledged to overturn the state’s ban on fracking during an unsuccessful run for governor.

The letter says the rules ​“threaten the reliability of the power grid, jeopardize national security, are a drag on economic growth, increase inflation, and hinder the expansion of electric power generation” needed for AI and other technologies.

Prior to Trump’s reelection, the EPA was increasingly prioritizing coal ash. In 2023, the agency announced coal ash was among six top enforcement priorities for fiscal years 2024 through 2027, saying failure to comply with the rules can cause significant ​“harm to human health and the environment … through catastrophic releases of contaminants into the air or contamination of groundwater, drinking water, or surface water.”

To change rules enshrined in federal law, the EPA would need to initiate a lengthy rulemaking process that includes public comment. Any new rules would need to meet standards in the Administrative Procedure Act, including having a ​“rational basis,” as the act says. If the agency were to adopt rules that failed to meet these criteria, advocacy groups would likely sue.

“You can’t just revoke a rule and replace it with one that’s friendly to industry,” said Evans. ​“If the reality is coal ash is contaminating groundwater at nearly every site in the country, it’s going to be hard for the Trump administration to write a rule that allows utilities to continue to pollute.”

“}]] 

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