Berlian LajuTank   

Berlian Laju

(The following statement was released by the ratings agency) Aug 26 - -- BLT's leverage remains high, with its liquidity weak and its headroom on debt covenants very tight. -- We believe freight rates may soften during the remainder of the year, which could cause BLT to breach some of its debt covenants, especially the EBITDA-related ones. -- We have lowered the rating on BLT to 'B-' from 'B', and placed it on CreditWatch with negative implications. -- We have also lowered the senior unsecured debt ratings to 'CCC' from 'CCC+' and placed them on CreditWatch with negative implications. Standard & Poor's Ratings Services today lowered its long-term corporate credit rating on Indonesia-based shipping company PT Berlian Laju Tanker Tbk. (BLT) to 'B-' from 'B', and placed it on CreditWatch with negative implications. At the same time, Standard & Poor's lowered its foreign currency issue rating to 'CCC', from 'CCC+', on the US$400 million senior unsecured notes due 2014, and the US$125 million five-year convertible bonds due 2012 by BLT Finance B.V., a wholly owned subsidiary of BLT. These ratings have also been placed on CreditWatch with negative implications. "Our BLT downgrade is driven by the company's high leverage and weak liquidity," said Standard & Poor's credit analyst Manuel Guerena. Despite successfully getting funding (local currency bonds, sale-and-leasebacks, bank loans, convertible bonds and two right offerings) for a total of approximately US$730 million since 2009, BLT's leverage has not improved materially and its liquidity remains weak, given its tight cash flow generating capacity and aggressive capital expenditures, he said. The CreditWatch placement reflects the high probability of BLT breaching its EBITDA-related debt covenants in the next few quarters, given prospects of softer margins in the second half of the year and their very tight compliance headroom currently; a test of covenant compliance in June 2010 showed it was close to being in breach. "The two unsecured notes are rated two notches lower than BLT's issuer credit rating due to the substantial amount of secured debt that ranks ahead of the unsecured notes," Mr. Guerena said. Resolution of the CreditWatch will depend on how BLT deals with covenant pressure. A failure to address the potential covenant breach could trigger a further downgrade. However, if the company increases the headroom in its covenant compliance and there are no near-term refinancing difficulties, Standard & Poor's will remove the ratings from CreditWatch and revise the outlook to negative or stable, depending partly on the shipping industry outlook. BLT is highly leveraged, as evident from its ratio of operating-lease-adjusted debt to annualized EBITDA of approximately 7.5x as at June 2010. While that is better than in 2009, we believe further improvement will be limited in the near term, due to the pressure on the company's profitability for the rest of 2010 and its aggressive capital expenditure program. BLT's key business is the operation of chemical tankers, which together contributes approximately 74% of revenue and 70% of EBITDA. BLT plans to grow its business by participating more in the Indonesian market under the new cabotage rules, likely by bidding for Pertamina's oil and gas tankers and other offshore vessels. RELATED CRITERIA AND RESEARCH -- Corporate Ratings Criteria 2008, published April 15, 2008. ((Bangalore Ratings Team, +91 80 4135 5415, Hotline: 4135 5898 Debanjali.Ghosh@thomsonreuters.com, Reuters Messaging: Debanjali.Ghosh.reuters.com@reuters.net))

 

See news above. Analyst don't like the highly leveraged Berlian =) I like the fact that this company is expanding aggressively. I like the fact that people are selling their stakes. When it's all over and when company has consolidated its purchases, I will have a superb upside. I think 0.50 - 0.70 is a darn cheap price to get into.

 

Any idea when would that be...?

alyl21      ( Date: 10-Nov-2010 17:10) Posted: I'm excited by the quarter results to be announced. I think it will be positive =)

 

I'm excited by the quarter results to be announced. I think it will be positive =)

 

Alright...tml is thurs already. Hopefully berlian laju will wanna announce their result tml.

 

Still waiting for Berlian Laju's 3Q result...pls pls...upz upz

 

hi guys..............vested 0.06 avg price.....supporter hoy hoy!!!!

 

lol...great minds alike. I hold 100 lots as well..at average price 0.58. should have stock up more when the price was at 0.55

 

I bought 100 lots at 0.06. Waiting for it to jump up. Under SGX rules, next week should be the deadline for quarterly results release, except for FY, which is due end of the month.

 

Really? Reliable info? probably STI will keep start with positively since Dow is upz more that a hundred. Looks like i missed the time to accumulate more of BLT at cheap price.

 

Possibly next week.

 

I'm waiting for their 3Q result leh...when when???

 

Yes, be ready to load all penny stocks prices <Sgd. 0.10 when the STI reaching 3,300, all these pennies will play catching up game, hence, potential huge capital gain may be expected easily.

alyl21      ( Date: 04-Nov-2010 16:49) Posted: Company has 3 to 4 new vessels acquired in 2010. Seems like coy is ready to kickass with expanding oil/gas industry. The support services could be well in demand. Anyone with an opinion?

 

Company has 3 to 4 new vessels acquired in 2010. Seems like coy is ready to kickass with expanding oil/gas industry. The support services could be well in demand. Anyone with an opinion?