World News
Bunker Credit Managers Sanguine on Adani Risk After US Indictment
Credit managers in the bunker industry are thus far not making any radical changes to their risk analysis of India's Adani Group despite its founder's indictment in the US last month.
US authorities have accused Adani Group founder Gautam Adani, executive director Sagar Adani and Adani Green managing director Vneet S Jaain of being involved in bribery to secure Indian power contracts, as well as misleading US investors.
Gautam Adani has characterised the Justice Department's allegations as 'baseless' and said his firm would seek 'all possible legal recourse' in fighting them.
Adani has a significant presence in a range of maritime industries, with a fleet in multiple segments, a ports business and its marine fuels arm, Adani Bunkering.
But credit managers speaking to Ship & Bunker in recent days have suggested the company's prospects have not changed sufficiently to necessitate a change in the levels of business that can be done with Adani.
"I would be surprised if a bunker sector compliance department put a ban on dealing with Adani as a group," one credit manager said.
"Even in a worst case of Mr Adani getting convicted of bribery, surely the whole Adani group would continue to function.
"It's a topic to watch, but we still sell to Adani Shipping Pte Ltd for now -- and given how competitive that account is, we are not alone."
Another credit manager said a 'cautious stance' was appropriate.
"We currently have no exposure to the group, but are closely monitoring developments while adopting a cautious stance until there is more clarity on the situation," the second source said.
"Overall, the current events are credit-negative and will likely continue to weigh on the group's outlook.
"We have been bearish on the group since it all started with the Hindenburg [report]."
New York-based Hindenburg Research reported in January 2023 that it had short positions in Adani Group over debt and accounting concerns.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 535.00 | 7.50 | 658.50 | 3.00 |
| Rotterdam | 500.50 | 3.00 | 639.00 | 5.00 |
| Houston | 540.00 | 1.50 | 661.00 | 4.50 |
| Fujairah | 532.00 | 4.50 | 743.00 | 1.50 |
| Global 20 Ports Average | 570.00 | 2.50 | 746.50 | 2.00 |
| Global 4 Ports Average | 527.00 | 3.00 | 675.50 | 1.50 |
| Global Average Bunker Price | 622.50 | 1.00 | 800.50 | 1.00 |
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