World News
Stolt-Nielsen to Cancel Scrubber Installations Where Possible
Shipping company Stolt-Nielsen plans to cancel scrubber installations where possible, it said last week, as the company cuts capital expenditure in the face of the COVID-19 pandemic's effect on demand for shipping.
The company has identified about $30 million of capital expenditure that can be cut in its tankers division, where scrubber installations have been the main capital cost, CEO Niels Stolt-Nielsen said in a call with analysts last week.
"We will cancel as many scrubbers as possible, primarily to preserve cash," Stolt-Nielsen said.
Delays in scrubber installations may be a means of cancelling a retrofit that has already been committed to, he said.
"Where the contractor or the supplier is late, and we can get out of the contract, we will," Stolt-Nielsen said.
The company paid an average of $506/mt for its fuel in the first quarter, the company said, up from $384/mt in the fourth quarter of 2019.
Stolt-Nielsen has hedges in place covering 36,000 mt of very low sulfur fuel oil purchases from April 2020 to December 2020, and these have a negative value of $4.2 million as of April 16. the company said.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 571.50 | 0.00 | 665.50 | 1.00 |
| Rotterdam | 512.00 | 3.00 | 663.00 | 0.50 |
| Houston | 545.50 | 3.00 | 666.00 | 9.50 |
| Fujairah | 560.50 | 0.00 | 743.50 | 1.50 |
| Global 20 Ports Average | 584.00 | 1.00 | 751.50 | 2.00 |
| Global 4 Ports Average | 547.50 | 0.00 | 684.50 | 2.50 |
| Global Average Bunker Price | 633.50 | 0.50 | 805.50 | 0.00 |
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