Vedanta shareholders approve Cairn merger
Vedanta has announced its shareholders, secured and unsecured creditors had approved Cairn India’s merger with it under a revised scheme. Of the members present and voting at an extraordinary general meeting of Vedanta shareholders in Panaji on Thursday, 97.84 per cent in number and representing 99.99 per cent in value voted in favour approving the scheme. Further, secured and unsecured creditors, at their respective meetings, also approved the scheme with the requisite majority, the company said. Cairn India will hold its extraordinary general meeting on Monday. Earlier this week, shareholders of Vedanta Resources had approved the merger. The scheme has now been approved by a majority of Vedanta’s minority shareholders. Vedanta sought approval of shareholders by way of a special resolution at the extraordinary general meeting for reduction of the company’s capital. This resolution was also approved by the shareholders who cast 99.97 per cent of votes (in value) in its favour. The scheme is now subject to approval of the jurisdictional high courts and other regulatory approvals. On July 22, 2016, Vedanta and Cairn India announced a revised deal in which Vedanta offered minority shareholders of Cairn India one equity share and four redeemable preference shares with a face value of Rs 10 each. The preference shares will carry a coupon of 7.5 per cent and tenure of 18 months. The minority shareholders of Cairn India will hold a 20.2 per cent stake in the merged entity, while Vedanta Plc’s ownership will be 50.1 per cent and the remaining 29.7 per cent will be owned by Vedanta’s minority shareholders. Dan Fouts Jersey
Gloom at offshore drilling companies
Crude oil below $50 per barrel sends jitters to offshore drilling business. With business climate continuing to remain grim due to sliding global crude oil prices, offshore drilling companies like Aban Offshore, Dolphin and Jindal Drilling among others may not get any wage hikes for the current financial year. “Appraisals usually take place in April but there is no sign of it so far. We haven’t been told formally of no appraisals this year but looking at the business scenario, don’t think there will be any salary hikes,” a senior marketing official with Jindal Drilling told Business Standard. Crude oil prices need to be at least $50 a barrel to make offshore shallow water drilling viable. With prices below $50 per barrel at present, overall offshore business (shallow and deep) has hit rock bottom, said industry officials. “We are getting our salaries as of now but it is not always on the first of every month. The situation is scary,” said an official with Dolphin Offshore Shipping. According to Rigzone data, offshore rig utilisations in South America-Brazil region is the lowest in the last two years having dropped below 30 per cent in September from over 70 per cent in September 2014. “A lot of internal meetings are taking place in the company and senior officials when asked about appraisals say that there will be none this year. But no formal announcement is being made, we are already in mid-FY2017,” said another official with Jindal Drilling. In June quarter, Aban Offshore, the flagship company of Aban Group, reported a 24 percent sequential fall in its net sales and 51 percent on year-on-year basis led by lower utilization of rigs and rig renewal at lower rates. Currently, out of 18 rigs only eight rigs are operating. Aban Offshore’s future growth depends mainly on rise in crude oil price and higher exploration activity, said Kotak Securities in its report. The blood bath taking place in the offshore drilling business at present has not just remained restricted to lower earnings growth but is expected to lead to more serious consequences to the extent of companies filing for bankruptcy. “Of course, a lot of people are making losses, because of the utilization problems. A few significant players are already in financial distress. Couple have already filed for bankruptcy. There is a lot of stress in the offshore segment,” said G. Shivakumar, executive director and chief financial officer of Great Eastern Shipping said in the earnings conference call of June quarter. The latest casualty of low crude oil prices is Singapore-based offshore construction and support services company Swiber Holdings Ltd. The company in July has filed an application to wind up operations and has placed the firm in provisional liquidation. Swiber owns an operating fleet of 13 construction vessels, with 2,700 employees spread across Southeast Asia and other countries. Though the business scenario in offshore segment is grim and is expected to remain in this mode for the next couple of years as crude oil prices are not seen going up significantly, domestic offshore drilling companies are not expected to witness a bankruptcy situation by virtue of their presence largely in shallow offshore drilling. “Decline in crude oil prices will hit deep offshore drilling more because the cost of production is higher for them when compared with companies into shallow drilling. Indian companies are largely in shallow offshore drilling and due to this they will face weak earnings situation but bankruptcy is ruled out,” said an analyst with local brokerage on condition of anonymity. Aban Offshore and Great Eastern Shipping are among top offshore drilling companies in the country among others. While GE Shipping has its offshore drilling vessels deployed on longterm, Aban Offshore does not enjoy an equally comfortable position. Currently, ten rigs of Aban are lying idle out of a portfolio of 18 rigs. Significant leverage on Aban’s balance sheet and ageing of fleet are other key factors which makes brokerage cautious on its fundamentals, said Kotak Securities in its recent report. “The stock continues to be an event-driven performer and we expect the stock price (in the near term) to move based on crude oil price movement,” it said. Aban Offshore provides drilling services globally both shallow and deep waters to offshore exploration and production (E&P) companies. Marshall Faulk Womens Jersey
Asian gasoline cracks rise to three-month high
Asia’s gasoline cracks rose to its highest in about three months at $8.42 a barrel on an expected tightening of supplies during peak refinery maintenance. Japan’s JX Negishi, South Korea’s S-Oil and Taiwan’s Formosa, among others, have planned maintenance in September or October. Though Singapore onshore light distillates stocks were marginally higher, the levels were far below the record high this year. The stocks, which comprise mostly gasoline and gasoline blending components, were up 100,000 barrels, or 0.7 percent, to reach a three-week high of 13.74 million barrels in the week to September 7, official data showed. This was sharply lower than the record high of about 15.54 million barrels in early March. NAPHTHA India’s biggest refiner, Indian Oil Corp, plans to start producing gasoline at its Paradip refinery before year-end after a delay caused by problems at a secondary unit. The state-owned refiner aims to cut its naphtha exports to the bare minimum once the gasoline unit stabilises because the Paradip refinery is designed to maximise gasoline yield with naphtha as a feedstock. Naphtha is mired in a stubborn glut because of recent high refinery runs, cracker maintenance and heavy exports to Asia from the Middle East. The easy availability of liquefied petroleum gas (LPG) as a feedstock this year was also hurting naphtha sellers because between 5 percent. Allen Hurns Womens Jersey
HPCL wants ONGC to cut stake in MRPL
Hindustan Petroleum Corp. Ltd (HPCL), one of the promoters of Mangalore Refineries and Petrochemicals Ltd (MRPL), wants Oil and Natural Gas Corp. Ltd (ONGC) to divest a part of its stake in the refinery so that it can meet minimum public shareholding norms, said two HPCL officials aware of the development. At the end of June, HPCL held a 16.95% stake in MRPL, and ONGC, the other promoter, owned 71.6%. The public shareholding in MRPL was 11.42%, less than half the 25% prescribed by the Securities and Exchange Board of India (Sebi). “ONGC holds majority share in MRPL while our shareholding is small in comparison. We would prefer if ONGC offloads (a part of) their stake for MRPL to meeting the public holding norm,” one of the HPCL officials cited above said, requesting anonymity. MRPL and ONGC did not reply to emails sent on Friday. At MRPL’s annual general meeting, held on 3 September, the company said it authorised its board “for exercising any of the options available” to meet Sebi’s public shareholding norms. Options before the board include divestment of the promoters’ shareholding through an offer for sale or issue of fresh shares by MRPL through a public offer. Ron Jaworski Womens Jersey
Petroleum ministry for uniform taxation on petroleum products across the country
In an attempt to help benefit consumers, the ministry of petroleum and natural gas is working on a uniform tax structure for petroleum products across the country. This comes in the backdrop of the Constitution Amendment Bill to the goods and services tax (GST) receiving the President’s nod. First conceptualised in 2006 and dubbed as the biggest tax reform since Independence, GST will subsume all other indirect taxes. However, petroleum and petroleum products shall only be subject to GST later depending on the GST Council’s recommendation. The GST Council will comprise of state finance ministers and is expected to be in place shortly to decide the tax rate. The petroleum ministry is working towards a uniform taxation regime for petroleum and petroleum products, confirmed two government officials requesting anonymity. At present, different petroleum products are taxed differently across states. Given the huge variance in the value-added tax (VAT) on petroleum products across the states, the petroleum ministry has been advocating for uniformity in taxes. Michael Palardy Authentic Jersey
Pradhan mulls replicating Singapore’s petrochemical complex in India
Petroleum Minister Dharmendra Pradhan on Saturday mulled over the possibility of replicating Singapore’s petrochemical complex at two places in India- in Odisha’s Paradip port and Haryana’s Panipat district. The minister, who is on a 6-day visit to Singaporeafter which he will go to Britain, tweeted: “Jurong model is interesting; similar petrochemical complex can be developed in Panipath and Paradip with good planning.” Jurong, a reclaimed island in Singapore, hosts ports, three refineries and several petrochemical plants manufacturing the entire value chain of products. Pradhan visited the centralised utilites operations — offering a comprehensive range of energy, water and on-site logistics solutions – of Sembcorp Industries at Jurong island. “Visited Jurong Island at Sembcorp, that provides all common utilities to the industries in the 35 sq km island,” Pradhan tweeted. Earlier in the day, the Petroleum Minister also visited the Keppel Shipyard, here to review the technologies that can be useful for India. Many rigs working in Indian oil sector are developed here, he said, adding that the innovative technological work and rig manufacturing at the Keppels can be useful in India. Pradhan is on a visit to Singapore to lead India’s road shows to attract foreign investors for its small oil and gas fields. Brandon Montour Authentic Jersey
NHAI to inject Rs 500 crore more into widening of Jaipur-Gurgaon stretch of NH-8
To complete the long-delayed widening of Jaipur-Gurgaon stretch of National Highway 8 (NH-8), the National Highway Authority of India (NHAI) is planning to make a one-time infusion of Rs 500 crore. The fresh injection of funds is expected from the Centre as onetime financial assistance given for completing selected projects. “The developer, Pink City Expressway Pvt Ltd (PCEPL), is facing shortage of funds. The proposal is under consideration of the Centre,” said a NHAI official. A meeting of a consortium of 14 banks was called by Union minister Nitin Gadkari and officials from his ministry at the PMO to discuss the matter. “At present, construction work of around Rs 400 crore is pending.PCEPL still has to invest Rs 40 crore of its share, while the banks have a commitment of Rs 150 crore more. This will not cover the cost, forcing NHAI to invest,” the official added. However, the funding will be conditional. The NHAI will seek to recover its investment through toll collections. The banks have reluctantly agreed to the new proposal though it will reduce their returns on investment. “Banks will only get an interest of 3-5% instead of the 8-9% mooted earlier on money invested in the project. But it’s better than the project being stalled due to paucity of funds,” said the official. Work on this stretch began in April 2009 and 2011 was the original deadline for completing it. But even after missing the deadline by over five years, the six-laning work is still `progressing’. In 2013, to make the project financially viable, the board of 14 banks had approved restructuring of the project after NHAI delinked 17 structures planned for the highway. The scaling down was aimed to give the developer and banks some breathing space. It also came as a respite for the state gover nment as all the 17 points, where these structures were planned, had become contentious following protests over land acquisition. Dave Keon Womens Jersey
Huda to build roads along SPR to help avoid Kherki Daula, Vatika Chowk bottlenecks
With the proposed clover leaf on Delhi Gurgaon expressway to connect SPR and NPR still a few years away, Haryana Urban?Development Authority, Gurgaon, is planning to build master sector roads so that vehicles can bypass bottlenecks at Kherki Daula and Vatika Chowk. The urban authority has initiated steps to expedite the construction of the master sector road that will connect SPR with Delhi-Gurgaon expressway bypassing Kherki Daula toll plaza. The road starts from SPR, passes through the outer periphery of Sector 75A, Sector 76 and crosses between sector 75 and 76 to reach NH8. Speaking on the proposed plan, HUDA administrator Yashpal Yadav said land for this crucial master sector road has been acquired, and tender for construction is being prepared by engineering wing to ensure early construction. Currently, vehicles using SPR have to take the service lane of Delhi Gurgaon expressway, which is narrow, badly damaged and sees traffic from both sides leading to jams. “We have acquired land in sectors 75,75A, 76, 77 to build the master sector road and will take its possession by Wednesday. From SPR, the road goes towards Shikohpur, takes a right a few kilometres prior to the village and joins NH-8 opposite Sector 83. Commuters can either go towards Manesar or take a right and go towards Gurgaon from under the flyover,” Yadav said. HUDA officials believe that the development of this road can be completed in the next six months as acquisition has been completed and the tender is being prepared. Similarly, the authority has acquired pockets of land between sector 66 and 67, which will ensure the completion of master sector road starting from sector 59 to Sohna Road. “This road was also stuck due to a small parcel of land. Once completed, it will help vehicles moving on Golf Course extension road to avoid Vatika Chowk and Badhshapur village,” Yadav said. The oustees of the pockets will be awarded alternative plots and the remaining work done on priority, the official said. Apart from these two crucial roads, Huda also held a meeting to discuss the master sector roads, and other utilities in sectors 81 to 95. “We are fixing timelines to build roads, sewage and other utilities. The oustees of Rohtash ki Dhani have also been allotted plots and this will ensure connectivity between NPR and Manesar,” the Huda administrator said, adding that more than financial issues, it was the lack of administrative action that delayed the matter so long. Thomas Steen Womens Jersey
Sh Dharmendra Pradhan embarks on two nation tour for road shows for discovered small fields
Shri Dharmendra Pradhan, Minister of State (I/C) for Petroleum and Natural Gas, will be making official visits to Singapore and United Kingdom from 9-14 September, 2016. During these visits, he will take part in Road Shows at Singapore and London for the 67 Discovered Small Fields (DSF). Both places have been chosen for organising the Road Shows as they are key financial centres for global oil and gas community, to publicize and attract investments. During his visit to Singapore from 9-10 September, Sh Pradhan will inaugurate the Road Show and address the representatives of oil and gas industry, followed by a Roundtable interaction. He is scheduled to meet equity investors and leaders of hydrocarbon industry and speak on “Oil and Gas Sector in India: Changing Landscape”. He will also interact with eminent personalities working in the sector in Singapore. Sh Pradhan will visit Floating Production Storing Offshore (FPSO) Conversion Facility at Keppel Shipyard and Jurong Refinery and Petrochemical hub. Sh Pradhan, during his visit to the UK, will be inaugurating the Road Show and a data room relating to the DSF bid round. He will interact with the leaders of UK Trade and Investment (UKTI) on the hydrocarbon sector reforms taking place in India and have one-to-one meeting with prospective bidders, representatives of commodity exchange market and regulators. A Roundtable with UK financial institutions has also been scheduled where Sh Pradhan will discuss recent policy initiatives taken in the oil and gas sector in India. While in the UK, Sh Pradhan will meet his British counterpart Rt Hon Greg Clark, MP in London and also Scottish Energy Minister in Aberdeen. He will address a gathering at the Somerville College, Oxford University on ‘Policy Initiatives in India to increase access to Clean Energy’ followed by an interaction with leading scientists. Earlier, in July 2016, Sh Pradhan had launched the Discovered Small Fields Bid Round-2016 at Houston, USA. In India, DSF bidding was launched in New Delhi on 25th May, 2016 by Sh Pradhan. Under this bid round, 67 DSF are being offered for international bidding. These fields are spread over 9 sedimentary basins and will be offered in 46 contract areas. These fields are projected to yield 625 million barrels of oil and oil equivalent gas and spread over 1,500 sq kms in onland, shallow water and deep water areas. The Ministry of Petroleum and Natural Gas has introduced progressive administrative and fiscal procedures in the bidding process in sync with international best practices. The DSF policy provides for single uniform license for producing all kinds of hydrocarbons in place and other resources to be identified in future. Other incentives offered under this policy include no cess on the oil production, upto 100% participation by foreign companies, moderate royalty structure, customs duty exemptions and complete marketing and pricing freedom for the sale of produced crude oil and natural gas, no mandatory work program or relinquishment of contract area, operational autonomy and limited regulatory burden enabling provision for sharing of infrastructure and flexibility for unit development in case of reservoirs extending beyond contract area for joint development. Zach Hyman Jersey
SpiceJet Q1 profit doubles to ₹149 cr
No-frills airline SpiceJet reported a net profit of ?149 crore for the first quarter of 2017 against a profit of ?73 crore for the same period of the previous year. This is the sixth consecutive profitable quarter for the Gurgaon-headquartered low-cost airline. In a statement the airline said that on an EBITDA basis SpiceJet reported a profit of Rs. ?215 crore. During the latest quarter, capacity deployed by SpiceJet registered a growth of 37 per cent over the same quarter last year and operating revenue stood at ?1,522 crore (?1,113 crore previously). The average fare charged by the airline stood at ?3,605 during the first quarter of this year compared to ?3,715 during the same quarter in the previous year. Ancillary revenues During the latest quarter, the airline reported a 64 per cent increase in revenues from ancillary revenues compared to the same period in the previous year. Airlines in India earn ancillary revenues from unbundling services such as charging for sitting in the first few and some other seats which offer additional leg room space, by charging for meals/drinks ( they have to offer water free of charge), charging for checked in bags, sports equipment and musical instruments among others. Profits for the quarter were adversely impacted by Rupee depreciation, inflation and the presence of expensive wet lease aircraft, the airline said in the statement. Rupee depreciation Ajay Singh, Chairman and Managing Director, told newspersons after the results were announced that during the latest quarter the airline suffered a loss of ?33 crore due to the depreciation of the rupee, while it is likely to save substantial funds as the airline has now converted the wet lease of aircraft into dry lease. A wet lease involves leasing an aircraft with a foreign crew, while in a dry lease, the airline leasing the aircraft gets it without the crew. Typically, the leasing rates for an aircraft being taken on dry lease are 20 per cent lower than what an airline pays for inducting an aircraft on wet lease. “Currently, the company has zero bank debt. We have cleared all tax liabilities. All airport liabilities have been cleared. We have paid all the banks and do not have a rupee outstanding with them. There is no outstanding with vendors,” Singh said. SpiceJet plans to induct three Boeing 737 during October and November this year. The airline also plans to station another three Bombardier Q 400 aircraft in Kolkata to strengthen operations to the North-East. On Wednesday, the airline stock closed at ?65.30, up 8.95 per cent from the previous day’s closing, on the BSE. Al Davis Womens Jersey