Oil Majors Cut Jobs

By MarEx 2015-07-30 14:23:14

Two of the UK oil and gas majors are cutting costs due to falling oil prices. Royal Dutch Shell is cutting 6,500 jobs and Centrica will release 6,000 employees. She Q2 profits fell by 37 percent. Most of Centrica employee cuts will take place in the UK. But, they will be creating close to 2,000 new jobs in other regions in the world.

Shell’s capital expenditures will be reduced by 20 percent to a total of $30 billion. It will also sell off assets worldwide between 2016 and 2018. Japanese energy company Idemitsu Kosan has agreed to purchase Shell’s 33 percent stake of Showa Shell refinery for about $1.4 billion.

While cutting costs, Centrica’s first half profits actually rose to £528 million ($822 million) from £265 million ($412 million) in the same period last year. It attributes the increase BG’s higher gas consumption due the harsh winter in the beginning of 2015.


Matson, Hawaii Reach Settlement

By MarEx 2015-07-30 11:22:24

Matson, Inc has agreed to pay up to $15.4 million in restitution for a 2013 molasses spill in Honolulu Harbor. The shipping company also agreed to cease its molasses operation in Hawaii and pay for the removal of its molasses tanks and any remaining molasses. About 1,400 tons of molasses leaked into the harbor in September 2013, killing more than 26,000 fish and marine life. The settlement includes a combination of cash, restoration efforts and environmental funding.

Matson will pay Hawaii $5.9 million towards re-growing a coral nursery damaged due to the spill and reimbursing the state for cleanup efforts. The shipper will also submit a contribution to the International Union for Conservation of Nature’s World Conservation Congress.

Estimates of the cost related to closing molasses operations range between $5.5 million and $9.5 million. When Matson’s settlement is satisfied, it will cost the company between 11.4 and $15.4 million.

Matson was founded in 1882 and provides shipping services throughout the Pacific.


Positive Signs For Scorpio Tankers

By MarEx 2015-07-30 10:53:53

Scorpio Tankers is expanding its fleet. The shipper has reached agreements with Hyundai Mipo Dockyard Co. Ltd. of South Korea (HMD) for four newbuilds. HMD will construct two MR product tankers and two Handymax product tankers for Scorpio. The pair of MR tankers cost about $34.5 million and the two Handymax tankers cost about $32.5 million. The vessels are to be delivered between the second and third quarters of 2017.

The contracts come with a fixed price and options for 12 additional ships of both sizes.

Scorpio’s orders follow Q2 results that exceeded analyst forecasts. The company took in a net income of $57.6 million, which raises its first half profit to $98.2 million. In the same period last year, the shipper suffered a loss of $11.2 million.

Scorpio has 12 vessels with payments totaling $596 million in its order book.


Matson settles molasses spill case

US-based box carrier Matson has terminated its molasses operations in Honolulu as part of a settlement stemming from a 2013 spill in Honolulu Harbour.
The settlement with the state of Hawaii, announced 29 July, includes an agreement to pay USD5.9 million to compensate for damaged coral, lost fish,