Category: Oil & Gas

Arkon Energy Sets New Australian Pre-seed Funding Record

Bitcoin mining startup Arkon Energy has raised an AUD$2.6M pre-seed round, setting a new Australian record, just one month after the record was set by one-click checkout startup “Instant” at AUD$2.2M.

The company will use the funds to rapidly scale its capabilities and deploy more bitcoin mining operations through a two year, 44 megawatt (MW) renewable energy project pipeline.

Utilising low-cost renewable energy and immersion cooling, Arkon Energy has built this 44MW future pipeline across four project partnerships to be deployed over 18-24 months. Arkon intends to scale its operations at a similar pace to its much larger Australian competitors, Mawson Infrastructure and Iris Energy.

The record-breaking round was led by blockchain investment firm Kestrel0x1. It also attracted a number of strategic investors, including leading provider of trade services and renewable energy products, Linked Group Services, and a suite of other angel investors.

The company was co-founded by Sydney-based Joshua Payne and Gold Coast-based Nathan Townsend. Payne is the COO and co-founder of NYSE-listed special purpose acquisition company, Battery Future Acquisition Corp, which raised USD$345M at an IPO in December. Mr Townsend is a former partner at boutique project finance advisory firm PT Capital.

The pitch

Payne and Townsend’s pitch to renewable power generation asset companies is to utilise low-cost, renewable energy (that often runs on a cost-negative basis during the day and is only profitable during peak grid pricing), to mine Bitcoin. This would result in five-fold greater profit margins, 24-hours a day, every day of the year.

“Due to the grid oversupply issues causing the cost of power to run negative during the day, renewable energy generation asset owners must consider alternative sources of electricity monetisation to remain profitable and competitive,” says Payne.

“Most large renewable companies are already exploring the use of battery storage to store energy and deliver it to the grid on-peak for additional profit. But this only provides a small window of opportunity during the day to benefit from high power prices.”

“There are benefits we provide for our clients are built on two fundamentals. The first is that fundamentally, Bitcoin is money,” explains Payne.

“The second is that the processes of converting energy to battery storage and converting energy to bitcoin, are essentially the same.

“The advantage of mining Bitcoin is that you are storing energy in money, which can either be immediately converted back to Australian Dollars at a five-times greater profit margin or held for long-term price appreciation.”

The outlook for Arkon Energy appears to be all upside, with competitors Mawson Infrastructure and Iris Energy both going public on the Nasdaq in Q3 and Q4 last year with enterprise valuations of USD $800M and USD $1.5B respectively.

With new cash reserves, Arkon Energy aims to achieve similar results within 24-months.

About Arkon Energy

Arkon Energy is a bitcoin mining startup founded by Sydney-based Joshua Payne and Gold Coast-based Nathan Townsend.

Web: ArkonEnergy.com
Contact: info@arkonenergy.com
Location: Sydney, Australia

SOURCE: Arkon Energy

Infocus Announces Online Training on LNG Supply, Demand, Pricing & Trading

Infocus International Group, a global business intelligence provider, has confirmed the new date for its highly recommended LNG Supply, Demand, Pricing & Trading online training. The online training is back with a new agenda and it will be commencing live on 19 January 2022.

2021 has been a year of recovery for LNG demand as governments of importing countries have relaxed some of the restrictions imposed in response to the Covid-19 pandemic and economic recovery has started. However, the growth in LNG supply has been curtailed by unscheduled maintenance at some of the world’s liquefaction plants and by shortfalls in feedgas supply at others. The result has been a tightening of the supply demand balance causing LNG and natural gas prices to surge reaching over $25/MMBtu in September 2021. It is a very different market to 2020, when demand fell because of the pandemic and supply increased as output built up from liquefaction trains commissioned in 2019 and the first half of 2020, which led to LNG and natural gas prices in Asia and Europe declining to $2/MMBtu in the middle of the year. At this level, prices were below the short-run marginal cost of US LNG exports and around 180 US cargoes were cancelled.

Energy transition has brought increased demands for the LNG business to reduce greenhouse gas emissions in all parts of the LNG chain from natural gas production through to the combustion of regasified LNG in downstream markets. It raises questions over LNG’s role in the long-term energy supply. Will demand increase as natural gas replaces coal in power generation and is used as a back-up fuel for renewables or will natural gas be seen as a fossil fuel whose consumption has to be reduced if targets of net zero carbon emissions are to be met?

The online course will, over six sessions, provide an overview of the LNG business in 2022 with a commercial focus but technology and shipping will also be covered. It will consider the outlook for the business over the period to 2040 in terms of markets, sources of supply, pricing and trading and the response to energy transition. It is designed not only for newcomers to LNG but also those who want to refresh their knowledge or who have experience in one part of the business or one region and want to widen their knowledge.

Head of Department of Aqualectra shared, “The presenter was very clear and the content was communicated very well with many examples and was really very topical. I learned a lot during these sessions and will pass this on. Thanks again.”

“Excellent overview of the LNG industry end-to-end. I would highly recommend it to anyone wanting to learn about the industry,” said Senior Business Analyst of Murphy Exploration and Production.

Check out the LNG online course new agenda at www.infocusinternational.com/lng-online.

Course Sessions

– LNG value chain in 2021-2022
– Safety, shipping and current status of the LNG business
– LNG markets and terminals
– LNG shipping and supply
– Acquiring LNG supply and LNG pricing
– LNG contracts and LNG spot and short-term trading

Benefits of Attending

– Understand LNG chain technologies, costs, economics and safety
– Appreciate how the LNG business is changing and the implications for those working in the business
– Gain insights into LNG pricing and how it is evolving
– Acquire in-depth knowledge of world LNG markets and supply sources
– Assess the increasing role of spot and short-term trading

Want to learn more?

Simply email emilia[at]infocusevent.com or call +65 6325 0210 to obtain your FREE COPY of the event brochure. For more information, please visit www.infocusinternational.com/lng-online.

About Infocus International Group

Infocus International is a global business intelligence provider of strategic information and professional services for diverse business communities.

Infocus International recognises clients’ needs and responds with innovative and result oriented programmes. All products are founded on high value content in diverse subject areas, and the highest level of quality is ensured through intensive and in-depth market research from local and international insights.

Emilia Mok
Tel: +65 6325 0210 | Email: emilia[at]infocusevent.com | Website: www.infocusinternational.com

Wintermar Offshore (WINS:JK) Reports Turnaround 9M2021 Results

Wintermar Offshore Marine (WINS:JK) has announced turnaround results for 9M2021 with a net profit of US$0.49 million following a loss of US$7.44 mil in 9M2020.

Stronger oil prices and measures to streamline the fleet and reduce gearing helped in turning the Company around after several years of heavy losses. In line with the positive outlook for oil prices, utilization also improved to 66% in 9M2021 compared to 63% in 9M2020.

Owned Vessel Division
Owned Vessel Revenue for 9M2021 was reduced by US$0.2 million to US$24.4 million compared to 9M2020. During July and August, the delta variant of COVID-19 hit Indonesia hard and affected our operations in Asia. A few of our vessels were infected while crew change was delayed due to quarantine and travel restrictions, leading to unplanned downtime. This and the completion of some high end vessel contracts led to a lower margin for 3Q2021. However, since September the pandemic has waned significantly in Indonesia and business operations have recovered back to normal.

Despite the disruption from COVID-19, due to a much lower cost base and a smaller fleet, the Company made a US$4.1 mil gross profit this year for 9M2021 compared to a loss of US$2 million in 9M2020 on nearly the same revenue. Fuel costs rose to 37% as some high tier vessels were idle between contracts.

Chartering and Other Services
Contribution from the Chartering Division in 9M2021 jumped by 64% YoY from US$0.4 million to US$0.66 mil while contribution from other services also jumped 85% YOY to US$0.62 million in 9M2021 from US$0.34 million in 9M2020. These reflect the underlying improvements in offshore vessel demand.

Indirect Expenses and Operating Profit
Indirect expenses totaled US$3.92 million in 9M2021, falling 13% YOY from US$4.5 million, reflecting a much leaner organizational structure with lower overheads as compared to 2020. This has resulted from the fleet efficiency exercise over the past couple of years to sell less efficient vessels and reduce overheads. 9M2021 operating profit amounted to US$0.15 million.

Other Income, Expenses and Net Attributable profit
Since January 2021, the Company has sold 3 vessels and has already entered into a MOA to sell another three, registering in a US$2.4 million gain on sale of vessels. The total fleet now stands at 40 vessels. A total of US$9.5 million in vessel loans was repaid, bringing the Company’s net gearing down to 21.7% by end September 2021. Interest expenses for 9M2021 fell by 33% YOY to U$1.66 million in line with lower debt. Associated Companies generated income of US$0.24 million due to better operational results, bringing the other income to US$0.79 million for 9M2021 compared to a loss in 9M2020.

The stronger operational environment has boosted the bottom line, with net income attributable to shareholders of US$0.49 million for 9M2021, as compared to a US$7.44 million loss.

EBITDA for 9M2021 also rose by 13% YOY to US$10.2 million.

Oil & Gas Industry
As expected, the opening up of travel restrictions across the world has led to a spike in oil prices as supply has not been able to keep pace with growing demand for oil and gas. Global oil demand is expected to recover to pre-virus levels in 2H2022 and the 3rd quarter saw Brent crude oil prices breaking above US$85/barrel, levels not seen since 2014. This reflects the optimism in the oil and gas industry which has finally shown a cyclical recovery. In Indonesia, there are tenders for drilling projects due to start in early 2022.

Offshore Vessels
In line with the oil price spike, there has been an increase in purchases of second hand offshore vessels, and prices have turned around as vessels which had been on offer for a while were bought up. The international rig count has also picked up as more investments have commenced. This is in line with our optimistic outlook for the industry in 2022.

Strategy and Outlook
Over the past few months, the Company has stepped up the sale of older and less productive vessels to take advantage of the improvement in second hand OSV prices. The fleet now stands at 40 vessels, and more are planned to be sold in 4Q2021. This strategy to reduce bank debt as well as keep some cash on hand has created a stronger balance sheet. As banks are still reluctant to lend for vessel acquisition, the Company now has the flexibility to acquire assets as and when the opportunity arises without having to wait for bank loan approval.

Contracts on hand as at end September 2021 totalled US$64 million.

About Wintermar Offshore Marine Group
Wintermar Offshore Marine Group (WINS.JK), developed over nearly 50 years with a track record of quality that is both a source of pride and responsibility that we are dedicated to upholding, and sails a fleet of more than 48 Offshore Support Vessels ready for long term as well as spot charters. All vessels are operated by experienced Indonesian crew, tracked by satellite systems and monitored in real-time by shore-based Vessel Teams.

Wintermar is the first shipping company in Indonesia to be certified with an Integrated Management System by Lloyd’s Register Quality Assurance, and is currently certified with ISO 9001:2015 (Quality), ISO14001:2015 (Environment) and OHSAS 18001:2007 (Occupational Health and Safety). For more information, please visit www.wintermar.com.

Ms. Pek Swan Layanto, CFA
Investor Relations
PT Wintermar Offshore Marine Tbk
Tel +62-21 530 5201 Ext 401
Email: investor_relations@wintermar.com

Infocus International Announces Online Training on LNG Supply, Demand, Pricing & Trading

The best rated LNG Supply, Demand, Pricing & Trading online training is back by popular demand with updated agenda and it will be commencing live on 8 September 2021.

At the beginning of 2020, the LNG business was looking forward to another year of expansion after a successful 2019 during which production increased by 42.5 mt and final investment decisions (FIDs) were taken on 71 mtpa of liquefaction capacity. COVID-19 has radically changed those expectations. LNG production continued to increase rapidly in the first quarter of 2020 as output from LNG trains that started up in 2019 built up to full capacity. However, demand weakened in the second quarter as lockdowns in many LNG importing countries to control the spread of COVID-19 slowed economic activity.

Increased supply and declining demand have led to an over-supplied market, with spot prices for LNG falling to levels not seen before in the second quarter and the cancellation of US LNG cargoes. However, prices began to recover during the third quarter with demand expected to strengthen in the winter months. The construction of new liquefaction trains has been delayed and final investment decisions (FIDs) on new capacity have been deferred. However, the long-term outlook for LNG remains robust as lower prices increase the competitivity of natural gas with coal and oil in the power generation and industrial sectors.

This course will be over six sessions, providing an overview of the LNG business in 2021 with a commercial focus but technical and shipping will also be covered. It will consider the outlook for the business over the period to 2035 in terms of markets, sources of supply, pricing and trading. It is designed for newcomers to LNG and those who want to refresh their knowledge or have experience in one part of the business or one region and want to widen their knowledge.

Benefits of Attending

– Understand LNG chain technologies, costs, economics and safety
– Appreciate how the LNG business is changing and the implications for those working in the business
– Gain insights into LNG pricing and how it is evolving
– Acquire in-depth knowledge of world LNG markets and supply sources
– Assess the increasing role of spot and short-term trading

Want to learn more?

Simply email to emilia@infocusinternational.com or call +65 6325 0210 to obtain your FREE COPY of event brochure. For more information, please visit https://www.infocusinternational.com/lng-online.

About Infocus International Group

Infocus International is a global business intelligence provider of strategic information and professional services for diverse business communities.

Infocus International recognises clients’ needs and responds with innovative and result oriented programmes. All products are founded on high value content in diverse subject areas, and the highest level of quality is ensured through intensive and in-depth market research from local and international insights.

Emilia Mok
Tel: +65 6325 0210 | Email: emilia@infocusinternational.com
Website: www.infocusinternational.com