The original title; Changhang will lose more than 1.2 billion or into state retreat city first

Our reporter Rainbow takae intern reporter King star reports from Beijing

After China ocean shipping leaders be ST and a fiasco of shipping state. ST long oil (600087) 2012 annual report, losses of $1.239 billion to its starting April suspended, such as can not turnaround in 2013, will become the first state to be delisted.

Dismal industry status for long-endurance oil 2013 turnround prospect is not optimistic, ST will securities transactions on behalf of xiao-feng gong told reporters that the company's board of directors has requested more asset disposal plan, do not rule out in the years to sell 3 MR ship, LPG ship 2 and 4 asphalt ship, in order to win more working capital.

ST will release after the loss, the results of the whole shipping market has been all out, the entire industry more profit less, especially the four shipping state of listed companies, a total loss of RMB 12.28 billion yuan. So the shipping state rescue calls back. China shipowners' association, vice President of Zhang Shouguo said, the association has also submit the proposal to the national related ministries and commissions also formed a plan, but it is unknown why has not released.

Delisting threat

ST long oil released 2012 annual report, the company business income of 6.629 billion yuan last year, up 30.28% from a year earlier, but at the same time net loss of 1.239 billion yuan, the basic earnings per share of 0.365 yuan.

ST long oil aspects explains, 2012 performance losses mainly for three reasons. One is the international oil market downturn in the freight company to main ship type VLCC combined and MR operating losses. Second last year rising international oil prices, rising fuel costs. In addition, the company interest-bearing liabilities is more, the financial cost is higher.

But industry experts say, ST oil capacity expanding too rapidly, and industry excess capacity is the most important reason for its continuing losses.

It is understood that in 2012, the Baltic BDTI comprehensive freight index of crude and refined oil freight index BCTI average 719 points and 641 points, respectively year-on-year decline 8.1% and 11% respectively.

ST will have several ship market to analysis, VLCC combined market mainly present in the first half of the freight is relatively high, in the second half of the overall downturn. The Baltic TD3 line (the Middle East - Japan) freight index daily WS47.6 points, fell 10.3% year on year; MR oil transport decline change, no serious excess capacity, deteriorating fundamentals, the Baltic TC2 line (Europe - beautiful bay) and the TC7 - Australia (Singapore) freight index of average daily WS133.57 and WS173.91 points respectively, down 19.19% and 3.98% respectively compared to the same; Domestic crude oil into the sea river affected by day instrument line opened in total, capacity glut appears gradually; Asphalt tanker transportation market in the first half of the overall is good, but the second half of the pallet reduced freight down on asphalt market trend; Other special transportation market supply has decreased, competition is intense, market freight rate in a downturn.

At the same time, ST long oil capacity expansion at a surprising speed. Company capacity size of about 400000 deadweight tons in 2006, but the company 2012 annual capacity of 960000 ton, and capacity by the end of the scale of 85 and 7.35 million deadweight tons, compared with 2006 capacity increased by 17 times.

Surge of fleet size, and dismal industrial surplus, has allowed the ST the more long will lose. The company's operating income in 2012 of 2012 yuan, but the operating cost is as high as 7.1 billion yuan.

This situation is likely to still continue in 2013. Together with the annual report disclosure, according to a quarterly in 2013 because of the boom of industry has failed to improve, the company lost 359 million yuan 1 to march again. In accordance with the relevant provisions, if the 2013 before and after deducting non-recurring gains and losses net profit is not the "positive" in time, ST long oil after released 2013 annual report listing will be terminated.

This means that ST long oil turnround campaign this year will be daunting.

Being confronted with turnround?

For the prospect of the turnround, xiao-feng gong dare not very sure, just said to the reporter, will management layer has the confidence, also depends on market situation.

According to its introduction, the company intends to vigorously expand the business, and strengthen cost control. To further strengthen the awareness of cost control, strictly budget, focus on fuel and other major cost control; Improve the purchasing management system, increase the intensity of centralized purchasing; In VLCC combined sailing speed down, on the basis of advance MR ship sailing speed down, reduce fuel costs; Strictly controlled costs.

In addition to drop these rigid cost, reporter noticed that the company's management in management comprehensive 15% pay cut, to the populace. But whether the grassroots employees may also pay cuts, xiao-feng gong said temporarily not discuss other staff wages scheme.

For ST oil, can ride out the crisis, still need to rely on the smooth financing channel and operating funds, the financing doors were closed after the public platform, the company can only seek other way to survive. The reporter noticed that the company's operating cash flow for more than one quarter is negative, the asset-liability ratio is as high as 81%, more than any other company. Moreover, the company's short-term borrowing is very high, up to 2.9 billion yuan.

Xiao-feng gong, said the company plans to take equity financing, debt financing, financing structure and asset disposal and other measures, to reduce the asset-liability ratio, to ensure the safety of capital chain. With the owner, strategic investors and financial institutions of the joint venture cooperation, to realize equity financing; By using existing clean Marine, ship after-sales leaseback financing; Increase the intensity of asset disposal, through the disposal of vessels drained; With the support of the group, strengthen the communication and cooperation with financial institutions, renew loans for bank loans and the new line of credit, through bank loans, issuing bonds and debts such as the trust financing way solve the funding gap.

The disposal of these assets is the normal terms of a means of shipping companies and China shipping development, Hong Kong, it is to use this recruit successful turnaround.

Xiao-feng gong, according to the board of directors has agreed to authorized personnel will 3 MR ship, LPG ship 2 (" ninh thuan "and" cheung shun "chakras) and 4 asphalt ship (" jiangzhou", "treasure island", "lung chau" and "phoenix states") into the value appraised by no less than external treatment. The ship may be like changhang will deal with the four previous oil tanker do after-sales leaseback financing.

ST will also vigorously promote and the owner of the joint venture, cooperation, establish a capital as a link, to business as the platform, mutually beneficial and win-win as the goal of the new cooperation development mode, and actively promote the owner establish rate stability mechanism, to achieve risk-sharing, benefit sharing. In addition, the company hopes to state and local governments for the fiscal, financial and tax policy support.

Countries will get at the policy level support? China shipowners' association, vice President of Zhang Shouguo think, from far, long-endurance phoenix and long-endurance oil company by ST or by suspension of listing, the country will not save, does not encourage enterprises requires countries out when I was in difficulty, but want to why state-owned enterprises really reflect on their own judgment error, how to prevent risks in place, whether scientific cost control, etc., using market mechanisms to promote state-owned enterprise decision-making scientifically.

But Zhang Shouguo also said, the association is not encouraged to save, but from the industry level to suggest some shipping to revitalize the nation. To its knowledge, the relevant ministries have reply, and formed the corresponding revitalization of the rescue plan, but the unknown what delayed release. Net source in the 21st century - the "21st century business herald)