BULL

Indonesia’s fastest growing owner

Kevin Wong presides over the appropriately acronymed tanker player, BULL

As we went to press the fleet of fast growing Indonesian tanker owner PT Buana “We are looking for selective opportunities Lintas Lautan (BULL) will number 33 vessels totalling 2.3m dwt, making in dry bulk not only as a the 15-year-old company one of Asia’s growth opportunity, but larger tanker owners.

The fleet is a mix of aframaxes, also importantly as a handysizes, an FPSO, a VLGC and smaller tankers. Since 2013, the com pany has grown by around 12 times hedge” in deadweight terms with a focus on to taking over BULL in 2014, there mid-cycle vessels. are new potential directions for the

“Ship prices reflect ship earn- fleet. ings, and we have found that given Wong tells Maritime CEO in an our focus is only on mid-cycle vessels exclusive interview that the company even a one-year contract would is now looking at entering the dry remove most of the risk of such bulk market where prices for secondan investment,” says Kevin Wong, hand tonnage are deemed attractive. BULL’s president director. “We are looking for selective

Although tanker rates have opportunities in this sector not only been strong this year, Wong argues as a growth opportunity, but also that values have not followed suit, importantly as a hedge,” Wong says. something he reckons is largely down Conceding that what he is about to the dearth of financing curtailing to say are “strong words indeed”, buyers. Wong makes the case for why he is

Under Wong, who worked for so bullish for the unique prospects Berlian Laju Tanker for 15 years prior BULL has in front of it. “What makes us very different Spot on from any other shipping company in the world is that BULL is the only BULL company that can not only build on a very stable and fast growing

Jakarta-headquartered Buana Indonesian cabotage market, but

Lintas Lautan is a tanker firm with also benefit from the much better a mix of aframaxes, handysizes, rates in the international market,” an FPSO, a VLGC and smaller Wong says, explaining that the stable tankers in its fleet, eyeing an Indonesian market can guarantee his entry into dry bulk. company stable cash flows, allowing it to get funding much more easily. To further protect the downside

BULL always has at least 80% of normalised revenues under contracts.

“As the downside is protected, we can then have the confidence to seek additional returns from the international market,” Wong says, claiming that helps explain why BULL’s Q1 net income was 4.8 times higher than that of the same period in 2019. Moreover, BULL’s EBITDA has consistently increased every year since 2014, even during some weak tanker markets such as 2017-2018. ●