 |
 |
|
 |
|
|
Bureau Veritas approves Ocean Thermal Energy Converter
Leading
international classification society Bureau Veritas has issued its first
Approval in Principle for an Ocean Thermal Energy Converter (OTEC). The approval
applies to a 1MW plant developed by the Korea Research Institute of Ships and
Ocean Engineering (KRISO) which will be built for installation off the coast of
South Tarawa, Republic of Kiribati, in the South Pacific Ocean.
Matthieu de Tugny, Senior
Vice-President and Head of Offshore, Bureau Veritas,
says, “OTEC technology offers the potential for round-the-clock
clean renewable energy from the ocean. We are excited to deploy our expertise in offshore energy,
met-ocean studies and structures to help bring this project which will deliver
clean electricity to remote areas to fruition.”
Ocean Thermal Energy
Conversion (OTEC) is a sustainable way to produce electricity from the
difference of temperature between deep cold and warm surface seawater. A working
fluid is successively vaporised and condensed in a thermodynamic cycle, with
the gas phase driving a turbo-alternator producing electricity.
KRISO’s 1MW OTEC plant
is the first practical level of plant on a pathway to building a 100MW
commercial system. It consists of an octagonal 6,700 tonne four deck floating
platform 35 m across moored 6 km offshore in a water depth of 1,300 m. A 1,000
m pipe 1.2 m in diameter will be used to pump cool water up from the depths to
be fed to process plant on the platform.
Approval in Principle
for Bureau Veritas implies that the
design is feasible, achievable,
and contains no technological
show-stoppers that may prevent the design from being matured and that
the design is deemed to be suitable for
use in the metocean conditions that the unit facility will be located
in. Bureau Veritas’ engineers verified a metocean/hydrodynamics analysis,
mooring analysis, stability analysis, and examination of the riser design and
system design concept.
KRISO (Korea Research Institute of Ships & Ocean
engineering), established in 1973, is a government-funded research institute in
the Republic of Korea and the leader in technology development in ships and
ocean engineering. Its major research areas are
Environment-friendly Advanced Ship Technology, Offshore Plant
Engineering Technology, Ocean Energy Technology, Maritime Traffic Safety and
Marine Accident Response Technology and Underwater Vehicles and Marine
Equipment Technology. www.kriso.re.kr/eng/
Bureau Veritas is a
world leader in laboratory testing, inspection and certification services.
Created in 1828, the Group has more than 66,000 employees in around 1,400
offices and laboratories located all across the globe. Bureau Veritas helps its
clients to improve their performance by offering services and innovative
solutions in order to ensure that their assets, products, infrastructure and
processes meet standards and regulations in terms of quality, health and
safety, environmental protection and social responsibility. Bureau Veritas is
listed on Euronext Paris and belongs to the Next 20 index.
Compartment A, ISIN
code FR 0006174348, stock symbol: BVI.
For more information:
Sean Kim
Public Affairs
KRISO
Labels: classification, marine energy, renewable energy
Bureau Veritas to class luxury Polar expedition cruise vessel
Leading
international classification society Bureau Veritas is to class a new concept
luxury expedition cruise vessel to be built for Australia’s Scenic
group.
The 165 m LOA
vessel will be built at Croatia’s Uljanik shipyard for delivery in summer 2018.
It will have lower berth accommodation for 228 passengers and 172 crew and will
meet the requirements of the
newly adopted Polar Code allowing operation for a certain period of the year in
Polar waters.
Philippe Donche-Gay, Executive Vice-President and
Managing Director of the Marine & Offshore Division, Bureau Veritas,
says, “Bureau Veritas was involved at an early stage of design,
working closely with the owners, shipyard and well known design offices for the
development of this new concept cruise ship. Our expertise with safety, Polar
conditions and comfort on board were all critical elements of the new concept
which Scenic presents as a six-star
luxury discovery yacht.”
Particular attention has been paid to safety, meeting the
Safe Return to Port criteria, and to comfort for the whole accommodation, based
on the most stringent BV Comfort Class criteria. All guest suites will have a private
balcony and the ship will be equipped with a new generation of zero-speed high
efficiency stabilizers.
Two helicopters and an observation submarine will provide
opportunities for a new approach to exploration cruises.
Scenic Eclipse will be powered by two separate diesel-electric
propulsion plants and two pods. The vessel
will be granted the highest Bureau Veritas marks and notations, including a new
Polar Class and several additional class notations related to pollution
prevention such as advanced waste water treatment system, ballast water
management system, waste holding capacity and Green Passport.
Says Donche-Gay, “Bureau Veritas has been working for
several years now with the Scenic Group on the development of its river cruise
fleet, and we are proud to continue our close cooperation for this new
challenging project.”
Scenic is a world renowned luxury cruise and tour operator
with a world class reputation for creating and delivering the ultimate cruising
and touring itineraries for travellers who seek extraordinary experiences and
exceptional service. www.scenic.com.au
For a high quality rendering of the Scenic Eclipse (courtesy
Scenic) e
mail john@merlinco.com
VISIT BUREAU VERITAS AT
CRUISE SHIPPING MIAMI STAND NO 2613
Bureau Veritas is a
world leader in laboratory testing, inspection and certification services.
Created in 1828, the Group has more than 66,000 employees in around 1,400
offices and laboratories located all across the globe. Bureau Veritas helps its
clients to improve their performance by offering services and innovative
solutions in order to ensure that their assets, products, infrastructure and
processes meet standards and regulations in terms of quality, health and
safety, environmental protection and social responsibility. Bureau Veritas is
listed on Euronext Paris and belongs to the Next 20 index.
Compartment A, ISIN
code FR 0006174348, stock symbol: BVI.
For more information:
Jean-Jacques Juenet
Business Development
Manager, Passenger Ships
Bureau Veritas
+33 (0)1 55 24 72 31
Labels: cruise ships;polar;classification
Maritime sector must absorb balance sheet implications of new lease accounting standard
A new international accounting standard dealing with leases could have major implications for companies in the shipping and offshore maritime sectors, and particularly for time charterers, according to international accountant and shipping adviser Moore Stephens.
The new standard, IFRS 16, is effective for periods beginning on or after 1 January 2019, although early adoption is allowed. It covers all leases, whether the company acts as a lessor or a lessee. Michael Simms, a partner in the shipping and transport group at Moore Stephens, says, “In general, the changes for lessors and for lessees with existing finance leases are fairly minor. But those who have operating leases as a lessee, for example many of those with shorter-term time charters, will be most affected.
“IFRS 16 removes the distinction which previously existed between finance and operating leases. As a result, companies which previously leased in vessels under arrangements identified as operating leases will now find that, under the new standard, they have to recognise their interest in the vessel as an asset in the balance sheet. At the same time, they will also be required to record a liability for their future payments under the charter, to the extent that they relate to the vessel.”
Where a lease is recorded for the first time under the new rules, this will not always have a major effect on reported net assets. But it may make a substantial difference to gross assets and gross liabilities, changing ratios that are based on these figures. Where companies have loan covenants based on total debt levels, this may lead to breaches simply due to the accounting change.
There will also be some effect on reported profit, although this will vary between companies. Total lease costs will be more front-loaded, with higher charges in the earlier years and lower charges in the later years. The effect of this will be felt most by those companies with just a few – or even only one - substantial charter, while those with a number of charters may at various stages find that, even though the charges on each one might change, the overall charges remain broadly the same.
Michael Simms notes, “Time charters cover the provision of both a vessel and related services to the charterer, but it is only the asset element of the contract that falls within the scope of the lease standard. The service element will continue to be dealt with separately and, as was the case previously, no liability will be recorded until the services have been provided. Under the new standard, an allocation of total amounts payable will need to be made between the amounts attributable to the lease and those attributable to the service. Charterers will need to apply judgement in making this allocation.
“The new model for all leases is broadly similar to the old model for finance leases. For existing finance leases, a lessee needs to determine the interest rate that should be applied to the lease to determine the amount at which both the asset and the initial liability is recorded. The same basic idea will apply to all leases in the future. Ideally, the interest rate inherent in the lease should be used, as it currently is with a finance lease. In practice, this amount will often not be known to the lessee. Where this is the case the amount will have to be estimated by reference to the lessee’s incremental borrowing rate, which is likely to involve some judgement.”
There are exemptions under the new standard. In particular, an asset and liability need not be recorded in respect of short leases, those of less than a year. To avoid this being used too widely, there are provisions covering leases with variable terms which may last for more than a year. Very short-term charters will be excluded, although those with extension clauses will have to be considered in great detail.
Michael Simms concludes, “The new standard has been a long time coming, and it will be a few years yet before the first financial statements are published which have to comply with IFRS 16. Nevertheless, many companies in the shipping and offshore maritime sectors will need to consider the effect on their financial statements quite soon. Some will see major changes to their balance sheets, and a certain amount of change to their reported profits. Companies will need to consider the effect that the changes will have on compliance with the terms of loans which include covenants. And where breaches of covenant are likely, or reasonably possible, talking to lenders before the change hits the accounts will be crucial.”
Moore Stephens LLP is noted for a number of industry specialisations and is widely acknowledged as a leading shipping, offshore maritime and insurance adviser. Moore Stephens LLP is a member firm of Moore Stephens International Limited, one of the world's leading accounting and consulting associations, with 626 offices of independent member firms in 103 countries, employing 26,290 people and generating revenues in 2014 of $2.7 billion. www.moorestephens.co.uk
For more information:
Michael Simms
Moore Stephens LLP
Tel: +44 (0)20 7334 9191
michael.simms@moorestephens.com
Labels: balance sheet implications, IFRS 16, international accounting standard for leasing, Moore Stephens, net assets, operating leases, shipping, time charters
Moore Stephens says shipping will remain volatile and indispensable in 2016
International accountant and shipping adviser Moore Stephens says it expects the shipping industry to remain volatile and indispensable in 2016.
Moore Stephens shipping partner Richard Greiner says, “The ultimate definition of an optimist has been characterised as an accordion player with an answerphone. Such extreme optimism might be difficult to find in shipping today, but the portents for 2016 are not all bad.
“The Baltic Dry Index, a measure of shipping rates for everything from pins to elephants, dropped to an all-time low in December last year, and has fallen still further this month.. Most people blamed this on China for not consuming as much of anything as it did previously. Nevertheless, the dry bulk sector will probably have to reduce the newbuilding orderbook and increase ship recycling in 2016 in order to restore the balance.
“The same is true of the container ship sector, where reducing capacity is seen as the best way to drive up rates. CMA CGM's move to buy NOL, meanwhile, although subject to regulatory approval, is an indication of further consolidation. It would be no surprise to see more still in 2016.
“By comparison, the tanker markets enjoyed a stronger year in 2015, not least because of falling oil prices. In contrast, this has presented major challenges in the offshore maritime space. Some experts are predicting a slide to $20 a barrel in 2016, which may be just as well since a recent decision of the English High Court left a shipowner claiming that it had been asked to pay twice for the same fuel from bankrupt OW Bunkers. In 2016, owners will be monitoring a possible appeal against this decision to the Supreme Court, while keeping an eye on disputes elsewhere.
“Shipping will remain volatile and uncertain throughout 2016. Operating costs will go up, as will the cost of regulation - for example, implementation of the Ballast Water Management Convention. The threat from cyber security will rise. Interest in refinancing, as a means of getting cash out of the business, is likely to increase, as are calls for accelerated ship recycling and a cap on newbuildings. The effect of geopolitical developments should not be under-estimated, while speculation about the UK’s planned Brexit referendum in 2017 will add spice to the pot.
“Now is nevertheless a good time to invest if you have access to finance and a credible business plan, preferably one with the badge of green approval. It is no coincidence that IMO recently endorsed a proposal to adopt ‘Shipping: Indispensable to the World’ as the theme for World Maritime Day 2016. You don’t need to be an accordion player to take heart from that.”
Moore Stephens LLP is noted for a number of industry specialisations and is widely acknowledged as a leading shipping, offshore maritime and insurance adviser. Moore Stephens LLP is a member firm of Moore Stephens International Limited, one of the world's leading accounting and consulting associations, with 626 offices of independent member firms in 103 countries, employing 26,290 people and generating revenues in 2014 of $2.7 billion. www.moorestephens.co.uk
Labels: BWM Convention, container ships, dry bulk, Moore Stephens, newbuildings, ship recycling, shipping. outlook for 2016, tankers
|
Search all news items
|
|
|
 |
|
 |
 |
|
 |
|
|
