Soechi Lines downgraded to ‘negative’

Soechi Lines has seen its outlook downgraded by Fitch given a lack of cash flow visibility from its shipyard operations.

Despite the stability in its core tanker business, Fitch has revised the outlook for the Indonesian owner from ‘stable’ to ‘negative’.

Soechi has deferred three newbuilding deliveries in 2016 worth $60m, all for its main client Pertamina.

Fitch added the situation is compounded by a lack of new orders, as the company did not win any contract in 2016.

However, Soechi’s shipping business is expected to remain flat as its fleet is deployed under long-term time charters.

Fitch explained that its position as Indonesia’s largest tanker operator is an advantage that offsets the company's relatively ageing fleet.

Soechi has been making efforts to secure a $180m loan since late last year.

The tanker owner has not been shy about its plans to add tonnage and Fitch is projecting negative free cash flow due to spending on vessel purchases.

As TradeWinds reported last November, Soechi paid Aegean Shipping Management $10.5m for a 37,300-dwt tanker.