KYOI Group launches in Hong Kong to reinvent what investment opportunity means

Source: Media Outreach

HONG KONG SAR – Media OutReach – 3 August 2021 – KYOI Group, a luxury lifestyle investment platform, announces its launch into the Hong Kong market, with its first portfolio resort in Koh Samui, Thailand.

KYOI Group provides an alternative take on property investment that coincides with the tourism industry’s current pent-up demand for travel and wellness. A result of long-term travel restrictions and luxurious getaways, KYOI Group’s first beachfront resort provides its prospective investors an unprecedented opportunity rarely made possible in the market.

Reinventing the dated vacation home investment model, KYOI Group provides an all-encompassing holistic lifestyle investment with intrinsic investment value. KYOI’s property rental programme offers its members perpetual stay in pristine locations across Asia with additional benefits to earn passive income as a result of their initial investment. Membership will also afford unlimited access to more than 20 KYOI Group properties in the pipeline, located in the best destinations in Asia.

With an initial investment amount of USD500,000 to KYOI Samui, the return is estimated at 7% within the first 2 years of operations. The first resort in Samui successfully began its build with a groundbreaking ceremony in July and is set to be completed and opened by the first half of 2023.

To further pursue KYOI Group’s momentum is founder, Jackson Tan, who draws from his 25 years of expertise in leading high-growth business ventures, such as his effective expansion of the Adhesives Research’s market presence in Asia. “We have already committed to 4 properties in Thailand, but our overall focus is to expand across Southeast Asia,” said Jackson.

Each KYOI Group property will be designed with its own themes and will be equipped with state-of-the-art facilities. Investors and guests can look forward to an all-encompassing ideal lifestyle where the height of luxury living meets a holistic wellness philosophy, and is deepened by purposeful connections with a like-minded community.

Centered on authentic human-centric experiences and individual fulfillment, KYOI Group offers highly personalised touchpoints and an unmatched experience for each valued guest.

Plans for the Hong Kong-headquartered KYOI Group are to build and operate more than 20 resort properties across Asia’s most sought-after holiday destinations. Envisioned as the embodiment of a life in perfect balance, the platform has been conceptualised alongside the three main pillars of living, enjoying, and giving – bestowing every individual with an opportunity to build their preferred lifestyle, forge invaluable experiences and find their purpose.

“Cuisines offered at the resorts will be using local produce with an aim to support local communities and cultures. When investors and guests are enjoying and refreshing their lifestyle and ultimate relaxation, you are also contributing to sustainable development of the local communities at large. This is essentially the backbone of KYOI’s concept,” added Jackson.

Co-piloting the first project is also KYOI Group’s own Samui-based Architect, James Atkinson, and Construction Manager, Christopher Willison. Jackson and the team’s combined decades  of international architectural flair, infrastructure development, and business acumen will be the cornerstone of the group’s foreseen prospects.

James Atkinson adds, “The resort will feature Japanese-inspired landscaping and interior design with 145 rooms of a minimum of 70m2-sized suites. Pockets of outdoor pools and lush greenery will expand the island’s natural verdure for a fully balanced, prestigious experience.”

While the world continues the battle against COVID, the tourism industry is seeing a trend in pent-up demand for local and outbound tourism. As an attempt to jump-start the local economy, the Thailand government has been promoting tourism programmes, such as the Samui Plus. The programme which started on the 15th July, has allowed up to 1,000 inoculated tourists to visit Koh Samui, Koh Phangan, and Koh Tao. This demonstrates a slow but promising start to set the stage for the future of post-pandemic tourism in the country.

For more information about KYOI Group and its offerings, visit https://www.kyoigroup.com.

– Published and distributed with permission of Media-Outreach.com.

Phillips 66 Reports Second-Quarter 2021 Financial Results

Source: Phillips

Reported second-quarter earnings of $296 million or $0.66 per share; adjusted earnings of $329 million or $0.74 per share
Generated $1.7 billion of operating cash flow; $910 million excluding working capital
Delivered record Chemicals earnings
CPChem began construction on a world-scale 1-hexene unit
Ramped up renewable diesel production at San Francisco Refinery
Recently resumed construction of the 150,000-BPD Frac 4 at the Sweeny Hub
Issued 2021 Sustainability Report in July
HOUSTON–(BUSINESS WIRE)– Phillips 66 (NYSE: PSX), a diversified energy manufacturing and logistics company, announces second-quarter 2021 earnings of $296 million, compared with a loss of $654 million in the first quarter of 2021. Excluding special items of $33 million, the company had adjusted earnings of $329 million in the second quarter, compared with a first-quarter adjusted loss of $509 million.
“Our second-quarter results reflect the recovery of operations after the prior quarter’s winter storms, as well as further product demand improvement as more people across the globe are vaccinated,” said Greg Garland, Chairman and CEO of Phillips 66. “CPChem generated record quarterly earnings supported by robust demand, utilization and margins. Midstream and Marketing and Specialties delivered strong, consistent earnings, while Refining profitability remained challenged.
“Across our portfolio, we are advancing our strategic projects and pursuing lower-carbon opportunities. At Rodeo, renewable diesel production from the hydrotreater conversion reached full rates in July, and permitting for the full facility conversion is moving forward as planned. At the Sweeny Hub, we recently resumed construction of Frac 4, which we expect to complete in the fourth quarter of 2022.
“Our recently released 2021 Sustainability Report outlines our commitment to a lower-carbon future through environmental stewardship, social responsibility and strong corporate governance. As previously communicated, we will establish greenhouse gas emission reduction targets later this year.
“Looking forward, we remain optimistic that demand recovery for our products will continue. We will adhere to our disciplined capital allocation framework, including our commitment to debt reduction as well as a secure, competitive dividend. We anticipate a return to dividend growth as cash flow recovers. In the second quarter, we returned $394 million in dividends to shareholders.”
Midstream

 

Millions of Dollars

 

Pre-Tax Income

 

Adjusted Pre-Tax Income

 

Q2 2021

Q1 2021

 

Q2 2021

Q1 2021

Transportation

$

224

7

 

224

206

NGL and Other

79

35

 

83

36

DCP Midstream

9

34

 

9

34

Midstream

$

312

76

 

316

276

Midstream second-quarter 2021 pre-tax income was $312 million, compared with $76 million in the first quarter of 2021. Midstream results in the second quarter included $4 million of pension settlement expense. First-quarter results included a $198 million impairment resulting from Phillips 66 Partners’ decision to exit the Liberty Pipeline project, as well as $2 million of winter-storm-related maintenance and repair costs.
Transportation second-quarter adjusted pre-tax income of $224 million was $18 million higher than the first quarter, primarily due to improved volumes from increased refinery utilization rates, partially offset by timing of maintenance and asset integrity work.
NGL and Other adjusted pre-tax income was $83 million in the second quarter, compared with $36 million in the first quarter. The increase was primarily due to lower operating costs and higher volumes, reflecting recovery from the first-quarter winter storms.
The company’s equity investment in DCP Midstream, LLC generated second-quarter adjusted pre-tax income of $9 million, a $25 million decrease from the prior quarter. The decrease is mainly due to lower mark-to-market hedging results from higher natural gas and NGL prices.
Chemicals

 

Millions of Dollars

 

Pre-Tax Income

 

Adjusted Pre-Tax Income

 

Q2 2021

Q1 2021

 

Q2 2021

Q1 2021

Olefins and Polyolefins

$

562

145

 

593

174

Specialties, Aromatics and Styrenics

79

26

 

82

27

Other

(18)

(17)

 

(18)

(17)

Chemicals

$

623

154

 

657

184

The Chemicals segment reflects Phillips 66’s equity investment in Chevron Phillips Chemical Company LLC (CPChem). Chemicals second-quarter 2021 pre-tax income was $623 million, compared with $154 million in the first quarter of 2021. Chemicals results in the second quarter included an $18 million reduction to equity earnings for pension settlement expense and $16 million of winter-storm-related maintenance and repair costs. First-quarter results included a reduction to equity earnings of $30 million for winter-storm-related costs.
CPChem’s Olefins and Polyolefins (O&P) business contributed $593 million of adjusted pre-tax income in the second quarter, compared with $174 million in the first quarter. The $419 million increase was driven by strong demand, tight supplies and recovery from the first-quarter winter storms that contributed to higher margins and lower utility costs. Global O&P utilization was 102% for the quarter.
CPChem’s Specialties, Aromatics and Styrenics (SA&S) business contributed second-quarter adjusted pre-tax income of $82 million, compared with $27 million in the first quarter. The increase primarily reflects improved margins due to tight industry supplies following first-quarter winter storm outages, as well as lower turnaround costs.
Refining

 

Millions of Dollars

 

Pre-Tax Loss

 

Adjusted Pre-Tax Loss

 

Q2 2021

Q1 2021

 

Q2 2021

Q1 2021

Refining

$

(729)

(1,040)

 

(706)

(1,026)

Refining had a second-quarter 2021 pre-tax loss of $729 million, compared with a pre-tax loss of $1 billion in the first quarter of 2021. Second-quarter results included $20 million of pension settlement expense and $3 million of winter-storm-related maintenance and repair costs. Refining results in the first quarter included $14 million of winter-storm-related costs.
Refining had an adjusted pre-tax loss of $706 million in the second quarter, compared with an adjusted pre-tax loss of $1 billion in the first quarter. The improvement was primarily due to lower utility and turnaround costs and higher volumes, partially offset by lower realized margins. Second-quarter realized margins were lower, as the benefit of improved market crack spreads was more than offset by higher RIN costs, lower electricity sales in the Texas market, decreased secondary product margins, lower clean product differentials and inventory impacts.
Pre-tax turnaround costs for the second quarter were $118 million, compared with first-quarter costs of $192 million. Crude utilization rate was 88% in the second quarter, up from 74% in the first quarter. Clean product yield was 82% in the second quarter, unchanged from the first quarter.
Marketing and Specialties

 

Millions of Dollars

 

Pre-Tax Income

 

Adjusted Pre-Tax Income

 

Q2 2021

Q1 2021

 

Q2 2021

Q1 2021

Marketing and Other

$

389

211

 

392

211

Specialties

87

79

 

87

79

Marketing and Specialties

$

476

290

 

479

290

Marketing and Specialties (M&S) second-quarter 2021 pre-tax income was $476 million, compared with $290 million in the first quarter of 2021. Second-quarter results included $3 million of pension settlement expense.
Adjusted pre-tax income for Marketing and Other was $392 million in the second quarter, an increase of $181 million from the first quarter. The increase was primarily due to higher domestic margins and volumes, reflecting stronger demand in key markets. Refined product exports in the second quarter were 216,000 barrels per day (BPD).
Specialties generated second-quarter adjusted pre-tax income of $87 million, up from $79 million in the prior quarter.
Corporate and Other

 

Millions of Dollars

 

Pre-Tax Loss

 

Adjusted Pre-Tax Loss

 

Q2 2021

Q1 2021

 

Q2 2021

Q1 2021

Corporate and Other

$

(246)

(251)

 

(244)

(251)

Corporate and Other second-quarter 2021 pre-tax costs were $246 million, compared with pre-tax costs of $251 million in the first quarter of 2021. Second-quarter pre-tax costs included $2 million of pension settlement expense.
Financial Position, Liquidity and Return of Capital
Phillips 66 generated $1.7 billion in cash from operations in the second quarter of 2021, including a working capital benefit of $833 million and cash distributions from equity affiliates of $612 million. The working capital benefit was primarily due to receipt of a U.S. federal income tax refund.
During the quarter, Phillips 66 funded $380 million of capital expenditures and investments and paid $394 million in dividends.
As of June 30, 2021, Phillips 66 had $7.9 billion of liquidity, reflecting $2.2 billion of cash and cash equivalents and approximately $5.7 billion of total committed capacity under revolving credit facilities. Consolidated debt was $15.4 billion at June 30, 2021, including $3.9 billion at Phillips 66 Partners (PSXP). The company’s consolidated debt-to-capital ratio was 43% and its net debt-to-capital ratio was 39%. Excluding PSXP, the debt-to-capital ratio was 39% and the net debt-to-capital ratio was 34%.
Strategic Update
Phillips 66 Partners continued construction of the C2G Pipeline, a 16 inch ethane pipeline that will connect its Clemens Caverns storage facility to petrochemical facilities in Gregory, Texas, near Corpus Christi, Texas. The project is backed by long-term commitments. The pipeline is expected to be operational in the fourth quarter of 2021.
At the Sweeny Hub, Phillips 66 resumed construction of the 150,000-BPD fourth fractionator. The project is expected to be completed in the fourth quarter of 2022 and will increase Sweeny Hub fractionation capacity to 550,000 BPD. The fractionators are supported by long-term commitments.
In Chemicals, CPChem and Qatar Petroleum are jointly pursuing development of petrochemical facilities on the U.S. Gulf Coast and in Ras Laffan, Qatar. CPChem expects to make a final investment decision for its U.S. Gulf Coast project in 2022.
CPChem is expanding its alpha olefins business with a second world-scale unit to produce 1-hexene, a critical component in high-performance polyethylene. In May, CPChem began construction on the 266,000 metric tons per year unit, located in Old Ocean, Texas, near its Sweeny facility. The project will utilize CPChem’s proprietary technology and is expected to start up in 2023.
In May, CPChem received the annual Re|focus Sustainability Leadership Innovation Award from the Plastics Industry Association (PLASTICS) for being among the top 2021 industry innovators in sustainability. The award recognizes the company’s launch of Marlex® Anew™ Circular Polyethylene, which uses advanced recycling technology to convert difficult-to-recycle plastic waste into high-quality raw materials.
Phillips 66 is advancing its plans at the San Francisco Refinery in Rodeo, California, to meet the growing demand for renewable fuels. The hydrotreater conversion reached full rates of 8,000 BPD (120 million gallons per year) of renewable diesel in July. Subject to permitting and approvals, full conversion of the refinery is expected to be finished in early 2024. Upon completion, the facility will have over 50,000 BPD (800 million gallons per year) of renewable fuel production capacity. The conversion will reduce emissions from the facility and produce lower-carbon transportation fuels.
In Marketing, Phillips 66 is converting 600 branded retail sites in California to sell renewable diesel produced by the Rodeo facility. In Switzerland, the Phillips 66 COOP retail joint venture is adding hydrogen fueling stations. Through the joint venture, Phillips 66 is exploring hydrogen as a fuel option for heavy-duty vehicles to support European low-carbon goals and growing demand for sustainable fuels.
Phillips 66 recently released its 2021 Sustainability Report. The report includes a detailed analysis of the company’s climate-related risks and opportunities as well as performance data on various environmental, social and governance, or ESG, matters. To view Phillips 66’s 2021 Sustainability Report, go to www.phillips66.com/sustainability.
Investor Webcast
Later today, members of Phillips 66 executive management will host a webcast at 1 p.m. EDT to discuss the company’s second-quarter performance and provide an update on strategic initiatives. To access the webcast and view related presentation materials, go to www.phillips66.com/investors and click on “Events & Presentations.” For detailed supplemental information, go to www.phillips66.com/supplemental.

Earnings (Loss)

 

 

 

 

 

 

 

Millions of Dollars

 

2021

 

2020

 

Q2

Q1

JunYTD

 

Q2

JunYTD

Midstream

$

312

76

388

 

324

(378)

Chemicals

623

154

777

 

42

211

Refining

(729)

(1,040)

(1,769)

 

(878)

(3,139)

Marketing and Specialties

476

290

766

 

286

799

Corporate and Other

(246)

(251)

(497)

 

(219)

(416)

Pre-Tax Income (Loss)

436

(771)

(335)

 

(445)

(2,923)

Less: Income tax benefit

62

(132)

(70)

 

(378)

(429)

Less: Noncontrolling interests

78

15

93

 

74

143

Phillips 66

$

296

(654)

(358)

 

(141)

(2,637)

 

 

 

 

 

 

 

Adjusted Earnings (Loss)

 

 

 

 

 

 

 

Millions of Dollars

 

2021

 

2020

 

Q2

Q1

JunYTD

 

Q2

JunYTD

Midstream

$

316

276

592

 

245

705

Chemicals

657

184

841

 

89

282

Refining

(706)

(1,026)

(1,732)

 

(867)

(1,268)

Marketing and Specialties

479

290

769

 

293

781

Corporate and Other

(244)

(251)

(495)

 

(224)

(421)

Pre-Tax Income (Loss)

502

(527)

(25)

 

(464)

79

Less: Income tax expense (benefit)

95

(84)

11

 

(190)

(166)

Less: Noncontrolling interests

78

66

144

 

50

119

Phillips 66

$

329

(509)

(180)

 

(324)

126

About Phillips 66
Phillips 66 is a diversified energy manufacturing and logistics company. With a portfolio of Midstream, Chemicals, Refining, and Marketing and Specialties businesses, the company processes, transports, stores and markets fuels and products globally. Phillips 66 Partners, the company’s master limited partnership, is integral to the portfolio. Headquartered in Houston, the company has 14,000 employees committed to safety and operating excellence. Phillips 66 had $57 billion of assets as of June 30, 2021. For more information, visit www.phillips66.com or follow us on Twitter @Phillips66Co.
CAUTIONARY STATEMENT FOR THE PURPOSES OF THE “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This news release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Words and phrases such as “is anticipated,” “is estimated,” “is expected,” “is planned,” “is scheduled,” “is targeted,” “believes,” “continues,” “intends,” “will,” “would,” “objectives,” “goals,” “projects,” “efforts,” “strategies” and similar expressions are used to identify such forward-looking statements. However, the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements included in this news release are based on management’s expectations, estimates and projections as of the date they are made. These statements are not guarantees of future performance and you should not unduly rely on them as they involve certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. Factors that could cause actual results or events to differ materially from those described in the forward-looking statements include: the continuing effects of the COVID-19 pandemic and its negative impact on commercial activity and demand for refined petroleum products; the inability to timely obtain or maintain permits necessary for capital projects; changes to worldwide government policies relating to renewable fuels and greenhouse gas emissions that adversely affect programs like the renewable fuel standards program, low carbon fuel standards and tax credits for biofuels; fluctuations in NGL, crude oil, and natural gas prices, and petrochemical and refining margins; unexpected changes in costs for constructing, modifying or operating our facilities; unexpected difficulties in manufacturing, refining or transporting our products; the level and success of drilling and production volumes around our Midstream assets; risks and uncertainties with respect to the actions of actual or potential competitive suppliers and transporters of refined petroleum products, renewable fuels or specialty products; lack of, or disruptions in, adequate and reliable transportation for our NGL, crude oil, natural gas, and refined products; potential liability from litigation or for remedial actions, including removal and reclamation obligations under environmental regulations; failure to complete construction of capital projects on time and within budget; the inability to comply with governmental regulations or make capital expenditures to maintain compliance; limited access to capital or significantly higher cost of capital related to illiquidity or uncertainty in the domestic or international financial markets; potential disruption of our operations due to accidents, weather events, including as a result of climate change, terrorism or cyberattacks; general domestic and international economic and political developments including armed hostilities, expropriation of assets, and other political, economic or diplomatic developments, including those caused by public health issues and international monetary conditions and exchange controls; changes in governmental policies relating to NGL, crude oil, natural gas, refined petroleum products, or renewable fuels pricing, regulation or taxation, including exports; changes in estimates or projections used to assess fair value of intangible assets, goodwill and property and equipment and/or strategic decisions with respect to our asset portfolio that cause impairment charges; investments required, or reduced demand for products, as a result of environmental rules and regulations; changes in tax, environmental and other laws and regulations (including alternative energy mandates); the operation, financing and distribution decisions of equity affiliates we do not control; the impact of adverse market conditions or other similar risks to those identified herein affecting PSXP, and other economic, business, competitive and/or regulatory factors affecting Phillips 66’s businesses generally as set forth in our filings with the Securities and Exchange Commission. Phillips 66 is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.
Use of Non-GAAP Financial Information —This news release includes the terms “adjusted earnings (loss),” “adjusted earnings (loss) per share” and “adjusted pre-tax income (loss).” These are non-GAAP financial measures that are included to help facilitate comparisons of operating performance across periods and to help facilitate comparisons with other companies in our industry, by excluding items that do not reflect the core operating results of our businesses in the current period. This release also includes a “debt-to-capital ratio excluding PSXP.” This non-GAAP measure is provided to differentiate the capital structure of Phillips 66 compared with that of Phillips 66 Partners.
References in the release to total consolidated earnings (loss) refer to net income (loss) attributable to Phillips 66.

 

Millions of Dollars

 

Except as Indicated

 

2021

 

2020

 

Q2

Q1

JunYTD

 

Q2

JunYTD

Reconciliation of Consolidated Earnings (Loss) to Adjusted Earnings (Loss)

 

 

 

 

 

 

Consolidated Earnings (Loss)

$

296

(654)

(358)

 

(141)

(2,637)

Pre-tax adjustments:

 

 

 

 

 

 

Impairments

198

198

 

3,006

Impairments by equity affiliates

 

15

15

Pending claims and settlements

 

(37)

Certain tax impacts

 

(8)

(8)

Pension settlement expense

47

47

 

38

38

Winter-storm-related costs

19

46

65

 

Lower-of-cost-or-market inventory adjustments

 

20

72

Asset dispositions

 

(84)

(84)

Tax impact of adjustments*

(16)

(48)

(64)

 

(208)

(283)

Other tax impacts

(17)

(17)

 

20

20

Noncontrolling interests

(51)

(51)

 

24

24

Adjusted earnings (loss)

$

329

(509)

(180)

 

(324)

126

Loss per share of common stock (dollars)

$

0.66

(1.49)

(0.83)

 

(0.33)

(6.00)

Adjusted earnings (loss) per share of common stock (dollars)†

$

0.74

(1.16)

(0.43)

 

(0.74)

0.28

 

 

 

 

 

 

 

Reconciliation of Segment Pre-Tax Income (Loss) to Adjusted Pre-Tax Income (Loss)

 

 

 

 

 

 

Midstream Pre-Tax Income (Loss)

$

312

76

388

 

324

(378)

Pre-tax adjustments:

 

 

 

 

 

 

Impairments

198

198

 

1,161

Pension settlement expense

4

4

 

5

5

Winter-storm-related costs

2

2

 

Lower-of-cost-or-market inventory adjustments

 

1

Asset dispositions

 

(84)

(84)

Adjusted pre-tax income

$

316

276

592

 

245

705

Chemicals Pre-Tax Income

$

623

154

777

 

42

211

Pre-tax adjustments:

 

 

 

 

 

 

Impairments by equity affiliates

 

15

15

Pension settlement expense

18

18

 

Winter-storm-related costs

16

30

46

 

Lower-of-cost-or-market inventory adjustments

 

32

56

Adjusted pre-tax income

$

657

184

841

 

89

282

Refining Pre-Tax Loss

$

(729)

(1,040)

(1,769)

 

(878)

(3,139)

Pre-tax adjustments:

 

 

 

 

 

 

Impairments

 

1,845

Pension settlement expense

20

20

 

26

26

Winter-storm-related costs

3

14

17

 

Lower-of-cost-or-market inventory adjustments

 

(15)

Adjusted pre-tax loss

$

(706)

(1,026)

(1,732)

 

(867)

(1,268)

Marketing and Specialties Pre-Tax Income

$

476

290

766

 

286

799

Pre-tax adjustments:

 

 

 

 

 

 

Pending claims and settlements

 

(37)

Pension settlement expense

3

3

 

4

4

Lower-of-cost-or-market inventory adjustments

 

3

15

Adjusted pre-tax income

$

479

290

769

 

293

781

Corporate and Other Pre-Tax Loss

$

(246)

(251)

(497)

 

(219)

(416)

Pre-tax adjustments:

 

 

 

 

 

 

Certain tax impacts

 

(8)

(8)

Pension settlement expense

2

2

 

3

3

Adjusted pre-tax loss

$

(244)

(251)

(495)

 

(224)

(421)

*We generally tax effect taxable U.S.-based special items using a combined federal and state statutory income tax rate of approximately 25%. Taxable special items attributable to foreign locations likewise use a local statutory income tax rate. Nontaxable events reflect zero income tax. These events include, but are not limited to, most goodwill impairments, transactions legislatively exempt from income tax, transactions related to entities for which we have made an assertion that the undistributed earnings are permanently reinvested, or transactions occurring in jurisdictions with a valuation allowance.

† YTD 2020 is based on adjusted weighted-average diluted shares outstanding of 440,653 thousand and other periods are based on the same weighted-average diluted shares outstanding as that used in the GAAP diluted earnings per share calculation. Income allocated to participating securities, if applicable, in the adjusted earnings per share calculation is the same as that used in the GAAP diluted earnings per share calculation.

 

Millions of Dollars

 

Except as Indicated

 

June 30, 2021

Debt-to-Capital Ratio

 

 

 

 

 

Phillips 66Consolidated

PSXP*

 

Phillips 66Excluding PSXP

Total Debt

$

15,413

 

3,910

 

11,503

 

Total Equity

20,602

 

2,426

 

18,176

 

Debt-to-Capital Ratio

43

%

 

 

39

%

Total Cash

$

2,207

 

2

 

2,205

 

Net Debt-to-Capital Ratio

39

%

 

 

34

%

*PSXP’s third-party debt and Phillips 66’s noncontrolling interests attributable to PSXP.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20210803005374/en/
Jeff Dietert (investors)832-765-2297[email protected]
Shannon Holy (investors)832-765-2297[email protected]
Thaddeus Herrick (media)855-841-2368[email protected]
Source: Phillips 66

Supply Chain: What Business Leaders Are Thinking

Source: SAP

Headline: Supply Chain: What Business Leaders Are Thinking

It can feel like bad news is the driver to draw attention to supply chains: a ship blocking the Suez Canal, delayed delivery of products or materials to manufacture products due to the pandemic. Added to that, shortages for semiconductor chips have put the squeeze on automobile companies that have been using just-in-time manufacturing, the go-to model for lowering manufacturing costs for the past 50 years, another lingering supply chain story line.

That said, supply chain topics are consistently top of mind among business leaders, and the emphasis on its strategic role was only heightened in the past year. The recently published 2021 Business Leaders Outlook Pulse Survey by JPMorgan Chase surveyed 1,375 senior executives from midsize U.S. companies with annual revenue between $20 million and $500 million in June 2021. Their findings echoed what customers have been telling us.

Several elements in the survey stood out to me:

  • Resiliency is one of the top three themes: “Nearly two-thirds of respondents say they added new product/service lines in response to the pandemic that they’ll keep afterward. Most say they’ll keep pandemic-era supply chain strategies, too.”
  • Among respondents, 62% anticipate further supply chain issues in the coming year.
  • While 51% have automated back-office functions with new digital platforms, 45% have not done this yet.
  • Though 49% have managed some areas of their supply chain remotely, 34% have not.
  • A mere 23% have adjusted last mile delivery strategies; a remarkable 71% have not.

Rounding out that picture, an IDC Info Snapshot sponsored by SAP, “Business Reimagined: Driving Efficiency and Resiliency,” gained similar results. IDC noted:

“The harsh reality that minor and major disruptions require frequent pivoting by the business to address new demand shifts and supply chain challenges. Midsize companies are also likely to have more chain links in the global supply chain than their enterprise counterparts… Each additional link introduces more potential points for supply chain disruption. Visibility into the whole supply chain has never been more critical to business agility and growth.”

Even before COVID-19, Oxford Economics noted:

“Companies with stronger strategies for customer-centricity, visibility, sustainability, and the application of intelligent technologies are seeing results from their efforts in terms of supply chain effectiveness, resiliency, and overall financial performance. And while all supply chains are vulnerable to risks in a global economy, execution on clear strategic objectives—supported by the correct tools and tactics to mitigate risk and minimize complexity—will make such events more manageable.”

As disruptions continue to rattle businesses and industries, it’s clear that a lot of companies have yet to seize the opportunity to utilize modern digital technology and build resiliency into their supply chains. With business leaders’ expectations that additional supply chain disruptions await in the coming year, the time is ripe for companies to digitalize their supply chain capabilities, improving visibility and planning functions that could readily lower the likelihood of disruptions.


Franz Hero is head of SAP Digital Supply Chain Development.

Kerry Logistics Network Launches Own-Controlled Network to Link Asia to the Americas Hub

Source: Media Outreach

HONG KONG SAR – Media OutReach – 3 August 2021 – Kerry Logistics Network Limited (‘Kerry Logistics Network’, ‘KLN’; Stock Code 0636.HK) introduces a new Trans-Pacific air freight service to connect multiple Asian locations to the USA to capture the heightened demands in the pandemic-hit air freight market. Named Kerry Freight Controlled Network (‘KCN’), the freight integrator centres on the Americas hub set up in Huntsville, Alabama, USA. The inaugural flights will originate from Hong Kong in August 2021.

KCN is a time-definite solution that offers standard air freight services to customers with guaranteed space and long-term pricing, fulfilling the needs of customers looking for stable and long-term solutions. KCN leads the market in heavy air freight integrators with door-to-door solutions for a wide range of products: from small parcels to large and oversized cargoes, including DGR and lithium batteries.

KLN is partnering with the Huntsville International Airport in the State of Alabama, USA, to establish a hub at the airport, operating inbound and outbound air cargo flights as well as trucking connections to provide seamless transportation of goods across the Americas. KLN will operate multiple aircraft on a weekly basis from select origins in Asia.

Kevin Bulger, Chief Operating Officer of USA, Kerry Logistics Network, said, “We chose Huntsville as our Americas air freight hub for KCN as it is congestion free and enjoys expedited transfer of cargo to Latin America and Mexico. With cooperation from HSV, we will be able to execute swift dispatch of cargoes to cities within the USA and Canada. KCN will be a welcomed service in the increasingly tight air cargo market and meet the demands of customers looking for a lasting and reliable solution to their air freight needs.”

Rick Tucker, CEO, Port of Huntsville, said, “The Port of Huntsville is a Southeast gateway to countries all over the world and makes our region a highly sought-after location for business and industry. Home to the Huntsville International Airport (HSV), Jetplex Industrial Park (JIP) and the International Intermodal Centre (IIC), our Port creates efficient, effective, and economical solutions for customers and stimulates the regional economy through a strong transportation infrastructure, global connectivity, and innovative logistic solutions. Kerry Logistics Network will enhance HSV’s global connectivity and speed to market solutions. We welcome our newest logistic partner to HSV and look forward to a long term, prosperous partnership.”

Backed by its excellent track record in the industry, the support of carriers, its customs clearance capacity and extensive coverage of major air transit hubs across different regions, KLN’s air freight business, from Asia to the world, surged in 2020.
– Published and distributed with permission of Media-Outreach.com.

[Review] Odyssey Neo G9: How the Most Powerful Gaming Monitor Available Can Transform Your Gaming Space and Your Performance

Source: Samsung

 
The quality of graphics and sound in games is improving all the time. Therefore, to ensure they can enjoy games to their fullest, gamers must ensure they are playing on high-specification equipment that is capable of delivering a premium gaming experience.
 
Amid this climate, Samsung has launched its Odyssey Neo G9 gaming monitor, which is specifically designed for gamers who want to enjoy a high-resolution, smooth gaming experience devoid of delays. Launched in 2020, the Odyssey Neo G9’s predecessor the Odyssey G9 was the first-ever 1000R curvature gaming monitor and set a new standard with its outstanding, quantum-technology-enabled image quality.
 
Samsung Newsroom unboxed and reviewed the Samsung Odyssey Neo G9 to get a better sense of how the monitor is enriching gaming experiences.
 
 
Easy Installation With a Sturdy Stand and Expanded Connectivity

 

 
After you open the package and remove each of the components, it becomes clear just how easy it is to install the Odyssey Neo G9. In addition to the 123.8cm-wide, 32:9 ultra-widescreen monitor with its circular core that glows during gameplay, the package contains a sturdy stand that provides a solid base and cables that facilitate easy connection to a variety of external devices.
 

* When assembling the monitor, please refer to the user manual that comes with the product.

 
For quick and simple installation, first screw the stand into the center back of the monitor while it is still in its packaging. Then, attach the core lighting component that is divided into two halves by joining them at the joint and twisting them in. The stand is easy to assemble and disassemble due to its cradle form, while the height, tilt and rotation of the monitor can be adjusted to ensure an optimal gameplay position.
 

 
These days, users game on desktops, laptops, and consoles. To ensure that all these types of gamers are taken into consideration, the Odyssey Neo G9 features a range of different ports to facilitate connection to a host of devices. With two HDMI 2.1 ports, along with DisplayPort 1.4 and USB 3.0 ports on the back of the monitor, users can connect a range of different devices to their monitor and game on the big screen. Another strength of the Odyssey Neo G9 is its ‘Auto Source Switch+’ feature, which allows the monitor to switch input sources automatically when another device is connected.
 
 
Quantum Matrix and Quantum HDR 2000: The Secrets to Detailed, Lifelike Resolution

 
The 1000R curvature of the Odyssey Neo G9 is close to the visual field of humans, allowing the display to completely fill the user’s peripheral vision. What’s more, the monitor’s dual QHD display and 5,120×1,440 resolution enable detailed images to fill the user’s visual field, drawing them more deeply into the scenes being displayed.
 

 
The secret to the Odyssey Neo G9’s outstanding resolution is Quantum Matrix technology. With the introduction of finer light sources, the number of local dimming zones in the screen has been increased to 2,048. What’s more, the monitor’s contrast can now be adjusted to a much finer degree, with 4,096 different contrast levels available to help bring out the unique characteristics of both bright and dark tones.
 

 
HDR technology, which expands the brightest and darkest points of the brightness spectrum, has been recognized as the next-generation standard for displaying images. With its Quantum HDR 2000 technology, the Odyssey Neo G9 can vividly reproduce scenes with sharp differences in brightness, like those featuring explosions. This technology enables brightness of up to 2,000 nits, which is two times greater than that of existing monitors such as the previous Odyssey G9 model.
 

 
The static contrast ratio of the Odyssey Neo G9 is 1,000,000:1, which means its high performance stands out even more when it displays images with sharp differences in brightness. By expressing dark colors more deeply and bright ones more brightly, the monitor is able to establish dimensional contrast.
 
 
Taking Every Experience to New Heights of Immersion With Core Sync

 
Another advantage of the Odyssey Neo G9 series is the way the monitor’s aesthetics allow users to create their own special gaming atmosphere. Just like the previous model, the Odyssey G9, the Odyssey Neo G9 comes with core lighting on the back of the monitor, which further establishes a captivating gaming environment.
 

 
The monitor’s Infinity Lighting, which emits a blue light when the monitor is turned on, has evolved in the Odyssey Neo G9 thanks to the new ‘Core Sync’ feature. Core Sync automatically analyzes the color at the center of the screen and radiates lighting of the same color from the back of the screen. This feature can be turned on by navigating to the ‘Infinity Core Lighting’ menu in the monitor settings and enabling ‘Lighting’ and ‘Core Sync.’ Thus, whether the gamer is exploring deep waters or a dark forest, the Odyssey Neo G9 deepens their immersion by providing ambient light of a similar hue to blur the boundaries between the game and reality.
 
The monitor’s Infinity Core Lighting includes a number of other dynamic features too. From ‘Lighting Effect’, which sets the lighting to a single color, to ‘Rainbow’, which makes the core switch colors at intervals, this feature allows gamers to enhance their experience however they see fit.
 

 
 
High Refresh Rate for Smooth Gameplay and Minimal Input Lag
While having fast reactions is crucially important while gaming, reacting quickly proves useless when the commands entered aren’t reflected instantaneously in the game. The Odyssey Neo G9 is equipped with a number of useful features to help ensure that the ability to react quickly will put users on the road to victory.
 

 
The time it takes for a signal that is entered using a mouse or a keyboard to be reflected on the screen is called input lag. With its ‘Low Input Lag’ feature, the Odyssey Neo G9 shortens the time it takes for commands to be processed and delivers smooth gameplay. The addition of the ‘AMD FreeSync Premium Pro’ and ‘NVIDIA G-Sync Compatible’ features have also allowed the GPU and panel to be synced up in the Odyssey Neo G9. By minimizing interruptions and distortion, the monitor allows users to enjoy smooth visuals even when playing a game with swift camera movements.
 

 
The display capabilities of the monitor are also important when it comes to enjoying a game with high-level graphics to its fullest. One of the main criteria for evaluating display capabilities is refresh rate, which represents the number of images being displayed per second. With a high refresh rate of 240Hz, the Odyssey Neo G9 is capable of seamlessly displaying even action-packed games with highly detailed graphics.
 
The time it takes for a video signal sent from the graphics card to reach the display is called response time. The response time of the Odyssey Neo G9 is 1ms,1 which means it can display signals sent from the graphics card in just 0.001 seconds. This allows gamers to enjoy clear visuals free of stuttering and choppiness. The monitor’s 1ms response time comes in especially handy when playing FPS or racing games that require swift camera movements.
 

 
A high performance and deeply immersive monitor, the Odyssey Neo G9 helps you transform your space into the ultimate gaming environment. For users striving to reach the very top of their respective gaming universes, this visually stunning gaming monitor is a must-have.
 
 
1 Based on Gray to Gray industry standard measurement.

LFC Foundation and Right To Play launch Bangkok COVID-19 Emergency Appeal

Source: Media Outreach

LIVERPOOL, UNITED KINGDOM – Media OutReach – 3 August 2021 – LFC Foundation and global children’s charity Right To Play are urgently seeking funding for their Side by Side communities in Thailand, as the country experiences a devastating fourth wave of Coronavirus.  

 
The Reds official charity, LFC Foundation, and Right To Play work in  partnership to deliver the Side by Side programme, which uses the power of sport and play to help vulnerable children in Liverpool and Bangkok.
 
The need for support is more important than ever in these challenging times as the devastating impact of the pandemic continues to make children and their families lives harder every single day.
 
Thailand is currently experiencing a fourth wave of the COVID-19 pandemic. Daily cases are now exceeding 17,000 and total infections sit at over 500,000 cases with less than 10 percent of the 66 million population vaccinated.
 
Among the hardest hit regions is Bangkok, including the communities of Suanploo, Haroon, Rongmoo and Rim Thang Rotfai Sai Tha Rua, where Right To Play and LFC Foundation are working with vulnerable children and communities.
 
In these communities, many people live a hand-to-mouth existence, and for many a positive COVID-19 case in their family means they cannot earn a living if they isolate themselves according to COVID-19 measures. Not only are there significant health risks in the cramped communities, but worryingly, children and parents have reported to Right To Play that they do not have enough food.
 
Right To Play and LFC Foundation are asking fans to stand Side by Side with them to help raise £50,000 so they can continue to support vulnerable children and families in Thailand.

To raise vital funds, the Bangkok COVID-19 Emergency Appeal has been launched and donations can be made here –  https://taejai.com/en/d/sidebyside_liverpoolthai/. The appeal, which is live now, is open until 31 August 2021.
 
Right To Play and LFC Foundation will use the funds and support the Side by Side communities by providing:  
Dry food packages to families including rice, noodles, canned fish, beans and washing powder
COVID-19 prevention supplies to households, such as disinfectant sprays, masks and test kits
Online activities for children so they can continue to learn remotely  
Play at home kits for children so they can take part in fun activities at home and alleviate psychological stress

– Published and distributed with permission of Media-Outreach.com.

2020 ICC Dispute Resolution Statistics published 

Source: International Chamber of Commerce

Headline: 2020 ICC Dispute Resolution Statistics published 

ICC has published full dispute resolution statistics for 2020, following preliminary figures published earlier this year which revealed the highest number of registered cases with both the ICC International Court of Arbitration and the ICC International Centre for ADR.

The post 2020 ICC Dispute Resolution Statistics published  appeared first on ICC – International Chamber of Commerce.

3 August 2021 EEF Releases Expanded Business Programme The Eastern Economic Forum has released the expanded business programme for the event on its official website. The EEF will take place on 2–4 September in Vladivostok. The main theme of the Forum this year is ‘New Opportunities for the Far East in a Changed World’.

Source: Eastern Economic Forum

3 August 2021

EEF Releases Expanded Business Programme

The Eastern Economic Forum has released the expanded business programme for the event on its official website. The EEF will take place on 24 September in Vladivostok. The main theme of the Forum this year is ‘New Opportunities for the Far East in a Changed World’.

“The president has declared the development of the Far East a national priority for the entire 21st century. In fulfilling the president’s decision, the government has created a comprehensive, dynamically developing investment support system in the Far East. Advanced special economic zones, the free port of Vladivostok, e-visas, the Far Eastern hectare, mortgages for young families – these and many other tools that have been designed for the development of the Far East have established a new investment space and created conditions for the implementation of hundreds of projects that previously only existed as ideas. The Eastern Economic Forum has become one of the key tools for supporting the Far East. Its main objective is to attract investors and get feedback from business. The more than 2,500 new projects and RUB 1.9 trillion in investments that have already made are indisputable proof that the Far East has become a comfortable and safe territory for doing business,” said Yury Trutnev, Russian Deputy Prime Minister, Plenipotentiary of the Russian President in the Far Eastern Federal District, and Chairman of the EEF Organizing Committee. 

“This will be the sixth Eastern Economic Forum. Per tradition, an extensive business programme will be prepared that focused on the most pressing issues of the global and regional economy. I am certain that the Forum will once again affirm its status as the leading communication platform in the Asia-Pacific region. This year we expect an impressive range of guests, including leaders of states, who will take part in a mixed format – both online and offline,” said Anton Kobyakov, Advisor to the Russian President and Executive Secretary of the EEF Organizing Committee.

The EEF 2021 business programme is divided into four thematic pillars: ‘The New Economy: What Changes and What Stays the Same’, ‘The Far East: New Challenges and Opportunities’, ‘Our Shared Responsibility in a Changing World’, and ‘Youth EEF’. The key event of the EEF will be the plenary session scheduled for 3 September.

The ‘The New Economy: What Changes and What Stays the Same’ pillar of the business programme will include sessions on the development of carbon-free energy, the international distribution of labour, new media, and other important issues concerning the economy.

The session ‘Partnership Against the Pandemic: Anti-Crisis Strategies in Medicine’ is devoted to international cooperation. To respond to the challenges of our times, national health systems must be able to withstand emergency crises and countries need to engage in sustainable partnerships to develop effective strategies to combat them. The most important area for ​​such cooperation remains the economic space of the Asia-Pacific region, which, starting with China, was the first to be hit by coronavirus. The session will discuss what the criteria should be for sustainable healthcare that is capable of ensuring the principles of national security.

One of Russia’s top priorities in the international arena is to strengthen and ensure the sustainable development of relations with countries in the Asia-Pacific region and North-East Asia. Russia and its regional neighbours have faced unprecedented challenges in recent years. The range of problems caused by the COVID-19 pandemic has only added to the growing international uncertainty, geopolitical instability, and serious structural and volatile imbalances in the system of international economic relations. The session ‘Business Cooperation: A Driver of Sustainable Socioeconomic Development in the APR’ focuses on ways to develop new modalities and formats of cooperation, reconfigure value chains, and bolster the connectivity of regional economies.

The Far East has some of the largest hydrocarbon reserves and is in close proximity to leading petrochemical markets. Given the existing effective instruments of state support, the region will turn into a platform for major projects, which will serve as centres for the formation of industrial clusters, the development of new ones, including green technologies, and attracting foreign investment. The development of oil and gas refining in the Far East and the creation of petrochemical clusters will be the primary focus of the session ‘Zero-Carbon Energy: The Future of Combustible Fuels’.

The pillar ‘The Far East: New Challenges and Opportunities’ consists of 28 sessions that cover a wide range of issues concerning the development of the Far East, including attracting investment to the region, export opportunities, and the development of the agricultural industry.

One of the pillar’s sessions is dedicated to the subsoil resources of the Far East. Today, the Far Eastern Federal District holds a dominant position in the mining and reserves of diamonds, coal, zinc, copper, lead, tungsten, gold, silver, tin, and rare earth metals. Highly profitable, well-studied mineral deposits are being put into commercial operation, however the Far Eastern Federal District has virtually no facilities for the deep processing of raw materials using high-tech equipment at mining sites, which prevents the macro-region from fully unleashing its mineral and raw material potential. Experts will consider mechanisms to support enterprises that handle the deep processing of raw materials, a solution to the problem of technological backwardness, and the generation of domestic demand for raw materials.

The session ‘The New Stars of the Far East: The Evolution of Major Projects’ will focus on ways to enhance the investment appeal of the Far Eastern region. Accelerator projects for regional development are helping to create supporting transport, energy, and social infrastructure, which makes them centres of gravity for economic resources and human capital.

The pillar ‘Our Shared Responsibility in a Changing World’ focuses on the protection of the environment, nature, and climate.

The session ‘Medicine for Export: Opportunities on Asia-Pacific Markets’ will include discussions on how to develop medical tourism in Russia. The Far Eastern Federal District’s strategic proximity to countries of the Asia-Pacific region could become an advantage in terms of developing medical tourism, provided that it boosts the transfer of modern medical technologies to Russia, increases the number of clinics, and creates high-quality competitive medical infrastructure.

Robots could fill 20 million jobs by 2030. The three industries in which robots have replaced humans the most are transportation, storage, and manufacturing. Generation Z is most at risk of being displaced due to automation. New opportunities and the hidden threats of robotization will be discussed during the session ‘Automation Technologies: Robots vs. People’.

The Youth EEF will be held for the first time at the Forum. It includes ‘Special Forces in the Far East: Presentation of the Muravyov-Amursky 2030 Programme’ as well as discussions on education and youth entrepreneurship.

In 2021, Russia and ASEAN are celebrating the 30th anniversary of their relations and the 25th anniversary of their full-fledged dialogue partnership. During the EEF Youth Day, international experts and young activists will meet to discuss prospects for coordinating youth policy between Russia and ASEAN in various sectors.

The international events to be held at the EEF include a discussion of the Greater Eurasian Partnership as an effective integration mechanism as well as the APEC Conference on Cooperation in Higher Education in Asia-Pacific Region and an international conference dedicated to the 100th anniversary of the establishment of diplomatic relations between Russia and Mongolia.

In addition, the EEF 2021 will include the following business dialogues: RussiaASEAN, RussiaKorea, RussiaJapan, RussiaChina, RussiaIndia, and RussiaEurope.

The EEF 2021 will be held in compliance with all necessary safety measures and recommendations of the Russian Federal Service for Surveillance on Consumer Rights Protection and Human Wellbeing and the World Health Organization to prevent the spread of COVID-19.

Detailed information about the Forum programme is available on the official EEF website: forumvostok.ru.

Read more

For more, see: Eastern Economic Forum news

Asia’s Leading Crypto Financial Services Platform Matrixport Valued at Over $1 Billion — Two Years After its Founding

Source: Media Outreach

Series C funding round led by partners of DST Global, C Ventures and K3 Ventures with Jihan Wu’s crypto firm raising $129 Million to date
HONG KONG SAR – Media OutReach – 3 August 2021 – Matrixport, Asia’s fast growing digital assets financial services platform closed its Series C funding round with a valuation of over US$1 billion — just two years after its establishment. This round was led by partners of DST Global, C Ventures and K3 Ventures with other participants including Qiming Venture Partners, CE Innovation Capital, Tiger Global, Cachet Group, Palm Drive Capital, Foresight Ventures and A&T Capital, along with earlier investors Lightspeed, Polychain, Dragonfly Capital, CMT Digital and IDG Capital. The Singapore-based start-up has raised $129 million to date.

Crypto’s Newest Unicorn: Matrixport Valued at >$1 Billion in Series C Funding 

Matrixport offers a full suite of cryptocurrency financial services including institutional custody, trading, lending, structured products and asset management to institutional and retail1 clients. As of March 2021, the company held over $10 billion of client assets under management and custody, and recorded $5 billion in monthly transactions across all product lines.

“I always believe an open and permissionless blockchain ecosystem is the bedrock of a new financial network that will benefit a large part of the world’s population. As a result, there will be hundreds of trillions of value created, stored and transferred on this new financial network,” said Jihan Wu, Co-Founder & Chairman of Matrixport.

Since its inception in 2019, Matrixport’s mission is to be a one-stop financial services platform. Its exponential growth has been driven by robust technology capabilities and innovative product offerings, such as the world’s first crypto dual currency product. The company provides a comprehensive suite of offerings tailored across different risk appetites and yield expectations.

“We are more than a gateway to the crypto economy. Matrixport is where both institutional customers and individuals find it easy to get more from their crypto, beyond just trading. We are continually pushing out more new ways to invest crypto and earn yields in a safe and sustainable manner. We believe that it is very important to give the choice back to our customers with a range of innovative crypto investment products,” said John Ge, Co-Founder & Chief Executive Officer, Matrixport.

With this funding, Matrixport plans to further invest in research and development to enhance its innovative product offerings and security while optimising for an even greater user experience. The funds will also be used to support its global expansion as well as to secure licenses to operate in more jurisdictions. With the company’s vision to “Make Crypto Easy For Everyone”, the roll-out will allow more users globally to embrace its cryptocurrency financial services platform.
 
“As blockchain based digital assets gain wider adoption and acceptance, new pathways are needed to capture yield, source liquidity and manage crypto assets as an emerging asset class. With deep knowledge of traditional finance and a keen understanding of crypto assets, Matrixport is well positioned to answer the increasing demand for this new area of investment, driven primarily by the younger generations,” said Adrian Cheng, founder of C Ventures and CEO of New World Group.

“Matrixport has demonstrated tremendous thought leadership as a digital assets financial services platform by being first movers in delivering a well-curated suite of innovative crypto investment offerings. Matrixport empowers crypto natives, sophisticated institutional clients, and just as importantly the large community of first-time users who are embarking on their crypto investing journey aboard a robust and trusted platform,” said MX Kuok, Managing Partner of K3 Ventures.
 
“As an early investor, Dragonfly is excited to see Matrixport’s continuous growth and innovation in the emerging asset class. It is well-positioned to become one of the most critical onramps for crypto adoption,” said Feng Bo, Founding Managing Partner of Dragonfly Capital.

– Published and distributed with permission of Media-Outreach.com.

Allianz: Shipping losses stay at historic lows, but Asia remains largest global loss hotspot

Source: Media Outreach

Safety & Shipping Review 2021: 49 large ships lost worldwide last year. Total losses down 50% over 10 years. Number of shipping incidents (2,703) declines year-on-year.
Shipping industry remains resilient through pandemic, but mega-ship, supply chain and climate challenges loom large.
Suez Canal incident shows ever-increasing vessel sizes continue to pose a disproportionately large risk with costly groundings and salvage operations. High number of fires and containers lost at sea.
South China, Indochina, Indonesia and Philippines maritime region is the global loss hotspot for last decade.

JOHANNESBURG/LONDON/MUNICH/NEW YORK/PARIS/SAO PAOLO/SINGAPORE  – Media OutReach – 3 August 2021 – The international shipping industry continued its long-term positive safety trend over the past year but has to master Covid challenges, apply the learnings from the Ever Given Suez Canal incident and prepare for cyber and climate change challenges ahead. The number of large vessels lost remained at record low levels in 2020, while reported incidents declined year-on-year, according to marine insurer Allianz Global Corporate & Specialty SE’s (AGCS) Safety & Shipping Review 2021.

“The shipping sector has shown great resilience through the coronavirus pandemic, as evidenced by strong trade volumes and the recovery we are seeing in several parts of the industry today,” says Captain Rahul Khanna, Global Head of Marine Risk Consulting at AGCS. “Total losses are at historic low levels for the third year running. However, it is not all smooth sailing. The ongoing crew crisis, the increasing number of issues posed by larger vessels, growing concerns around supply chain delays and disruptions, as well as complying with environmental targets, bring significant risk management challenges for ship owners and their crews.”

The annual AGCS study analyzes reported shipping losses and casualties (incidents) over 100 gross tons. During 2020, 49 total losses of vessels were reported globally, similar to a year earlier (48) and the second lowest total this century. This represents a 50% decline over 10 years (98 in 2011). The number of shipping incidents declined from 2,818 to 2,703 in 2020 (by 4%). There have been more than 870 shipping losses over the past decade.

The South China, Indochina, Indonesia and Philippines maritime region remains the global loss hotspot, accounting for one in every three losses in 2020 (16) with incidents up year-on-year. Cargo ships (18) account for more than a third of vessels lost in the past year and 40% of total losses over the past decade. Foundered (sunk/submerged) was the main cause of total losses over the past year, accounting for one in two vessels. Machinery damage/failure was the top cause of shipping incidents globally, accounting for 40%.

Covid-19 factors
Despite the devastating economic impact of Covid-19, the effect on maritime trade has been less than first feared. Global seaborne trade volumes are on course to surpass 2019 levels this year after declining slightly in 2020. However, the recovery remains volatile. Covid-19-related delays at ports and shipping capacity management problems have led to congestion at peak times and a shortage of empty containers. In June 2021, it was estimated there was a record 300 freighters waiting to enter overcrowded ports. The time container ships are spending waiting for port berths has more than doubled since 2019.

The crew change situation on vessels is a humanitarian crisis which continues to affect the health and wellbeing of seafarers. In March 2021, it was estimated some 200,000 seafarers remained on board vessels unable to be repatriated due to Covid-19 restrictions. Extended periods at sea can lead to mental fatigue and poor decision-making, which ultimately impact safety. There have already been shipping incidents which have featured crews who have been on board for longer than they should have. Seafarer training is suffering, while attracting new talent is problematic given working conditions. Future crew shortages could impact the surge in demand for shipping as international trade rebounds.

As Covid-19 infection rates escalated in India, one of the world’s largest sources of seafarers, ports – including Singapore, Hong Kong and the UK – barred vessels and crew that had recently visited India. Vessels also stopped calling at Indian ports, which are an important stopover for trade between Europe, Africa and Asia.

Although Covid-19 has resulted in limited direct marine claims to date, the sector has not been spared significant loss activity. “Overall, the frequency of marine claims has not reduced. We are also seeing an increased cost of hull and machinery claims due to delays in the manufacture and delivery of spare parts, as well as a squeeze on available shipyard space,” says Justus Heinrich, Global Product Leader, Marine Hull, at AGCS. “Costs associated with salvage and repairs have also increased.” In future, insurers could potentially see an uptick in machinery breakdown claims if Covid-19 has affected crews’ ability to carry out maintenance or follow manufacturers’ protocols.

Larger vessels, larger exposures
The blocking of the Suez Canal by the Ever Given container ship in March 2021 is the latest in a growing list of incidents involving large vessels or mega-ships. Ships have become ever-larger as shipping companies seek economies of scale and fuel efficiency. The largest container ships break the 20,000 teu mark, with vessels over 24,000 teu on order – capacity of container ships vessels alone has increased by 1,500% over 50 years and has more than doubled over the past 15 years.

“Larger vessels present unique risks. Responding to incidents is more complex and expensive. Approach channels to existing ports may have been dredged deeper and berths and wharfs extended to accommodate large vessels but the overall size of ports has remained the same. As a result, a ‘miss’ can turn into a ‘hit’ more often for the ultra-large container vessels,” says Captain Nitin Chopra, Senior Marine Risk Consultant at AGCS. If the Ever Given had not been freed, salvage would have required the lengthy process of unloading some 18,000 containers, requiring specialist cranes. The wreck removal of the large car carrier, Golden Ray, which capsized in US waters in 2019 with more than 4,000 vehicles on it has taken over a year and a half and cost several hundreds of millions of dollars.

The number of fires on board large vessels has increased significantly in recent years. There was a record 40 cargo-related fires alone in 2019. Across all vessel types, the number of fires/explosions resulting in total losses increased again in 2020, hitting a four-year high of 10. Fires often start in containers, which can be the result of non-/mis-declaration of hazardous cargo, such as chemicals and batteries. When mis-declared, these might be improperly packed and stowed on board, which can result in ignition and/or complicate detection and firefighting. Major incidents have shown container fires can easily get out of control and result in the crew abandoning the vessel on safety grounds, thus increasing the size of loss.

Loss of containers at sea also spiked last year (over 3,000) and have continued at a high level in 2021, disrupting supply chains and posing a potential pollution and navigation risk. The number lost is the worst in seven years. Larger vessels, more extreme weather, a surge in freight rates and mis-declared cargo weights (leading to container stack collapse), as well as the surge in demand for consumer goods may all be contributing to this increase. There are growing questions about how containers are secured on board ships.

Delay and supply chain issues
Maritime supply chain resilience is in the spotlight after a series of recent events. The Ever Given incident sent shockwaves through global supply chains dependent on seaborne transport. It compounded delays and disruption already caused by trade disputes, extreme weather, the pandemic and surges in demand for containerized goods and commodities. “Such events expose the weak links in supply chains and have magnified them,” says Captain Andrew Kinsey, Senior Marine Risk Consultant at AGCS.  “Developing more robust and diversified supply chains will become increasingly important, as will understanding pinch points and supply chain nodes.”

Piracy and cyber concerns
The world’s piracy hotspot, the Gulf of Guinea, accounted for over 95% of crew numbers kidnapped worldwide in 2020. Last year, 130 crew were kidnapped in 22 incidents in the region – the highest number ever – and the problem has continued. Vessels are being targeted further away from the shore – over 200 nautical miles (nm) in some cases. The Covid-19 pandemic could exacerbate piracy as it is tied to underlying social, political and economic problems, which could deteriorate further. Former hotspots like Somalia could re-emerge.

The report also notes that all four of the world’s largest shipping companies have already been hit by cyber attacks, and with geopolitical conflict increasingly played out in cyber space, concerns are growing about a potential strike on critical maritime infrastructure, such as a major port or shipping route. Increased awareness of – and regulation around – cyber risk is translating into an uptake of cyber insurance by shipping companies, although mostly for shore-based operations to date.
 
The environmental picture
With momentum gathering behind international efforts to tackle climate change, the shipping industry is likely to come under increasing pressure to accelerate its efforts. “A huge investment in research and development is required if the industry is to meet the challenging targets being set. Today’s existing fleet and technology will not get the shipping industry to the International Maritime Organization’s target of a 50% cut in emissions by 2050, let alone the more ambitious targets being discussed by national governments,” says Khanna.
 
Last year, the cap on the sulphur content of ships’ fuel was cut. Known as IMO 2020, the cut is expected to reduce emissions of harmful sulphur oxide (SOx) from shipping by 77%. Insurers have seen a number of machinery damage claims related to scrubbers, which remove SOx from exhaust gases for vessels using heavy marine fuel.

Insurers have seen a number of machinery damage claims related to scrubbers and some arising from the use of ‘blended’ low-sulphur fuels. For example, there have been instances of aviation fuel – sold off cheaply due to a drop off in air traffic during the pandemic – being added to bunkers in Asia to produce blended low-sulphur fuel, which could cause resulting issues for shippers. Jet fuel has a lower flash-point and adding too much can lower the temperature at which fuels catch fire, creating a serious risk for vessels.

Most frequent loss and incident locations
According to the report, the South China, Indochina, Indonesia and Philippines maritime region is also the major loss location of the past decade (224 vessels), driven by high levels of local and international trade, congested ports and busy shipping lanes, older fleets and extreme weather exposure. Together, the South China, Indochina, Indonesia and Philippines, East Mediterranean and Black Sea, and Japan, Korea and North China maritime regions account for half of the 876 shipping losses of the past 10 years (437).The British Isles, North Sea, English Channel and Bay of Biscay region saw the highest number of reported incidents (579) in 2020, although this was down year-on-year. And finally, the most accident-prone vessels of the last year were a Greek Island ferry and a RoRo ferry in Canadian waters, both involved in six different incidents.

– Published and distributed with permission of Media-Outreach.com.