Coal Journal No. 12/2017
Shares of coal producers listed on Indonesia Stock Exchange (IDX) ended mostly higher grounds Thursday (March 16) as some investors anticipated firming up of thermal coal prices, which gained 3.8% this week to respond regional data, especially supply-demand balance in China and India, two of the largest importers.
Bukit Asam (PTBA): FY16 Results & Outlook
Bukit Asam (PTBA), the state-owned coal producer, maintains its position as the most profitable coal producer in Indonesia with higher net profit margin than companies like Adaro Energy (ADRO) and Indo Tambangraya Megah (ITMG). One, however, shall closely monitor operation of the 2×100 MW mine-mouth power plant in South Sumatra and other new projects.
Revisiting Indonesian Alumina Industry
Last year was a better year for Indonesian alumina industry, at least in terms of sales revenues. Higher volume and average price of aluminium in international market, especially in the fourth quarter, contributed to the growth. PT Indonesia Chemical Alumina (ICA), a joint venture between Showa Denko (Japan) and Aneka Tambang (ANTM), for example, generated sales revenue of Rp471.95 billion, jumped by 64% from 2015.
Bakrie Sumatra Plantation’s Reverse Stock Split
The benchmark crude palm oil (CPO) futures contrac tor May 2017 jumped RM64 to RM2816 per ton Wednesday (March 15), but shares of Bakrie Sumatra Plantations (UNSP) collapsed 20.4% on the first trading day of its new shares from the reverse stock split (RSS) program. It is true that most plantation stocks listed in Singapore and Kuala Lumpur gained grounds that day, while those listed on IDX ended mostly lower grounds.
Freeport: A Journey to the Past & Issues to Watch (1)
Years before 2004 elections, we witnessed battles of business-political groups to acquire 51% shares in PT Kaltim Prima Coal (KPC) from BP/Rio Tinto. Local administrations of East Kalimantan and workers union added to the tension, which eventually forced BP and Rio Tinto, two of the world’s largest resources companies, to sell all their interest in KPC.
Samindo Resources (MYOH): FY16 Results & Outlook
Shares of Samindo Resources (MYOH), coal mining contractor controlled by South Korean Samtan Co Ltd, ended up slightly by 0.72% Friday (March 10) with thin trading volume despite stronger performance reported in the fourth quarter of 2016. In contrast to the first nine months of 2016, Samindo reported almost 23% increase in net profit in the quarter.
Commodities & State Budget 2017
Tax Office announced almost 100% year-on-year jump in oil and gas income tax (PPh Migas) collected in January 2017, thanks to higher average price of crude oil. State revenues from oil and gas should also increase significantly in February because average OPEC basket price was US$53.37 per barrel, an increase of 85.8% from February 2016. Month-to-date, OPEC basket price is US$53.51, representing 54% jump from March 2016. Assuming no significant change in volume, the State Budget should have been lifted by higher average price of crude oil in the first quarter of 2017.
Masela Block: Gas-to-Chemicals
Inpex/Shell consortium has submitted new proposal for the development of Masela Block in Maluku province. The government, however, has yet to make any decision, pending clarity surrounding gas-based petrochemical projects. While annual gas output is agreed at 10.5 million tons per annum, there are two options on volume of gas to be produced as liquefied natural gas (LNG) and gas derivative products (petrochemicals).
Speculations Surrounding Freeport
Shares of Freeport McMoRan ended lower by 1.63% to US$12.69 in New York Tuesday (Mar 7) on broad market correction of mining stocks. Aluminium giant Alcoa also lost 3% in New York, while Glencore Plc fell almost 2% earlier in London as metals lost ground. Dr Copper, for example, retreated 1.38%, while gold slipped 0.86%.
Coal Journal No. 10/2017: Further Corrections?
The government has set reference price of Indonesian thermal coal, otherwise known as HBA, at US$81.9 per ton for March 2017. The HBA refers to coal with calorific value of 6322 Kcal/Kg GAR, and an FOB vessel price. The March HBA is 1.7% lower than February, but 58.66% higher year-on-year.