Adaro Energy: FY16 Results & Outlook
Higher average price of thermal coal in fourth quarter 2016 lifted performance of Indonesian producers. Adaro Energy (ADRO), second largest coal group, booked net profit of US$334.62 million last year, skyrocketed by 119.5% from 2015. With earning per share of Rp139, the current price looks cheap.
Q&A with Indoferro on Nickel Smelter
Nickel ended at US$10,900 per ton on LME last Friday (Mar 3) to represent almost 16% since the third week of January. Future of the commodity might be affected by export quota of low-grade nickel in Indonesia and further crackdown of mines in the Philippines in the supply side. Expansion of stainless steel by Tsingshan Group in Indonesia, on the other hand, might improve demand side of the commodity.
Djarum-Wings in Sugar Business
Indonesia’s consumption of sugar is around 6 million tons per annum, while domestic production is predicted around 2.7 million tons only. Jokowi-Kalla administration, obsessed by self-sufficiency in sugar by 2020, has encouraged more state companies and private business groups to invest in this sector. The self-sufficiency target might be out of reach, given the current circumstances, but deserved close monitoring.
Indonesia & Iran vs Saudi Arabia
Hours before Saudi Arabia King Salman bin Abdulaziz arrived in Jakarta, state-owned oil and gas company Pertamina submitted proposal to National Iranian Oil Company (NIOC) for the development of Ab-Teymour and Mansouri fields in Iran, which are believed to host 1.5 billion barrels of oil, nearly half of Indonesia’s oil reserves.
Coal Journal No. 09/2017
Thermal coal retreated 2.21% to US$81.6 per ton Thursday. Most energy and mineral products lost ground due to appreciation of US dollar. WTI and Brent crude oil, for example, fell 2% each, while copper and aluminium lost 1.8% and 2% respectively. Interestingly most of them have been moving in narrow range in the past three months or so.
Sinarmas Group in 2016 (2): GEMS & GEAR
PT Golden Energy Mines (GEMS) Tbk, coal mining subsidiary of Sinarmas Group, booked net profit of US$34.45 million last year, skyrocketed from US$2 million only in 2015, thanks to significant improvement in the fourth quarter. Strange, however, that sales revenues slipped 0.5% in the quarter, while average coal price jumped significantly in the period.
Aneka Tambang (ANTM): FY16 Results & Outlook
State miner Aneka Tambang (ANTM) booked net profit of Rp65 billion last year against loss of Rp1.44 trillion in 2015. The Company’s performance improved significantly in the fourth quarter, thanks to higher prices of nickel. Still, with earning per share of Rp3 only, the Company needs to report 10 times of last year’s profit this year to justify the current stock price.
FY16 Results & Outlook: LSIP & SIMP
PT London Sumatra Plantations (LSIP) Tbk, controllled by Salim Group, booked net profit of Rp594 billion last year, down 4.7% from 2015, despite 110% jump in the fourth quarter of 2016 due to rally in crude palm oil (CPO) prices. Shares of LSIP, however, have fallen almost 20% from its recent peak as investors were nervous about possible correction of CPO prices. They anticipate significantly higher output this year because El Nino impact has disappeared. Really?
Timah (TINS): FY16 Results & Outlook
Shares of PT Timah Tbk (TINS), one of the world’s largest tin producers, ended higher by 3.13% to Rp990 Tuesday (Feb 28) as investors better performance of the Company this year. Stronger results in the fourth quarter lifted Timah’s net profit by almost 150% to Rp251.83 billion last year. Outlook?
CPO: How Low Will You Go?
The benchmark May 2017 contracts of crude palm oil (CPO) opened lower by RM9 to RM2745 per ton on the Bursa Malaysia Derivatives this morning. The commodity has lost more than 15% from its recent peak due to projected higher production in Malaysia and Indonesia this year. Contracts beyond June 2017 were now traded below RM2700 per ton.