Key Takeaways from Bumi Resources 9M Report
Bumi Resources (BUMI), the largest coal producer in Indonesia, is among the best performing stocks year-to-date with 335.3% gain. At the current price, BUMI has market cap of Rp10.84 trillion despite of its negative equity of US$2.86 billion by Sept 30, 2016. What’s interesting from its financial report for the first nine months of 2016?
Coal market: Mixed Data
Shares of coal producers end mixed worldwide Thursday as investors got mixed market data. Coal prices in OTC market continued its correction to US$84 per ton, but strong November import by China suggests difficulties in resumption of domestic production.
35,000 MW Program: The Players
Most of major power plant projects under the signature 35,000 MW program have been granted out to global players like Sumitomo, Shenhua, Marubeni, Sojitz, Itochu, etc. There are also local big players like Adaro, Medco, and Sinarmas. More medium local players, however, have joined the program.
M&A: SIPEF’s Acquisition of Plantation Company Agro Muko
Belgium-based firm SIPEF, through its Indonesian subsidiary PT Tolan Tiga Indonesia, has agreed to acquire 47.71% shares in PT Agro Muko, a mixed palm oil and rubber plantation company, for US$144 million. SIPEF acquires the shares from PT Austindo Nusantara Jaya Tbk (ANJT) and UK-listed MP Evans Limited. The deal is interesting for several reasons.
CP Prima & The End of Plasma Shrimp Farming
Shares of CP Prima rallied 58% to Rp79 as some investors bet on further improvement in the bottom line following Rp60 billion profit booked in the first half of 2016. The stock, however, retreated to Rp56 upon receiving information surrounding huge third quarter loss of the integrated feed-to-shrimp farming. What’s going on?
Jawa-1 Power Project: Finale?
State-owned electricity provider PT Perusahaan Listrik Negara (PLN) is scheduled to sign power purchase agreement (PPA) with a consortium of Pertamina, Marubeni Corp, and Sojitz for the development of Jawa-1 combined cycle power plant (1600 MW), one of IPPs under the signature 35,000 MW program.
ONWJ Block & Bakrie’s Future
Participating interest in the Offshore North West Java (ONWJ) oil and gas block is one of the largest assets of Energi Mega Persada (ENRG), a company owned by Bakrie Family. It is third behind Malacca Strait and Kangean blocks. ENRG holds indirectly 36.72% interest in ONWJ, while state-owned oil and gas company Pertamina controls 58.28%.
Plantations Journal
The benchmark February 2017 contracts of crude palm oil (CPO) advanced RM61 to RM3137 per ton on the Bursa Malaysia Derivatives Monday (Dec 5) to tracking soybean oil. Weak harvest of FFBs and CPO production in November might have also contributed to the rally.
Luhut Sells Toba Bara Sejahtra
Coal producer Toba Bara Sejahtra (TOBA) informed market authorities Monday that it has on December 5th received a letter from Highland Strategic Holding Pte Ltd, a company based in Singapore, regarding its plan to acquire majority shareholding in TOBA, which is controlled by the family of Luhut Binsar Pandjaitan, coordinating minister for maritime affairs.
Metal Prices & Mining Stocks
Aneka Tambang (ANTM), Vale Indonesia (INCO), and Timah (TINS) are among top gainers year-to-date with over 100% gain respectively even though their financials were severely hit by falling prices of nickel and tins. Investors were mostly betting on improvement in these commodities next year.