Revisiting Bumi Resources; The Mysterious Tiga Lima Rekso
Shares of Bumi Resources (BUMI), the largest coal producer in Indonesia, jumped as much as 15% Wednesday (Oct 5) with over 1 billion shares exchanged hands, despite various issues in its financial report for the period ended December 31, 2015 and March 31, 2016.
Relaxation of Mineral Ore Export: Implications
Looks like that the government opted to relax the current mineral ore export ban for three to five years. Details of the policy are expected next week through the revision of Government Regulation No. 01/2014. Implications?
Revisiting Bumi Resources; US$450 Million Write-Off for Bukit Mutiara
Bumi Resources (BUMI), the largest coal producer in Indonesia, booked net loss of US$1.93 billion last year, skyrocketed from US$370 million in 2014, according to the audited financial report released Tuesday (Oct 4). The Company managed to cut its interest and finance charges from US$846.3 million to US$453.2 million, but impairment of assets jumped to US$885.55 million.
Growing Consumption & Pending Gas Projects
Indonesia exported 15.6 million tons of natural gas in the first eight months of 2016, down 1.33% from the corresponding period of 2015. Import of natural gas, meanwhile, grew 3.67% year-on-year to 2.84 million tons in the period. Indonesia will continue to be a net exporter of natural gas in the coming years, but slow pace of gas projects hurt long-term supply-demand balance.
Coal Journal
State-owned electricity firm PT Perusahaan Listrik Negara (PLN) spent Rp18.53 trillion of its cash for investing activities in the first half of 2016, an increase of 27% from the corresponding period of 2015, mostly due to 40% jump in investment for new property, plant, and equipment under the 35,000 MW program.
Commodities & The Economy
Indonesian economy is poised to improve in the fourth quarter from positive results of the tax amnesty program and relatively higher prices of commodities. WTI crude oil retreated 0.51% to US$46.81 per barrel on Nymex Friday (Sept 30), but higher than price assumption in the revised 2016 budget.
Rally of Commodities
OPEC’s decision to cut production lifted crude oil to above US$47 per barrel. This led to rally of resources-related stocks worldwide. Santos gained almost 8% in Sydney Thursday (Sep 29) morning, while CNOOC advanced 4.4% in Hong Kong. Earlier on Wednesday, ConocoPhillips gained almost 7% in New York, while ExxonMobil edged up 4.4%.
Medco’s Interest in Newmont
After months in the dark, investors have finally been informed about acquisition scheme of PT Newmont Nusa Tenggara (NNT). PT Medco Energi Internasional Tbk (MEDC), pretty much as predicted, will own less than 50% shares in NNT.
First Half Results: Elnusa & Apexindo
Oil and gas services company PT Elnusa Tbk (ELSA) posted a 9.2% growth in net profit for the first half (H1) of 2016, thanks to cost efficiency strategy amid lower revenues. As global oil prices are remain unstable, which impact on the drilling and oilfield services activity, the Company boosted its seismic, logistic, distribution services activity and other supporting businesses to offset the declining activity in drilling and oilfield services.
New Energy Minister
President Joko ‘Jokowi’ Widodo is said to have found candidate for energy and mineral resources minister to replace Arcandra Tahar, who was dismissed last month due to dual citizenship issue. The new minister is said a professional without links to any political party.