Who Acquires Provident Agro’s Plantation Assets?
IDX-listed plantation firm PT Provident Agro (PALM) Tbk has decided to divest shares in four plantation and trading subsidiaries with combined indicative enterprise value of Rp2.7 trillion to PT Galanggang Maju Bersama (GMB) and PT Mandhala Cipta Purnama (MCP). Who are people behind GMB and MCP?
Holding Co for State Miners
Ministry of state-owned enterprises is finalizing the establishment of holding entity for state-owned mining companies, which would consolidate Aneka Tambang (ANTM), Bukit Asam (PTBA), Timah (TINS), and INALUM. Combined with future ownership in Freeport Indonesia, the new entity will become one of the largest mining companies in the world.
Corrections in Palm Oil
The benchmark September 2016 contracts of crude palm oil (CPO) crashed RM117 to RM2238 per ton on the Bursa Malaysia Derivatives Friday (July 8) to tracking crude oil and responding higher output in Indonesia and Malaysia.
Oil & Gas: New Kids on The Block
Low energy prices, regulatory regime, and restructuring of portfolios led to in-and-out of investors in Indonesian oil and gas sector. In the past few years, we’ve seen the emergence of new names like ACL International Ltd, Mandala Energy Ltd, or HyOil Pte Ltd in Indonesian oil and gas industry.
Revisiting Benakat Integra
PT Benakat Integra (BIPI) Tbk, a coal logistic company, has just released its financial statement for the period ended December 31, 2016. Auditors gave qualified opinion to the report in relation to the breach of financial covenants by subsidiary Nixon Investments in relation to the loan facilities arranged by Credit Suisse.
Coal Journal: Agritrade Resources
Reference price of Indonesian thermal coal for July 2016 is set at US$53 per ton for CV 6322 Kcal/Kg, 2.3% higher than June (US$51.81), but still 10.41% below July 2015. This is the second highest after January 2016. Further rally, however, might be capped by higher supply in the seaborne market.
Steel Update
Roberto M. Cola, the chairman of the Southeast Asia Iron and Steel Institute (SEAISI), recently said that the global excess steel capacity was seriously affecting the viability of the biggest steel companies of the world. The World Steel Association is forecasting a decrease in world steel demand by 0.8 % for 2016 following a contraction of 3% in 2015. In the past 3 years global steel products were under pressure. Global industry capacity reached 2 billion tons while its production reached 1.5 billion tons.
Saratoga-Provident’s Gold-Copper Assets
With the exception of Grasberg mine in Papua and Gosowong gold mine in Halmahera, other gold-silver-copper assets in Indonesia are now in the hands of local business groups. Martabe gold has been taken over by a consortium consisting Djarum Group owners and Martua Sitorus (Wilmar shareholder). Batu Hijau gold-copper mine, meanwhile, is being taken over by a consortium of Medco Group and AP Investment.
Geo Energy-Engelhart Coal Deal
Shares of Geo Energy Resources Ltd, controlled by the family of Charles Anthony Melati, surged 5.2% on SGX Tuesday (July 5) as investors responded positively the Company’s US$1.2 billion coal deal with Engelhart Commodities Trading Partners (Singapore) Pte Ltd.
Recovery of Commodities
In contrast to prediction from most analysts following UK’s decision to leave European Union, commodities continued their rallies in the past few days. Crude oil and metals have recovered significantly. Reference price of Indonesian thermal coal for July 2016 is also 2.3% higher than June 2016.