Coal: Bottoming Out?
Reference price of Indonesian thermal coal (6322 Kcal/Kg) for April 2016 is set at US$52.32 per ton (FOB Vessel). This is 18.86% below reference price in the same month last year, but represented 1.36% gain from March 2016. Has the commodity been bottoming out?
Rally of Commodities
WTI crude oil jumped 6.44% to US$39.66 per barrel on Nymex Friday (Apr 8) to make an 8% weekly gain. Brent crude also advanced 6.14% to US$41.85 per barrel as investors saw signs of fading US output. The rally lifted shares of oil and gas producers led by Shell, which gained 3.95%.
Shenhua’s Grip in Indonesia
China Shenhua Energy Co Ltd is one of the most profitable energy companies in the world. Last year the Company generated net profit of RMB17.65 billion, dropped 55.1% from 2014 due to falling prices of coal. This is a Company to watch when it comes to Indonesian coal and energy market.
Bakrie, Newmont, and Panigoro
In the first week of November 2015, we speculated about Newmont’s exit from Indonesia. Three weeks later, Medco Group founder Arifin Panigoro announced a plan to acquire PT Newmont Nusa Tenggara (NNT) for US$2.2 billion. On Tuesday, April 5th, minister of finance Bambang Brodjonegoro confirmed the government’s decision to not acquiring the shares (7%) offered.
Holding Co for Oil & Gas
Consolidation of state companies engaged in oil and gas industry is among top priorities this year. Our source at the state-owned enterprises ministry said the ministry has been in series of discussions with lawyers and market authorities because it involves PT Perusahaan Gas Negara (PGAS) Tbk.
Holding Co for State Miners
The government plans to establish six holding companies in the first half of the year. One of them will consolidate state miners like Bukit Asam (PTBA), Aneka Tambang (ANTM), Timah (TINS), and INALUM. The likely outcome?
ABM Investama & Toba Bara
PT Cipta Kridatama, mining contracting subsidiary of ABM Investama (ABMM), has just been awarded US$82 million worth of contract by PT Indomining, subsidiary of PT Toba Bara Sejahtra Tbk (TOBA), a coal mining and plantation company controlled by the family of Luhut Binsar Pandjaitan (coordinating minister for politics, security, law, and human rights affairs).
Palm Oil Rally Continues: So?
KPB Nusantara, the joint marketing office of state plantations, sold all five CPO packages (4,000 tons) at Rp8593/Kg (net) Monday (Apr 4), the new high, even though rupiah appreciated against US dollar.
Indika Energy: Where is the Light?
Trading of Indika Energy (INDY) shares is still suspended by market authorities due to unusual market activity (UMA). The stock rallied 229% from its low in the past three months with significant trading volume. Financial statement of the Company for the period ended Dec 31, 2015 pointed to net loss of US$44.6 million, expanded from US$27.64 million in 2014.
Resource Alam & Mitrabara: Small, but Resilient Coal Players
Resource Alam (KKGI) is not a liquid stock. It is a small coal producer with sales revenue of US$111 million only. But, this company is probably another example of how Indonesian coal producers would survive even if weak coal prices persist.