Petrosea vs Peers
Petrosea (PTRO), subsidiary of Indika Energy (INDY), is among the best performing stocks year-to-date with gain of 66%. Financial report of the Company for the year ended Dec 31, 2015, however, pointed to significantly weaker performance in the fourth quarter with net loss of US$11 million.
Palm Oil Journal & SGRO Results
Plantation firm Sampoerna Agro (SGRO) booked net profit of Rp248 billion last year, down 27% from 2014 due to higher financial costs. The Company, interestingly, reported stronger fourth quarter than the corresponding period of 2014. In the meantime, the benchmark June 2016 contracts of crude palm oil (CPO) advanced to its new high.
Commodities: Where to Go?
Shares of commodities-related companies open Monday (March 28) trading mixed. Golden Agri Resources falls 2.3% on SGX, while First Resources gains 2.8%. Multi-commodity trading company Noble Group Ltd, meanwhile, was flat in Singapore.
DOID Yet to See the Light
Delta Dunia Makmur (DOID), parent company of coal mining contractor BUMA, booked net loss of US$8.31 million last year against net profit of US$16.31 million in 2014 due to high level of debts.
Jokowi’s Decision: Onshore for Abadi LNG
President Joko ‘Jokowi’ Widodo has decided an onshore scheme for the development of Abadi LNG in the Masela Block operated by Inpex (Japan) and Shell (UK). Energy and mineral resources minister Sudirman Said told the press Wednesday (March 23) that Inpex/Shell has to review the whole project.
Palm Oil Rally
Crude palm oil continues its rally in both physical and futures market worldwide, lifted by broad market sentiment in commodities and supply side disruptions. June contracts of crude palm oil (CPO) gained RM27 to RM2712 per ton Tuesday, while July edged up to RM2697/ton. Contracts for the rest of the year also settled above RM2600/ton. Earlier on Monday, the commodity advanced to US$710 per ton (CIF) in Rotterdam.
Speculation on Indika Stocks
Shares of Indika Energy (INDY), co-owner of the third largest coal producer PT Kideco Jaya Agung, have gained 229% year to date as investors speculated on possible recovery in energy market. Trading speculation also spreads out to Indika-related equities—Petrosea (PTRO) and Mitrabahtera Segarasejati (MBSS), which are all in the coal related industry.
Rally of Commodities & Stocks (7)
For the first since March 5, 2015, crude palm oil (CPO) returned to US$700 per ton (CIF) in Rotterdam on Thursday (March 17), lifted by broad market sentiments in commodities. Nickel, meanwhile, returned to US$8855 on Friday, gaining more than 2% from Thursday. Dr Copper also regained grounds to close at US$5103 per ton in the London Metal Exchange.
Revisiting PGN
Poor timing of oil and gas acquisitions costs PT Perusahaan Gas Negara (PGAS) Tbk dearly. Its net profit dropped to US$402.8 million last year from US$711 million in 2014. The Company’s profit steadily declined from US$915 million in 2012 due to a combination of falling prices of commodities and higher cost of finance. Potential upsides?
Speculations on Commodities, Mindful of Corrections
Trading of resources-related stocks was busier worldwide Thursday. USD weakness bolstered most commodities and related equities. WTI crude oil returned to above US$40 per barrel, while copper advanced to its new high in months. The benchmark June contracts of crude palm oil (CPO) also advanced to its new high in nine months.