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.
Palm Oil Journal: Lower Output
SGX-listed plantation company First Resources Ltd, controlled by Indonesian family of Fangiono Ciliandra, produced 39,994 tons of crude palm oil (CPO) last month, dropped 9.5% from the same month last year due to lower harvest from its own plantation and purchase from third parties.
Speculations on Coal from More US Bankruptcies
Shares of coal mining contractor Delta Dunia Makmur (DOID) surged 26.6% Wednesday (March 16) with over 340 million shares exchanged hands. In Sydney, Whitehaven Coal jumped 10.2%, while in Jakarta Golden Eagle soared 35% with over 80 million shares exchanged hands as some investors resumed speculations on coal stocks.
Solid Performance from Samindo Resources
Coal mining contractor PT Samindo Resources (MYOH) Tbk, unit of South Korean company Samtan Co Ltd, posted net profit of US$24.68 million last year, an increase of 9.5% from 2014 despite 11.5% fall in sales revenues.
Coal Journal: Adaro FY15 & More Actions
Adaro Energy (ADRO) booked net profit of US$152.44 million last year, declined 14.3% from 2014 due to falling coal prices. The second largest coal group posted net loss of US$27.6 million in the fourth quarter of 2015, but significantly smaller than losses in the corresponding period of 2014. Other companies in this report: Manhattan Resources & Seroja Investments.