Bright Spots in Third Quarter (2): Sampoerna Agro & LSIP
Plantation company Sampoerna Agro (SGRO) booked net profit of Rp96.5 billion in third quarter of 2015, almost equalling profit booked in the first six months. At the moment, Sampoerna Agro is also among the cheapest stocks in plantation sector, traded with PE multiple 8 only.
Weak September Data for United Tractors
United Tractors (UNTR), subsidiary of Astra International (ASII), reported weaker sales of construction machinery in September 2015 due to continuing pressures on plantation and mining sectors. Construction sector was the only positive news, but not enough to offset downfall in three other sectors of the economy.
Irony in Pertamina-Corpus Christi LNG Deal
State-owned oil and gas company Pertamina ‘proudly’ announced the signing of US$13 billion deal with Corpus Christi LNG, subsidiary of US Cheniere Energy Inc, during the visit of President Joko ‘Jokowi’ Widodo to the United States. We call it a big irony because the State company should travel that far to support the development of project in Houston, Texas, while domestic potentials are left untouched by policymakers.
Consolidation of PGAS and Pertagas…
Minister of state-owned enterprises Rini Soemarno admitted Monday (Oct 26) that she was reprimanded by President Joko ‘Jokowi’ Widodo regarding feud between Perusahaan Gas Negara (PGAS) and Pertagas, subsidiary of state oil and gas company Pertamina. So, are we on for another round of debate for consolidation of PGN and Pertagas? What kind of consolidation?
Persistent Volatility of Commodities
WTI crude oil for December dropped further by 1.91% to US$43.75 per barrel on Nymex Monday (Oct 26) on demand worries, while natural gas slashed 9%. Brent crude oil also fell 1.3% to US$47.4 per barrel, but metals mostly end higher ground. Implications to thermal coal and crude palm oil (CPO)?
Indonesian Coffee Farmers and Fair Trade
On Thursday (Oct. 22), the Sustainable Coffee Platform of Indonesia (Scopi) held a workshop on farming for business. The workshop presented two Indonesian coffee farmers, Suyono and Julian Bagus. The two shared different stories on how they grow coffee and improve their income as coffee growers.
Sudirman Said on Freeport & Regulations
Bisnis Indonesia newspaper published an interesting interview with Sudirman Said, energy and mineral resources minister, today. He talked about various issues surrounding PT Freeport Indonesia and chaotic regulations in mining industry ‘designed to blackmail business players’.
Further Consolidation in Steel & Metals
World crude steel production for the 66 countries reporting to the World Steel Association (worldsteel) was 131 million tonnes (Mt) in September 2015, a -3.7% decrease compared to September 2014, where China, the world’s single largest producer, also reported 3% decline.
Strong Q3 for Bukit Asam
PT Tambang Batubara Bukit Asam (PTBA) Tbk booked net profit of Rp1.5 trillion in nine months of 2015, down only 4.8% from the corresponding period of 2014, thanks to strong performance in the third quarter ended Sept 30, 2015, where its net profit jumped 67%.
Coal: Waiting for New Balance
China Shenhua, one of the world’s largest thermal coal producers, sold 31.3 million tons of coal last month, down 17.4% from September 2014. The Company also cut significantly its output by 10.8% to 22.2 million tons in the month. How about China Coal Energy, Yanzhou Coal, and Vale Inc?