Update on 35000 MW Program
PT Prasarana Energi Cirebon, unit of PT Indika Energy Tbk (INDY), has just signed an agreement to acquire shares of PT Bayu Inti Permata (BIP) in PT Cirebon Energi Prasarana, which builds 1×1000 MW coal-fired power plant in Cirebon, West Java. This is an expansion of Cirebon-1 coal-fired power plant (CFPP), a JV between Indika, Samtan, and Marubeni Corp.
Commodities-Related Stocks
Rally continues in mining stocks worldwide. Freeport McMoRan jumped almost 10% in New York Wednesday (Oct 7), while Vale SA surged by 7.7%. Earlier in London, Anglo American Plc soared 10%, while Lonmin Plc skyrocketed 33.7%. This morning, BHP Billiton and Rio Tinto advanced 3% each in Sydney.
Pending Issues of Mahakam Block
Central government has on Tuesday (Oct 6) formally handed over 10% participating interest in the giant Mahakam Block, offshore East Kalimantan, to provincial government of East Kalimantan. Still, there are lots of pending issues in the future operation of the country’s largest gas producing block.
Commodities Rally
WTI crude for November delivery settled closer to US$49 per barrel on Nymex Tuesday, while Brent crude surged to above US$52 per barrel. Grains followed with small gains, while metals were mixed. Overall, volatility remains in the commodities market.
Volatile Commodities
WTI crude oil briefly touched US$47 per barrel on Nymex Monday (Oct 5) before settled at US$46.26, up 1.6% from Friday, lifted by hopes on further stimulus package in China. In London, November Brent crude advanced 2.26% to US$49.25 per barrel even when Saudi Arabia announced a plan to slash its oil prices Monday.
When KKR Entering Indonesian Oil & Gas Business
SGX-listed Ramba Energy Ltd, controlled by Soeryadjaya Family, announced this morning that Mandala Energy Limited, backed by global investment company KKR, decided to acquire 35% participating interest in the Lemang production sharing contract (PSC) in Sumatra Island for US$179.6 million.
Q&A on BUMI Debt Restructuring
Bumi Resources (BUMI), the largest coal producer in Indonesia, has proposed to restructure its around US$4 billion debts, including through conversion into equities. How much shares will eventually be controlled by creditors? Why only AXIS Bank will get ‘cash payment’ in the restructuring?
Rally of Commodities
Nickel settled significantly higher by 3.2% to US$10390 per ton Thursday (Oct 1), lifted by optimism on China recovery and further delay of nickel smelters in Indonesia. That means the commodity, raw material for the production of stainless steel, has gained 5.5% since first week of September.
Revisiting Bumi Resources & Coal Shares
Bumi Resources (BUMI) has released its debt restructuring proposal Monday (Sept 28). The proposal, however, yet to boost investors’ confidence in the Company. The stock yet to move away from the bottom and is now worth Rp1.83 trillion only, almost one-tenth of Adaro Energy (ADRO).
Rally of Plantation Shares & CPO
Shares of plantation companies opened mostly higher grounds in Singapore and Kuala Lumpur this morning despite yesterday’s correction of crude palm oil (CPO) in the futures market. Production report from 28 companies listed on KLSE pointed to 0.3% growth y-o-y last month even though this year’s August had more working days than last year.