CPO, El Nino, & Plantation Shares
Shares of plantation companies dropped significantly in the region Wednesday (Nov 11) to tracking downfall of crude palm oil (CPO) in the futures market. Felda Global Ventures lost 3.63% in Kuala Lumpur, while London Sumatra Plantation fell 6.23% in Jakarta. Why El Nino failed to boost CPO prices?
Coal: Where is the Bottom?
Reference price of Indonesian coal (HBA) for November 2015 is set at US$54.53 per ton (for coal with calorific value of 6300 Kcal/Kg), dropped 17.15% from November 2014 due to weak demand in China and oversupply in the seaborne market.
Farm-In/Out in Indonesian Oil & Gas Blocks
Crude oil retreated to US$44 per barrel on Nymex Monday (Nov 9) after moving above US$47 last week. OPEC basket price for November is currently US$42.7 per barrel. That means the commodity has been traded below US$50 for four consecutive months, prompting further consolidation in the industry.
Boustead Acquires Pase Block
A consortium of Boustead Singapore Limited, One North Energy Private Ltd, and Lamara Energy Pte Ltd has offered up to US$32.4 million for Triangle Energy (Global) Limited’s interest in Pase Block in Aceh province, Indonesia.
Sugih Energy: The Giant Oil Trader, Pertamina???
Sugih Energy reported net loss of US$333,443 in January-September 2015 against profit of US$1.77 million in the corresponding period of 2014. This, however, is not interesting. It is the size of its business the most interesting one. In the period, Sugih Energy recorded US$2.37 billion of revenues from oil trading business.
CPO Price & Plantation Shares
Some investors continue to bet on Sawit Sumbermas (SSMS) to make it the most traded plantation stock on Indonesia Stock Exchange (IDX). The Company is currently the ‘most valuable’ in the sector, valued 6.3 x equity, almost four times London Sumatra Plantations (LSIP).
Metals: Price & Shares
Shares of Freeport McMoRan lost 6.4% in New York Friday (Nov 6) to tracking downfall of gold and copper, while Glencore Plc dropped 4.7% earlier in London on broad market correction of metals. They’re still above their lows in late August, but China continues to weigh the recovery.
Merger & Acquisition Updates
French-based animal nutrition company InVivo NSA has acquired PT Welgro Feedmill Indonesia, layer feed producer in Indonesia, for undisclosed considerations. PT Sawit Sumbermas Sarana (SSMS) Tbk, meanwhile, has acquired 100% shares of PT Menteng Kencana Mas for US$35 million.
Newmont Leaving Indonesia?
Newmont Mining Limited used to have interest in mining assets in North Sulawesi, North Sumatra, and West Nusa Tenggara (NTB). As of today, the only asset left is Batu Hijau gold-copper mine in Sumbawa Island, NTB. Will Newmont Mining eventually leave Indonesia?
Bakrie Sumatra Plantations: What’s Left?
Bakrie Sumatra Plantations (UNSP) booked net loss of Rp779.6 billion in nine months of 2015, skyrocketed from Rp128.3 billion in the corresponding period of 2014. This cut further its net equity to Rp2.98 trillion, while liabilities grew further to Rp14.28 trillion. More assets have been sold to reduce mounts of debts, so what’s left for other lenders and stakeholders?