Indonesian Groups behind Martabe Acquisition
G-Resources Group Limited has requested suspension of trading of its shares on the Stock Exchange of Hong Kong effective this morning pending the release of an announcement. That means the proposed management buyout (MBO) of G-Resources Ltd, which controls Martabe gold mine in North Sumatra, Indonesia, is almost done. Who are Indonesian business people behind the acquisition?
Bright Spots in Third Quarter (6): Delta Dunia
Coal mining contractor Delta Dunia Makmur (DOID) booked net loss of US$4.82 million in nine months of 2015 against net profit of US$11.33 million in the corresponding period of 2014. The Company, parent of BUMA, however, reported stronger performance in the third quarter.
Acquisition Target: South Natuna Sea Block B
Chevron reportedly plans to sell its interest in the South Natuna Sea Block B production sharing contract (PSC), offshore Natuna, Riau Islands. Chevron currently holds 25% participating interest in the block operated by fellow American company ConocoPhillips.
EMR Capital Closer to Control Martabe Gold
Gold price retreated to US$1133 per ounce in New York last night, lower than the average realized price of Freeport McMoRan in the first nine months of 2015 at US$1149 per ounce. The commodity is also way below its peak (US$1600/ounce), but this doesn’t prevent EMR Capital Ltd to complete the acquisition of Martabe gold, one of the largest gold mines in Indonesia.
Felda Deal & BWPT’s Performance
PT Eagle High Plantations Tbk (BWPT) posted net loss of Rp94 billion in the third quarter of 2015 on falling prices of crude palm oil (CPO) and squeezed operating margins. BWPT’s performance worsened in the quarter as compared to the first half. Will this affecting closing of Felda Global Venture’s acquisition of BWPT shares?
Bright Spots in Third Quarter (3): Adaro Energy
Adaro Energy (ADRO), the second largest coal producer in Indonesia, booked net profit of US$180 million in nine months of 2015, down 18.2% from the corresponding period of 2014, but significantly better than first half because of stronger performance in third quarter.
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?