Pertamina’s First Half Financials: Not too Bad, but…
State-owned oil and gas company Pertamina booked net profit of US$571 million in the first half of 2015, dropped 49% from the corresponding period of 2014, pretty much similar to ExxonMobil, which lost 49% of its earnings in the same period.
Palm Oil & El Nino
Crude palm oil (CPO) closed at US$585 per ton (CIF) in Rotterdam on Wednesday (August 5th), the lowest level since March 3rd, 2009 despite predictions about a strengthening signs of El Nino in the period of August 2015 to spring 2016. On Bursa Malaysia Derivatives, the benchmark CPO contracts for October gained slightly by RM9 per ton Thursday.
The 35000 MW Program
State-owned electricity firm PLN has revised down electricity tariffs for August 2015 by Rp1 per kWh on average. Very small, but this is another education of market mechanism to the society at large like what the government is trying to do on gasoline. How about the 35,000 MW program? Where are we?
Amendment of Coal Contract of Works
Minister of energy and mineral resources Sudirman Said has on Wednesday (August 5) signed amendment of 10 coal contract of works pursuant to Law No. 4/2009 about Mineral and Coal. Among them are three coal contract of works (CCOWs) under PT Indo Tambangraya Megah (ITMG).
Coal Stocks & The Upcoming Domestic Changes
Shares of some coal producers continued their rally this morning even though the broad-market sentiment has yet to improve. Last night, Arch Coal and Peabody Energy collapsed 16.2% and 6.4% respectively in New York, but BHP Billiton and Rio Tinto regained grounds in Sydney.
The Need to Improve Investment Climate for Oil & Gas
Downfall of crude oil prices has led to worldwide cutting of investments. That’s not new! Still, we’re shocked by a decision from the world’s largest oil and gas company to dismiss all of its key exploration staffs in Indonesia. It was not because of the falling prices of energy. Investment climate is considered sucks!
Commodities-Related Stocks
Commodities-related stocks opened mostly lower in the region this morning, except for plantation companies, despite yesterday’s more than 3% correction of crude palm oil (CPO) in the futures market. Crude oil did improve in the last minute trading Monday but still ended below US$46 per barrel on Nymex.
Acquisitions to Watch (2): Palm & Coal
Out of so many coal producers listed on Indonesia Stock Exchange (IDX), only one or two have decided to stop production due to the downfall of coal prices. Garda Tujuh Buana (GTBO), which used to produce 3 million tons of coal per annum, generated sales revenue of US$1.46 million only in the first half. This company, however, is not the one up-for-sale.
Bakrie ‘Gocap’ Group in First Half (2): UNSP
Bakrie Sumatra Plantation (UNSP) is long-time member of ‘Gocap Club’ on Indonesia Stock Exchange (IDX) because of its position as the worst performing plantation company. It is now valued only 20% of its equity. Where the hell Rp1.27 trillion of cash proceeds from divestment of fixed assets ended up in the first half?
Giant Oil Trader Named Sugih Energy: New Petral?
PT Sugih Energy Tbk (SUGI) has transformed from a small oil and gas company into a major oil trader. In the first half of 2015, Sugih Energy booked sales revenue of US$1.48 billion, jumped significantly from less than US$200 million in the first quarter of this year.