Wilmar International’s Performance & Outlook
Agriculture giant Wilmar International Ltd booked net profit of US$332.52 million in the first half of 2014, dropped by 37.7% from the corresponding period of 2013 due to weak sales revenue growth and squeezed margins especially palm & laurics and oilseeds & grains in the second quarter of the year. Outlook?
Palm Oil Journal No.71/2014: Barito Pacific & Gozco
The benchmark October contracts of crude palm oil (CPO) ended lower by RM5 to RM2249/ton Wednesday (Aug 6) after trading as low as RM2239 per ton in the morning session. July 2014 CPO output from some companies listed on KLSE were not convincing compared to the same month of 2013. In this report: Barito Pacific and Gozco Plantations.
Coal Journal No. 63/2014: Troubled Players
Creditors worldwide have been focusing on restructuring of debts at Bumi Resources and Berau Coal. But, with the exceptions of Adaro Energy, Bukit Asam, Indo Tambangraya Megah, Harum Energy, and Toba Bara Sejahtera, creditors need to closely monitor developments at Berau Coal, Bayan Resources, Indika Energy, and Permata Prima Sakti (TKGA). In this issue, we focus on Permata Prima Sakti and Berau Coal.
Palm Oil Journal No.70/2014: How Low?
KPB Nusantara, the joint marketing office of state plantations, sold 11 out of 12 CPO packages (13,000 tons) auctioned off Tuesday (Aug 5) at Rp8815-8975/Kg (VAT 10% included). The benchmark October 2014 contracts of CPO on Bursa Malaysia Derivatives, meanwhile, settled further down to RM2258 per ton. The commodity has dropped almost 20% from its peak this year.
Coal Journal No. 62/2014: First Half Results
Indonesia’s coal export revenues dropped further by 7.4% to US$1.74 billion in June 2014 due to a combination of lower volume and prices. In the first half of 2014, export revenues declined 14.3% to US$11.12 billion, deeper than correction of Indonesia’s coal reference price in the period. Companies in this report: Adaro Energy, Garda Tujuh Buana, Waratah Resources, and Indika Energy.
Coal Journal No. 61/2014: Essar & Bajaj
Four years ago, Essar Group acquired Aries Coal Project in East Kalimantan for around US$118 million. The initial plan was to start commercial production in 2011. But, until now, the project has yet to deliver any coal. How about Bajaj Group, which also acquired Indonesian coal asset four years ago?
Coal Journal No. 60/2014: Junior Players
SGX-listed Geo Energy Resources Ltd, controlled by Melati Family of Indonesia, has entered into mining service contract and coal mining cooperation agreement with CV Mandiri Makmur Citra Tambang (MMCT), holder of a small 190.7 hectares of coal concession in Satui sub-district of Tanah Bumbu Regency, South Kalimantan province. Also in this report: Real Resources, Orpheus Energy, Cokal, Killara, and Indus Coal.
First Half 2014 Results: Coal Producers
Toba Bara Sejahtera (TOBA), controlled by Lt General (ret) Luhut Panjaitan—one of key supporters of president elect Joko ‘Jokowi’ Widodo, is one of few coal producers listed on Indonesia Stock Exchange (IDX) with strong performance in the first half of 2014. Its net profit jumped 69%, thanks to 31.2% growth in sales revenue. Also in this report: Bayan Resources and Harum Energy.
First Half 2014 Results: Bumi Resources
Bumi Resources (BUMI), the largest coal producer in Indonesia, booked net profit of US$168 million in the first half of 2014 against net loss of US$248.6 million in the corresponding period of 2013. This has contributed to 13.17% gain of BUMI on Friday (July 25). With negative equity of US$242.5 million, however, the company needs another round of debt restructuring and immediate improvement in the coal market.
Coal Journal No. 59/2014: ARII, KKGI & UNTR
Investors continued to dump shares of junior coal producer Atlas Resources (ARII). On Tuesday, Atlas lost another 25% to Rp296 with over 13 million shares exchanged hands. That means the stock has lost more than 50% its value in the past few trading days. Also in this report: Resource Alam’s H1/14 Results, United Tractors, and ABM Investama.