FY21 Results of Adaro
Coal producer Adaro Energy (ADRO) booked a net profit of US$933.5 million in 2021, jumping 534% year on year (y/y) as operating profit surged 436% y/y to US$1.53 billion. Revenue grew 56% y/y to US$3.9 billion in 2021, and gross profit jumped 206% y/y to US$1,77 billion. Gross profit margin increased to 44.3% from the previous 22.8%, and operating profit margin rose to 38.3% from earlier 11.2%.
FY21 Results & Outlook: LSIP & SIMP
Plantation firm London Sumatra Plantations (LSIP), controlled by Salim Group, booked a net profit of Rp991.24 billion in 2021; a 42.38% growth year on year (y/y) attributable to higher operating profit, which was partly offset by higher income tax expense.
Indonesia’s Pain & Gain from Commodities
Indonesian households expressed anger towards the government because of price hike of LPG and cooking oil ahead of fasting month of Ramadhan. They just can’t accept the fact that the country relies heavily on imported LPG because the country’s oil and gas reserves not fit enough for local production of the commodity.
FY21 Results of Astra Agro
Shares of plantation firm Astra Agro Lestari (AALI) gained 1.1% to Rp11,600 on Monday (February 24), as investors welcomed positive results for 2021. The stock has gained 21.4% so far this year. At the current price, AALI’s market capitalization is Rp22.32 trillion.
Quintessentially Nickel: Vale Indonesia
Shares of Vale Indonesia (INCO), the largest producer of nickel in matte in the country, ended higher by 3.24% to Rp5,100 on Thursday (Feb 24) to make a market capitalization of Rp50.7 trillion (US$3.5 billion) or 1.6 x equity (US$2.15 billion). INCO is traded way below its peak last year despite higher average price of nickel in international market and the promising growth story.
Quintessentially Nickel
Nickel opened higher by 2.3% to US$25,055 per ton in London Metal Exchange (LME) this morning, supported by projection of strong demand from the battery sector. Such a high price makes nickel smelter investment increasingly attractive. Despite possible recovery of traditional nickel supply, which could return to pre-Covid levels, primary nickel production in Indonesia will gain more influence.
Coal Journal: Adaro
Coal miner Adaro Energy (ADRO) produced a total of 52.70 million tons (Mt) of coal in 2021, in line with its coal production guidance of 52-54 Mt. Coal sales volume during the year was 51.58 Mt. Strip ratio was 4.15x, below the guidance of 4.80x, due to unfavorable weather throughout the year which affected its overburden removal activities.
Palm Journal
Malaysian palm oil futures were trading at MYR 5,539 per ton on Feb. 18, easing from an all-time high of MYR 5,770 hit on Feb. 14 on easing supply concerns. Palm oil rose 57.27% on a yearly basis but grew only 8.1% on a monthly basis.
Expecting more commodities windfall this year
Windfall from higher average price of commodities contributed to Indonesian economic recovery and significantly lower budget deficit last year. Some initially doubted this would be case this year, but data year-to-date suggested the country might continue to enjoy the windfall this year.
Coal Journal Feb 19
Indonesian government has set domestic market obligation (DMO) of coal for 2022 at 166 million tons out of projected output of 663 million tons. The coal DMO for 2025 will increase further to 208.54 million tons due to growing domestic capacity of coal-fired power plants built for general public and captive (mainly for metal smelting facilities).