Revisiting Oil & Gas Offshore Supporting Business
Oil has long left its bottom to close above US$70 per barrel (WTI crude) yesterday, but might be difficult to return to above US$100. Some oil and gas supporting services companies have been seriously hit by sudden fall of the commodity few years back. We interviewed Sugiman Layanto (SL) and Bambang Ediyanto (BE), both are deputy chairman of Indonesian National Shipowners Association (INSA) under the leadership camp of Johnson W Sutjipto to get better understanding about oil and gas supporting services industry in the country.
Oil & Gas Journal
Nymex crude oil declined 0.68% to US$69.77 per barrel in Asian trading this morning amid supply concern. Oil inventory in United States is expected to increase, but expected lower output in Venezuela could cap. In August, oil production in Saudi Arabia increased at the highest level at 10.424 million barrels per day.
Revisiting Sawit Sumbermas
PT Sawit Sumbermas Sarana Tbk (SSMS) booked net profit of Rp324.8 billion in the first half of 2018, down 11% from the corresponding period last year mainly due to higher financial charges and corporate income tax expenses.
Palm Oil Journal
Indonesian government’s decision to strictly implement the mandatory biodiesel consumption might have supported crude palm oil (CPO). The benchmark November 2018 contracts for CPO on Bursa Malaysia Derivatives ended higher by more than 1% to RM2,245 per ton last Friday, while contracts for 2019 were traded above RM2,300 per ton.
Revisiting Bumi Resources
Bumi Resources (BUMI), the largest coal producer in Indonesia, booked net profit of US$151.6 million in the first half ended June 30, 2018, down 7% from the corresponding period of 2017. That means BUMI reported significantly lower net profit in the second quarter than the first.
New Pertamina Leaders
President Joko ‘Jokowi’ Widodo has finally approved a proposal from minister of state owned enterprises Rini Soemarno to appoint Nicke Widyawati as president director of national oil and gas company Pertamina. This ends months of speculations surrounding the top job in one of the most politically sensitive companies in the country.
Those Continue to Expand (2)
Nickel is now traded around US$13,300 per ton, significantly lower than its recent peak, but clearly stronger than average price last year. The commodity has consistently stayed above US$12,000 per ton this year against around US$10,000 per ton last year. The commodity has also continued to attract investments.
Blackrock & Indonesian Nickel
Blackrock, one of the world’s largest investment management firms, is famous for its investments alongside Google in GoJek. The Company, however, has invested more in Indonesian assets, even though indirectly through ASX-listed mining company with nickel assets and projects in Indonesia.
First Half Results: BYAN & BRMS
Coal miner Bayan Resources (BYAN) booked a net profit of US$288 million in the first half (H1) of 2018, jumped 123.3% from US$129 million in the corresponding period of 2017 supported by a jump in revenue. BYAN reported revenues of US$837 million in said period, grew 97.90% from US$423 million in H1 of last year.
Coal Journal
Relatively strong price of coal, currently stays above US$107 per ton, has contributed to recovery of some small miners. We have also seen more acquisitions in the sector, including those committed by Harum Energy and Indo Tambangraya Megah.