Coal Producers in Q1: Adaro Down, Indika Soars
PT Adaro Energy Tbk (ADRO) booked net profit of US$74.4 million in the first quarter 2018, dropped 23.3% from the corresponding period last year. Indika Energy (INDY), meanwhile, posted net profit of US$58.37 million in the quarter, skyrocketed 164% from the same period last year.
Bright Spot of First Quarter: Aneka Tambang
Pretty much as predicted Aneka Tambang (ANTM) reported strong performance in the first quarter. Higher volume and average price of nickel contributed to the company’s Rp245.7 billion of net profit in the quarter ended March 31, 2018, skyrocketed from Rp6.6 billion only in corresponding period last year.
Targeting Newcrest’s Gosowong Gold Mine (3)
Gosowong gold mine in Halmahera Island, North Maluku province, is one of the largest in the country. The future of the joint venture—-Newcrest Mining Limited and Aneka Tambang (ANTM)—- operating the gold mine remains uncertain, pending completion of negotiations regarding the Contract of Work (CoW).
Freeport & Rio Tinto Acquisition Route
Shares of Freeport McMoRan collapsed 14.51% Tuesday (Apr 24) on New York Stock Exchange as investors responded negatively to its first quarter 2018 performance. The Company, which is in negotiations with the Indonesian government regarding its rights beyond 2121 at Grasberg gold-copper mine, booked net profit of US$692 million in the quarter, soared from US$228 million in the corresponding period last year.
Djarum-Wings Sugar Project in Sumba
PT Muria Sumba Manis, member of HPI Agro—-a joint venture between two of the largest business groups in Indonesia, Djarum and Wings, has on Saturday (Apr 21) kicked off construction of sugar mill in Sumba Island, East Nusa Tenggara. Upon completion in 2020, the mill will produce 1,200 tons of white crystal sugar and refined crystal sugar per day.
Last Minute Change at the Expired Oil Gas Blocks
The government has finally signed contracts with Pertamina for six expired oil and gas blocks. Using the so-called ‘Mahakam Scheme’, Pertamina is granted 100% participating interest in the blocks with firm investment commitment of US$556.45 million in the first three years.
Coal Production: Indonesia-China
Thermal coal retreated to US$90.78 per ton Tuesday (Apr 17) to represent 7.94% gain year-on-year. Some market participants responded negatively plans from Indonesian coal producers to boost output to compensate capping of coal price for domestic market obligations (DMO) and lower than expected economic growth in China.
Nickel & EV Developments
Nickel surged to US$14,307 per ton on Tuesday (Apr 17), the highest level in years, despite reports about growing supply of low-grade nickel ores and nickel pig iron (NPI) from Indonesia. That means nickel gained 54.07% year-on-year, making it among the best performing metals this year.
Short-Term Support for Coal
Thermal coal slipped to US$92 per ton to represent 9% gain year-on-year. Production data from China Shenhua Energy Company Limited, one of the largest producers in the world, however, might lend short-term support to the commodity.
Merger & Acquisition in Plantation
The benchmark July 2018 contracts of crude palm oil (CPO) dropped further by RM31 to RM2370 per ton on Bursa Malaysia Derivatives Monday (Apr 16). Contracts for the rest of the year were settled mostly below RM2400 per ton, which might place buyers of plantation assets in stronger bargaining position.