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.
Revisiting Samin Tan’s Borneo Lumbung
The problematic coking coal producer PT Borneo Lumbung Energi & Metal Tbk (BORN), controlled by Samin Tan, has finally released its audited financial report for the period ended Dec 31, 2015, two years behind the timeline required by market authorities. The Company ended 2015 with negative equity of US$909.2 million due to accumulated losses of US$1.75 billion.
Antam’s Investment Decisions to Watch
PT Aneka Tambang (ANTM) Tbk, subsidiary of state mining giant INALUM, plans to acquire more shares in two joint ventures, including the troubled chemical grade alumina (CGA) project with Showa Denko KK (Japan) in West Kalimantan.
Jokowi’s State Capitalism: Pertamina
Responding to criticism over energy policies potentially hurting financials of state oil and gas company Pertamina and electricity utility PT Perusahaan Listrik Negara (PLN), energy and mineral resources minister Ignasius Jonan, as predicted, said the government has given more profit-generating assets to Pertamina, enough to cover the estimated losses from the government’s ‘populist policies’.
Strong First Quarter for Antam
PT Aneka Tambang (ANTM) Tbk, subsidiary of state mining giant INALUM, is slated to report a strong first quarter because sales volume of ferronickel, nickel ores, gold, and bauxite increased significantly year-on-year. Average selling prices were also significantly higher, especially for nickel.
Coal Journal
Thermal coal retreated 0.3% to US$92.7 per ton Wednesday (Apr 11) to represent year-on-year gain of 10%. The commodity didn’t follow crude oil, which gained 29% year-on-year because natural gas continues to be under pressure. Natural gas lost 17% year-on-year.
Oil Continues to Test Jokowi
Brent crude oil advanced to US$71 per barrel this morning in Asian trading, while Saudi, the world’s largest producer, keens to take the commodity to US$80 per barrel. OPEC basket price, which is closer to Indonesian Crude Price (ICP)—-used in the Budget assumption, is now hovering around US$65 per barrel, way above the price assumption for 2018 State Budget (US$48 per barrel).
Revisiting Resource Alam (KKGI)
Shares of coal producer PT Resource Alam Indonesia Tbk (KKGI) advanced 5.26% this morning as investors responded positively a contract between PT Insani Baraperkasa (IBP), subsidiary of KKGI, and PT Bukit Makmur Mandiri Utama (BUMA), subsidiary of Delta Dunia Makmur (DOID), for the development of IBP’s coal concession in Kutai Kartanegara regency, East Kalimantan province.
Those Continue to Invest in Palm Oil: KL Kepong
Short-term outlook of crude palm oil (CPO) yet to improve with contract price for most part of 2018 traded below RM2500 per ton. That, however, doesn’t prevent companies to expand in Indonesia, the world’s largest producer of the commodity. Two companies listed on KL Stock Exchange with growing plantation operations in Indonesia, for example, have recently joined forces for downstream processing.
Indonesia Regains China Nickel Ore Market
Nickel stays above US$13,000 per ton in international market, supported by relatively strong demand from China. While the country’s import of ferronickel dropped nearly 36% year-on-year in the first two months of 2018, import of unwrought nickel (refined and alloy) and nickel ores jumped by 43% and 70% respectively.