Waiting Recovery of PGAS
State oil and gas company PGN (PGAS) reported relatively stronger quarter, but not enough to prevent 53% fall in net profit to US$143.15 million for full year 2017. While the stock has recorded 75% from its low, it is still below peak (52 weeks) due to some pending issues, including consolidation with Pertamina.
Mining Giant Sinarmas: Results & Outlook
SGX-listed Golden Energy Resources Ltd (GEAR), controlled by Sinarmas Group, booked net profit of US$62.95 million last year, skyrocketed 186% from 2016, thanks to stronger price of thermal coal. Combined with its ownership in Berau Coal Energy (BRAU), Sinarmas Group is currently third largest coal producer in Indonesia behind Bumi Resources (BUMI) and Adaro Energy (ADRO), and ahead of Indika Energy (INDY).
A More Aggressive Aneka Tambang
State miner Aneka Tambang (ANTM) has set more ambitious goals this year. Other than trying to grow ferronickel production by 19% to 26,000 tons, closer to its nameplate capacity, the Company, which is now subsidiary of INALUM, plans to boost sales of nickel ores and washed bauxite.
What Happened to Mitrabara in Q4/17?
Mitrabara Adiperdana (MBAP) booked net profit of US$58.6 million last year, skyrocketed 116% from 2016, thanks to higher average coal prices. In the fourth quarter, however, the company posted net profit of US$3.8 million only, crashed 60% year-on-year. What happened?
BUMA + Geo Energy
PT Tanah Bumbu Resources (TBR), subsidiary of SGX-listed Geo Energy Resources Ltd, has just granted mining services contract to BUMA, mining contracting subsidiary of Delta Dunia Makmur (DOID), with estimated value of over US$500 million.
Food Security (5): Milk/Fat
Indonesia is a major producer and exporter of vegetable oil. When it comes to animal fat, however, the country relies heavily on other countries. Self-sufficiency ratio of milk, for example, is only 23%. This is one of the biggest challenges for Jokowi administration going forward.
Revisiting Sawit Sumbermas & Citra Borneo Indah
Downfall of crude palm oil (CPO) prices might have contributed to 18% correction of Sawit Sumbermas Sarana (SSMS) in the past 10 months or so. While financial statements pointed to SSMS as one of the most profitable palm producers listed on Indonesia Stock Exchange (IDX), market value of the company eroded by more than 40% in the past three years.
Resources Windfall & Fiscal Sustainability (2)
Adaro Energy (ADRO), one of the largest coal producers in Indonesia, paid out US$335.64 million of royalties to the State last year, an increase of 33% from 2016. The Company also paid out corporate income tax and final income tax of US$515.5 million, skyrocketed from US$155.5 million in 2016. All of these were attributable to significantly higher average price of coal last year.
Pertamina Holding: Walk The Talk (2)
State oil and gas company Pertamina is designed to have similar structure with Malaysia’s Petronas and Brazil’s Petrobras in the long-term. Pertamina will first operate as an operating holding for Perusahaan Gas Negara (PGAS), which will handle gas distribution and transmission business, including FSRUs.
Timah: Results & Outlook
Shares of PT Timah Tbk (TINS) advanced 4.3% to Rp1,215 Monday (Mar 5) to make it among the best performing stocks year-to-date with total gain of 57%, even though sales and operating margins were under pressures in the last quarter of 2017. In the quarter, sales revenue actually collapsed 49%, while operating profit fell 55%.