Relaxation of Mineral Export Ban Lifts Antam
State miner Aneka Tambang (ANTM) started to gain from the government’s policy to allow export of low-grade nickel ore and washed bauxite. The Company reported 73.1% jump in sales revenue to Rp3.95 trillion in third quarter of 2017. Its operating profit surged by 703% to Rp464 billion in the quarter alone.
Coal Save The Day
Bayan Resources (BYAN), one of the largest coal producers, booked net profit of US$94 million in third quarter of 2017, skyrocketed 578% from the same period last year. BYAN, accordingly, reported net profit of US$215.4 million in Jan-Sep 2017 against loss of US$8.7 million in the corresponding period last year. Payment of taxes and royalties also increased significantly.
Felda-Sondakh’s Eagle High Yet to See the Light?
Like other plantation firms, Astra Agro Lestari (AALI) and Sampoerna Agro (SGRO) suffered falling profit margins in the third quarter due to correction in crude palm oil (CPO) prices. They, however, remained strong with net profit of Rp362 billion and Rp49 billion respectively in the quarter. Eagle High Plantation (BWPT), a JV between Malaysia’s Felda Group and Indonesia’s Rajawali Group (Peter Sondakh), unfortunately, yet to see the light.
Salim Plantation: Squeezed Margins in Third Quarter
PT Salim Ivomas Plantation (SIMP) Tbk booked net profit of Rp406.2 billion in Jan-Sep 2017, an increase of 37.6% from the corresponding period last year, thanks to strong performance in the first half. In the third quarter, pretty much as predicted, SIMP suffered from 67% fall year-on-year in net profit due to correction of crude palm oil (CPO) prices.
Another Strong Quarter for Mining Contractor Delta Dunia
Delta Dunia Makmur (DOID), parent of mining contractor Bukit Makmur Mandiri Utama (BUMA), booked net profit of US$31.43 million in the first nine months of 2017, an increase of 24.1% from the corresponding period last year. Most of the profit was recorded in the third quarter ended Sept 30, 2017.
Freeport Financials & Grasberg’s Future
Shares of Freeport McMoRan (FCX) ended significantly loower by 3.48% in New York last night following the release of the company’s financials for the first nine months of 2017. FCX actually posted net profit of US$280 million in third quarter of 2017, jumped from US$217 million in the corresponding period last year. Investors, however, were not convinced about future of FCX’ operations in Grasberg, Papua.
Promising Data from Metals to Indonesian Economy
China’s General Administration of Customs released the country’s imports and exports of various metals Tuesday, Oct 24, suggesting strong pace of Indonesia’s export, especially for nickel ores and washed bauxite following the government’s decision to resume export early this year. Export of washed bauxite, for example, reached 288,593 WMT in September, tripled the export volume in August.
Q3 Results & Outlook: Resource Alam
Shares of coal producer PT Resource Alam Indonesia (KKGI) declined 1.65% to Rp358 Thursday as some investors responded negatively the Company’s performance in the third quarter, where net profit crashed by 42% to US$1.53 million on falling sales revenue of 34%.
Short-Term Support for Coal
Indonesia generated US$15.14 billion of revenues from coal export in the first nine months of 2017, jumped by 49.7% from the corresponding period last year. Because average reference price of Indonesian thermal coal, however, increased by around 50% in the same period. That means export volume was limited, which might explain pretty stable price of coal this year.
Those Continue to Invest: United Malacca
It is not as big as Sime Darby, IOI Corp or KL Kepong, but United Malacca Berhad is one of Malaysian plantation companies continue to expand in Indonesia through acquisition of concessions. With total assets of RM2.15 billion by July 31, 2017, United Malacca is clearly a foreign player to watch in Indonesia’s plantation sector.