Kideco fails to jack up INDY's bottom line

PT Kideco Jaya Agung, coal miner, has failed to boost September 2009' net profit of its holding, PT Indika Energy Tbk (INDY).

INDY's net profit at the end of September 2009 tumbled by 22.07% to Rp559.88 billion from a year earlier of Rp724.30 billion. Still, Kideco remains the biggest profit contributor for INDY by providing net profit of Rp1.06 trillion, a steep growth of 45.27% from a year before of Rp733.5 billion.

Along with a drop of its net profit, operating income of INDY, which has operations in engineering business via a subsidiary PT Tripatra Engineering, suffered nearly 50% drop to Rp100.06 billion at the end of third quarter 2009 as well from a year earlier of Rp182.29 billion

At the end of September this year, INDY's revenue fell by 10.26% from Rp1.95 trillion at the end of September last year to Rp1.75 trillion.

Following INDY's gloomy result, coal mining contraktor PT Petrosea Tbk, acquired by INDY during the second semester this year, posted net loss of US$6.14 million at the end of third quarter this year as well. It is due to provision of bad receivables and forex loss. In comparison, Petrosea's bottom line still in blue at the end of September last year of US$7.34 million.

Petrosea suffers net loss on provision

Insider Stories: Coal mining contractor PT Petrosea Tbk, subsidiary of coal miner PT Indika Energy Tbk, posted net loss of US$6.14 million at the end of third quarter this year due to provision of bad receivables and forex loss. In comparison, Petrosea's bottom line still in blue at the end of September last year of US$7.34 million.

Petrosea, which was acquired by Indika during the second quarter 2009, suffered revenue drop of 18.60% at the end of September 2009 of US$131.86 million compared to the same period last year of US$162 million.

But, it remained in positif growth by making steep jump on its operating profit by 205.51% from a year before of US$10.53 million to US$32.17 million during periode ended September this year. Thank to a sharp drop of cost of goods sold by 35% from US$135.68 million at the end of September last year to US$88.14 million this year.     

PGN seals US$275 million loans

Insider Stories: PT Perusahaan Gas Negara Tbk (PGN) sealed US$275 million of syndicated loans from Standard Chartered Bank, Singapore, on November 25.

PGN, state-owned gas distribution company, will use the loan to support its US dollar denominated bonds buyback.

According to PGN’s statement to Indonesia Stock Exchange, the company will buyback US$125 million and US$150 million of two types of bond.

In 2003 and 2004, PGN sold bonds of US$125 million with maturity on February 24 2014, while the other one will due on September 10 2012. Both debts are listed in Singapore Stock Exchange. Based on debt agreement, PGN can take earlier redemption on December 24 2009 at par value.

Bumi's convertible bonds sold out

Insider Stories: Enercoal Resources Pte Ltd, subsidiary of the biggest coal miner in Indonesia PT Bumi Resources Tbk, unveiled US$300 million of convertible bonds.

As reported by Bumi to Indonesia Stock Exchange last week, Bumi will play as a guarantor for the bonds issuance, maturing in 2016.

The money, which will be lent by Enercoal to Bumi Resources, will be used to finance its investment, prop up derivative debt swap agreement with Credit Suisse, working capital, and debt payments. “Bumi’s convertible bonds were sold out, bearing an annual yield of 5%,” a source familiar to the matter said.

Bumi sells another US$300 million CB

PT Bumi Resources Tbk (BUMI) is secondly unveiling convertible bonds (CB) of US$300 million this year. Credit Suisse, arranger of the convertible bond, helped previous similar notes launch of the biggest coal miner in Indonesia few months ago, resulting a tremendous jump on its shares price.

The new seven years maturity of convertible bonds will charge investor with an annual coupon of 5% and yield to maturity of 5.75%.

Bumi, the darling of Bakrie Group which is steered by Bakrie family, will use proceeds from the debt issue to underpin acquisition and equity swap. "Bumi always finds way to create story which in return swings its shares price," said an executive of local brokerage.

In August this year, Bumi sold US$375 million of convertible bonds, bearing an annual coupon of 9.25%. The bonds, which was arranged by Credit Suisse, will due in the next 5 years.

UNSP leads consortium to buy Domba Mas

CPO producer PT Bakrie Sumatera Plantations Tbk (UNSP) has confirmed to be a consortium leader of buyers for plantation company PT Domba Agro Mas, an affiliated firm of Dombas Mas Group.

As reported by Inilah.com today, the consortium will buy Domba Agro Mas at around US$500 million, equal to its total debt. The purchase is scheduled to complete by the end of this year.  

Domba Mas has debts of Rp1.3 trillion to banks consortium. PT Bank Mandiri Tbk and PT Bank Rakyat Indonesia Tbk are members of the consortium.

PGAS to pay interim dividend of Rp10/share

The state-owned gas distribution gas company, PT Perusahaan Gas Negara Tbk (PGAS), will provide an interim dividend of Rp10 per share to its share holders.

According to PGAS's latest announcement to Indonesia Stock Exchange today, total interim dividend will be shared by the company is Rp242,39 billion.

Cum dividend period in regular and negotiation markets will due on December 8 2009.

Pakuwon seals loan from CIMB Niaga

PT Pakuwon Jati Tbk has secured bank loan of US$39 million from Malaysian bank PT Bank CIMB Niaga Tbk on November 16 2009.

Pakuwon, Surabaya-based property company, has used the loan to refinance US$110 million of bonds which were issued by its subsidiary Pakuwon Jati Finance B.V.  The company issued US$110 million of five years bonds in 2006.

The company offered US$66 million of the bonds with cash, while the rest was refinanced with nwe bonds issuance. 

Berlian Tanker suffers net profit drop

PT Berlian Laju Tanker Tbk posted a sharp drop in its September's net profit by 96.78% due to burdens of change in fair value of company's convertible bonds and notes.

The company had been burdened by change in fair value of debt notes of US$119.25 million at the end of third quarter 2009, while it gained US$180.96 million during the same period last year.
The biggest publicly listed sea transportation company in Indonesia booked net profit of merely US$6.05 million at the end of September 2009 compared to a year before of US$188.02 million.

In line with a significant tumble, Berlian Tanker posted September 2009's revenue of US$450.62 million, a 17.48% lower than a year earlier of US$546.07 million. The company's operating profit has weakened 44.86% from US$154.36 million in September last year to US$85.10 million.
A majority share holder of Berlian Tanker is PT Tunggaladhi Baskara of 54.56%, while public owns 45.35%.

Multistrada posts forex gain jump

PT Multistrada Arah Sarana Tbk, a publicly listed tire producer which is run by former founder of PT Trimegah Securities Tbk Peter Tanuri, posted net profit jump of 81.31% on its September 2009 financial report as a result of foreign exchange gain.

In a public statement today to Indonesia Stock Exchange, Multistrada booked September 2009's net profit of Rp124.07 billion from a year earlier of Rp68.87 billion.
The tire company's revenue rose by 19.20% from Rp1.05 trillion last year to Rp1.19 trillion at the end of September this year.
The company's operating income made less growth by 7.42% from Rp128.59 billion last year to Rp138.13 billion. Foreign exchange gain was significantly skyrocketed by 1,814.2% from merely Rp3.86 billion last year to the end of nine months this year of Rp73.89 billion.

Global Mediacom sells Mobile-8

The founder of Bhakti Group Hary Tanoesoedibyo eventually get out from telecommunication business by selling 19% of shares of PT Mobile-8 Telecom Tbk worth Rp211.46 billion. In total, Hary has secured Rp1.59 trillion from FREN service provider.
Based on share holders data on June 30 2009, Hary via his holding company dubbed PT Global Mediacom Tbk remains the owner of 13.52 billion of Mobile-8 shares or equal to 66.81% of the telecommunication total shares of 20.24 billion.
As reported by Detik.com yesterday, Global Mediacom divested 3.19 billion of Mobile-8 shares during Auguest 1-8 last year, followed by another divestment on September 19-22 2008 of 2.21 billion of shares.
On September 25-26 2008, Global Mediacom sold 2.4 billion of Mobile-8 shares, while on September 29 last year, the company offloaded 1.86 billion of Mobile-8 shares.
Pada 25-26 September 2008, BMTR lagi-lagi menjual 2,4 miliar saham (11,86%) FREN.
Global Mediacom sold Mobile-8 shares on average price of Rp143 per share.

Bumi issues notes US$300 million

PT Bumi Capital Pte Ltd that has parrent guarrantor from PT Bumi Resources Tbk and subsidiary guarrantors from PT Forrunnes International Pte Ltd, PT Sangatta Holdings Ltd, Pt Kalimantan Coal Ltd and PT sitrade Coalsecurity has issued US$ guarranted Senior Secured Notes due 2016 US$300 last friday. The amount is lower than previous offerred US$500. The notes with rating Ba3 (Stable) from Moody's and BB (Stable) from S&P has yield and coupon 12%.

Bumi sets up bond roadshow

PT Bumi Resources Tbk is hammering out bonds roadshow starting on November 2 in Hong Kong and November 3 in Singapore.

Coming with bonds issuance of US$500 million, the biggest coal miner in Indonesia is appointed two lead arrangers Credit Suisse and Deutsche Bank.

According to research published by J.P.Morgan on October 31, the brokerage raises Bumi's price target from Rp3,200 to Rp3,500. "We believe the unfavorable effect of the CIC loan is probably priced in, therefore we upgrade Bumi from neutral to overweight," said J.P.Morgan's analyst Stevanus Juanda on its research.

The higher interest cost on the CIC loan (from 12% to 19%) only affects J.P. FY2010 and 2011 net income estimates, which it is revised down by 39.9% and 37.3% respectively, while FY2012 net income estimation is raised by 23.1% as Bumi refinances the loan.

J.P.Morgan believes that some factors could drive Bumi's share price to ourperform. The factors such as tight supply in the global coal market could benefit price increased demand from China. Long term cost savings from conveyor and power plant replacing truck hauling and diesel.