Holcim profit jumps on forex gain

Indonesia's third largest cement maker PT Holcim Indonesia Tbk (SMCB) booked a steep jump in net profit in the first three months this year on the back of foreign exchange gain.

Holcim posted Rp204.92 billion in net profit as of March this year, a 364.45% jump from the same period last year of net loss Rp77.49 billion.

The company gained foreign exchange of Rp39.49 billion in Q1 2010 from foreign exchange loss of Rp235.72 billion in Q1 2009. Holcim also booked lower interest expense from Rp125.32 billion in Q1 2009 to Rp67.11 billion in Q1 2010.

Operating profit rose 18.86% from Rp262.67 billion in March 2009 to Rp312.22 billion in March this year. Sales booked a slight increase by 5.51% from Rp1.27 trillion in Q1 2009 to Rp1.34 trillion in Q1 2010. Holcim's operating margin increased from 20.75% in Q1 2009 to 22.80% in Q1 2010. 

Gozco vs BW Plantation

CPO producer PT Gozco Plantations Tbk (GZCO), a fierce competitor for PT BW Plantation Tbk (BWPT), reports a 41.74% increase in net profit.

In Gozco's financial report submitted to Indonesia Stock Exchange, the company posted Rp25.13 billion in net profit during the first three months 2010 from a year before of Rp17.73 billion, underpinned by gain of its associate subsidiary of Rp13.78 billion. Deducting the subsidiary's profit contribution, Gozco's bottom line should reach Rp11.35 billion. The company was also charged by financial expenses worth Rp15.21 billion in Q1 2010. Without gaining profit from associate company, I believe Gozco would suffer a net loss.

How about operational line?

It is similar to BW Plantation, Gozco also booked lower sales and operating profit. GZCO posted Rp93.48 billion in revenue as of March 2010, a 15.93 drop compared to the same period last year of Rp111.19 billion.

BW Plantation's revenue experienced a slight decrease by 1.7% from Rp112.64 billion in Q1 2009 to Rp110.76 billion. 

Gozco's operating profit tumbled 26.72% from Rp32.41 billion in Q1 2009 to Rp23.75 billion in Q1 2010, putting operating margin under pressure from 29.15% to 25.41% in Q1 2010.

BW Plantation's operating income dropped 19.1% from Rp59.77 billion in Q1 2009 to Rp48.35 billion in Q1 2010, lowering operating margin from 53.1% to 43.7% in Q1 2010.

BW Plantation Q1 profit up 20.5%

CPO producer PT BW Plantation Tbk (BWPT) today reports that the company booked a 20.5% jump in net profit in the first quarter this year.

BW Plantation's CPO sales volume reached 15,931 tons in Q1 2010, a 17.9% drop from the same period last year of 19.410 tons.

In line with the lower sales volume, CPO production fell 17.1% to 16,802 tons in Q1 2010 from the same period last year of 20,278 tons as well.

BW's operating profit dropped 19.1% from Rp59.77 billion in Q1 2009 to Rp48.35 billion in Q1 2010, lowering operating margin from 53,1% to 43.7%.

BWPT booked Rp34.78 billion in net profit in Q1 2010 from the same period last year of Rp28.87 billion. Revenue posted a slight decrease of 1.7% from Rp112.64 billion in Q1 2009 to Rp110.76 billion in the first quarter this year as lower CPO production on high rain.

Indofood reports 472% jump in profit

Indonesia's largest noodle maker PT Indofood Sukses Makmur Tbk (INDF) posted Rp631.9 billion in net profit during the first three months this year, a 472.1% jump compared to the same period last year of Rp110.4 billion.

Indofood booked a 4.8% increase in revenue from Rp8.88 trillion in Q1 2009 to Rp9.31 trillion in Q1 2010.

The biggest contributor to Indofood's total revenue was branded consumer's product, increasing from 43% to 46% in Q1 2010.

Bogasari Group made lower contribution of revenue from 31% in Q1 2009 to 25% in the first quarter this year, while agribusiness made a slight contribution from 19% in Q1 2009 to 20%, stipulated by higher prices on CPO and rubber.

Indofood's operating profit rose 25.2% from Rp1.13 trillion in Q1 2009 to Rp1.41 trillion in Q1 2010,  putting operating margin higher than Q1 2009 of 12.73% to 15.2%.

Indocement beats Semen Gresik

Indonesia's largest cement maker PT Semen Gresik Tbk (SMGR) should keep improving cost efficiency unless its fiercest contender PT Indocement Tunggal Prakarsa Tbk (INTP) would surpass SMGR's bottom line.

In 2009, Semen Gresik's operating margin ranked two by making 30.16% and Indocement made 34.88% in operating margin, which was the highest in the company.

In a financial report submitted to Indonesia Stock Exchange, Semen Gresik posted a slight revenue by 0.62% in the first quarter this year from Rp3.23 trillion in Q1 2009 to Rp3.25 trillion. But Indocement enabled to boost its revenue 16.44% from Rp2.19 trillion in Q1 2009 to Rp2.55 trillion in Q1 2010.

Semen Gresik booked a 16.79% growth in operating profit in the first quarter this year as a result of lower cost of goods sold, but operating expenses remained higher.

SMGR's Q1 2010 operating profit reached Rp1.01 trillion, slightly higher than Indocement's operating profit of Rp979.99 billion, from Rp865.91 billion in Q1 2009.

How is operating margin?

Still, by making 38.43% in Q1 2010's operating margin, an increase from Q1 2009 of 34.08%, Indocement is the most profitable cement maker in Indonesia. 

Despite a slight increase in revenue and lower COGS, Semen Gresik posted 31.11% in operating margin in Q1 2010, higher than Q1 2009's margin of 26.83%.

SMGR booked a 17.82% in net profit from Rp681.13 billion or Rp116 per share in Q1 2009 to Rp802.49 billion or Rp135 per share.

Bukit Asam profit drops on lower price

The most profitable coal mine company PT Tambang Batubara Bukit Asam Tbk (PTBA) reports a steep drop in Q1 2010's net profit by 59.48% on the back of lower weighted average selling price.
In return, revenue fell 23.61% from Rp2.33 trillion in Q1 2009 to Rp1.78 trillion in Q1 2010.
Bukit Asam's average selling price took the plunge by 32% to Rp555,457 per ton in Q1 2010 from the same period last year.
The lower average selling price was in line with a decrease of selling price to coal-fired power plant PLTU Suralaya in 2010. Sales of lower rank coal soared from 41% in Q1 2009 to 63% in Q1 2010 of the company's total export.
Bukit Asam posted a 64.33% drop in operating income from Rp1.19 trillion in Q1 2009 to Rp422.92 billion in Q1 2010.
Adding to that, Bukit Asam's net profit tumbled 59.48% to Rp373.03 billion in Q1 2010 from the same period last year of Rp920.57 billion. Bukit Asam aims to jack up coal sales volume to 15.6 million tons this year.

Both Bukit Asam and China Railway Engineering Corporation own 10% stakes in PT Bukit Asam Transpacific Railway and the remaining goes to Transpacific Railway Infrastructure, which is 100% owned by Rajawali Group.

Astra reports 61% jump in profit

Indonesia's largest automotive distributor PT Astra International Tbk (ASII) posted a steep jump in net profit by 61% from Rp1.88 trillion in Q1 2009 to Rp3.01 trillion in Q1 2010 on the back of soaring demand and lower interest rate.
The company's revenue soared 38% from Rp21.54 trillion in Q1 2009 to Rp29.69 trillion in Q1 2010.
In return, operating profit of Astra International jumped 24% from Rp2.62 trillion in Q1 2009 to Rp3.25 trillion during the first three months this year.

Timah Q1 net profit soars 882%

Indonesia's largest tin mine company PT Timah Tbk (TINS) recorded Rp141.8 billion in net profit in Q1 2010, a 882% jump compared to the same period last year of Rp14.4 billion.
In return, net profit per share rose from Rp3 in Q1 2009 to Rp28 in Q1 2010.
The soaring profit was mainly boosted by strengthening average of global tin price reached US$18,355 per metric ton and the lowest level of US$14,950 per metric ton. Average price was US$17,225 per metric.
Timah was able to sell tins at US$16,960 per metric ton in Q1 2010, 51% higher than average selling price last year of US$11,221 per metric ton.
The company's revenue in Q1 2010 reached Rp1.84 trillion, 16% higher than Q1 2009 of Rp1.59 trillion. Sales volume in Q1 2010 dropped 11% from 11,015 metric ton in Q1 2009 to 9,770 metric ton.

Indika unit provides loan to SBS

Subsidiary of PT Indika Energy Tbk (INDY), PT Tripatra Engineers and Constructors (TPEC), will provide a shareholder loan of US$6.44 billion to sea transportation company PT Sea Bridge Shipping (SBS).
The six year loan, bearing annually interest rate of 9%, will be used by SBS to support business expansion.
TPEC, which is 99% owned by Indika, signed the loan agreement with SBS's shareholder, TPEC, which owns 46%. Samtan Co Ltd also owns 49% stakes in SBS and the remaining is owned by PT Muji Inti Utama.

Indika booked Rp725.67 billion of net profit last year, a 33.10 drop compared to the previous year of Rp1.08 trillion.

The company suffered foreign exchange loss of Rp245.33 billion in 2009, a reversal from the previous year which posted foreign exchange gain of Rp194.84 billion.

Emtek operating income rises 31.13%

Parent company owned by family Sariaatmadja, PT Elang Mahkota Teknologi Tbk (Emtek), today reports it booked a 31.13% growth in operating income in the first three months this year as a result of soaring revenue.  
Emtek, shareholder of PT Surya Citra Media Tbk (SCMA), booked Rp122.07 billion in Q1 2010 compared to the same period last year of Rp93.09 billion. 
Revenue rose 8,.90% from Rp605.13 billion in Q1 2009 to Rp658.99 billion in Q1 2010.
Emtek's net profit elevated 13.46% from Rp38.62 billion or Rp12.29 per share in Q1 2009 to Rp43.82 billion or Rp8.97 per share in Q1 2010.
The company's cash and cash equivalent ballonned to Rp1.07 trillion in Q1 2010 from Rp818.19 billion in Q1 2009.
Eddy Kusnadi Sariaatmadja controls 20,75% shares in Emtek and his younger brother Fofo Sariaatmadja owns 5,81%.

XL Axiata cash balloons 133.74%

Indonesia's third largest cellular operator seluler, PT XL Axiata Tbk (EXCL) posted a 133.74% jump in cash and cash equivalent in the first quarter this year.
In a public announcement to Indonesia Stock Exchange today, XL posted Rp1.38 trillion in cash as of March 2010 compared to the same period last year of Rp591.84 billion.
Following XL's cash ballooning, it also booked Rp598.43 billion in net profit during the first three months this year, 375.49 jump from net loss of Rp271.22 billion in Q1 2009.
XL Axiata's higher net profit was underpinned by a higher revenue of 41.72% from Rp2.90 trillion in Q1 2009 to Rp4.11 trillion in Q1 2010.
Adding to that, both interest charges and foreign exchange loss lowered.
XL's forex loss shrank from Rp643.49 billion in Q1 2009 to Rp60.09 billion in Q1 2010. Operating income jumped 419.03% from Rp225.28 billion in Q1 2009 to Rp1.17 trillion in Q1 2010.

Sales drops, ASGR posts higher profit

PT Astra Graphia Tbk (ASGR), subsidiary of PT Astra International Tbk (ASII), suffered a 18.15% drop in revenue in the first quarter this year (Q1 2010). But, net profit rose 51.81%.
In ASGR's financial report submitted to Indonesia Stock Exchange, the company booked Rp291.55 billion of revenue in Q1 2010 from the same period last year of Rp356.21 billion.
But, Astra Graphia's operating income slighly increased 6.77% from Rp23.49 billion in Q1 2009 to Rp25.08 billion in Q1 2010 on the back of lower cost of goods sold.
Net profit jumped 51.81% from Rp11.58 billion or Rp8.59 per share in Q1 2009 to Rp17.58 billion or Rp13.03 per share in Q1 2010.
The higher net profit was stipulated by a decrease on foreign exchange loss from Rp2.86 billion in Q1 2009 to Rp780.03 million in Q1 2010.
Interest charges also steeply shrank from Rp5.25 billion in Q1 2009 to Rp1.92 billion in the first three months this year.

MASA Q1 profit jumps 2,480%

One of Indonesia's tire manufacturer PT Multistrada Arah Sarana Tbk (MASA) is estimated to post Rp45 billion-Rp50 billion in net profit in the first quarter 2010, a steep jump from the same period last year.

A source familiar with the matter said the net profit sky rocketed 2,480.95%-2,745.50% compared to the first quarter last year which was in net loss of Rp1.89 billion.

Multistrada, with its products namely Achilles, Strada, and Corsa, is estimated to book Rp470 billion-Rp500 billion in Q1 2010, a 13.06%-20.28% growth compared to the same period last year of Rp415.69 billion.

According to a research report published by PT Danareksa Sekuritas on April 28 2010, total domestic tire sales volume to grow by 15% to 16%. 

In the domestic replacement market, Danareksa expects 4W and 2W tires sales volume to grow by 17% and 16% respectively, while sales in the domestic OE (Original Equipment) market are forecast to grow 12% and 13% respectively. 

Evidence of strong growth is already there: domestic tire sales volume for 4W and 2W tires grew a breakneck 52% and 30% YoY in 1Q10.
Set to expand
To seize on these opportunities, the major tire producers MASA and PT Gajah Tunggal Tbk (GJTL) need to expand. By mid-2009 MASA had already completed the expansion of its production capacity to 17,500 tires per day for passenger car radial (PCR) tires and 8,000 tires/day for motorcycle (MC) tires. 

But demand for its PCR and MC tires is now around 1.5x-2x of its production capacity. Consequently, MASA plans to further increase the production capacity of its PCR tires to 28,500 tires per day and the production capacity of its MC tires to 16,000 tires/day, says Pefindo Equity Research. 

The expansion should be completed in 2011, meaning the company can then seize on the opportunities in the US. 

As for GJTL, it plans to increase the production capacity of its PCR tires to 45,000 tires per day in 2012 from 35,400 tires/day in 2009 and the production capacity of its MC tires to 105,000 tires/day in 2012 from
60,000 tires per day in 2009.

MASA is Danareksa's top pick in the sector. The brokerage has a target price of Rp395, implying 1.5x-1.3x 10F-11F P/BV and 13.6x-9.6x 10F-11F P/E. Upside from the current share price is 34%. 

MASA is the top pick in the sector because the company’s 10F-11F-12F revenues are expected to grow strongly by 27%-27%-44%, respectively, supported by its ambitious expansion plans. 

Multistrada this year should be able to maintain its gross margin at around the same level as in 2009 (22%) despite the sharp increase in natural rubber prices.

"We believe that MASA has better operational efficiency than other tire producers domestically and globally," the research said.

Excellent operating margins

Multistrada's operating margins are are excellent. In 2008, when the average natural rubber price was
around US$2.7/kg, or 42% higher than the 2009 average of US$ 1.9/kg, MASA’s operating margin of 13.2% was the 4th highest among 56 global tire producers which had an average operating margin of 3.8%.

In 2009, MASA’s gross margin was stable at 22% while other tire producers, such as GJTL, enjoyed significant gross margin expansion stemming from the large decline in natural rubber prices. MASA’s stable margins were a consequence of its strategy to spur its sales by providing more sales discounts at the
beginning of 2009. This strategy worked well as the revenues grew strongly by 27% YoY in 2009, while GJTL’s revenues were flat.

Forex gain underpins Indocement

The most profitable cement manufacturer in Indonesia, PT Indocement Tunggal Prakarsa Tbk (INTP) today reports a 56.42% jump in net profit during the first quarter this year as a result of both foreign exchange gain and higher interest income.
In its financial report submitted to Indonesia Stock Exchange (IDX), Indocement, Indonesia's second largest cement maker, posted Rp15.28 billion of forex gain from a year before of forex loss of Rp56.67 billion. Indocement also booked Rp44.59 billion of interest income. 
In line with both factors, net revenue rose 16.44% from Rp2.19 trillion in the first quarter 2009 to Rp2.55 trillion as of March this year.
In result, Indocement's operating profit grew 31.49% from Rp745.25 billion in the first quarter 2009 to Rp979.99 billion. Operating margin rose from 34.08% in Q1 2009 to 38.43% in Q1 2010.

The company, controlled by Germany-based cement maker Heildelberg Cement AG, booked a ballooning cash and cash equivalent from Rp1.05 trillion in the first quarter 2009 to Rp3.19 trillion in Q1 2010.  

Heidelberg owns 51% stakes in Indocement via Birchwood Omnia Limited, Salim Group holds 13.03% through PT Mekar Perkasa, and public holds 35.97%.

On April 26 2010, Indocement drawn down US$25 million of revolving loan facility, bearing 1.6% of annual interest and will mature on May 26 2010.

MNC to issue US$400 million bond

PT Media Nusantara Citra Tbk (MNC), parent company of RCTI, plans to issue global bond of up to $400 millions in June or July this year. 

MNC has also mandated Morgan Stanlay and Standard Chartered as a joint lead managers for the bond issue.

In public presentation, CEO MNC Hary Tanoesudibjo said proceed from the bond issue will be used to refinance debt worth US$143 million maturing in September 2011, working capital of Rp200 billion, and underpinning business expansion and investment in this year, 

The bond will list in Singapore Stock Exchange and has tenor 5 to 7 years. MNC also has planned to acquire 16 local TV and looking an apportunity to go global by acquiring international media firm.

The company aims to increase stakes in TPI from 75% to 100%. This year MNCN expects net profit of Rp700 billion, higher than Rp607 billion in the previous year. Revenue is estimated to grow 21% from Rp3.9 trillion to Rp4.6 trillion this year.

Bakrieland sets 25% revenue growth

Property arm of Bakrie Group, PT Bakrieland Development Tbk (ELTY) has set a 25% growth in revenue to Rp1.3 trillion this year.

In a press release today, the company reports a 27.8% increase in operating profit in the first quarter this year as a result of soaring revenue.

Bakrieland booked Rp33.4 billion in operating profit during the first three months this year from a year earlier of Rp26.1 billion.

Revenue rose 26.6% from Rp162.3 billion as of March 2009 to Rp205.5 billion in the first quarter this year, underpinned by sales increase.
"We set revenue this year with a 25% increase to Rp1.3 trillion," Bakrieland's President Director Hiramsyah S. Thaib.

In line with higher operating profit, Bakrieland's EBITDA jumped 40.6% from Rp33.9 billion in the first quarter 2009 to Rp47.7 billion in Q1 2010. Net profit rose 6.5% from Rp26.3 billion in the first quarter 2009 to Rp28 billion in Q1 2010.

PP suffers 18.92% sales drop

One of Indonesia's contractor PT Pembangunan Perumahan Tbk (PP) reports a 18.92% drop in revenue in the first quarter this year compared to the same period last year.

It booked Rp560.89 billion in revenue during the first three months this year from a year before of Rp691.83 billion.

But, PP enabled to post higher operating profit due lower cost of goods sold. The company booked Rp44.08 billion in operating profit in Q1 2010, 12.88% higher than the same period last year of Rp39.05 billion.

Net profit rose 26.21% from Rp12.17 billion or Rp55 per share as of March 2009 to Rp15.36 billion or Rp3 per share in Q1 2010.

The state-owned contractor posted 2009's net profit of Rp163.26 billion, 1.4% higher than early estimation of Rp161 billion. PP's bottom line last year rose 34.25% compared to net profit in 2008.

Pembangunan Perumahan said it has set target of Rp367 billion of net profit this year, 124.79% jump compared to 2009 net profit.

Fajar Surya Q1 profit soars

Paper packaging manufacturer PT Fajar Surya Wisesa Tbk (FASW) reports a steep jump both in operating and net profit in the first three months this year on sales strengthening.

The company booked net profit of Rp110.52 billion or Rp44.60 per share as of March 2010, a reversal from a year earlier of net loss Rp59.13 billion or Rp23.86 per share.

Operating profit sky rocketed 491.83% from Rp26.20 billion in Q1 2009 to Rp155.06 billion as of March this year as lower operating expenses by 28.53%.

Fajar Surya posted a 27.94% increase in sales from Rp649.12 billion in Q1 2009 to Rp830.51 billion in Q1 2010.

PT Intercipta Sempana controls 52.4% stakes in Fajar Surya, PT Intrata Usaha holds 17.5%, PT Garama Dhanajaya owns 5.8%, and PT Tatacita Swadaya Abadi holds 2%.   

Astra Agro profit elevates 25%

CPO producer PT Astra Agro Lestari Tbk (AALI) reports a 25% increase in net profit in the first quarter this year (Q1 2010)
The company booked Rp272 billion in net profit in Q1 2010 from the same period last year of Rp218 billion.
Sales rose from Rp1.41 trillion in Q1 2009 to Rp1.63 trillion as of March this year. AALI stocks now retreats 0.63% to Rp23,650 per share, making its P/E 21.72x.

Johan Lensa buys Intiland Development

Local brokerage house PT Minna Padi Investama yesterday crossed 8.79% shares or 456 million shares of property development PT Intiland Development Tbk (DILD) worth Rp380 billion.

The crossing transactions were done at Rp830 per share and Rp835 per share, around 20% lower than the market price level yesterday of Rp1,040 per share.
Firstly, Minna Padi crossed 304 million shares of Intiland at Rp835 per share. Secondly, it crossed 1.14 million shares at Rp830 per share.
Who is buyer for the stocks? 

A source familiar with the matter said PT Bukit Makmur Widya, a parent company owned and controlled by Indonesian stellar businessman Johan Lensa who previously controlled Indonesia's largest coal mining contractor PT Bukit Makmur Mandiri Utama (BUMA).

"Bukit Makmur Widya just bought Intiland shares from one of holders. But, the transactions were done below rights issue price," the source said.

In 2009, Bukit Makmur Widya and its founder and owner Johan Lensa sold 99.99% to PT Delta Dunia Makmur Tbk (DOID) with facilitator Benny Tjokrosaputro. Johan Lensa is now one of Indonesian rich man after grabbing US$240 million of cash. 

      

Pelat Timah Q1 net profit rises 2,457%

Tin plate manufacturer PT Pelat Timah Nusantara Tbk (NIKL), a subsidiary of Indonesia's largest steel maker PT Krakatau Steel, today reports a 2,457.14% jump in net profit during the first months this year because of higher sales and lower net charges.

The company booked Rp28.05 billion or Rp11 per share of net profit in the first quarter this year (Q1 2010) from a year before of net loss of Rp1.19 billion or Rp1 per share on the back of lower net charges.

Pelat Timah, dubbed Latinusa, posted higher interest income from Rp440.19 million in Q1 2009 to Rp1.69 billion in Q1 2010.

In line with strengthening rupiah against US dollar, NIKL also made a lower foreign exchange loss of Rp1.76 billion in Q1 2010 from the same period last year of Rp3.40 billion as well as a shrinking interest expenses from Rp3.04 billion in Q1 2009 to Rp1.02 billion in Q1 2010.

Operating profit sharply rose 169.80% from Rp14.24 billion in Q1 2009 to Rp38.42 billion in Q1 2010, while net sales soared 27.09% from Rp288.53 billion in Q1 2009 to Rp366.72 billion in Q1 2010.

Latinusa's gross profit margin jumped from 10% in Q1 2009 to 19% at the end of March this year. Its operating margin doubled from 5% in the first half 2009 to 10% during the first quarter this year.

AKR reports 33% rise in sales

PT AKR Corporindo Tbk (AKRA), Indonesia’s largest private sector petroleum and basic chemical distributor, reported a 33% jump in sales from Rp1.84 trillion to Rp 2,43 trillion in the first quarter this year (Q1 2010).

In result, the company's net profit soared 61% from Rp43.7 billion in Q1 2009 to Rp70.2 billion. But, AKRA suffered a 10% drop in operating income from Rp124.8 billion in Q1 2009 to Rp112.1 billion in Q1 2010.
In a press statement today, AKRA reports better performance in its basic chemical and petroleum distribution business driven by increasing demand for basic chemicals and petroleum in the Indonesian domestic market aided by better economic conditions and growing energy demand.
Trading and distribution sales revenue grew 46% on the strength of higher volumes sold during Q1 2010.
Basic chemical volume grew 29% YOY while petroleum sales volume recorded 36% increase compared to same period last year.
With higher oil prices, the Average selling price of Petroleum products was higher by 26% which contributed to higher sales revenue and improved margins.
AKRA’s manufacturing subsidiary, PT Sorini Agro Asia Corporindo Tbk, reported lower net profits during the quarter, impacted by an appreciating Rupiah.
Sorini is a leading exporter of Sorbitol and Starch derivatives to over 75 countries and also increasing feed stock prices.
Sorini reported Sales revenue of Rp408 billion while its Net profit after tax decreased to Rp30.2 billion during Q1 2010 from Rp40.8 billion a year earlier.

Car tire sales Q1 jumps 52.3%

Sales volume of car and motorcycle tires in the country rose 52.3% and 33.78% respectively in the first quarter this year on the back of continuing stronger deman.

Data released by Association of Indonesia's Tire Producers (APBI) reveals that sales volume of car tires during the first three months this year (Q1 2010) reached 11.9 million units, 4.08 million units higher than Q1 2009.

Sales volume of motorcycle tires reached 8.62 million units in Q1 2010, 2.2 million units higher than Q1 2009.

APBI's Head A. Azis Pane said production on commercial car tires such as truck tires, bus, light truch, ranked top, a 68.7% increase to 2.66 million units in Q1 2010. Production of passanger car radial increased 48% to 9.24 million units.

A source familiar with the matter said PT Multistrada Arah Sarana Tbk (MASA) enabled to record car sales volume of nearly 1.5 million units in the first quarter 2010 with motorcycle's sales more than 600,000 tires.

Indonesia's largest tire manufacturer PT Gajah Tunggal Tbk (GJTL) estimates a 10%-20% increase of tire sales volume in the first quarter 2010 compared to the same period last year. 

GEM to inject Rp325 billion to Agis

Consumer electronic trading and retail distribution PT Agis Tbk (TMPI) has reached an investment agreement and obtained a funding commitment of up to Rp325 billion from US$3.4 billion Swiss-based alternative investment firm namely Global Emerging Markets (GEM).

In a press release today, under the agreement, GEM has committed to subscribe for new shares in Agis up to Rp200 billion which Agis has the command and control on the amount (based on the market price).

Adding to that, GEM has also prepared to subscribe new warrants of 1 billion shares, meaning that the investment company will put additional funding at lease Rp125 billion when the warrants are exercised.

The deal was arranged and avised by PT Victoria Sekuritas, an investment banking securities arm of PT Bank Victoria Tbk.

The agreement is one feature of the long term funding strategy for Agis. In the long term, GEM will provide funding up to US$100 million. 

BUMI Q1 sales volume jumps 41.59%

Indonesia's largest coal mining producer PT Bumi Resources Tbk (BUMI) today reports 16 million tons of coal in sales volume in the first three months this year, 41.59% jump from the same period last year of merely 11.3 million tons.

Giving statement via to Insider Stories tonight, BUMI's Senior Vice President of Investor Relations Dileep Srivastava said the first quarter is usually the most challenging quarter because of heavy rainfall. 

"We are confident that BUMI is well on track to meet its minimum guidance of 64 million tons of coal in full year 2010," he said.

In comparison, Dileep said, the company booked 58.39 million tons of coal sales volume in 2009 and 51.5 million tons in 2008.

According to him, BUMI is conducting a limited audit review in the first quarter this year, hence the financial report for this period will be available now by latest May 31 2010.
"We are also booking Japan contracts at US$104 per ton FOB for settlement period of April 2010 to March 2011," he added.
BUMI is elevating KPC's loading capacity from 4,500 tons per hour to 7,500 tons of coal per hour in May 2010.
Net profit 2009
BUMI's net profit last year fell because of deferred stripping cost. Excluding stripping cost, Bumi might post US$448 million of net profit last year, above consensus analysts.

"Bumi has outperformed on sales production volume at lower cost in 2009," said  Dileep said.
BUMI posted US$190.45 million of net profit in 2009, a 49% fall compared to the previous year of US$371.69 million. The company booked US$275 million of deferred stripping expenses last year.
Bumi's coal production reached 63.12 million tons last year, a 19.5% increase from the previous year of 52.81 million tons.
The company's sales volume rose 13.4% to 58.39 million tons of coal last year from the previous year of 51.51 million tons. Revenue slightly fell 4.7% from US$3.38 billion in 2008 to US$3.22 billion last year on the back of lower coal's average sales price (ASP).

BUMI also suffered 42.09% fall in operating profit last year, while revenue slightly fell 4.73% from US$3.38 billion in 2008 to US$3.22 billion. Lower revenue was dragged down by higher cost of revenue 19.77% from US$1.76 billion in 2008 to US$2.12 billion. 

BUMA posts Rp151 billion profit, DOID?

Indonesia's second largest coal mining contractor, PT Bukit Makmur Mandiri Utama (BUMA), subsidiary of PT Delta Dunia Makmur Tbk (DOID), is estimated to post Rp151 billion of net profit in the first three months this year, more than double compared to the same period last year of Rp73 billion. BUMA's revenue calculated to reach Rp1.28 trillion.

A source familiar with the matter said BUMA posted Rp73 billion of net profit and 1.6 trillion of revenue in the first three months last year.

Based on BUMA's first quarter 2010, Delta Dunia might book Rp130 billion of net profit in the first quarter this year. Delta Dunia posted Rp160.11 billion of net loss last year as a result of interest expenses, transaction cost, and loss on sale of subsidiary. 

At the end of December 2009, BUMA booked Rp632 billion of net profit and Rp5.18 trillion of net revenue. 

Considering BUMA's Q1 2010 performance, the mining contractor might enable to post Rp5.12 trillion (Q1x4) of revenue and Rp604 billion (Q1x4) of net income, slightly lower than 2009's position.

During January to March 2010, BUMA produced 7.7 million tons of coal, slightly lower than the same period last year of 7.9 million tons of coal. In 2009, BUMA produced 32.7 million tons of coal.

The company's overburden removal reached 62.5 million bcm in the first quarter 2010, lower than a year before of 63.6 million bcm. In 2009, overburden removal reached 277.7 million bcm. Stripping ratio increased from 7.2 x to 8.5 x.

Rajawali ensures Bukit Asam railway

Rajawali Group is starving for acquisition deals. After grabbing around Rp6 trillion in cash from offloading 23.65% shares in Indonesia's largest cement maker PT Semen Gresik Tbk (SMGR), Rajawali, owned by Indonesian conglomerate Peter Sondakh, is now in frenzy shopping.

Just a day after announcing a tender offer for PT Eatertainment International, a shell publicly listed company, Rajawali Group today signs sale and purchase agreement of 100% stakes of another shell company dubbed PT Transpacific Railway Infrastructure (TRI), previously controlled by Indonesian stellar market player Suganda Setiadi Kurnia. He owns Transpacific Securindo as well. 

Rajawali Managing Director Darjoto Setyawan confirms that Rajawali Group, using an undisclosed affiliated firm, just signed the agreement with Suganda and the other parties.   

Rajawali acquires 100% stakes in TRI from three different shareholders, Coral Moon Resources, PT Handayani Bara Dinamika, and PT Transpacific Investama.

"Transpacific Investama was the largest shareholder in TRI, previously owned 54%," Darjoto said to Insider Stories.

TRI owns 80% stakes in PT Bukit Asam Transpacific Railway (BATR), the operator of 307 km railway project for coal transportation worth US$1.3 billion.

PT Tambang Batubara Bukit Asam Tbk (PTBA) and China Railway Groups own 10% shares in BATR respectively. China Railway Group is 100% owned by China Railway Engineering Corporation. 

So, where is Prajogo Pangestu?

In 2009, Thelveton Global Asset, parent company owned by Indonesian tycoon Prajogo Pangestu, announced a proposed acquisition for 100% stakes in TRI.

A source familiar with the matter said Prajogo Pangestu hasn't accomplished the acquisition. "Up to now, he is still unable to close the acquisition of TRI. So, Rajawali is free to acquire the company," he said. 

Railway transportation project, that is intended to transport coal from Banko Tengah mining field, Tanjung Enim, South Sumatra, to Srengsem, Lampung, has obtained a principal agreement from Ministry of Transportation in October 2009.

EPC project worth US$1.3 billion will take place in 4 years since the contract is signed, and O&M valued US$3.5 billion will be in 20 years period.

China Railway will roll out railway infrastructure with 27 million tons of coal and provide guarantee of 25 million tons to Tambang Batubara Bukit Asam. These projects will be bankrolled by equity of 20% and the remaining comes from debt.     

Inject US$360 million
According to Darjoto, Rajawali is ready to inject US$360 million of equity into the project. "We sign the agreement with Suganda today. I don't have any information about Prajogo Pangestu's involvement in TRI. Suganda has agreed to sell TRI to Rajawali," Darjoto said. 

Sukrisno, Bukit Asam's President Director, said the company is ready to cooperate with Rajawali Group to develop railway project.

With the project value of US$1.5 billion, (with land acquisition and other expenses) and debt to equity ratio of 70%;30%, Rajawali will inject around US$360 million into the project.

BATR mandated China Railwa Group Limited with 4 year EPC contract worth US$1.3 billion and maintenance and operator contracts. The agreement was signed on March 23 2010 in Beijin.
The contract is part of 307 km railway transportation project with capacity of 27 million tons coal annually.

The railway will be used to transport coal from Bangko Tengah mine field, Tanjung Enim, South sumatra, to Srengsem, Lampung. I expect that the entrance of Rajawali into the project will assure the railway project. In return, it will jack up Bukit Asam's coal transportation and finally balloon its production.

Bukit Asam's coal production increased 7% to 11.5 million tons last year. But, sales volume fell 2% to 12.5 million tons.

In a bid to boost coal transportation capacity, in October 2009, Bukit Asam and PT Kereta Api (PTKA), state-owned train operator, signed agreement to elevate coal transportation capacity gradually. 

In 2014, PTKA is committed to transport 22.7 millon tons of coal annually, a 116% jump from last year figure of 10.5 million tons. Can you imagine how big Bukit Asam is when it reaches 22.7 million tons of coal sales?

MNC profit sky rockets 191%

PT Media Nusantara Citra Tbk (MNC), subsidiary of PT Global Mediacom Tbk (BMTR) recorded a 191% jump in net profit during the first quarter this year (QoQ) on the back of soaring operating revenue.

In public expose's material submitted to Indonesia Stock Exchange today, MNC's net profit reached Rp192 billion at the of Q1 2010 compared to the same period last year of Rp66 billion.  

MNC, holding company of Indonesia's largest television by market share, RCTI, posted a 16% of revenue increase to Rp1.01 trillion in Q1 2010 from Q1 2009 of Rp877 billion. 

The revenue growth was underpinned by soaring revenue contribution of RCTI by 37% (YoY), TPI (25%), and Global TV, stipulated expansion of audience target.
Contribution of daily newspaper Seputar Indonesia grew 12% from Rp29.9 billion to Rp33.4 billion.
MNC booked a 105% and 82% jumps in operating profit and EBITDA respectively.
Operating profit elevated from Rp139 billion from Q1 2009 to Rp285 billion at the end of March 2010. EBITDA rose from Rp181 billion in Q1 2009 to Rp329 in Q1 2010.
In return, operating margin of the company rose from 21% to 32% in Q1 2010.

Adaro sets US$200 million capex

Indonesia's second largest coal miner PT Adaro Energy Tbk (ADRO) sets US$200 million of capital expenditure (capex) this year. The company also prepares US$160 million of cash to build power plant.
Adaro's Finance Director David Tendian said the capex will be used by the company to bankroll several business expansions.
"The source of fund internally comes from operation. We still have proceed from bond issue last year," he said.
Adaro's President Director Boy Garibaldi Thohir said the company sets a coal production target of 46 million tons this year. The target will be jacked up to around 80 million tons in 2015.
Annual general shareholder meeting today approves a final dividend of Rp543.76 billion. In December last year, Adaro distributed an interim dividend of Rp927.59 billion.
The annual meeting also mandates Raden Pardede as an independen commissioner, replacing his predecessor Djoko Suyanto.

Bayan secures US$300 mio loan

Coal mine company PT Bayan Resources Tbk (BYAN) announces today that it has secured US$300 million of credit facility from three foreign banks.

In a public statement to Indonesia Stock Exchange, Bayan signed the facility agreement with Australia and New Zealand Banking Group Limited (ANZ), Standard Chartered Bank, and Sumitomo Mitsui Banking Corporation on April 22 2010.

The credit facility consits of 5 year long term loan worth US$150 million and revolving working capital worth US$150 million and will due in the next two years.

Bayan Director Chin Wai Fong, in the statement, said, the company will use the credit facility to refinance the remaining debt worth US$300 million secured in April 2008 and the rest will be utilized to strengthen Bayan's capital structure and underpin expansion. 

Why Antam revenue drops 37%?

Management of PT Aneka Tambang Tbk (Antam) finally reveals that a sharp drop in sales during first quarter this year was mainly stipulated by lowering activities on gold trading.

In a formal statement last night, the company decided to reduce the trading because of unpredictable of gold prices, rising the risk.

In the first quarter 2010, Antam's gold sales volume fell 66% to 2,048 kg compared to the same period last year.Gold's production volume declined 5% to 681 kg

How about nickel?

Antam's nickel sales reached Rp850 billion, the biggest contributor of its consolidated revenue of 51%. Feronickel sales volume rose 43% to 1,663 TNi, in line with a soaring demand in the first quarter this year. Production also increased 34% to 4,411 TNi in the first quarter this year compared to a year before. A jump on feronickel prices by 99% to US$9.38 per lb jacked up the company's revenue by 132% to Rp317 billion.

Aneka Tambang reports a 527.51% jump in operating profit in the first months this year because of lower cost of goods sold.
It enabled to reduce cost of goods sold by 52.42% from Rp2.48 trillion in the first quarter last year to Rp1.18 trillion this year.
In return, Antam posted Rp343.31 billion of operating profit in the first quarter 2010 from the first quarter last year of Rp54.71 billion.
Operating margin made a steep jump from 2,07% in the first quarter last year to 20,74% this year. But, Antam, state-owned company, suffered a 37.5% of sales drop from Rp2.64 trillion in the first three months last year to Rp1.65 trillion this year.
The company's net profit rose 124.68% from Rp89.88 billion or Rp9.44 per share to Rp201.94 billion or Rp21.20 per share in the first quarter this year.

Indosat reports 139.2% jump in profit

Indonesia's second largest cellular operator PT Indosat Tbk (ISAT) reports a 139.2% jump in net profit at the end of March thia year on the back of higher others income.  

The operator, controlled by Qatar Telecom (Qtel), recorded Rp  285.9 billion of net profit in the first quarter 2010 from a year before of Rp119.5 billion.

Indosat's revenue slightly rose 2.5% from Rp4.73 trillion in the first quarter 2009 to Rp4.62 trillion.

But, operating expenses increased by 11.4% from Rp3.56 trillion in the first three months last year to Rp3.97 trillion as of March 2010. Indosat recorded a 17.6% growth of cellular subscribers from 33.3 million in March last year to 39.1 million at the end of March 2010.

Antam operating profit jumps 527.51%

One of Indonesia's largest nickel mine company PT Aneka Tambang Tbk (Antam) today reports a 527.51% jump in operating profit in the first months this year because of lower cost of goods sold.

It enabled to reduce cost of goods sold by 52.42% from Rp2.48 trillion in the first quarter last year to Rp1.18 trillion this year.

In return, Antam posted Rp343.31 billion of operating profit in the first quarter 2010 from the first quarter last year of Rp54.71 billion.

Operating margin made a steep jump from 2,07% in the first quarter last year to 20,74% this year. But, Antam, state-owned company, suffered a 37.5% of sales drop from Rp2.64 trillion in the first three months last year to Rp1.65 trillion this year.

The company's net profit rose 124.68% from Rp89.88 billion or Rp9.44 per share to Rp201.94 billion or Rp21.20 per share in the first quarter this year.

In my view, Antam's sales drop will raise questions from investor. What is the main problem? Did Antam produce lower nickel?

In fact, since late last year, nickel price has reached the highest level compared to the first quarter last year.

Tunas Ridean sets stock split

Car distributor PT Tunas Ridean Tbk (TURI) is planning to split its nominal stocks in a bid to make shares trading in the market more liquid.

The company will submit the stock split plan in extraordinary shareholder general meeting scheduled on May 6, in line with annual general shareholder general meeting. But, Tunas hasn't explained more detail about the corporate action.

Tunas Ridean posted a lower revenue in 2009 from Rp5.52 trillion in 2008 to Rp4.89 trillion. Cost of goods sold and operating expenses shrank from Rp4.98 trillion and Rp2.96 billion to Rp4.56 trillion and Rp208.59 billion respectively.
In return, operating income fell sharply from Rp241.08 billion in 2008 to Rp118.12 billion last year.
But, Tunas Ridean enabled to elevate net others income from Rp115.66 billion in 2008 to Rp262.14 billion on the back of both gain on sales of investment worth Rp143.35 billion and lower financial charges from Rp6.36 billion to merely Rp1.75 billion.
It finally booked a higher net profit from Rp245.08 billion or Rp176 per share in 2008 to Rp310.38 billion last year of Rp222 per share.
PT Tunas Andalan Pratama controls 68.89% stakes in Tunas Ridean, Jardine Cycle & Carriage owns 53.41%, and public holders hold 17%.

Harum Energy IPO retreats

PT Harum Energy, a parent company of coal mine producer PT Tanito Harum, delays a US$300 million-US$400 million initial public offering (IPO) of 30% shares due locked up period.
According to Mandiri Sekuritas's Director Kartiko Wirjoatmadjo said, the IPO was initially scheduled in the first half this year.
"Due locked up period, the IPO has retreated to the third quarter this year," he said.
He declined to give further explantation about the IPO size and value.
Kartiko confirmed that Harum Energy's IPO will be underwritten by four underwriters Deutsche Securities, Goldman Sachs, Ciptadana Securities, and Mandiri Sekuritas.
A source familiar with the matter said Harum Energy, controlled by Tanito Harum Group and owned by Indonesian tycoon Kiki Barki, will offload 30% shares into the primary market worth US$300 million-US$400 million.

Bukit Asam to acquire two coal mines

One of Indonesia's largest coal mine company PT Tambang Batubara Bukit Asam Tbk is planning to acquire two coal mines in Kalimantan. 

The company will allocate Rp1.44 trillion as capital expenditure this year. "Capital expenditure will be funded by cash internal. We have cash on hand of Rp4.8 trillion," Bukit Asam's President Director Sukrisno said.

Annual general meeting shareholder today approves Bukit Asam's dividend payout ratio of 45%, 10% higher than manajemen initial propose. The company paid an interim dividend of Rp66,75 per share last year.
State-owned coal mining producer Bukit Asam posted a steep jump in  its bottom line last year. It booked Rp2.73 trillion of net profit, rose 60% compared to previous year on the back of higher revenue.
Bukit Asam's 2009 revenue grew 24% to Rp8.95 trillion better than the previous year, while its operating profit jumped 42% to Rp3.55 trillion last year.
According to the company's Corporate Secretary Achmad Sudarto, revenue growth was bolstered by soaring coal prices. PTBA's average selling prices last year increased by 27% to Rp714.562 per tons compared to 2008 figure.
Along with soaring coal prices, the company's production volume posted a slight increase by 7% in 2009 to 11.5 million tons from a year earlier. But, last year sales volume was 2% lower than previously to 12.5 million tons due to weakening coal demand since last quarter 2008.

Inovisi to acquire Code Wireless Group

IT company PT Inovisi Infracom Tbk today announces proposed acquisitions of group companies of Code Wireless Pte Ltd.

In a public announcement to Indonesia Stock Exchange, Inovisi said the company is planning to acquire Code Wireless Pte Ltd, Singapore-based company, Abamon Technology Sdn Bhd, Malaysia-based IT solution provider, and Smart Checkers Ltd, British Virgin Island-based company.

Through acquisition, Inovisi considers a vertical integration, adding complementary business, lower cost of production overseas, and creating synergies.

Code Wireless, founded in September 2004, is 100% owned by Fastwind Investments Ltd. The company's total assets is worth Rp180 billion.

Abamon Technology, established in September 2004, is wholly owned by Code Wireless Pte Ltd and has a total assets of Rp140 billion.

Smart Checkers, founded in April 2008, is 100% controlled by Abamon Technology Sdn Bhd and has a total assets of Rp116 billion.

If Inovisi could acquire Code Wireless Group, it would add one new subsidiary to five subsidiaries Fastlane Limited, Chiron max, Graha Tunas Makmur, and Andaman Multi Kreasi.

Bakrie Telecom to repay US$190 m debt

CDMA-based telephone operator PT Bakrie Telecom Tbk (BTel) will use most proceeds from US$250 million of 5 year bond issue to fully repay its existing syndicated facility of US$145 million and bridging loan of US$45 million.

The remaining proceeds will be used to finance capital expenditure related to its wireless broadband business and for general purpose.

Bakrie Telecom's debt might comprise mainly the 2015 Notes, capital leases of Rp2.6 trillion, and Rp650 billion of bond after the 2015 bond is issued.

Global rating agency Fitch Ratings has assigned long-term foreign and local currency Issuer default ratings (IDRs) of B to Bakrie Telecom. The outlook is stable. 

Fitch has also assigned an expected rating of B and an expected recovery rating of RR4 to Bakrie Telecom's intention to issue US$250m notes due 2015 through Bakrie Telecom Pte Ltd, a wholly-owned subsidiary of BTEL), and guaranteed by BTEL. 

BTEL's ratings reflect its position as the fifth-largest cellular telecom operator in Indonesia, with a 5.5% subscriber market share at end-2009. 

Although the company is Indonesia's second-largest code division multiple access (CDMA) operator, with a 31% market share of this sub-segment at end-2009, the ratings are constrained by BTEL's position as a sub-scale operator in an intensely competitive and fragmented market. 

Fitch notes that BTEL remains a regional player with about 84% of its subscribers residing in the Jakarta, West Java and Banten provinces. Within the above-named provinces, Fitch estimates that BTEL has a cellular market share of around 20%.

Other rating constraints include Bakrie Telecom's inability to generate sustainable free cash flow (FCF), despite strong growth in cash flow from operations (CFO). 

The operator has undertaken heavy capex outlays totalling Rp6.2 trillion over financial years 2007-2009 to build out its network, leading to significant negative FCF averaging Rp1.4 trillion annually. 

Free cash flow is expected to remain negative as BTEL shifts its investment focus to the wireless broadband business. 

At financial year ended December 2009, net adjusted leverage (total adjusted debt net of cash to operating EBITDAR) was stretched at 3.5x. 

Fitch expects BTEL's net leverage to remain at 3x to 3.5x in the next 18 to 24 months.

The stable outlook is based on Fitch's expectation that BTEL will continue to solidify its market position, and that its credit metrics will remain consistent with the rating level in the next 18 to 24 months.

Berau Energy mandates CS & JP

PT Berau Coal Energy, holding company of Indonesia's fifth largest coal mining PT Berau Coal, has mandated Credit Suisse Securities (CS), JPMorgan Securities, Danatama Makmur, and Recapital Securities as underwriters of initial public offering (IPO).

Berau Energy, a transformation of PT Armadian Tritunggal, will raise US$300 million-US$400 million from 15%-30% of shares sale.

A source familiar with the matter said Berau Energy will use the IPO proceeds to acquire other companies and working capital. Berau Coal Energy is wholly owned of PT Bukit Mutiara, a subsidiary of Recapital Advisors.   

 

Gajah Tunggal sales volume up 20%

Indonesia's largest tire manufacturer PT Gajah Tunggal Tbk (GJTL) estimates a 10%-20% increase of tire sales volume in the first quarter 2010 compared to the same period last year. 

Gajah Tunggal's Director Catharina Widjaja said the company will release the first quarter financial result in the next two week. "Please wait untill we announce our first quarter result," she told Insider Stories. 

In comparison, Gajah Tunggal booked a net loss of Rp294.70 billion in the first quarter last year. Operating profit reached Rp74.19 billion, while revenue was Rp1.74 trillion.

The company's production capacity is 35,000 radial tires per day. As of September 2009, the utilization rate reached 57%. Production capacity of motorcycle tire is 60,000 units per day with utilization rate of 78%.

The capacity of Bias tire reaches 12,000 units per day. Gajah Tunggal plans to set up one new tire plant to jack up the production capacity from 30,000 tires per day to 45,000 tires.

The company also prepares to build one new plant of motorcycle tire in a bid to increase the capacity from 37,000 tires per day to 105,000 tires per day.

Ratu Prabu turns into net loss

PT Ratu Prabu Energi Tbk suffered a net profit plunge of 644.34% in 2009 compared to net profit in 2008 due write-off both oil and gas assets and fixed assets.

In a public statement submitted to Indonesia Stock Exchange today, Ratu Prabu booked a net loss of Rp180.45 billion or Rp115.09 per share last year, a reversal of net profit of Rp33.15 billion or Rp39.60 per share in 2008.

Ratu Prabu posted Rp115.09 billion of write-off on both oil and gas and fixed assets. It booked a foreign exchange loss of Rp23.88 billion, and interest expenses of Rp56.72 billion.

In the operational line, oil and gas producer reports a 34.43% growth in operating profit from Rp49.66 billion in 2008 to Rp66.76 billion despite decreasing revenue of 6.69% from Rp517.78 billion in 2008 to Rp483.12 billion last year.

Astra sales volume jumps 70.59%

Cars sales volume of Indonesia's largest car distributor PT Astra International Tbk (ASII) in the first quarter 2010 jumped 70.59% compared to the same period last year of the back of strengthening buying power despite low interest rate.

The company's cars sales volume reached 98,931 units in the first quarter 2010 from the same period last year of 57,994 units.

During the first three months this year, March recorded the highest cars sales volume, 36,531 units for the company, subsidiary of Jardine Cycle & Carriage, Singapore, compared to the sales in the previous two months.

In total, Indonesia's cars sales volume in the first quarter 2010 reached 174,042 units, a 73.59% jump from the same period last year of merely 100,257 units. During the first three consecutive months this year, Astra booked 59%, 56%, and 56% of market shares.

Agis seals equity-linked loan Rp200 bio

G.E.M Global Yield Fund Inc and G.E.M Investment Advisors Inc have agreed to provide equity line of credit facility worth Rp200 billion to PT Agis Tbk (TMPI).

Adding to that, Global Yield Fund and Agis, based on engagement letter dated on March 18 2010, will do investment agreement and repurchase agreement (repo) based on regulations in Indonesia.

Agis suffered a net loss of Rp3.14 billion as of December 2009 from net profit of Rp2.25 billion in 2008 as a result of lower sales.

The company's sales fell 28.11% from Rp450.19 billion in 2008 to Rp323.66 billion in 2009. In result, Agis experienced an operating loss of Rp17.27 billion last year from operating loss of Rp17.78 billion in 2008.

Antam proposes nonpreemptive shares

One of Indonesia's largest nickel minining producer PT Aneka Tambang Tbk (Antam) has proposed a 10% of shares disposal plan to its controlling shareholder, Ministry of State-Owned Enterprise.

Antam will use the proceeds from shares sale to meet capital expenditure (capex) and expansion.

The company, the state-owned nickel producer, needs US$2 billion of the capex to underpin some projects untuk 2014.Public shareholders now hold 35% of Antam's shares in the market.

According to Antam's Finance Director Jaya Tambunan, in a hearing session at House of Representative Office last night, said the company has proposed two options of the shares sale, private placement, new shares issue without nonpreemptive rights, and another which I couldn't explain rights now.

The company also plans to issue bond in a bid to bankroll investments. 

Antam's CEO Alwin Syah Loebis said the company has prepared two kind of projects, chemical grade Alumina Tayan worth US$400 millio, FeNi Halmahera worth US$1.2 billion, Bauksit project valued US$900 million, and nickel worth US$140 million.

The company expects sales volume of nickel to grow 34% this year from 14,191 tons in 2009 to 19,000 tons. Production is estimated to grow 47% from 12,550 tons of nickel to 18,500 tons. Antam's gold production will reach 3,080 kg in 2010 from 2,626 kg last year.

Henry Ho to lead Bank Danamon

Controlling shareholder of PT Bank Danamon Tbk (BDMN), Temasek Holdings Pte Ltd, has prepared Henry Ho Hon Cheong as a new president director of the bank, replacing predecessor Sebastian Paredes.

A source familiar with the matter said Temasek, through Asia Financial Holding (Ind) Pte Ltd, will propose Henry Ho to Bank Indonesia for fit and proper test.

"Henry [the strongest candidate for Danamon's president director] will be proposed to annual general meeting scheduled on April 29," the source said.

Temasek initially prepared four executives, Henry Ho, Wilcon Chia, Joel Kornreich, and Sng Seow Hua, as the bank's president candidates.

Henry was madated by shareholders to lead Bank Internasional Indonesia (BII) as president director starting from December 16 2003 to March 20 2009.

Folling BII's shares sale to Sorak Financial Holdings Pte Ltd, Henry Ho was replaced by Ridha Wirakusumah. Sorak is controlled by both Temasek and Kookmin Bank.

During his carrer, he had been appointed in senior management at Citigtoup in relation to corporate, relations management, strategic, and business planning.

Borneo Energy mandates 3 underwriters

PT Borneo Lumbung Energi, holding company of coking coal mining PT Asmin Koalindo Tuhup, South Kalimantan, has mandated CIMB Securities, Credit Suisse, and Morgan Stanley as lead underwriters of initial public offering (IPO). 

A source familiar with the matter said Borneo Energi will offload 20%-25% shares into the market and target US$200 million-US$300 million of cash from the IPO scheduled in August 2010, a delay from initial schedule in the first half this year.

"Borneo will utilize April's financial report as a basic of the shares sale. It may probably in August. Kick-off meeting with three underwriters had been held on Tuesday last week," the source told Insider Stories.     

Borneo, which is affiliated with Renaissance Capital that is led by Indonesian Samin Tan and tried to buy 100% stakes in PT Kaltim Prima Coal and PT Arutmin indonesia in 2006, will offload 20%-25% shares into the market, in line with capital market bounce back and soaring price of coking coal. Borneo now produces around 200,000 tons of coking coal. 

Sierad Produce sales rise 39.06%

PT Sierad Produce Tbk reports a 39.06% of sales increase from Rp2.33 trillion in 2008 to Rp3.24 trillion last year.

But, the company's operating profit fell 2.38% from Rp74.45 billion in 2008 to Rp72.68 billion last year on the back of soaring both cost of goods sold and operating expenses.

Down to the bottom line, Sierad posted a 36.59% jump in net profit from Rp27.25 billion or Rp2.90 per share in 2008 to Rp37.22 billion or Rp3.96 per share last year due foreign exchange gain of Rp11.51 billion, a reversal from foreign exchange loss in 2008 of Rp1.74 billion.

Jade Field Asset Ltd is a 15.56% of controlling shareholder of Sierad Produce, Harvest Agents Ltd owns 14.33%, Kingdom Industrial Ltd holds 11.34%, PT Sietek Nusantara Finance owns 0.21%, and public holders control 58.55%. 

Tire sales soars, Multistrada?

In the first two months this year, sales volume of car tires in the domestic market jumped 54.62% to 7.87 million tires compared to the same period last year of 5.09 million tires.

According to data of Association of Indonesia's Tire Producer (APBI), in line with the soaring sales of car tires, sales volume of motorcycle tires rose 22.7% from 4.22 million tires in the first two months last year to 5.18 million tires.
The association hasn't released tire sales volume in the first quarter 2010. Referring to data of Indonesian Motorcycles Industry Association, sales volume of motorcycles grew 34.9% to 1.66 million units in the first quarter 2010 from the previous year of 1.23 million units.
Gaikindo said car sales volume jumped 73.3% from 100,384 units in the first three months last year to 173,989 units in the same period 2010.
As reported by Kontan daily today, PT Sumi Rubber Indonesia, one of Indonesia's tire manufacture, experienced a steep jump in sales volume of tire motorcycle 61.48% from 662,000 unit in the first quarter 2009 to 1.07 million tires.
How about PT Multistrada Arah Sarana Tbk (MASA)?

Multistrada's sales volume reached 1.2 million of car tires in the first quarter 2009, while sales volume of motorcycle tire recorded 300,000 units. The producer of Achilles, Corsa, and Strada booked Rp415.69 billion of sales in the first quarter last year. Operating profit was Rp50.56 billion, but it suffered a net loss of Rp1.89 billion as a result of foreign exchange loss of Rp34.91 billion and interest charges of Rp19.88 billion.

A source familiar with the matter said Multistrada enabled to record car sales volume of nearly 1.5 million units in the first quarter 2010 with motorcycle's sales more than 600,000 tires.

Japfa reports magnificent profit

Poultry company PT Japfa Comfeed Indonesia Tbk (JPFA) today reports an impressive fundamental performance. The company booked a 97.28% jump in operating profit last year on the back of a slight increase of cost of goods sold and operating expenses.

It posted Rp1.38 trillion of operating profit in 2009 from the previous year of only Rp697.40 billion. Sales grew 13.18% from Rp12.67 trillion in 2008 to Rp14.34 trillion last year.

Japfa's cost of good sold rose 8.16% from Rp10.79 trillion in 2008 to Rp11.67 trillion, while operating expenses increased 10.26% from Rp1.17 trillion in 2008 to Rp1.29 trillion last year.

In line with a significant growth of operating profit, Japfa's net profit skyrocketed 166.89% from Rp305.16 billion or Rp146 per share in 2008 to Rp814.45 billion or Rp393 per share in 2009.

Intiland reports 80.86% jump in profit

A property developer PT Intiland Development Tbk (DILD) reports it posted a 80.86% of net profit last year due a higher operating profit.

Intiland's net profit last year reached Rp25.61 billion or Rp8 per share, rose from the previous year of Rp14.16 billion or Rp3 per share.

The company booked Rp19.45 billion of gain from fixed assets sales last year, but interest expenses soared from Rp31.17 billion in 2008 to Rp47.27 billion in 2009. In return, Intiland booked other charges net of Rp16.87 billion in 2009 from the year before of Rp1.83 billion.

Operating profit rose 49.87% from Rp40.91 billion in 2008 to Rp61.31 billion last year, while sales increased 16.44% from Rp332.22 billion in 2008 to Rp386.82 billion in 2009.

Forex gain underpins TBLA profit

CPO producer PT Tunas Baru Lampung Tbk (TBLA) reports a 118.25% jump of net profit last year, underpinned by foreign exchange gain.

The company posted Rp138.34 billion of net profit last year from the previous year of Rp63.34 billion. TBLA was able to reverse a foreign exchange loss of Rp242.71 billion in 2008 into gain of Rp20.33 billion last year.

But, sales fell 29.79% from Rp3.96 trillion in 2008 to Rp2.78 trillion last year.

What about the other CPO firms?

As of December 2009, PT Astra Agro Lestari Tbk (AALI) booked a 36.88% fall in net profit from Rp2.63 trillion in 2008 to Rp1.66 trillion. PT PP London Sumatra Indonesia Tbk (LSIP) posted a 23.73% slash in its bottom line from Rp927.56 billion in 2008 to Rp707.49 billion last year as well.
How about sales and operating profit? both companies suffered a decline figures. Astra Agro's sales retreated to Rp7.42 trillion last year from Rp8.16 trillion, while LSIP figure shrank by 17.14% from Rp3.85 trillion to Rp3.19 trillion. Their operating profit also reported a sharp drop of around 22% last year compared a year before.     
In contrast, PT BW Plantation Tbk (BWPT)'s bottom line rose 39.78% from Rp119.81 billion in 2008 to Rp167.47 billion last year.
PT Gozco Plantations Tbk (GZCO) was likely to be the most profitable CPO producer last year by posting a 273.31% jump on its net profit from Rp54.75 billion in 2008 to Rp204.39 billion last year. Both companies sales rose 13.71% for BWPT and 40.28% for Gozco.

Erry Firmansyah to resign from DOID

Former President Director of Indonesia Stock Exchange which has been mandated as President Commissioner of a controversial PT Delta Dunia Makmur Tbk (DOID), a parent company of Indonesia's second largest coal mining contractor PT Bukit Makmur Mandiri Utama (BUMA) may possibly retreat from his strategic position in DOID.

A source familiar with the matter said Erry will take his preference to join Indonesia's largest automotive distributor PT Astra International Tbk (ASII) as an Independent Commissioner. 

"Some say that Erry will submit his resignation in August, but some say Erry will stay at DOID until end of this year," the source told Insider Stories.

According to the source, in relation with his appointment as ASII's independent commissioner, he will retreat from DOID due to a potential conflict of interest. Astra International is holding company of Indonesia's largest coal mining contractor PT United Tractors Tbk (UNTR).

But, his resignation from Delta Dunia will emerge questions, especially related with Bakrie Group's role behind Berau Coal and Delta Dunia.

 

 

It is time for Antam to sparkle

Nickel price for 3 months delivery in London Metal Exchange rises to US$27,225 per tons, the highest price since May 9 2008.

In comparison to the end of last year, the price so far has gone up 46.96% from US$18,525 per tons, while the average price for the whole year is US$20,829 per tons.

Considering the price, what will happen with fundamental performance of one of Indonesia's largest nickel producer PT Aneka Tambang Tbk (Antam) in the first quarter this year?

If you closely watch the quarterly basis of Antam, especially in the fourth quarter last year, you may surprise. The company posted Rp2.44 trillion of additional sales to Rp8.71 trillion at the end of December 2009 compared to the third quarter's position of Rp6.27 trillion on the back of soaring nickel price, hence net profit steeply rose of Rp311.65 billion during the fourth quarter 2009 to Rp604.31 billion  at the end of December 2009 from the third quarter of merely Rp292.66 billion.

I think the steep increase of Antam's fundamental performance during the fourth quarter 2009 was underpinned by the higher nickel price.

If you take a look Antam's quarterly basis performance last year, from end of March to September, the company posted additional sales of Rp1.77 trillion and Rp1.83 trillion respectively. But, from September to December, the company made a steep jump in sales of Rp2.44 trillion.

Along with the higher nickel price, I believe Antam could made a robust performance during the first quarter 2010 compared to the same period last year. In Q1 2009, Antam posted Rp2.67 trillion of sales, Rp54.71 billion of operating profit, and Rp89.88 billion of net profit or Rp9.44 per share.

Lower ads, but SCMA profit rises

Parent company of SCTV, PT Surya Citra Media Tbk (SCMA) that is controlled by Sariaatmadja family, booked a 37.26% of net profit on the back of foreign exchange gain.

The company, in a public statement to Indonesia Stock Exchange (IDX), reports that it posted Rp285.45 billion or Rp149.81 per share of net profit last year from a year before of Rp207.96 billion or Rp109.89 per share.

SCMA's enabled to reverse a foreign exchange loss of Rp9.64 billion in 2008 into the forex loss of Rp11.39 billion last year.

But, in the operational line, Surya Citra Media posted a slight growth of operating profit by 3.96% from Rp459.27 billion in 2008 to Rp477.48 billion.

The company's sales of ads declined 5.85% from Rp1.72 trillion in 2008 to Rp1.61 trillion. But, a result of cost efficiency, reflected by lower operating expenses 9.52% from Rp1.26 trillion in 2008 to Rp1.14 trillion last year, enabled it to post the higher operating profit.

Eterindo operating profit jumps

PT Eterindo Wahanatama Tbk (ETWA), chemical products distributor, reports a 95.19% drop of net profit last year as a result of soaring interest expense, foreign exchange loss, and tax penalty.

In a public announcement submitted to Indonesia Stock Exchange (IDX) said Eterindo posted Rp10.42 billion or Rp10.76 per share of net profit last year from previous year of Rp617.21 billion or Rp637.42 per share.

The company booked an increase of interest expense of Rp5.82 billion last year from the year earlier of Rp81.22 million.

Eterindo's forex loss also doubled from Rp2.43 billion in 2008 to Rp4.81 billion, while it suffered a tax penalty of Rp3.01 billion.

Right above the line of the other income, operating profit, significantly grew by 87.04% from Rp6.48 billion in 2008 to Rp12.12 billion in 2009. But, sales made a slight rise of 7.08% from Rp714.82 billion in 2008 to Rp765.43 billion last year. Cash and cash equivalent at the end of last year slightly fell from Rp3.88 billion in 2008 to Rp2.29 billion.

Carrefour, Chairul & legal cases

Indonesian tycoon Chairul Tanjung yesterday announced a 40% acquisition deal of PT Carrefour Indonesia, one of Indonesia's largest retailer which is now battling againts Commission for the Supervision Business Competition (KPPU) in relation to acquisition of PT Alfa Retailindo Tbk (ALFA) by Carrefour Indonesia.

Carrefour's acquisition deal by Chairul Tanjung via PT Trans Retail worth US$300 million emerges speculation that French giant retailer is seeking alliance to solve some problems.   

Following the acqusition, Trans Retail controls 40% stakes in Carrefour Indonesia, Carrefour SA holds 39%, Carrefour Nederland BV owns 9.5%, and Onesia BV holds the remaining.

According to Chairul during a press conference yesterday, Trans Retail secures 18 months bridging loan facility worth US$350 million from a consortium of Credit Suisse, Citi, JPMorgan Chase, and ING.

"Around US$300 million is used to bankroll the acquisition and the remaining goes to Carrefour as working capital," he said.

Following the acquisition, Trans Retail deserves to place four commissioners and two directors in Carrefour Indonesia. Chairul Tanjung is appointed to be Carrefour's President Commissioner, while Hendro Priyono, former Head of Indonesia's State Intelligence Agency (BIN) is mandated as Commissioner.

Carrefour's Chief Executive Officer Shafie Shamsuddin said Trans Retail buys 40% stakes in Carrefour due it operates strategic retail business, financial, life style, food and beverage, and travel.

In financial business, CT Corporation manages PT Bank Mega Tbk, PT Bank Syariah Mega Indonesia, PT Mega Capital (brokerage), PT Asuransi Jiwa Mega Life, and PT Para Multi Finance.

CT Global Resources, subholding of CT Corporation, operates and manages oil palm producer PT CT Agro with total area of 60,000 hectares in East Kalimantan. PT CT Energy, moving in power plant business, operates in West Java and Sumatra. 

Under Trans Corpora, CT Corporation manages the lifestyle and entertainment companies, Trans7, Trans TV, Trans Coffee, Trans Lifestyle, PT Mahagaya, PT Trans Kalla Makassar, PT Bara Bali, PT Batam Indah Investindo, Bandung Super Mall, and PT Mega Indah Investindo.

Legal cases

Besides battle with KPPU, Carrefour also is fighting with Lippo Group, owned by Indonesian conglomerate Riady family.

Carrefour has the legal case with operator of Pluit Village, PT Duta Wisata Loka, which owns Hypermart, Carrefour's fierce competitor, and under Lippo Group.

Carrefour operates 79 stores in 22 different cities in Indonesia. It will add 13 new stores this year in Jakarta, Pekalongan, Mojokerto, Pontianak, Singaraja, and Batam. 

Para Group said it expects more than US$350 million of cash during a global bond offer this year. The proceed will be used to refinance the loan facility it obtained from the consortium of four banks.
"A roadshow will be held soon in Hong Kong, Singapore, New York, and San Francisco," Chairul said.
Credit Suisse, Citi, ING, and JPMorgan are mandated to arrange the bond issue.

Agis & GEM Global to sign agreement

Management of PT Agis Tbk (TMPI) reveals that it is ready to sign an investment agreement with G.E.M Global Yield Fund Ltd (GEM).

Agis said the company is scheduled to sign the agreement providing all commercial terms in the next few days. Now Lovells International Lawyers mandated by Global Yield Fund is finalizing the investment agreement.
"Once we reach the agreement, we will report it to Indonesia Stock Exchange and Capital Market Supervisory Agency," Agis's Corporate Secretary Poernomo Adji said in a public statement to Indonesia Stock Exchange.

He said the company is now unable to disclose the agreement in detail before the agreement is signed. 

Who is GEM Global Yield Fund?

In January last year, GEM reported that it bought shares of leading pharmaceutical manufacturer and the largest pharmacy exporter from Bangladesh, Beximco Pharmaceuticals Limited.

Beximco signed a subscription agreement enabling it to issue ordinary shares up to Tk.4,10 billon shares or (approximately £44.6 million) to GEM over the next three years through a number of allotments following the issue of draw down notices by Beximco. 

The agreement reveals that the number of shares that can be placed in each allotment is calculated by reference to the average volume of shares traded in the preceding 15 days period, as published by the Dhaka Stock Exchange Limited.

Again BUMI denies new shares rumor

Indonesia's largest coal miner PT Bumi Resources Tbk (BUMI) last night submitted a clarification letter to Indonesia Stock Exchange regarding to a market rumor saying that BUMI is soon to announce 10% of new shares issue as part of debt conversion with its biggest creditor China Investment Corporation (CIC).

The rumor is secondly spreading into the market concurrently with visit schedule of Chinese Prime Minister Wen Jiabao to Indonesia

But, when Wen Jiabao scrapped the schedule, I think it will also cease spreading of the rumor. In the clarification letter, BUMI's management said the company now doesn't has any plan to issue new shares. The management warns investor should trust on a formal statement from the company.

The market rumor of BUMI's shares issue without preemptive rights to CIC seems an old story. In fact, BUMI's Investor Relations Dileep Srivastava, in the morning notes published by Kim Eng Securities on January 27 2010, confirmed that BUMI at this point of time has no intention to issue new shares (non-preemptive rights), countering a market rumor that non-preemptive rights would be exercised at Rp2,925 per share. Bumi also scrapped an extraordinary share holders general meeting with main agenda of non-preemptive rights without explaining a clear reason.

Berlian Tanker in US$285 mio net loss

Indonesia's tanker provider PT Berlian Laju Tanker Tbk (BLTA) suffered net loss of US$285.88 million last year, a 230% drop from previous year of net profit of US$218.36 million.

The company's operating income was dragged down by the decrease of assets revaluation worth US$227.78 million and change on fair value of convertible bonds and notes payable of US$196.42 million.

Berlian Tanker booked a 48.32% drop in operating income from US$193.31 million in 2008 to US$99.91 million on the back of lower revenue. It posted revenue of US$618.35 million in 2009 from US$723.68 million in the previous year.

As of December 2009, the company had US$65.23 million of bank loan, shrinking from previous year of US$176.59 million.

Berlian Tanker secured maximally Rp337 billion of investment credit facility from PT Bank Negara Indonesia Tbk.  

Mobile-8 to convert Rp209.05b debt

CMDA-based operator PT Mobile-8 Telecom Tbk (FREN) will propose a restructuring plan through debt to equity swap in upcoming extraordary shareholder general meeting. 

The operator, previously owned by PT Global Mediacom Tbk (BMTR), plans to convert Rp209.05 billion of debt into new shares. It has total debt of Rp267.68 billion. If creditors gave approval to the plan, Mobile-8 would issue 4.15 billion of B series shares without preemptive rights at the price of Rp50.40 per share. 

In a public announcement today, the company reveals nine creditors have prepared to convert their debts into Mobile-8's new shares.

PT Hitelnet Nusantara with the total loan of Rp1,02 miliar, PT Freekoms Indonesia (Rp4.77 billion,) and PT Samsung Telecommunication Indonesia (Rp90,24 miliar) will convert their loans into 20.33 million shares (0,05%), 94.65 million shares (0,25%), and 1.79 billion shares (4,82%) respectively.

PT Inti Bangun Sejahtera will convert Rp7.33 billion of debt into 145.48 million shares (0,39% ) of Mobile-8, while Great Vanguard International Ltd will convert Rp60,28 miliar of debt into 1.19 billion shares (3,22%), PT Solusindo Kreasi Pratama, PT Komet Konsorsium, PT Gihon Telekomunikasi Indonesia, dan PT Kopnatel Jaya are ready to convert their debts into 462.91 million shares (1,24%), 266 million shares (0,72%), 84.73 million shares (0,23%), and 87.24 million shares (0,23%) respectively.

After the debt conversion, Jeras Investment Ltd, controlling shareholder of Mobile-8, would shrink 2.18% from 19.60% to 17.42%.

Shares of Corporate United Investment would reduce 1,41% from 12,67% to 11,26%, PT Etrading Securities might be fallen 1,34% from 11.97% to 10,63%, dan publik holders would hold 49,53% shares from 55,75%.

In December 2009, the company's revenue reached Rp368.97 billion from the previous year of Rp731.83 billion. It suffered operating loss from Rp403.05 billion in 2008 to Rp675.51 billion last year.

Net loss shrank from Rp1.07 trillion in 2008 to Rp724.39 billion last year due foreign exchange gain and income of derivatives.

Jaya Pari Steel profit jumps

Steel manufacturer PT Jaya Pari Steel Tbk (JPRS) today reports a steep jump of net profit during the first three months this year compared to the same period last year. 

The company posted Rp11.93 billion of net profit in the first quarter 2010, a 15,089% jump compared to the same period last year of Rp78.54 million.

In an announcement submitted to Indonesia Stock Exchange today, JPRS said the signicant rise of net profit was underpinned by a higher sales growth. 

Jaya Pari Steel booked Rp16.09 billion of operating income at the end of March this year compared to the first quarter 2009 of Rp5.22 billion of operating loss. Sales rose 112.49% from Rp41.16 billion at the end of March 2010 compared to the same period last year of Rp87.46 billion.

Despite a sparkling financial performance, cash and cash equivalent of the company suffered a 84.55% drop from Rp141.33 billion in the first quarter 2009 to Rp21.68 billion this year. 

As of March 2010, International Magnificient Fortune Limited controled 35.70% interest in Jaya Pari Steel, Vihara Limited owns 32.72%, and Gwi Gunawan owns 15.53%, and public shareholders 16.04%.

PT Gunawan Dianjaya Tbk, subsidiary of Jaya Pari Steel, posted Rp40.40 billion of net profit in the first quarter 2010, improving from the same period last year which had suffered net loss of Rp122.41 billion.

The company enabled net profit because foreign exchange gain of Rp11.86 billion and others income of Rp16.80 billion. Sales fell 27.87% from Rp514.21 billion at the end of March 2009 to Rp370.91 billion. 

Gunawan Dianjaya posted Rp28.29 billion of operating income from operating loss of Rp65.06 billion during the first three months last year. 

About 51.37% stakes of Gunawan Dianjaya was controlled by Kelywood Holding Limited, Bavarian Venture Investment held 35.94%, Jaya Pari Steel owned 8,29%, PT Betonjaya Manunggal Tbk held 2.20%, and public had 2.20%.

BUMI new shares & market rumor

Again, PT Bumi Resources Tbk (BUMI) is rumored that it may soon issue 10% of new shares as part of debt equity swap with its largest lender China Investment Corporation (CIC).

Kontan daily today, quoted unnamed source, reports the market rumor that the issue of new shares will be announced soon by BUMI. CIC is rumored to exercise the new shares at Rp3,100-Rp3,200. 

The market rumor of BUMI's shares issue without preemptive rights to CIC seems an old story. In fact, BUMI's Investor Relations Dileep Srivastava, in the morning notes published by Kim Eng Securities on January 27 2010, confirmed that BUMI at this point of time has no intention to issue new shares (non-preemptive rights), countering a market rumor that non-preemptive rights would be exercised at Rp2,925 per share.
Bumi also scrapped an extraordinary share holders general meeting with main agenda of non-preemptive rights without explaining a clear reason.
Dileep said the decision not to issue new shares after considering market condition and political situation.

According to him, at the current level of US$1.3 billion of debt is already at 4x adjusted EBITDA, a maximum gearing allowed by CIC's covenants. Kim Eng suspects that both parties, Bumi and CIC, failed to reach agreement on pricing and terms.

I also heard the market rumor that BUMI and CIC has initially talked about the possibility to issue new shares. "The rumor said CIC may control 30%-35% stakes in BUMI."

As long as the tax dispute between Bumi Resources and Indonesia's Tax Authority is still unresolved, I don't think BUMI would issue new shares to CIC.

   

Petrosea secures US$140 million loan

Westlake Resources Holdings Limited, subsidiary of PT Indika Energy Tbk (INDY), is planning to transfer a maximum of US$140 million loan to Indonesia's mining contractor PT Petrosea Tbk (PTRO).

According to the public announcement published by Petrosea, which is directly 98.55% controlled by Indika Energy, the loan transfer is categorized as material transaction due the value is 50% higher than Petrosea's equity. In return, Petrosea has to obtain an agreement from extraordinary shareholders general meeting. 

The loan, which will mature on November 5 2016, provides 9.85% of annual interest rate and 0,1% higher than Indo Intregrated's senior notes.

Petrosea will use the loan to bankroll heavy equipment expansion in a bid to support mining contracts, equipment replacement, and development of its off shore supply base.  

 Westlake is controlled by Indika Energy through PT Indika Inti Corpindo and Indika Capital Pte Ltd.

On November 2009, Westlake secured US$230 million of loan from Indo Integrated Energy II, which is 100% controlled by Indika Energy.

Indo Integrated issued US$230 million of senior notes on November 5 2009. The notes, maturing in 2016, provides an annual interest rate of 9,75%.