Jan 12, 2011

Borneo indicates US$305 mio revenue

Hard coking coal producer PT Borneo Lumbung Energi & Metal Tbk (BORN) indicated to post 1.65 million tons sales volume with average selling price of US$185 million per ton by end of last year.
Referring to the indicators, Borneo Energi is estimated to post US$305.25 million revenue or Rp2.76 trillion in 2010. In a morning note released by PT Mandiri Sekuritas today, Borneo Energi also indicated to produce 1.95 million tons coking coal in 2010.
The revenue indication is higher than estimation provided by CIMB Securities at Rp2.56 trillion in 2010. However, Borneo's revenue indication is lower than estimation made by Morgan Stanley at Rp2.96 trillion in 2010.
In a company report published by CIMB Securities on January 5, Borneo is targeted to post Rp2.56 trillion revenue and Rp217 billion net income. Morgan Stanley targets Borneo's 2010 revenue at Rp2.96 trillion with Rp361.1 billion net income.
Mandiri Sekuritas said amid coal price hike, management Borneo Energi has indicated significant higher selling price for 1Q11 shipment at range US$240-US$275 per ton. It exports most of its coal to North Asia with China as the main destination.
It has 3 year agreement with Glencore as its exclusive marketing agent for 2Mtpa off take which paying 4.5% fee. For FY11, Borneo aims 3.8 million tons coal production while 2 million tons has been contracted with its Chinese customers with quarterly pricing.
The company also aims to jack up its installed capacity up to 5 million tons per annum by 2H 20101 from currently 3.6 million tons. Borneo plans to allocate FY11F capex at US$185 million which around US$170 million will be used for equipments.

Disclosure: No position at the stock mentioned above.  

Print This Article

No comments: