Sep 3, 2011

Apexindo 1H profit surges on assets sale

Oil drilling operator PT Apexindo Pratama Duta Tbk (APEX), which has been delisted from trading board at Indonesia Stock Exchange, reported a steep jump of 803.47% in net profit for the first 6 months of this year.
The bottom line steep jump was mainly driven by gain on sale of properties and equipments. Apexindo booked US$36.41 million net profit in 1H 2011 from US$4.03 million net profit in 1H 2010.
The company posted US$14.92 million gain on sale of properties and equipments in 1H 2011. However, Apexindo's June financial statement did not clearly mention about the assets sale.
On page 36, note 9 about propety and equipment, it was mentioned that Apexindo recorded gain of US$17,129 and loss of US$29,407 from disposals of motor vehicles. 
The question is which assets could generate US$14.92 million gain for Apexindo? 
At the operational line, Apexindo's operating profit fell 22.81% to US$27.95 million from US$36.21 million. Revenue slightly decreased 1.45% to US$101.09 million from US$102.58 million.
New loan agreement
Apexindo entered into a US$75 million loan facility agreement with Raiffesen Bank International AG, Singapore Branch on March 4 2011.
The loan is charged a 8% margin for 6 months after the signing date then step-up to be 10% for the next 6 months plus cost of funds payable monthly. The loan should due date within 1 year after the drawdown date.
The new facility is secured by Rig Raissa, Yani, Raniworo and the fiduciary transfer of receiavables relating to those rigs. 
Apexindo is required to maintain several financial covenants such as: ratio of debt to EBITDA shall not exceed 3.5:1, and the ratio of EBITDA to interest expense shall not less than 3:1.Apexindo paid Rp100 billion each to PT Bank Bukopin Tbk and PT Bank Muamalat Indonesia on June 30 and July 6 2011.

Disclosure: No position at the stock mentioned above.

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