Nov 18, 2011

Berau rating unaffected by Q3 result

Standard & Poor's Ratings Services said today that its corporate credit rating on Indonesia-based PT Berau Coal Energy Tbk (BB-/stable/--) is unaffected by the company's third-quarter results. 
The company's ratio of debt to EBITDA of 1.5x for the 12 months ended September 30, 2011, was in the 1.5x-2.0x range S&P had expected. 
"In our base-case scenario for Berau, we anticipate that the ratio will remain in a 1.5x-2.5x range for 2012 and sales volumes will be 20 million-21 million tons," said S&P in a press statement today.
Berau's US$146 million capital spending plan for 2012 is slightly higher than the US$130 million S&P had anticipated. 
"Nevertheless, we still expect the company to have positive free operating cash flows in 2012 under the new plan."
Higher production and strong thermal coal prices resulted in Berau's revenues rising 58% to US$1,207.1 million and EBITDA surging 84% to US$418.5 million for the nine months ended Sept. 30, 2011, compared with the same period in 2010.

Disclosure: No position at the stock mentioned above.

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