Friday, June 24, 2011
More in Metal Timah Declares Dividends at 50% of 2010 Net Profit
JAKARTA (IFT) - PT Timah Tbk (TINS), a state-owned metallic mineral producer, distributed dividends amounting to Rp 473.96 billion, or Rp 94.17 per share, which comprises 50 percent of the Rp 947.93 billion net profit it generated in 2010. The company’s dividend payout ratio is around the same as last year’s.
Of the total, Rp 308.07 was distributed to the government and Rp 165.88 billion to the public. The remaining Rp 9.47 billion, or 1 percent, was allocated for partnership programs, 2 percent (Rp18.95 billion) for environment development programs and 47 percent (Rp 445.52 billion) for retained earnings.
The company’s standby loan totals Rp 3 trillion, which was obtained from Bank Mandiri and Bank of Tokyo Mitsubishi, among others. Its cash stands at Rp 600 billion.
Timah allocated Rp 1.4 trillion for its 2011 capital expenditure (capex). Forty percent of the capex was used to maintain its suction vessels while Rp 480 billion went to the phase-I project to develop bucket wheel dredges. Rp 359 billion was used to rejuvenate its equipment, while Rp 180 billion was used to complete the phase-II tin chemical project. The remaining Rp 154 billion was used to improve the capacity of its shipyards.
Aneka Tambang
Meanwhile, PT Aneka Tambang Tbk (ANTM) distributed dividends amounting to Rp 673.4 billion or Rp 70.71 per share. This is 40 percent of its 2010 net profit and a 178.6 percent jump from the total it distributed a year earlier. Last year, the company distributed Rp 241.7 billion or Rp 25.38 per share.
Rp 438.39 billion of the cash dividends was distributed to the government and Rp 234.96 billion to the public.
The dividend payout ratio of PT International Nickel Indonesia Tbk (INCO) trumps the dividend payout ratio of Timah and Aneka Tambang. It distributed dividends of US$ 0.036 per share or 82 percent of its 2010 net profit. (*)
Tuesday, June 21, 2011
Medco Obtains US$ 140 M Loan
JAKARTA (IFT) - PT Medco Energi Internasional Tbk (MEDC), an oil and gas company, recently obtained a US$ 140 million standby credit facility from PT Bank Rakyat Indonesia Tbk (BBRI). The company will use the loan for its capital expenditure and planned acquisitions.
Syamsurizal Munaf, Director of Finance at Medco Energi International, said that the loan facility has a five-year tenor, but he declined to reveal the loan interest and the terms and conditions. Syamsurizal also refused to reveal the companies targeted by Medco Energi International for acquisition.
Based on compiled data of the IFT Research Department, Medco Energi International allocated US$ 500 million for its 2011 capital expenditure (capex), 70 percent of which will be derived from external sources and 30 percent from its internal cash.
Medco Energi recently issued bonds worth US$ 50 million with a tenor of five years and an interest of 5.55-6.05 percent. The strategic action is part of the planned issuance of US$150 million worth of bonds in two years.
Sixty percent of the proceeds will be used to refinance debts maturing this year while 40 percent will be allocated for its capex, which will be spent for its oil recovery enhancement project at the Kaji-Senoga oil field, Rimau Block, South Sumatra.
On Monday's trading, Medco shares dropped Rp 100 to Rp 2,225 per share.
Aneka Tambang and Bayan Resources
PT Aneka Tambang Tbk (ANTM), a mineral mining company, also recently acquired a loan facility, totaling US$ 292.5 million from the Japan Bank for International Cooperation and the consortium of Mizuho Bank and Bank of Tokyo-Mitsubishi UFJ Ltd.
The company will use the loan for its chemical grade alumina (CGA) project at its Tayan mine in West Kalimantan.
PT Bayan Resources Tbk (BYAN), a publicly listed coal producer, obtained a US$ 185 million loan from a syndicate composed of PT ANZ Panin Bank and Standard Chartered Bank, Singapore.
The loan facility will be used to buy shares in PT Apira Utama, PT Bara Sejati, PT Cahaya Alam, PT Tiwa Abadi, PT Dermaga Energi, PT Orkida Makmur, PT Silau Kencana, PT Sumber Api and PT Tanur Jaya. The targeted companies operate in East Kalimantan and own either a mining concession or a mining business license. (*)
Syamsurizal Munaf, Director of Finance at Medco Energi International, said that the loan facility has a five-year tenor, but he declined to reveal the loan interest and the terms and conditions. Syamsurizal also refused to reveal the companies targeted by Medco Energi International for acquisition.
Based on compiled data of the IFT Research Department, Medco Energi International allocated US$ 500 million for its 2011 capital expenditure (capex), 70 percent of which will be derived from external sources and 30 percent from its internal cash.
Medco Energi recently issued bonds worth US$ 50 million with a tenor of five years and an interest of 5.55-6.05 percent. The strategic action is part of the planned issuance of US$150 million worth of bonds in two years.
Sixty percent of the proceeds will be used to refinance debts maturing this year while 40 percent will be allocated for its capex, which will be spent for its oil recovery enhancement project at the Kaji-Senoga oil field, Rimau Block, South Sumatra.
On Monday's trading, Medco shares dropped Rp 100 to Rp 2,225 per share.
Aneka Tambang and Bayan Resources
PT Aneka Tambang Tbk (ANTM), a mineral mining company, also recently acquired a loan facility, totaling US$ 292.5 million from the Japan Bank for International Cooperation and the consortium of Mizuho Bank and Bank of Tokyo-Mitsubishi UFJ Ltd.
The company will use the loan for its chemical grade alumina (CGA) project at its Tayan mine in West Kalimantan.
PT Bayan Resources Tbk (BYAN), a publicly listed coal producer, obtained a US$ 185 million loan from a syndicate composed of PT ANZ Panin Bank and Standard Chartered Bank, Singapore.
The loan facility will be used to buy shares in PT Apira Utama, PT Bara Sejati, PT Cahaya Alam, PT Tiwa Abadi, PT Dermaga Energi, PT Orkida Makmur, PT Silau Kencana, PT Sumber Api and PT Tanur Jaya. The targeted companies operate in East Kalimantan and own either a mining concession or a mining business license. (*)
Friday, June 17, 2011
Timah Unaffected by Revised Regulation on Tin Bar Exports
By: Agung Budiono
JAKARTA (IFT) – PT Timah Tbk (TINS) claims that it will not be affected by the government’s plan to revise Minister of Trade Regulation Number 4 Year 2007 on Export of Tin Bars, as long as the revision does not change the minimum acceptable tin content for export. Timah exports 99.85 percent-grade refined tin.
The current regulation only regulates export of tin bars and does not regulate processed and purified tin, which the government plans to revise.
The goal of the revision is to enhance the country’s processing industry and increase value added products. Another aim is to fulfill the government’s plan to encourage the establishment of more upstream industries.
Anticipating the new regulation, Timah will improve the diversification of its products by building a new Rp 250 billion-Rp 300 billion, 10 thousand ton tin-chemical plant. The plant will be situated in Tanjung Ular, Bangka Belitung.
Timah will kick-start the development of the plant this year.
The company already owns a 10 thousand ton tin chemical plant in Cilegon. The plant began producing tin chemical, which offers higher value than unprocessed tin, in August 2010 and will start producing at full capacity this year. Timah plans to increase the capacity to 20 thousand tons in the future.
The produced tin will be exported to Taiwan, Korea and Japan.
Higher Royalty
The royalty for tin currently stands at three percent. Of the toatl royalites, 16 percent goes to the central government, 20 percent to provincial governments, 32 to regional governments and another 32 percent to regions in the straight vicinity of the producing region.
Pri Agung Rahmanto, Executive Director of ReforMiner Institute, said that the royalties that mining companies pay must be revised to follow the price of their respective commodities.
The royalty scheme, according to Pri Agung, is less beneficial than the production sharing contracts, as the royalty scheme determines royalties by subtracting costs from the revenue of mining companies, which reduces the total revenue from mining royalties.
In 2010, the total royalties the government obtained from General mining companies reached Rp 9.73 trillion, versus Rp 8.7 trillion obtained in 2009.
Pri Agung suggests calculating royalties based on the gross revenue of mining companies without reducing the total with costs.
Indonesia is the world’s leading tin exporter. Based on data from the Ministry of Trade, last year, the country exported 92,486 tons worth US$ 1.71 billion, a 1.88 percent increase from the 90,779 tons exported in 2009.
In the first quarter, the country exported 39,288 tons, up 4.5 percent from the 37,609 tons sold a year earlier. (*)
JAKARTA (IFT) – PT Timah Tbk (TINS) claims that it will not be affected by the government’s plan to revise Minister of Trade Regulation Number 4 Year 2007 on Export of Tin Bars, as long as the revision does not change the minimum acceptable tin content for export. Timah exports 99.85 percent-grade refined tin.
The current regulation only regulates export of tin bars and does not regulate processed and purified tin, which the government plans to revise.
The goal of the revision is to enhance the country’s processing industry and increase value added products. Another aim is to fulfill the government’s plan to encourage the establishment of more upstream industries.
Anticipating the new regulation, Timah will improve the diversification of its products by building a new Rp 250 billion-Rp 300 billion, 10 thousand ton tin-chemical plant. The plant will be situated in Tanjung Ular, Bangka Belitung.
Timah will kick-start the development of the plant this year.
The company already owns a 10 thousand ton tin chemical plant in Cilegon. The plant began producing tin chemical, which offers higher value than unprocessed tin, in August 2010 and will start producing at full capacity this year. Timah plans to increase the capacity to 20 thousand tons in the future.
The produced tin will be exported to Taiwan, Korea and Japan.
Higher Royalty
The royalty for tin currently stands at three percent. Of the toatl royalites, 16 percent goes to the central government, 20 percent to provincial governments, 32 to regional governments and another 32 percent to regions in the straight vicinity of the producing region.
Pri Agung Rahmanto, Executive Director of ReforMiner Institute, said that the royalties that mining companies pay must be revised to follow the price of their respective commodities.
The royalty scheme, according to Pri Agung, is less beneficial than the production sharing contracts, as the royalty scheme determines royalties by subtracting costs from the revenue of mining companies, which reduces the total revenue from mining royalties.
In 2010, the total royalties the government obtained from General mining companies reached Rp 9.73 trillion, versus Rp 8.7 trillion obtained in 2009.
Pri Agung suggests calculating royalties based on the gross revenue of mining companies without reducing the total with costs.
Indonesia is the world’s leading tin exporter. Based on data from the Ministry of Trade, last year, the country exported 92,486 tons worth US$ 1.71 billion, a 1.88 percent increase from the 90,779 tons exported in 2009.
In the first quarter, the country exported 39,288 tons, up 4.5 percent from the 37,609 tons sold a year earlier. (*)
Wednesday, June 8, 2011
America Worries Contract Renegotiation Would Harm Investors
JAKARTA (IFT) - The US government assesses that the Indonesian government’s policy to renegotiate mineral and coal mining contracts will have an impact on the sectors’ investment climate. Ted Osius, Deputy Ambassador of the United States, said that contract renegotiation—when related projects are already in progress—worries investors as there is a lack of certainty in Indonesia’s investment laws and regulation.
According to Osius, there are actually plenty of American companies who want to invest in Indonesia’s mining sector, if the country’s investment climate is transparent and there are clear legal certainties.
"Requests to conduct a contract evaluation in the middle of a project development would only create uncertainties," Osius said in Bekasi, Wednesday.
Indonesia, according to Osius, currently requires infrastructure constructions to sustain economic growth. Investors should be given the assurance to invest in Indonesia. "I believe that Indonesia could actually improve its growth to eight percent instead of the six percent set target, if the government improves its investment climate," he said.
Tom Cutler, Director of the Office of European and Asia-Pacific Affairs, said that the certainty is needed so that there will be no misinterpretations between investors and governments that harm either party. Investors are requesting that the Indonesian government comply with contract terms that were agreed upon. Cutler pointed out that when American companies wish to bid on offshore oil and gas blocks management, they often do not know whether there are differences in the contracts’ interpretation, particularly regarding the contract terms.
With a very high potential of mineral resources, Indonesia is deemed profitably interesting by American investors. In 2010, the total income of American companies in the oil and gas sector reached US$ 10 billion. Cutler did not mention the value of income and investments targeted this year.
In addition to the oil and gas sector, Cutler continued, American companies are starting to eye on the geothermal energy industry. Indonesia has geothermal energy resources amounting to 29 thousand MW, 40 percent of the world's total geothermal energy potential. (*)
Tuesday, June 7, 2011
Ancora Seeks US$ 30 M Loan
JAKARTA (IFT) - PT Ancora Indonesia Resources Tbk (OKAS), a coal mining company, is seeking a US$ 20 million-US$ 30 million loan to finance acquisitions. This is due to the delay in issuing new shares without preemptive rights (rights issue) which was originally scheduled this month.
Dharma Djojonegoro, Director of Ancora Indonesia, said that the company is eyeing several banks, the names of which were not disclosed. Ancora seeks alternative financing in the form of a loan as it wants to acquire a number of mining companies in addition to PT Raja Kutai Baru Makmur in East Kalimantan. Furthermore, since rights issuance can only be done once every year, the company considers to conduct multiple acquisitions before making a stock offer.
"That way, the bid can be higher—more attractive to capital markets," he said Tuesday.
According to Darma, the delay is due to the company’s ongoing due diligence on the corporate action—the result of an audit completed last month.
In addition, the company’s current share price is not of optimum value for a rights issue yet. In Tueasday’s trade, Ancora Resources’ shares closed at to Rp 320, a Rp 15 (4.92 percent) increase.
Dharma was unwilling to say which mines to acquire."We are basically looking for mines that can be expanded, either with the seller or just by Ancora," he said.
Ancora Resources originally planned to conduct a rights issue worth US$ 12 million-US$ 15 million to acquire 50.6 percent of Raja Kutai’s shares. Aulia Oemar, Finance Director of Ancora, said that the acquisition was completed in the second quarter of 2011. For the rights offering and the acquisition, Ancora is using financial statements from December 2010. However, Aulia refused to mention the percentage of shares to be issued.
Ancora will buy 50.6 percent (out of a 58 percent total) of Raja Kutai’s shares owned by Ancora Energy worth US$ 0.6 per ton of coal reserves. The minimum payment is US$ 10.5 million and the maximum is US$ 24 million.
Raja Kutai’s production is targeted to increase in the third quarter of 2011 to 100 thousand-150 thousand tons of coal per month. 2011’s first quarter production was 70 thousand tons per month.
All of Raja Kutai’s coals will be exported—mainly to China and India with a selling price of US$ 32-US$ 35 per ton (free on board). Raja Kutai has 500 hectares of concession area with proven reserves of around 9 million-15 million tons.
During the first quarter of 2011, Ancora Resources earned Rp 289.64 billion revenue, a decrease compared to same period last year (YOY) of Rp 359.63 billion. However, the company’s net profit increased to Rp 4.07 billion from Rp 1.78 billion, triggered by assets sales and exchange rate profits.
According to the IFT Research Department, a new debt of US$ 30 million would make Ancora’s debt-to-equity ratio to increase to 2.38 from 1.81. Ancora’s EBIT/Interest Expense ratio is 0.99, indicating it is almost equal to the amount of its interest expense. Therefore, the company must maintain profit growth so as not to erode earnings from the additional debt.
Based on its plan for equity financing, the company’s assets will automatically increase. Ancora must at least post Rp 5.02 billion quarterly net profit in order to keep its 0.33 percent first quarter return-on-assets from going down. (*)
2012 ICP Should Be US$ 75-95 per Barrel
JAKARTA (IFT) - The Ministry of Energy and Mineral Resources proposes for the Indonesian Crude Price in 2012 to be in the range of US$ 75 to US$ 95 per barrel, and lifting to be between 950 thousand to 970 thousand barrels per day. The proposal arises as there are concerns about oil supplies from the Middle East due to the political upheavals and security issues in the region, said government officials. The government hopes that oil supplies from the Organization of Petroleum Exporting Countries (OPEC) can be the determining factor to slow down the oil price increase.
Evita Herawati Legowo, Director General of Oil and Gas at the Ministry of Energy and Mineral Resources, said in early 2011 that oil price increased significantly due to the non-fundamental aspects, such as market sentiments caused by the fear of oil supply shortage from the Middle East. The Ministry of Energy noted that Indonesia's oil price in May is US$ 115.05 per barrel, lower from the US$ 123 per barrel in April.
"The recent development in world oil prices can be seen from WTI’s (West Texas Intermediate) oil, which is at US$ 100.59 per barrel and Brent’s oil at US$ 115.03 per barrel. High oil prices are also causing the economic slowdown in some areas, " she said Monday.
Kurtubi, oil analyst from the University of Indonesia, explained that next year’s world oil price movements will be driven by increasing demand, especially from China and India. Europe’s demand for oil is estimated to remain the same. The increase in oil consumption will not be followed by higher supplies from oil-producing countries.
Gde Pradnyana, Head of Public Relations, Security, and Formalities Division at BP Migas (Executive Agency for Upstream Oil and Gas), said that the Agency suggests that next year’s production target and oil lifting of oil to be in the range of 930 thousand to 950 thousand barrels per day.
BP Migas is not setting the same target as the government, as there is a high level of natural decline in existing oil blocks. "Developing existing fields will only compensate production which has a 15 percent natural decline. If we do nothing, the production could be under 800 thousand barrels per day," he said. (*)
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