Parse and Debt Expansion Scheme, the Great PT BUMI Resources
Finance November 6th, 2009
No one else shares the spotlight with a very critical in Indonesian capital market universe as shares of PT Bumi Resources Tbk (BUMI), at least for now.
So critical, sometimes mistaken perception of follow-up facts. Yes, the storm rumors incessant strikes solid buildings owned conglomerate that had ranked the richest man in Indonesia, Aburizal Bakrie.
PT Bakrie & Brothers Tbk (BNBR) claim still holds 16% stake BUMI. But data PT Indonesian Central Securities Custodian (KSEI) recorded no single company or investors who own shares BUMI more than 5%. Apart from that, hard to let go of BUMI from the association with the Bakrie group.
And maybe that’s why the rumors and speculation as if a friend who lived closest to the BUMI. Because the parent did not escape the rumors an attack.
But what could I do, step and Bakrie group business strategy is often controversial. Doings of brave nan extreme behavior Bakrie group has been blamed to be one cause of the stock market collapse in 2008. But Bakrie Group’s success in making money also departs from the same strategy.
So was the BUMI. Largest coal companies in Indonesia as well as the largest coal exporter in the world, are now facing a myriad of questions and speculation market players due to the action of debt to U.S. $ 3.325 billion, which may increase again to the front.
BUMI accused of reckless action by the debt. Market participants then talked position BUMI debt burden, its impact on short-term performance of the company, until mengkait-kaitkannya with political campaign funds Aburizal Bakrie.
“Many people do not understand their own and then speculate about what we were doing. Even to this loan pointing to a political fund. It is not logical,” said SVP Investor Relations BUMI, Dileep Srivastava, in talk with detikFinance bincangnya, Monday (7 / 12 / 2009).
According to Dileep, speculation and rumors that developed among market participants do not have a clear basis. Especially about the position of the debt burden as often discussed BUMI market participants.
“People tend to see the impact that occurred within the short term, rather than see what we achieve and the benefits we would give our shareholders in the future,” said Dileep.
Dileep acknowledged that the expansion scheme which is being prepared may be classified as extreme BUMI and too brave. But according to him, BUMI did it not without calculation.
“The situation is similar when we decided to take over the KPC (PT Kaltim Prima Coal) and Arutmin (PT Arutmin Indonesia). When that many say we are too desperate to expand,” said Dileep.
BUMI took over 80% stake in Arutmin from BHP Billiton in 2001. The remaining 20% which is owned by PT Indonesia Ekakarsa Yasakarya which is also the Bakrie family group company completed in 2004.
KPC formerly owned British Petroleum and Rio Tinto with their respective ownership of 50%. BUMI KPC took over completely in 2003.
BUMI which was then a small energy company piecemeal, as a form of business change from previous businesses in the tourism sector which manages the hotel business in Uzbekistan, then get a reaction from market participants.
“In the midst of current economic conditions, in which banks provided loans difficult unless a high-interest, people wonder why we take high interest loans and great value. Worth a total of about U.S. $ 1.1 billion,” said Dileep.
With a loan of it, certainly not a party which he doubted whether BUMI management can continue to grow with the burden of debt and interest expense to be borne.
“As a result, all people can prove. In the years 2007-2008, we paid all the debt of U.S. $ 1.1 billion and the BUMI into a big company with zero debt (zero debt), only with a 30% stake in KPC and Arutmin to Tata,” explained.
“You are investing billions of dollars and all return in just 4 years. Are there other companies that are able to do this other than BUMI?” he added.
Dileep optimistic attitude really justified. With investment of U.S. $ 1.1 billion that they say desperate, BUMI managed to pay off all at once scored EBITDA (earnings before interest, taxes, and amortization demortisasi) highest in the history of the company in 2008.
“BUMI to pay off the entire debt of U.S. $ 1.1 billion in 2008, along with increased production of up to 2-fold in 2008. And therefore, our EBITDA was the highest score ever achieved in the year 2008,” he said.
BUMI coal production of 40 million tons in 2003. In 2008, coal production rose to 52.8 BUMI million tons. BUMI income in 2004 amounted to Rp 9.811 trillion. In the year 2008, revenues approaching BUMI: U.S. $ 4 billion (nearly USD 40 trillion).
BUMI net profit in 2004 amounted to Rp 1.21 trillion. In the year 2008, net income increased dramatically BUMI to U.S. $ 654 million (approximately USD 6.5 trillion).
The intricacies of debt is U.S. $ 3.325 Billion
Success of KPC and Arutmin acquisition, BUMI is now planning a massive ekspasi. Since the period August to December 2009, BUMI giant funding reached with a total value reached U.S. $ 3.325 billion.
Here’s a list of external funding obtained BUMI:
On August 5, 2009, BUMI through Enercoal Resources Pte Ltd issued convertible bonds worth U.S. $ 375 million. This convertible bond 5-year term with a fixed interest coupon of 9.25%. BUMI provide cash settlement options on this convertible bond maturity in 2014.
In September 2009, BUMI through the BUMI Netherlands BV won the giant loan from China Investment Corporation (CIC) worth U.S. $ 1.9 billion. This loan is divided into 3 structures of the first loan of U.S. $ 600 million 4-year term, the second loan of U.S. $ 600 million 5-year term and the third loan of U.S. $ 700 million 6-year term. Three berkupon loan interest rate of 12% a year with the addition of the Internal Rate of Return (IRR) of 7% during each of these loans fall due.
On November 13, 2009, BUMI conventional issue bonds worth U.S. $ 300 million. 7th term bonds this year to give a coupon interest rate of 12% per year.
On November 25, 2009, BUMI through Enercoal, once again issued convertible bonds worth U.S. $ 300 million. This convertible bond tenor 7 years with a coupon rate of 5%.
BUMI also obtained a loan facility worth U.S. $ 300 million from Credit Suisse.
Latest, BUMI short-term loans reached 6 months of JP Morgan worth U.S. $ 150 million on December 7, 2009.
Details of the use of these funds as follows:
Investments and acquisitions worth U.S. $ 1.419 billion.
Refinancing debt (refinancing) worth U.S. $ 1.3 billion.
Capital expenditure (capital expenditure / capex) worth U.S. $ 314 million.
Equity swap worth U.S. $ 240 million.
Cap called option on convertible bonds worth U.S. $ 52 million.
According to Dileep, BUMI could not do refinancing of its debts worth U.S. $ 1.3 billion because the company still has internal cash of U.S. $ 1 billion.
“We have a loan of U.S. $ 1,2-1,3 billion which will mature in 2009, 2010 and 2011. Our internal cash sufficient to pay it off, there are currently around U.S. $ 1 billion,” he said.
BUMI Organic Expansion Scheme
Dileep said that, if the company does not reach a new financing with longer maturity than the loans that will mature in 2009-2011, then the internal cash is not available for project development.
“With this new funding, which the new payment will begin in 2013, we have the flexibility to use our internal cash. The funds will be used for project development Herald, Gorontalo, Citra Palu, Mauritania, Fajar Bumi Sakti (FBS) and Pendopo, “Dileep said.
Following the project development scheme:
Herald Resources Ltd (lead and zinc) amounted to U.S. $ 211 million. Schedule operations in 2011. Projected increase in EBITDA of U.S. $ 150 million per year.
Gorontalo (gold) and Citra Palu (copper) of U.S. $ 500 million. Schedule operations in 2013. Projected increase in EBITDA of U.S. $ 900 million per year.
Mauritania (iron ore) is U.S. $ 300 million. The operation is scheduled in 2013. Projected increase in EBITDA of U.S. $ 250 million per year.
FBS and Pendopo (coal) amounted to U.S. $ 150 million. Schedule operations in 2011-2013. Projected increase in EBITDA of U.S. $ 100 million per year.
4 Total investment in these projects reached U.S. $ 1.161 billion to be financed from internal cash BUMI who has freely for use after the refinancing of debt maturing 2009-2011.
In addition, the BUMI is also targeting coal production of KPC and Arutmin 111 million tons in 2012. For that, two golden child of this BUMI will capex budget of U.S. $ 1.1 billion.
“KPC and Arutmin fund the production capacity of their own internal cash. So do not come from cash BUMI. Through increased capacity to 111 million tons in 2012, EBITDA will rise to U.S. $ 800 million per year,” said Dileep.
Thus, the total investment value BUMI KPC and Arutmin and reached U.S. $ 2.261 billion. However, EBITDA increased projection of all this development reached U.S. $ 2.2 billion per year, worth the money to be disbursed.
4 Because the project development using internal cash BUMI and the KPC and Arutmin capex from internal cash itself, then the BUMI is still a fund acquisitions and investment of U.S. $ 1.419 billion.
“As much as U.S. $ 500 million used for repayment immediately Fajar Bumi Sakti acquisition, Pendopo and Darma Henwa,” said Dileep.
Dileep Although not mentioned in detail, but after deducting U.S. $ 500 million is, roughly BUMI still has a fresh funds for investment and acquisitions of U.S. $ 919 million.
Newmont Acquisitions
The next expansion scheme is the acquisition of Newmont. Dileep spoke up about this.
“Most of the remaining funds will be disbursed to the PT Multi Region Compete (MDB) in the form of loans to acquire 24% stake in Newmont,” said Dileep.
MDB is a joint venture between PT Multicapital (75%) and the regional government of West Nusa Tenggara (25%) in the acquisition of 24% stake in PT Newmont Nusa Tenggara. Multicapital an BUMI subsidiary indirectly by ownership of 99%.
Total funds to be spent for the acquisition of MDB 24% stake in Newmont reached U.S. $ 884 million.
BUMI has disbursed loans amounting to U.S. $ 391 million to the MDB for the acquisition of Newmont’s 10% stake. In late December 2009, BUMI will return to lend U.S. $ 493 million to acquire 14% stake in Newmont rest.
About profits to be earned through the acquisition BUMI indirect 24% stake in Newmont has not yet been estimated. However, current projections, Newmont estimated net profit would more than U.S. $ 600 million in 2009.
“I can not say how the revenue will be obtained from Newmont in the future. But you calculate yourself based on Newmont’s profit projections for the portion of our ownership of Newmont,” he said.
Wishing all acquisition funds Newmont’s 24% stake for U.S. $ 884 million has been disbursed, the funds remaining roughly there are around U.S. $ 35 million.
Berau & BHP Billiton
BUMI expansion scheme does not stop until Newmont. BUMI is currently designing the expansion to the coal marketing sector. One of the first target is the follow-up to market the coal produced by PT Berau Coal recently acquired by Recapital Advisors.
“We will start investing in the marketing of coal. The purpose for forming the bargaining position of the formation of coal price in the market. Discussion are underway with Recapital,” he said.
Dileep also revealed the company’s follow-up to offer to the planned divestment of Coking coal mines. Unfortunately he did not mention his name.
But almost certainly, mining concessions referred Coking Coal is owned by BHP Billiton Maruwai located in East Kalimantan. Dileep is also not able to mention the funds perseroann prepared for this purpose.
“If necessary, we may seek funding again in the market,” he said.
Issuance of New Shares
Later the news was widely said that BUMI is planning for the issuance of new shares linked mengkait CIC would be a buyer standby (standby buyer) with the goal to shareholders BUMI.
Dileep spoke up about this. According to him, the issuance of new shares is one option under study company. About the CIC as a standby buyer, Dileep is also not able to provide certainty.
“According to regulations, it is possible to open a company issuing new shares to obtain funding. It’s one of the options we also examined if necessary. But what kind of mechanism, not yet finalized,” he said.
Thus the scheme would be all-debt expansion and the BUMI: it invites controversy. Though many doubted the potential for success, but admitted BUMI optimistic if all this works, then starting in 2013, BUMI will record a stunning financial performance.
“Our projections, starting in 2013 revenues will double from what was achieved in 2008,” he said.
Although There FTA, May Still economy Growth Manufacturing sector 4.55%
Economy November 6th, 2009
The government projected the growth of manufacturing industry in 2010 could reach 4.55%. Although free trade agreement (FTA / Free Trade Agreement) ASEAN-China has been applied.
“ASEAN-China FTA is still a difference but not too big,” said Minister of Industry, MS Hidayat in the Office of Coordinating Minister for Economic Affairs, Jalan Lapangan Banteng, Jakarta, Monday (4/1/2009).
Hidayat rate of growth of manufacturing industry was able to remain positive because of the large contributions from leading sectors such as food beverages, tobacco, printing, cement industry, and some types of metal.
“They contribute, so that the total growth of 4.55%,” he said.
As for the textile sector can still contribute a large part in the growth of the manufacturing industry.
“I do not put textiles in high growth, because there are zero point. Tesktil was still able to grow positive because there is machinery restructuring program that helped to increase its competitiveness,” he said.
2010 Economic Growth to achieve, RI Rely Export and Investment
Economy November 6th, 2009
2010 Economic Growth to achieve, RI Rely Export and Investment
The government will rely on exports and investment to achieve economic growth target in 2010 is pegged by 5,5-5,6%.
This was conveyed by Coordinating Minister Hatta Radjasa in exposure Economic Performance Evaluation and Outlook 2009 in Office 2010 Coordinating Minister for Economic Affairs, Jalan Lapangan Banteng, Jakarta, Monday (4/1/2010).
“If we supported in 2009 government spending and consumption. But this year we expect economic growth driven by exports and investment,” said Hatta.
Hatta declared, along with improving the condition of the world economy of Indonesia’s export performance in 2010 is estimated to be better than the year 2009 that will grow at a rate of about 5.1%.
Hatta explained this in household consumption is expected to experience growth of 5.3% or slightly higher than expected growth in household consumption in 2009.
Meanwhile, government spending still will grow quite well in 2010. Budget 2010 is designed to remain expansionary, and still provide incentives for This real sector.
“For the year 2010, spending is expected to grow pemeirntah a rate of 9.3%,” he said.
With the increase in export activity and domestic demand, imports Hatta project in 2010 will grow at a rate of 7.2%.
The increased demand at home and abroad, and began to decrease uncertainty in the world economy, is expected to encourage the business to realize more of their investment plans.
“In 2010, the investment is expected to grow about 7.2%,” he explained.
British Airways Company Cut 1200 More Jobs
Company Info November 6th, 2009
British Airways (BA), Friday (6 / 11) revealed a net loss in the first half four times the same period the previous year and an additional 1200 jobs cut in the program “important” cost reduction.
BA recorded a loss after tax of 217 million pounds (242 million euros, U.S. $ 361 million) for six months until September 30, compared with a loss of 49 million pounds in the same period in 2008.
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“Aviation remains in recession,” BA chief executive Willie Walsh said in a commentary that accompanied the news of the losses in the company.
“With revenues (BA) is likely to be one billion pounds lower this year, we can not keep silent and more significant cost reductions,” he warned.
British Airways said it would cut an additional 1200 jobs, taking total 4900 reduction plan in 2010.
Most of the new disadvantages are outside the UK and follow the high response from the staff who agree to work part time or take voluntary redundancy to help secure the future of the airline.
Reacting to the news of new cost-cutting measures, BA share price rallied 6.28% to 198 pence on the London FTSE 100 index which rose 0.23% to 5137.32 points in midday trading.
BA also announced on Friday that the group sales down nearly 14% to 4.1 billion pounds in the first half.
Some commercial airlines around the world suffered badly from the downturn of the global economy that has cut demand for air travel and the trigger squeezed big cash for this sector.
However, on Monday, low-cost airline of Ireland, Ryanair said that net profit had risen 80% to 387 million euros (U.S. $ 570.8 million) in April-September compared with a figure for the same period 12 months earlier.
On Thursday, the Italian airline Alitalia reports first operating profit since the acquisition by an alliance of business interests of Italy in January.
Meanwhile, BA, in an effort to improve profits and return loss against British rival, Virgin, launched an all business class service from London to New York late September.
Previous efforts of all business class service from airlines like Maxjet and Silverjet failed to turn into the worst decline since the 1930s.
Earlier this year, British Airways decided to remove all the free food other than breakfast on short haul flights in an effort to reduce operating costs.
BA suffered an annual loss of 375 million pounds in the 2008-09 financial year blamed on fuel costs high
Kalla ready called for century bank
Bank November 6th, 2009
Former Vice President Jusuf Kalla, on Thursday, declared ready and willing to fulfill the call of the House of Representatives Committee Questionnaire related scandal Century Bank.
“I have not received a summons related to the Parliament the right questionnaire for the Century, but as a citizen I am required to meet the calls,” he said in Makassar, South Sulawesi, on Thursday.
About its readiness to answer questions that may be related to House members proposed that, Kalla insists that he will respond in accordance with the experienced and known.
“It all depends on what was asked later, angketnya committee also has not been established,” he said.
Right questionnaire was discussed at Century Consultative Body, the House of Representatives. Up to now more and more members of the House of Representatives supports the right of inquiry, even the Democratic Party faction which had not yet given dukngan, have expressed support.
According to the plan, the committee discussed the questionnaire Century Bank after it was decided at the plenary session of December 1, 2009.
For the formation of committees, each faction immediately submit the names of the committee as a candidate questionnaire totaling 30 people.
Thus, the committee can get to work questionnaire and answer the public doubts the government with the scandal of this Century Bank.
Bailout to save the Century Bank disbursed Boediono served as Vice Governor of Bank Indonesia (BI).
Boediono himself has expressed support for the right questionnaire for the case of granting bail Century Bank to the issue could become clear.
“I support the right of inquiry (Century Bank) and I’m sure the government can get through the process properly, because many can be explained in the forum (right Questionnaire) is,” said Vice President Boediono as a dialogue with Jakarta Foreign Correspondent Club (JFCC) Jakarta.
Vice President explained that at that time the government and BI have implemented a policy of “bailout” of Century Bank in accordance with existing legal corridor. According to the policy Boediono made considering the global crisis.
Meanwhile, the Association of the Society for humanity and Justice (Humanika) held a demonstration in front of the MPR / DPR, Thursday (26.11.2009) this afternoon.
Protesters urged and supported the use of questionnaires to investigate the rights flows Rp6, 7 trillion in the Century Bank. In addition, they also demanded legal action against officials who had issued a policy in the disbursement of bailouts
In the action, hundreds of people from various parts of students and society doll throwing two illustrated Finance Minister Sri Mulyani and Vice President Boediono with rotten tomatoes. They considered these two figures most responsible for the scandal bertagung Century Bank.
Koodinator action of Humanika, Sugeng Priadi said, “Essentially we encourage the board members to the right of this poll should not be stopped. Angket Century must pass in a plenary session.”
He admitted so appalled by the amount of money to people who digelontorkan these defaulted bank without any transparency. “Miris once Rp6, 7 trillion wasted, where the flight does not know. If the money was used to kesahatan, education, and others will be more beneficial,” Sugeng said.
According to him, Century Bank scandal is similar BLBI case, because the only benefit the officers or businessmen who rob people of money is so big.
“That’s what we demand. This should be completed. This is not to just get here, just a wind-wind course, pushed around, but after a committee formed diparipurnakan and it stuck,” explained Sugeng warned.
After doing the action almost one hour, the protesters later dispersed. Demo does not interfere with traffic flow around the Senayan the falling rain. From various sources
