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Friday, 08 June 12
NO IMMEDIATE IMPACT ON ADARO'S RATING FROM BEP TRANSACTION - FITCH RATINGS
 Fitch Ratings has said that PT Adaro Indonesia's (Adaro, 'BB+'/ Stable) ratings are not immediately affected by its parent PT Adaro Energy Tbk's (Adaro Energy) planned investment in greenfield coal miner PT Bhakti Energi Persada (BEP).
Adaro Energy recently signed an agreement for the right to acquire up to 51% of BEP over three years for up to USD500m through a convertible loan or to issue a pre-specified number of shares of Adaro Energy to the shareholders of BEP (participating in this agreement) in exchange for 79.8% of BEP. Adaro Energy currently owns 10.22% of BEP.
BEP has seven coal concessions, all IUPs (Izin Usaha Pertambangans - mining business licences), with estimated Australasian Joint Ore Reserves Committee (JORC)-compliant coal resources of 9.53 billion tonnes. Fitch expects that a large part of the investment required before bringing these resources to production will relate to the coal hauling road connecting the mines to barging and shipping points. Coal resources of BEP are of low energy content (3,379kcal on a gross as received basis) and as such will trade at a substantial discount to benchmark thermal coal prices. However, the favourable geology of BEP mines will allow the extraction of coal at an extremely low strip ratio (i.e., units of overburden to be removed on per unit of coal extracted) over the average life of a mine of below 0.5x as estimated by Adaro Energy, supporting the economic viability of these operations. The materially shorter supply chain of BEP's mines at 130km (versus 320km for Adaro's existing mines) would provide further support.
However, BEP coal mines have substantially lower cash margins than Adaro Energy's currently main cash generating mine, Tutupan, and are more susceptible to low coal prices. There is also uncertainty relating to coal mining regulations in Indonesia at present, such as restrictions on coal exports and a resource export tax. Any unfavourable regulatory developments can affect the commerciality of BEP's operations. However, Adaro Energy's options to invest in rather than an outright purchase of BEP resources provide a meaningful level of flexibility and safety. Fitch believes that any investments in the first half of the three-year option period will not be significant and can be funded from Adaro Energy's projected internal cash generation.
If successfully executed, BEP can over time contribute to the increasing diversity of Adaro Energy's mining operations. The limited diversity of Adaro Energy's existing mine sites is one of the factors currently constraining its ratings.
The ratings of Adaro are based on the credit profile of Adaro Energy given their strong rating linkages as per Fitch's parent-subsidiary linkage methodology. At end-March 2012 Adaro Energy's funds from operations (FFO)-adjusted gross leverage was 2.4x and FFO interest coverage 7.0x.
Negative rating action may result from FFO gross leverage rising above 2.75x or FFO interest coverage falling below 5x for two consecutive years. Other negative rating guidelines are material deviation from its policy of maintaining strong liquidity; adverse regulatory developments that will significantly impair Adaro Energy's financial profile; further substantial investments that weaken Adaro's financial or operating risk profile and a sustained weakening of coal prices.
Source: Fitch (Hong Kong) Limited
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Friday, 06 September 24
REBOUND IN OIL DEMAND COULD LIFT MARKET IN LATTER HALF OF 2024 - BIMCO
Supply/demand
Based on a strong second half demand, the supply/balance is forecast to strengthen in 2024 but weaken slightly in 2025 as n ...
Friday, 06 September 24
GLOBAL SEABORNE LNG TRADE HAS CONTINUED TO INCREASE LAST YEAR - BANCHERO COSTA
Global seaborne LNG trade has continued to increase last year, helped also by the events in Ukraine which forced Europe to diversify away from Russ ...
Wednesday, 28 August 24
SEABORNE COAL IMPORTS INTO INDIA INCREASED BY +9.9% Y-O-Y TO 146.6 MLN T - BANCHERO COSTA
Global coal trade has really picked up pace over the past year, and is now fully back to pre-Covid levels said Banchero Costa Research in its lates ...
Tuesday, 06 August 24
EXERCISE CAUTION WITH AMMONIA SWITCH - BALTIC EXCHANGE
A new study from the Massachusetts Institute of Technology (MIT) has thrown a spanner into the plan to transition ships from diesel fuel to ammonia ...
Friday, 02 August 24
ENERGY MARKET DEVELOPMENTS: COAL AND NATURAL GAS PRICES REACH RECORD HIGHS - WORLD BANK
The recent surge in natural gas and coal prices has been so swift that the main benchmarks were roughly three times higher in 2022Q2 compared to a ...
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- Jindal Steel & Power Ltd - India
- Bulk Trading Sa - Switzerland
- Posco Energy - South Korea
- Gujarat Sidhee Cement - India
- Mercuria Energy - Indonesia
- Kobexindo Tractors - Indoneisa
- GMR Energy Limited - India
- Power Finance Corporation Ltd., India
- Madhucon Powers Ltd - India
- Ministry of Transport, Egypt
- Dalmia Cement Bharat India
- Makarim & Taira - Indonesia
- IHS Mccloskey Coal Group - USA
- Australian Coal Association
- Sakthi Sugars Limited - India
- Cigading International Bulk Terminal - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Renaissance Capital - South Africa
- Bayan Resources Tbk. - Indonesia
- The State Trading Corporation of India Ltd
- Mercator Lines Limited - India
- Bhoruka Overseas - Indonesia
- Orica Australia Pty. Ltd.
- Sindya Power Generating Company Private Ltd
- Attock Cement Pakistan Limited
- Offshore Bulk Terminal Pte Ltd, Singapore
- Sarangani Energy Corporation, Philippines
- Alfred C Toepfer International GmbH - Germany
- Ceylon Electricity Board - Sri Lanka
- Directorate Of Revenue Intelligence - India
- Iligan Light & Power Inc, Philippines
- Medco Energi Mining Internasional
- Maheswari Brothers Coal Limited - India
- Barasentosa Lestari - Indonesia
- Georgia Ports Authority, United States
- Energy Link Ltd, New Zealand
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Sojitz Corporation - Japan
- Global Coal Blending Company Limited - Australia
- Rio Tinto Coal - Australia
- Electricity Authority, New Zealand
- White Energy Company Limited
- Jorong Barutama Greston.PT - Indonesia
- Tamil Nadu electricity Board
- Indika Energy - Indonesia
- Trasteel International SA, Italy
- Timah Investasi Mineral - Indoneisa
- Mjunction Services Limited - India
- Interocean Group of Companies - India
- Indian Oil Corporation Limited
- Jaiprakash Power Ventures ltd
- Commonwealth Bank - Australia
- Kalimantan Lumbung Energi - Indonesia
- Xindia Steels Limited - India
- Holcim Trading Pte Ltd - Singapore
- Port Waratah Coal Services - Australia
- Coalindo Energy - Indonesia
- Ministry of Finance - Indonesia
- Simpson Spence & Young - Indonesia
- Riau Bara Harum - Indonesia
- Videocon Industries ltd - India
- IEA Clean Coal Centre - UK
- Baramulti Group, Indonesia
- Kaltim Prima Coal - Indonesia
- Bhushan Steel Limited - India
- Marubeni Corporation - India
- Ambuja Cements Ltd - India
- Formosa Plastics Group - Taiwan
- International Coal Ventures Pvt Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Uttam Galva Steels Limited - India
- Anglo American - United Kingdom
- Kumho Petrochemical, South Korea
- OPG Power Generation Pvt Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Aboitiz Power Corporation - Philippines
- Semirara Mining Corp, Philippines
- Siam City Cement - Thailand
- Metalloyd Limited - United Kingdom
- Parliament of New Zealand
- Romanian Commodities Exchange
- Altura Mining Limited, Indonesia
- Borneo Indobara - Indonesia
- Meralco Power Generation, Philippines
- Minerals Council of Australia
- Indo Tambangraya Megah - Indonesia
- Wilmar Investment Holdings
- Eastern Coal Council - USA
- Bukit Baiduri Energy - Indonesia
- SMG Consultants - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Chamber of Mines of South Africa
- Kideco Jaya Agung - Indonesia
- Edison Trading Spa - Italy
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Pendopo Energi Batubara - Indonesia
- Therma Luzon, Inc, Philippines
- Essar Steel Hazira Ltd - India
- South Luzon Thermal Energy Corporation
- Sree Jayajothi Cements Limited - India
- Africa Commodities Group - South Africa
- Toyota Tsusho Corporation, Japan
- Globalindo Alam Lestari - Indonesia
- Economic Council, Georgia
- VISA Power Limited - India
- ICICI Bank Limited - India
- New Zealand Coal & Carbon
- Thiess Contractors Indonesia
- Sinarmas Energy and Mining - Indonesia
- SMC Global Power, Philippines
- Samtan Co., Ltd - South Korea
- European Bulk Services B.V. - Netherlands
- Bharathi Cement Corporation - India
- Chettinad Cement Corporation Ltd - India
- GAC Shipping (India) Pvt Ltd
- Parry Sugars Refinery, India
- Global Business Power Corporation, Philippines
- Thai Mozambique Logistica
- Directorate General of MIneral and Coal - Indonesia
- Planning Commission, India
- Central Java Power - Indonesia
- LBH Netherlands Bv - Netherlands
- Central Electricity Authority - India
- Banpu Public Company Limited - Thailand
- CNBM International Corporation - China
- Siam City Cement PLC, Thailand
- Antam Resourcindo - Indonesia
- Goldman Sachs - Singapore
- Vizag Seaport Private Limited - India
- Singapore Mercantile Exchange
- PTC India Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Neyveli Lignite Corporation Ltd, - India
- Petron Corporation, Philippines
- Manunggal Multi Energi - Indonesia
- PowerSource Philippines DevCo
- Indonesian Coal Mining Association
- The Treasury - Australian Government
- MS Steel International - UAE
- GN Power Mariveles Coal Plant, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- TNB Fuel Sdn Bhd - Malaysia
- San Jose City I Power Corp, Philippines
- TeaM Sual Corporation - Philippines
- Australian Commodity Traders Exchange
- Vedanta Resources Plc - India
- Standard Chartered Bank - UAE
- McConnell Dowell - Australia
- Sical Logistics Limited - India
- Deloitte Consulting - India
- Heidelberg Cement - Germany
- Lanco Infratech Ltd - India
- Indian Energy Exchange, India
- The University of Queensland
- London Commodity Brokers - England
- Grasim Industreis Ltd - India
- Eastern Energy - Thailand
- Bukit Makmur.PT - Indonesia
- Wood Mackenzie - Singapore
- Bhatia International Limited - India
- Kapuas Tunggal Persada - Indonesia
- Independent Power Producers Association of India
- Agrawal Coal Company - India
- Karaikal Port Pvt Ltd - India
- Kartika Selabumi Mining - Indonesia
- Global Green Power PLC Corporation, Philippines
- SN Aboitiz Power Inc, Philippines
- Malabar Cements Ltd - India
- GVK Power & Infra Limited - India
- Savvy Resources Ltd - HongKong
- Star Paper Mills Limited - India
- Merrill Lynch Commodities Europe
- Kohat Cement Company Ltd. - Pakistan
- Bangladesh Power Developement Board
- Meenaskhi Energy Private Limited - India
- Coal and Oil Company - UAE
- Rashtriya Ispat Nigam Limited - India
- Ind-Barath Power Infra Limited - India
- Latin American Coal - Colombia
- Kepco SPC Power Corporation, Philippines
- PNOC Exploration Corporation - Philippines
- Orica Mining Services - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Indogreen Group - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Pipit Mutiara Jaya. PT, Indonesia
- ASAPP Information Group - India
- CIMB Investment Bank - Malaysia
- Carbofer General Trading SA - India
- Maharashtra Electricity Regulatory Commission - India
- Oldendorff Carriers - Singapore
- Binh Thuan Hamico - Vietnam
- Aditya Birla Group - India
- Coastal Gujarat Power Limited - India
- Price Waterhouse Coopers - Russia
- India Bulls Power Limited - India
- Gujarat Electricity Regulatory Commission - India
- PetroVietnam Power Coal Import and Supply Company
- Bahari Cakrawala Sebuku - Indonesia
- Cement Manufacturers Association - India
- Larsen & Toubro Limited - India
- Tata Chemicals Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Electricity Generating Authority of Thailand
- Intertek Mineral Services - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Petrochimia International Co. Ltd.- Taiwan
- AsiaOL BioFuels Corp., Philippines
- Salva Resources Pvt Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Energy Development Corp, Philippines
- Mintek Dendrill Indonesia
- Straits Asia Resources Limited - Singapore
- Ministry of Mines - Canada
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