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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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Thursday, 22 December 22
RUSSIAN OIL EXPORTS CRATER BY 54% IN THE FIRST FULL WEEK OF THE EU'S EMBARGO AMID A SHORTAGE OF TANKERS WILLING TO CARRY CARGOES - BUSINESS INSIDER
Since the European Union imposed its seaborne crude sanctions, Russian oil exports have tumbled by more than half, according to data compiled by Bl ...
Thursday, 22 December 22
CHINA TIGHTENS VERIFICATION OF SHIPS’ ENERGY CONSUMPTION DATA - GARD
From 22 December 2022, ships trading to Chinese ports must record their energy consumption data in accordance with the requirements of their Ship E ...
Thursday, 22 December 22
AN OVERVIEW OF THE LNG MARKET - VESSELSVALUE
LNG values have continued to strengthen, spurred by skyrocketing earnings that have surpassed last year’s record breaking peaks. In November, ...
Thursday, 22 December 22
COKING COAL SLUMPS AS TALKS ON AUSTRALIA-CHINA TRADE RIFT LOOM - REUTERS
Chinese coking coal futures dropped more than 3 per cent on Tuesday (Dec 20), extending losses, as supply of the steelmaking input might increase i ...
Thursday, 22 December 22
COAL AND GAS PRICE CAPS MAY COMPOUND POLITICAL RISK FOR AUSTRALIAN CORPORATES - FITCH RATINGS
Australia’s introduction of temporary price caps on domestic sales of gas and coal used for electricity generation will probably have limited ...
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- Manunggal Multi Energi - Indonesia
- Mercuria Energy - Indonesia
- Agrawal Coal Company - India
- Medco Energi Mining Internasional
- Miang Besar Coal Terminal - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Global Green Power PLC Corporation, Philippines
- The Treasury - Australian Government
- PNOC Exploration Corporation - Philippines
- Sical Logistics Limited - India
- Deloitte Consulting - India
- Edison Trading Spa - Italy
- Power Finance Corporation Ltd., India
- PetroVietnam Power Coal Import and Supply Company
- Semirara Mining Corp, Philippines
- Kartika Selabumi Mining - Indonesia
- Ind-Barath Power Infra Limited - India
- Banpu Public Company Limited - Thailand
- Sarangani Energy Corporation, Philippines
- Coastal Gujarat Power Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- SMC Global Power, Philippines
- ASAPP Information Group - India
- Thiess Contractors Indonesia
- Rio Tinto Coal - Australia
- Maharashtra Electricity Regulatory Commission - India
- Neyveli Lignite Corporation Ltd, - India
- Parliament of New Zealand
- European Bulk Services B.V. - Netherlands
- GVK Power & Infra Limited - India
- Cement Manufacturers Association - India
- Standard Chartered Bank - UAE
- Georgia Ports Authority, United States
- Attock Cement Pakistan Limited
- LBH Netherlands Bv - Netherlands
- Maheswari Brothers Coal Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Oldendorff Carriers - Singapore
- Bhatia International Limited - India
- The State Trading Corporation of India Ltd
- IEA Clean Coal Centre - UK
- Baramulti Group, Indonesia
- Independent Power Producers Association of India
- Merrill Lynch Commodities Europe
- India Bulls Power Limited - India
- Videocon Industries ltd - India
- Bangladesh Power Developement Board
- Sindya Power Generating Company Private Ltd
- Ministry of Mines - Canada
- Wilmar Investment Holdings
- Parry Sugars Refinery, India
- Indonesian Coal Mining Association
- Essar Steel Hazira Ltd - India
- Coalindo Energy - Indonesia
- Kaltim Prima Coal - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Indogreen Group - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Ceylon Electricity Board - Sri Lanka
- Bayan Resources Tbk. - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Mjunction Services Limited - India
- Heidelberg Cement - Germany
- Ambuja Cements Ltd - India
- Singapore Mercantile Exchange
- Kepco SPC Power Corporation, Philippines
- Bukit Baiduri Energy - Indonesia
- Chamber of Mines of South Africa
- Formosa Plastics Group - Taiwan
- The University of Queensland
- Vijayanagar Sugar Pvt Ltd - India
- Bharathi Cement Corporation - India
- Rashtriya Ispat Nigam Limited - India
- Meenaskhi Energy Private Limited - India
- Mintek Dendrill Indonesia
- International Coal Ventures Pvt Ltd - India
- PTC India Limited - India
- Jaiprakash Power Ventures ltd
- Economic Council, Georgia
- Malabar Cements Ltd - India
- Binh Thuan Hamico - Vietnam
- Orica Australia Pty. Ltd.
- Directorate Of Revenue Intelligence - India
- TNB Fuel Sdn Bhd - Malaysia
- Sojitz Corporation - Japan
- Offshore Bulk Terminal Pte Ltd, Singapore
- Indo Tambangraya Megah - Indonesia
- Indika Energy - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Star Paper Mills Limited - India
- Global Business Power Corporation, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Tata Chemicals Ltd - India
- Kapuas Tunggal Persada - Indonesia
- McConnell Dowell - Australia
- Australian Commodity Traders Exchange
- Samtan Co., Ltd - South Korea
- SN Aboitiz Power Inc, Philippines
- Electricity Authority, New Zealand
- Sakthi Sugars Limited - India
- Thai Mozambique Logistica
- Gujarat Sidhee Cement - India
- Romanian Commodities Exchange
- Australian Coal Association
- San Jose City I Power Corp, Philippines
- Global Coal Blending Company Limited - Australia
- Tamil Nadu electricity Board
- Metalloyd Limited - United Kingdom
- Trasteel International SA, Italy
- Eastern Energy - Thailand
- Wood Mackenzie - Singapore
- Eastern Coal Council - USA
- Riau Bara Harum - Indonesia
- Renaissance Capital - South Africa
- Billiton Holdings Pty Ltd - Australia
- Pendopo Energi Batubara - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Makarim & Taira - Indonesia
- Toyota Tsusho Corporation, Japan
- GAC Shipping (India) Pvt Ltd
- Goldman Sachs - Singapore
- Mercator Lines Limited - India
- Commonwealth Bank - Australia
- Madhucon Powers Ltd - India
- CNBM International Corporation - China
- TeaM Sual Corporation - Philippines
- Indian Energy Exchange, India
- Karaikal Port Pvt Ltd - India
- Gujarat Electricity Regulatory Commission - India
- SMG Consultants - Indonesia
- Larsen & Toubro Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- VISA Power Limited - India
- Barasentosa Lestari - Indonesia
- Orica Mining Services - Indonesia
- Lanco Infratech Ltd - India
- Bhushan Steel Limited - India
- Iligan Light & Power Inc, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Savvy Resources Ltd - HongKong
- IHS Mccloskey Coal Group - USA
- Antam Resourcindo - Indonesia
- Chettinad Cement Corporation Ltd - India
- Aboitiz Power Corporation - Philippines
- New Zealand Coal & Carbon
- Price Waterhouse Coopers - Russia
- Altura Mining Limited, Indonesia
- Intertek Mineral Services - Indonesia
- Petron Corporation, Philippines
- Siam City Cement - Thailand
- Indian Oil Corporation Limited
- Energy Development Corp, Philippines
- Salva Resources Pvt Ltd - India
- Anglo American - United Kingdom
- Port Waratah Coal Services - Australia
- Jindal Steel & Power Ltd - India
- Kumho Petrochemical, South Korea
- Marubeni Corporation - India
- Minerals Council of Australia
- Siam City Cement PLC, Thailand
- Vedanta Resources Plc - India
- Grasim Industreis Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Straits Asia Resources Limited - Singapore
- Borneo Indobara - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Dalmia Cement Bharat India
- GMR Energy Limited - India
- Cigading International Bulk Terminal - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Vizag Seaport Private Limited - India
- Carbofer General Trading SA - India
- Ministry of Finance - Indonesia
- Posco Energy - South Korea
- ICICI Bank Limited - India
- Sree Jayajothi Cements Limited - India
- Bhoruka Overseas - Indonesia
- Kideco Jaya Agung - Indonesia
- Aditya Birla Group - India
- Directorate General of MIneral and Coal - Indonesia
- Leighton Contractors Pty Ltd - Australia
- London Commodity Brokers - England
- Central Java Power - Indonesia
- South Luzon Thermal Energy Corporation
- Globalindo Alam Lestari - Indonesia
- Energy Link Ltd, New Zealand
- Bahari Cakrawala Sebuku - Indonesia
- White Energy Company Limited
- CIMB Investment Bank - Malaysia
- Bukit Asam (Persero) Tbk - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Holcim Trading Pte Ltd - Singapore
- MS Steel International - UAE
- Africa Commodities Group - South Africa
- Ministry of Transport, Egypt
- Uttam Galva Steels Limited - India
- Sinarmas Energy and Mining - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Xindia Steels Limited - India
- Interocean Group of Companies - India
- Therma Luzon, Inc, Philippines
- PowerSource Philippines DevCo
- Coal and Oil Company - UAE
- Electricity Generating Authority of Thailand
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Timah Investasi Mineral - Indoneisa
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Bukit Makmur.PT - Indonesia
- Simpson Spence & Young - Indonesia
- Bulk Trading Sa - Switzerland
- Meralco Power Generation, Philippines
- Central Electricity Authority - India
- Kobexindo Tractors - Indoneisa
- Latin American Coal - Colombia
- OPG Power Generation Pvt Ltd - India
- Planning Commission, India
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