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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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Monday, 19 December 22
ENERGY CRISIS FUELS COAL COMEBACK IN GERMANY - REUTERS
Coal has made a comeback in Germany this year, as Europe’s largest economy turns to the dirty fuel to power it through an energy crisis.
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Thursday, 15 December 22
MARKET INSIGHT - INTERMODAL
While observing the ship repair market very close to the end of the year, we are confident that shipyards worldwide are entering a new era. The nex ...
Tuesday, 13 December 22
STRONG COAL PRICES SUPPORT ROBUST EARNINGS AT INDONESIAN COAL MINERS - FITCH RATINGS
Fitch Ratings expects cash flow generation at Indonesian coal miners to remain strong in 2023, based on its forecast for coal prices to remain high ...
Tuesday, 13 December 22
BIMCO CII CLAUSE FINALLY RELEASED: DOES IT MAKE ANY SENSE OF CCI? - WFW
WHAT IS CII?
The new International Maritime Organisation’s (“IMO’s”) Carbon Intensity Indicator (“CII”) cer ...
Tuesday, 13 December 22
COAL BASE RAMPS UP ENERGY SUPPLY FOR WINTER NEEDS - XINHUA
Inner Mongolia Autonomous Region, China’s leading coal production base, has kicked its production into high gear to meet heating needs as col ...
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- MS Steel International - UAE
- Samtan Co., Ltd - South Korea
- Indo Tambangraya Megah - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- SMC Global Power, Philippines
- Merrill Lynch Commodities Europe
- Kohat Cement Company Ltd. - Pakistan
- McConnell Dowell - Australia
- Barasentosa Lestari - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Medco Energi Mining Internasional
- Australian Commodity Traders Exchange
- Billiton Holdings Pty Ltd - Australia
- Kalimantan Lumbung Energi - Indonesia
- The Treasury - Australian Government
- Metalloyd Limited - United Kingdom
- Orica Australia Pty. Ltd.
- Electricity Authority, New Zealand
- Siam City Cement - Thailand
- Agrawal Coal Company - India
- Parliament of New Zealand
- Karbindo Abesyapradhi - Indoneisa
- Energy Link Ltd, New Zealand
- Jindal Steel & Power Ltd - India
- Krishnapatnam Port Company Ltd. - India
- Indian Oil Corporation Limited
- Oldendorff Carriers - Singapore
- Sarangani Energy Corporation, Philippines
- Coastal Gujarat Power Limited - India
- Cement Manufacturers Association - India
- GVK Power & Infra Limited - India
- Global Business Power Corporation, Philippines
- Planning Commission, India
- Sakthi Sugars Limited - India
- Meralco Power Generation, Philippines
- Madhucon Powers Ltd - India
- Leighton Contractors Pty Ltd - Australia
- Vizag Seaport Private Limited - India
- Edison Trading Spa - Italy
- Therma Luzon, Inc, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Straits Asia Resources Limited - Singapore
- Dalmia Cement Bharat India
- Miang Besar Coal Terminal - Indonesia
- Ambuja Cements Ltd - India
- Bhushan Steel Limited - India
- Singapore Mercantile Exchange
- Kartika Selabumi Mining - Indonesia
- Kideco Jaya Agung - Indonesia
- Coalindo Energy - Indonesia
- Indonesian Coal Mining Association
- Uttam Galva Steels Limited - India
- Petron Corporation, Philippines
- GAC Shipping (India) Pvt Ltd
- Carbofer General Trading SA - India
- Trasteel International SA, Italy
- Energy Development Corp, Philippines
- Chamber of Mines of South Africa
- Minerals Council of Australia
- The State Trading Corporation of India Ltd
- European Bulk Services B.V. - Netherlands
- ICICI Bank Limited - India
- TeaM Sual Corporation - Philippines
- Central Java Power - Indonesia
- Toyota Tsusho Corporation, Japan
- Port Waratah Coal Services - Australia
- Gujarat Mineral Development Corp Ltd - India
- Gujarat Sidhee Cement - India
- AsiaOL BioFuels Corp., Philippines
- Mintek Dendrill Indonesia
- Independent Power Producers Association of India
- Heidelberg Cement - Germany
- London Commodity Brokers - England
- Latin American Coal - Colombia
- Parry Sugars Refinery, India
- Deloitte Consulting - India
- Power Finance Corporation Ltd., India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Pipit Mutiara Jaya. PT, Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Riau Bara Harum - Indonesia
- South Luzon Thermal Energy Corporation
- Mjunction Services Limited - India
- Interocean Group of Companies - India
- Bukit Baiduri Energy - Indonesia
- Rio Tinto Coal - Australia
- Chettinad Cement Corporation Ltd - India
- Indika Energy - Indonesia
- White Energy Company Limited
- Makarim & Taira - Indonesia
- Posco Energy - South Korea
- Grasim Industreis Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Global Coal Blending Company Limited - Australia
- Georgia Ports Authority, United States
- Africa Commodities Group - South Africa
- Karaikal Port Pvt Ltd - India
- Bhoruka Overseas - Indonesia
- Australian Coal Association
- Ministry of Transport, Egypt
- Standard Chartered Bank - UAE
- Renaissance Capital - South Africa
- Electricity Generating Authority of Thailand
- Pendopo Energi Batubara - Indonesia
- Lanco Infratech Ltd - India
- Jaiprakash Power Ventures ltd
- Petrochimia International Co. Ltd.- Taiwan
- Meenaskhi Energy Private Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- SN Aboitiz Power Inc, Philippines
- SMG Consultants - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Thai Mozambique Logistica
- Ind-Barath Power Infra Limited - India
- Alfred C Toepfer International GmbH - Germany
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Siam City Cement PLC, Thailand
- Global Green Power PLC Corporation, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Vedanta Resources Plc - India
- International Coal Ventures Pvt Ltd - India
- Thiess Contractors Indonesia
- Iligan Light & Power Inc, Philippines
- Ceylon Electricity Board - Sri Lanka
- Commonwealth Bank - Australia
- Cigading International Bulk Terminal - Indonesia
- Salva Resources Pvt Ltd - India
- Wood Mackenzie - Singapore
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Simpson Spence & Young - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- IEA Clean Coal Centre - UK
- Goldman Sachs - Singapore
- Binh Thuan Hamico - Vietnam
- Kumho Petrochemical, South Korea
- Tamil Nadu electricity Board
- The University of Queensland
- CIMB Investment Bank - Malaysia
- Bharathi Cement Corporation - India
- ASAPP Information Group - India
- Sinarmas Energy and Mining - Indonesia
- Attock Cement Pakistan Limited
- Manunggal Multi Energi - Indonesia
- Indogreen Group - Indonesia
- Bhatia International Limited - India
- Larsen & Toubro Limited - India
- Bayan Resources Tbk. - Indonesia
- Malabar Cements Ltd - India
- Aditya Birla Group - India
- Kapuas Tunggal Persada - Indonesia
- Mercuria Energy - Indonesia
- Intertek Mineral Services - Indonesia
- OPG Power Generation Pvt Ltd - India
- PTC India Limited - India
- Semirara Mining Corp, Philippines
- Wilmar Investment Holdings
- Aboitiz Power Corporation - Philippines
- Maharashtra Electricity Regulatory Commission - India
- Price Waterhouse Coopers - Russia
- PowerSource Philippines DevCo
- Kobexindo Tractors - Indoneisa
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- GMR Energy Limited - India
- Marubeni Corporation - India
- Tata Chemicals Ltd - India
- CNBM International Corporation - China
- Sical Logistics Limited - India
- Mercator Lines Limited - India
- Maheswari Brothers Coal Limited - India
- Romanian Commodities Exchange
- Borneo Indobara - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Formosa Plastics Group - Taiwan
- Sojitz Corporation - Japan
- Coal and Oil Company - UAE
- Eastern Coal Council - USA
- Antam Resourcindo - Indonesia
- LBH Netherlands Bv - Netherlands
- Timah Investasi Mineral - Indoneisa
- Bangladesh Power Developement Board
- San Jose City I Power Corp, Philippines
- Globalindo Alam Lestari - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Altura Mining Limited, Indonesia
- Gujarat Electricity Regulatory Commission - India
- Banpu Public Company Limited - Thailand
- Bukit Makmur.PT - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- IHS Mccloskey Coal Group - USA
- Baramulti Group, Indonesia
- Bulk Trading Sa - Switzerland
- Sree Jayajothi Cements Limited - India
- Ministry of Finance - Indonesia
- Indian Energy Exchange, India
- Ministry of Mines - Canada
- India Bulls Power Limited - India
- Sindya Power Generating Company Private Ltd
- Kepco SPC Power Corporation, Philippines
- Orica Mining Services - Indonesia
- Directorate Of Revenue Intelligence - India
- Star Paper Mills Limited - India
- Essar Steel Hazira Ltd - India
- Xindia Steels Limited - India
- Videocon Industries ltd - India
- Eastern Energy - Thailand
- Economic Council, Georgia
- Central Electricity Authority - India
- PNOC Exploration Corporation - Philippines
- Semirara Mining and Power Corporation, Philippines
- Neyveli Lignite Corporation Ltd, - India
- Anglo American - United Kingdom
- New Zealand Coal & Carbon
- Kaltim Prima Coal - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- VISA Power Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Savvy Resources Ltd - HongKong
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