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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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- The State Trading Corporation of India Ltd
- Edison Trading Spa - Italy
- Lanco Infratech Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- SMC Global Power, Philippines
- Mercator Lines Limited - India
- Orica Australia Pty. Ltd.
- Indogreen Group - Indonesia
- PTC India Limited - India
- Gujarat Sidhee Cement - India
- Bharathi Cement Corporation - India
- CIMB Investment Bank - Malaysia
- Kobexindo Tractors - Indoneisa
- Bhoruka Overseas - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- India Bulls Power Limited - India
- Goldman Sachs - Singapore
- SN Aboitiz Power Inc, Philippines
- Alfred C Toepfer International GmbH - Germany
- Bukit Asam (Persero) Tbk - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- White Energy Company Limited
- Leighton Contractors Pty Ltd - Australia
- Aditya Birla Group - India
- ICICI Bank Limited - India
- Sojitz Corporation - Japan
- Binh Thuan Hamico - Vietnam
- TNB Fuel Sdn Bhd - Malaysia
- Formosa Plastics Group - Taiwan
- Sindya Power Generating Company Private Ltd
- Attock Cement Pakistan Limited
- Simpson Spence & Young - Indonesia
- Central Electricity Authority - India
- Siam City Cement PLC, Thailand
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- The University of Queensland
- Cigading International Bulk Terminal - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Electricity Generating Authority of Thailand
- Straits Asia Resources Limited - Singapore
- Meralco Power Generation, Philippines
- Eastern Coal Council - USA
- Globalindo Alam Lestari - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Posco Energy - South Korea
- LBH Netherlands Bv - Netherlands
- Heidelberg Cement - Germany
- TeaM Sual Corporation - Philippines
- Medco Energi Mining Internasional
- Semirara Mining and Power Corporation, Philippines
- Uttam Galva Steels Limited - India
- Riau Bara Harum - Indonesia
- PNOC Exploration Corporation - Philippines
- Thai Mozambique Logistica
- Baramulti Group, Indonesia
- Kartika Selabumi Mining - Indonesia
- New Zealand Coal & Carbon
- Jindal Steel & Power Ltd - India
- Essar Steel Hazira Ltd - India
- Romanian Commodities Exchange
- Karaikal Port Pvt Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- VISA Power Limited - India
- Kideco Jaya Agung - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Ambuja Cements Ltd - India
- Thiess Contractors Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Ministry of Finance - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Mercuria Energy - Indonesia
- Kumho Petrochemical, South Korea
- Petron Corporation, Philippines
- Bhushan Steel Limited - India
- Carbofer General Trading SA - India
- Singapore Mercantile Exchange
- Planning Commission, India
- Standard Chartered Bank - UAE
- Global Coal Blending Company Limited - Australia
- Oldendorff Carriers - Singapore
- South Luzon Thermal Energy Corporation
- CNBM International Corporation - China
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Gujarat Electricity Regulatory Commission - India
- Energy Link Ltd, New Zealand
- Karbindo Abesyapradhi - Indoneisa
- Independent Power Producers Association of India
- Semirara Mining Corp, Philippines
- PetroVietnam Power Coal Import and Supply Company
- Metalloyd Limited - United Kingdom
- Sree Jayajothi Cements Limited - India
- Indian Energy Exchange, India
- IHS Mccloskey Coal Group - USA
- Anglo American - United Kingdom
- Altura Mining Limited, Indonesia
- Rashtriya Ispat Nigam Limited - India
- Energy Development Corp, Philippines
- Rio Tinto Coal - Australia
- Xindia Steels Limited - India
- Coalindo Energy - Indonesia
- Price Waterhouse Coopers - Russia
- Kaltim Prima Coal - Indonesia
- Ministry of Transport, Egypt
- Bulk Trading Sa - Switzerland
- Toyota Tsusho Corporation, Japan
- Minerals Council of Australia
- Krishnapatnam Port Company Ltd. - India
- Borneo Indobara - Indonesia
- Renaissance Capital - South Africa
- Australian Coal Association
- Indian Oil Corporation Limited
- Savvy Resources Ltd - HongKong
- Jaiprakash Power Ventures ltd
- Aboitiz Power Corporation - Philippines
- Bangladesh Power Developement Board
- Trasteel International SA, Italy
- IEA Clean Coal Centre - UK
- Vizag Seaport Private Limited - India
- Bhatia International Limited - India
- Larsen & Toubro Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- McConnell Dowell - Australia
- GN Power Mariveles Coal Plant, Philippines
- Agrawal Coal Company - India
- GVK Power & Infra Limited - India
- Georgia Ports Authority, United States
- Asmin Koalindo Tuhup - Indonesia
- Videocon Industries ltd - India
- Gujarat Mineral Development Corp Ltd - India
- Vedanta Resources Plc - India
- Star Paper Mills Limited - India
- Directorate Of Revenue Intelligence - India
- Intertek Mineral Services - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Australian Commodity Traders Exchange
- Maheswari Brothers Coal Limited - India
- Chamber of Mines of South Africa
- SMG Consultants - Indonesia
- European Bulk Services B.V. - Netherlands
- Wilmar Investment Holdings
- Tamil Nadu electricity Board
- Global Green Power PLC Corporation, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Bayan Resources Tbk. - Indonesia
- Deloitte Consulting - India
- San Jose City I Power Corp, Philippines
- Malabar Cements Ltd - India
- Electricity Authority, New Zealand
- Latin American Coal - Colombia
- Tata Chemicals Ltd - India
- Bukit Baiduri Energy - Indonesia
- Indonesian Coal Mining Association
- Grasim Industreis Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Economic Council, Georgia
- Indika Energy - Indonesia
- Samtan Co., Ltd - South Korea
- Sakthi Sugars Limited - India
- Therma Luzon, Inc, Philippines
- Wood Mackenzie - Singapore
- Interocean Group of Companies - India
- London Commodity Brokers - England
- Antam Resourcindo - Indonesia
- MS Steel International - UAE
- The Treasury - Australian Government
- Pipit Mutiara Jaya. PT, Indonesia
- Power Finance Corporation Ltd., India
- Neyveli Lignite Corporation Ltd, - India
- Timah Investasi Mineral - Indoneisa
- Central Java Power - Indonesia
- Marubeni Corporation - India
- OPG Power Generation Pvt Ltd - India
- Holcim Trading Pte Ltd - Singapore
- Port Waratah Coal Services - Australia
- Merrill Lynch Commodities Europe
- Orica Mining Services - Indonesia
- Global Business Power Corporation, Philippines
- Coastal Gujarat Power Limited - India
- Kepco SPC Power Corporation, Philippines
- Iligan Light & Power Inc, Philippines
- GAC Shipping (India) Pvt Ltd
- Parliament of New Zealand
- ASAPP Information Group - India
- AsiaOL BioFuels Corp., Philippines
- Madhucon Powers Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Ind-Barath Power Infra Limited - India
- Manunggal Multi Energi - Indonesia
- Eastern Energy - Thailand
- Ministry of Mines - Canada
- Indo Tambangraya Megah - Indonesia
- Bukit Makmur.PT - Indonesia
- Chettinad Cement Corporation Ltd - India
- Sinarmas Energy and Mining - Indonesia
- Sarangani Energy Corporation, Philippines
- Parry Sugars Refinery, India
- Barasentosa Lestari - Indonesia
- Siam City Cement - Thailand
- Pendopo Energi Batubara - Indonesia
- Mjunction Services Limited - India
- PowerSource Philippines DevCo
- GMR Energy Limited - India
- Meenaskhi Energy Private Limited - India
- Makarim & Taira - Indonesia
- Salva Resources Pvt Ltd - India
- Mintek Dendrill Indonesia
- Cement Manufacturers Association - India
- Ceylon Electricity Board - Sri Lanka
- Dalmia Cement Bharat India
- Africa Commodities Group - South Africa
- International Coal Ventures Pvt Ltd - India
- Commonwealth Bank - Australia
- Banpu Public Company Limited - Thailand
- Coal and Oil Company - UAE
- Sical Logistics Limited - India
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