Tuesday, 30 September 2014

BIPI INCOME OF USD 159.35 MILLION



Ever since the Benaket Petolum Energy [BIPI] changed their name into PT Benaket Integra Tbk company’s business developed: through infrastructure or other strategic fields to bring profit for their stakeholders.

Constant focusing on mining infra structure was executed to support economic growth by constantly scheming up development of infra structure for coal mining beside serving existing customer as well as mine-related industry.

In second half of this year, BIPI booked increase of business income to become USD 159.35 million till June 2014 compared to that of last year at USD 37.51 million. Company’s financial report on Tuesday disclosed that capital increased to USD 71.61 million against that of previous year at USD 17.93 million. Gross profit increased to USD 87.74 million against that of previous year at USD 19.58 million.

Profit before tax was Rp39.34 million against that of previous year at USD 22.71. million. Profit to be distributed to shareholders was USD 18.73 million against that of previous year USD 18.13 million. Total company’s asset till June 2014 came to USD 1.38 million, inching up against total asset per December 2013 at USD 1.34 billion

In their corporate plan BIPI set target to buy shares of PT Miratama Perkasa [PTMP] to be completed this year. The company had pocketed fund for making the transaction itself worth USD 120 million. Company’s Secretary Banaket Integra Remaja Dyah Intansuri stated that today the company needed longer time the process of due diligence.

BIPI also prolonged the process of Conditional Sale Purchase Agreement [CSPA] with Goldwater Indonesia Inc [GII]. Transfer of shares was effective after all requirement were fulfilled. CSPA validity was effective for 9 month since signing on June 2, 2014. However, by agreement deadline was prolonged for one month thereafter.

On September 3, 2013 Benaket and Goldwater signed CSPA for selling PT Benaket Oil and PT Indelberg Indonesia belonging Benaket Integra with total divestation of USD 78.5 million. Both parties agreed to extend CPSA to September 2, 2014. “Time extention was agreed upon to settle the transaction and fulfillment of prerequirements given in CPSA,” he said.

Time extention was necessary to meet all prerequisites as written in the Transaction Agreement [PPJB]. However this transaction was subject to cancellation. Until July 2, 2014, all parties had the right to cancel PJBB 5 days before written notice. Goldwater was a company based in British Virgin Islands, and was a subsidiary company of Interra Resources Limited run by Saratoga Group.

The company also planned to buy back 10% at the most of all shared placed and fully paid, i.e. 3.65 billion shares. The company planned to buy back all the shares at not more than Rp300 per share. Based on the price, the action had a value of Rp1.09 trillion.

The company’s management stated that the fund used for buy back of share was not more that USD 32 million or equal to Rp372 billion. Normally with buy back shares of company’s asset and equity would descend, but the company was certain that this action would not have its negative effect on company’s performance as a whole.

The company rated that the buy back plan would bring 3 benefits: Firstly, to allow flexibility to company in managing the capital and create reserve fund in case needed, secondly, to lessen the entire capital cost and increase net profit per share [EPS] or ROE sustainably. Thirdly, to increase the amount of shares to be converted in regard to equity linked. (SS)

Business News - September 3, 2014

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