ABM Investama set 150% growth

The Hamami family (first to third generation) take pose with Eddy Sugito, director of IDX, post listing of ABM Investama. ©Pudji Lestari

PT ABM Investama Tbk projects the company could book 150% growth by the end of the year, from last year Rp4,49 trillion. It listed its shares in the Indonesia Stock Exchange (IDX) this morning.

Willy Agung Adipradhana, finance director of ABM Investama, says with the operational performance, which will be far more better than last year, the company could book a significant growth.

“The revenue will be 1.5 times higher than last year, while for bottom line we could grow 3.5 to 4 times higher,” he says at the press conference after the listing ceremony of ABM Investama in IDX this morning. Last year the company pocketed Rp127.38 billion of net profit.

ABM Investama is the 22nd company listed in the IDX this year, from total 437 companies. It uses ABMM as it stock code, derives from an abbreviation of the second generation’s name of the Hamami family: Ana, Bari, Muki, and Mivida.

The company sell 550 million shares, or 20% of its stake, for Rp3,750 per unit. Previously it offered the shares within the range of Rp3,250-Rp4,650. The share price rise 9% in its debut trading this morning, open to Rp4,100. At 2.34 pm, according to Bloomberg data, the share price stand in Rp3,825, up 2% from offer price, push it market capitalization to Rp10.53 trillion.

President Director ABM Investama Achmad Ananda Djajanegara explains that the company’s coal production by end of year will be as much as 2.7 million tonnes. While for next year the target will be around 4.5 million to 5.5 million tonnes.

“The coal production from mining in the South Kalimantan will produce 4 million to 4.5 million tonnes, while from our own mining it will be around half to one million tones.”

ABM Investama invests in energy resources, services and energy infrastructure. Through subsidiaries, the company mines coal, offers mining services, offers logistics and warehousing services, generates electricity, and manufactures equipment for the mining, oil and natural gas, electricity generation, and transportation industries.

It has installed capacity for temporary power close to 1,000 MW, and is in the process of adding a couple of IPP projects. It is also a sister company of PT Trakindo Utama and a unit of PT Tiara Marga Trakindo, a holding business group own and found by Achmat Hadiat Kismet Hamami.

ABM operates coal minings through its subsidiary PT Reswara Minergi Hartama. One of it asset lies in Tanah Bumbu, South Kalimantan, with 3,074 hectares of concession area operate by Reswara’s unit PT Tunas Inti Abadi.

The other is in Nanggroe Aceh Darussalam, with 4,629 hectares of concession area operate by PT Bara Energi Lestari and PT Mifa Bersaudara, the other units of Reswara. ABM deliberately chose coal mines in Aceh in order to save on shipping costs to the Indian market. It sell most of its coal to this country, rather than China.

In terms of selling price, Corporate Strategy Director ABM Investama Yovie Priadi says the company is selling its coal using spot price. The contract price for the first half of 2011 was $46 per tones in average. “While up until now the price rise to $53 per tones. I hope by year end the [selling] price will be $50 per tones.”

He adds that last year the company’s mining contractor business, through its unit PT Cipta Kridatama, has remove 100 million bank cubic meter (bcm) of overburden (material that is removed from the earth’s surface to uncover the coal). The overburden volume capacity will increase 20 million bcm in 2011, and another 20%-25% in 2012.

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