Info Emiten : BUMI, 24 Februari 2017

What's important to note are:


- BUMI indicates a turnaround to profit of $101.6 mn in FY'16

- due to higher volume, cost reductions & efficiencies inspite of a lower price


- balance sheet has been cleaned out


- $2.6bn of debt would be settled within Jun'17 with issue of $2bn equity (at Rp 926.16/share) & $639mn of MCB's (reference price Rp 926.16/share , limited convertibility over 7 years)


- issue date for above shares & MCB's is Jun'17


- negative equity turns positive


- governance perception addressed by strengthened BOD & BOC ( from CIC & 2 other lenders)


- monitoring accountant like KPMG appointed to monitor cash waterfalls, spends & related party issues etc


- FY'17 prospects are very bright - Jan 17 figures show Realized coal price is 35.5% above FY'16 ($42.1/ton) - above guidance


- hence profit prospects in FY'17 are very 2 attractive.