Cabotage policy boosts Buana Listya performance
Monday, October 31 2011 - 02:11 PM WIB
Its earnings before interest, tax, depreciation and amortization (EBITDA) also surged 191 percent to Rp469 billion from the same period last year.
The increase, it said, was driven by the opportunities created by the ongoing implementation of the Indonesian shipping regulation, cabotage principle, which requires the use of Indonesian-flagged ships for domestic transportation as well as for imports funded by the state budget.
This opportunities resulted in the successful operation of the first Indonesian-flagged Floating Production, Storage and Offloading (FPSO) vessel by the company as well as the second largest fleet of Floating Storage and Offloadign (FSO) vessels.
The cabotage principle has also boosted demand for oil tanker and gas tanker, in particular those owned and operated by the company.
With the improved skills obtained from managing and operating these more sophisticated units, Buana Listya is becoming better positioned for ever more projects becoming available in Indonesia, it said.
Buana Listya, a subsidiary of PT Berlian Laju Tanker Tbk, one of largest shipping company in Indonesia, said that it is actively participating in tenders and discussions for a variety of long-term contracts in high value sectors including a very large gas carrier, floating offshore coal terminals, 2 FPSOs and 2 FSOs.
?If Buana is successful in such tenders, these contracts are expected to contribute to Buana?s financial performance and enhance its earnings and cash-flow stability,? the company said.
The company is also exploring opportunities in LNG transportation projects. ?In the coming year, the company expects additional opportunities in this sector as well as other related sectors such as LNG tankers, LNG Floating Storage and Re-gasification Units (FSRUs) and jack-up rigs given Indonesia?s growing energy requirements.
In order to fund the investments required for these projects and anticipated future capital expenditure requirements, the company said it is explroing various funding alternatives including a convertible bond issuance worth around US$50 million.
The proceeds of the bond issuance will be used to meet the required capital expenditures as well as for general corporate purposes.
Buana Lista was established on May 12, 2005, focusing on energy logistic business, primarily operating in the oil and gas sector. The company claimed that it is the market leader in the national energy logistic services in Indonesia. (giok)