NISP Delta Dunia Makmur negotiates to rollover maturing contracts (DOID, Rp840)

Delta Dunia Makmur, which controls Indonesia’s second largest coal mining contractor, is intensively negotiating with its clients to renew their existing contracts. Delta also aims to obtain new contracts from potential clients this year.

Delta currently holds 12 coal mining contracts from reputable clients, which are the key players in the Indonesian coal business. From those contracts, two will be expire soon, which are from Bukit Baiduri and Arutmin. Delta added that it is optimistic it can renew these contracts.

Delta’s largest client is Berau Coal, (BRAU, Rp445) which contributes 33% of the company’s total contracts.

DOID is trading at 2011F consensus PER of 6.5x and EV/EBITDA of 4.7x.