NISP Perusahaan Gas Negara speeds up US$350mn LNG projects (PGAS, Rp3,850)

· PGN has initiated to speed up US$350mn projects for two LNG terminals next year. The projects are the US$250mn Floating Storage Receiving Terminal (FSRT) in Belawan and US$100mn project in West Java.
· The company explained that for the project in West Java, PGN contributed 40% to total project which makes total cost equal with Belawan. PGN expects these two projects could commence in 2012.
· To finance such projects, PGN has received loans commitments from several banks, however, PGN also explores possibility to combine the leverage with bonds issuance.
· PGAS is trading at 2011F consensus PER of 12.6x and EV/EBITDA of 8.2x.

NISP Telkom rings in Rp2.78tn net income (TLKM, Rp7,850)

• PT Telekomunikasi Indonesia Tbk has booked net income of Rp2.78tn for 1Q10, 13% YoY increase from Rp2.46tn the previous year. Operational revenue grew less at a rate of 6.2% to Rp16.59tn. Net income and revenue came only 24% and 22% of market full year expectation for 2010F of Rp12.68tn and Rp71.01tn.

• CEO of Telkom, Mr. Sudiro Asno, credited the increase in net profit to higher revenue from data and multimedia services, which rose 25% to around Rp5.0tn and gains due to the favorable foreign-exchange rate of Rp164b. Cellular revenue only increased by 3.0% to Rp6.69tn while fixed line revenue dropped by 6.7% YoY to Rp3.34tn.

• The company shared that it had submitted its plan to issue Rp3.0tn bonds to Bapepam and hopes that the body will respond with an effective statement on June 24th, 2010. The company’s outstanding debt position at the end of March 2010 reaches Rp19.6tn, Rp7.8tn of which will mature this year.

• TLKM is trading at 2010F consensus PER of 12.3x and EV/EBITDA of 4.6x.