Straits Asia: Reported poor set of results, with Rev at US$184.3m, -7.9%YoY and -3.7%QoQ, while Net Profit at US$23.2m, -40%YoY and flat QoQ. Poor performance was attributed to heavy rainfall in Indonesia, where grp’s Jembayan and Sebuku mines suffered 15% & 40% loss of production time and fuel costs higher at +37%YoY....
Production grew by 5%YoY and 2.2%QoQ, while cash costs of mining reduced further in Q3 to US$46.92/y due to improved efficiency of coal handling chains, while ASP for Q3 was at US$71.51/t, -9%YoY, in what is traditionally the quietest quarter ....
Results brings 9m10 Net Profit to US$57.7m, -40%YoY, and looks set to miss consensus FY10 net profit estimates of US$84.8m. Annualizing EPS would give us an FY10E P/E of 26.6x vs grp’s historical average of 24x. The avg est P/E from analysts is around 22-23x with EPS 0.79. Going forward, mgmt expects coal price to strengthen backed by increasing demand in key markets, tipping Q4 to see better results on onset of the northern hemisphere winter.
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