GRL to be listed on Jakarta Stock Exchange
JAKARTA (JP): Gulf Indonesia Resources Limited (GRL) plans to list its shares on the Jakarta Stock Exchange (JSX) in April following its recent listing on the New York Stock Exchange.
State-owned Bahana Securities equities market head, Bruce Rolph, said yesterday the oil and natural gas company had received the go-ahead from the Capital Market Supervisory Agency (Bapepam) for the listing.
"The company will be listed on the Jakarta Stock Exchange in April next year through the Indonesian Depository Receipts (IDR)," Rolph said on the sidelines of an Indonesian resources and energy seminar held by Bahana Securities here yesterday.
Rolph expected more Indonesian mining and mining-related companies to float their shares on local stock exchanges.
"We understand that public knowledge about the mining industry is still small but the potential is big here in Indonesia," he told The Jakarta Post yesterday.
According to a research report from Bahana Securities, GRL, which recorded a net profit of US$9.3 million in 1996, expected to post a total net profit of $13 million this year and $12.8 million in 1998.
GRL, a wholly-owned subsidiary of Gulf Canada Resources Limited, has operations in several parts of Indonesia.
Bahana said GRL planned to spend $500 million in the second half of 1997 and 1998, of which around $260 million would be financed from nonrecourse project financing.
Existing gas reserves and contracts for the GRL-operated Corridor Block in Sumatra were expected to ensure a compound average growth rate of 64 percent in earnings over the next five years at a constant oil price of $19 per barrel.
The company's large strategic acreage in Sumatra should provide additional gas reserves with ready markets in Java, Batam and Singapore to drive the company's future growth along with a wide range of other exploration prospects, the report said.
GRL is one of the world's largest independent producers of oil and natural gas. The company has operations in Canada, Indonesia, the United Kingdom, the Netherlands and Australia. (aly)