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Buana Lintas Lautan seeks Rp 351.86 billion from rights issue
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After its purchase of four ships in 2017, PT Buana Lintas Lautan now has 17 ships, most of which are oil and gas tankers. (Courtesy of Buana Lintas Lautan/-)
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hipping company PT Buana Lintas Lautan (BULL) is targeting Rp 351.86 billion (US$24.98 million) from a rights issue this year.
BULL president director Wong Kevin said on Thursday that, from proceeds, Rp 140 million would be used for working capital, while the remaining money would be used to purchase ships.
"Last year, we obtained Rp 240 billion from a rights issue and we purchased four ships. This year, we increased the target, so hopefully we can purchase more ships," he said during a public expose event at the Indonesia Stock Exchange (IDX) in Jakarta.
After its purchase of four ships in 2017, BULL now has 17 ships, most of which are oil and gas tankers.
Wong said that standby buyers had agreed to spend Rp 134.4 billion. If the proceeds fail to help the company reach its target, it will turn to external financing to purchase ships.
In its unaudited report, BULL revenue increased by 31.43 percent year-on-year (yoy) in the first quarter to $21.11 million, while its net income increased by 109.44 percent to $3.02 million.
However, the company was recently blacklisted by Pertamina over alleged fraud. The state-owned oil company issued on March 16 a letter regarding the blacklisting. Pertamina said BULL had failed to report its customs duties for three ships – MT Bull Sulawesi, MT Flores and MT Bull Papua.
Wong said that although the blacklisting did not affect the ongoing contract, BULL was prohibited from participating in Pertamina's future auctions. Currently, Pertamina contracts contribute to 50 percent of the company's revenue.
"We are communicating intensively with Pertamina to resolve the matter. We cannot comment much about this sensitive issue at this time," he said. (evi)
