PT Petrosea Tbk – Public Expose – 27 May 2009
• This presentation will last for approximately 30 minutes, and will
be followed by a Q&A session for 30 minutes
• We will not distribute hard copy of this presentation. It can be
accessed at Petrosea’s website: www.petrosea.com
• Kindly refrain from using mobile phones during the presentation
• During the Q&A session, kindly limit your question to maximum
of two questions per person
Your kind attention please
Solid Management Team
Simon Sembiring – Independent Commissioner*
Simon Sembiring was appointed as Independent Commissioner of Petrosea on March 2009. He joined the Directorate
General of Mines and Energy as Director of Mining Industry Development in 1998 and became Head of Energy and Mineral
Resources Research & Development Agency at the Department of Energy and Mineral Resources in 2001. He was promoted
to Director General Geology and Mineral Resources in 2003 before holding his current position of Director General Mineral,
Coal and Geothermal since 2005.
Firdaus Siddik – President Commissioner
Firdaus Siddik was appointed President Commissioner of Petrosea in 2007 and was previously an Independent Commssioner
of the Company, a position he held starting November 2001. He is a prominent financial management professional with over
38 years experience in various fields of business ranging from oil & gas to mining, distribution, logistics and financial and
management services.
John Smith – Commissioner
John Smith was appointed Commissioner of Petrosea on January 2008. He is the CEO of Clough since August 2007. John is
a chartered Mechanical Engineer with a degree from Glasgow University and has almost 30 years of international oil & gas
experience from bases in Norway, the United Kingdom and Australia. John was CEO of Halliburton Subsea for the first two
years and served on the Board until June 2007.
* Appointed at EGM on 4 March 2009 (replacing John S. Karamoy)
Board of Commissioners:
Andrew Walsh – Commissioner
Andrew Walsh was appointed Commissioner of Petrosea on June 2004. He was appointed Chief Financial Officer for Clough
Limited and became a Director of the Clough Limited Board in November 2003. With over 20 years experience in the
international finance area, Andrew has held senior financial positions with GEC (now BAE Systems).
Solid Management Team
Micky Hehuwat – President Director
Micky Hehuwat was appointed as Director of Petrosea in early 2007, he was then later appointed to the role of President Director
on January 2008. Prior to this he was the long term Director and Indonesian representative of the major South African based
Group, Murray & Roberts, who later acquired a major shareholding in Clough Group, of which Petrosea forms a key element in
South East Asia.
Hendrick Ibrahim – Director External Affairs
Hendrick Ibrahim was appointed as Director of Petrosea in 1999 and has worked continuously with the Company since its
establishment in 1972. He was Manager of the strategic Balikpapan office for 7 years and Accounting Manager for the Company
at the Jakarta head office for over 18 years. He specializes in taxation and has been managing the Company’s Government
Relations portfolio since 1997.
Board of Directors:
Neil Whitaker – Director COO
Neil Whitaker was appointed as Chief Operating Officer of Petrosea in early 2008. He has a degree in Mining Engineering and
Geology from Leeds University in England and has 30 years experience in the Mining industry in positions from Supervisor to
General Management. He has worked with Contractors and Mine owners across Africa and Australia.
PT Petrosea Tbk – Public Expose – 27 May 2009
Overview
PT Petrosea Tbk is a multidisciplinary engineering, construction and mining company
with a track record of achievement in Indonesia since 1972. Today, Petrosea is
recognised as one of Indonesia's leading engineering and construction contractors.
Petrosea shall be an Indonesian mining house which will provide a complete mining
solution (from Pit to Port – PTP) delivering enhanced margin and return on assets
through integrated capability.
PT Petrosea Tbk – Public Expose – 27 May 2009
OverviewMajor Shareholders
*Will be effective after financial closing by mid June 2009
Clough Limited
Own 81.95% stakes of PT
Petrosea Tbk (IDX: PTRO)
PT Indika Energy Tbk
Own 81.95%*
shareholder of PT
Petrosea Tbk
(IDX: PTRO)
Mid June 2009
Current Future
PT Petrosea Tbk – Public Expose – 27 May 2009
Overview
• 1972 - Incorporated in Jakarta, Indonesia as PT Petrosea International
Indonesia
• 1984 - Acquired by Clough Limited
• 1990 - Listed on the Jakarta and Surabaya Stock Exchange
(now Indonesia Stock Exchange)
• The first publicly-listed Indonesian engineering and construction company
• The name was changed to PT Petrosea Tbk
• March 2009 – Clough agrees to sell its 81.95% stake in PT Petrosea
Tbk (“Petrosea”) to PT Indika Energy Tbk (“Indika”). Closing transaction
by mid-June 2009
History in Indonesia
PT Petrosea Tbk – Public Expose – 27 May 2009
Overview
How Indika Energy and Petrosea fit together
MINING RIGHTS
GENERAL GEOLOGICAL SURVEY
DETAILED EXPLORATION & DRILLING
BASELINE STUDIES
FEASIBILITY STUDIES
ENVIRONMENT IMPACT & ASSESSMENT
MINE DEVELOPMENT
MINE OPERATION
LOGISTICS SUPPORT
PORT OPERATIONS
BARGING
OFFSHORE LOADING TERMINALS
COAL SHIPPING
POWER GENERATION
PT Petrosea Tbk – Public Expose – 27 May 2009
Overview
• Average annual turnover over the last 5 years1 - US$133.8 million
• Total number of employees2 - 1,666 people
• Turnover per Business Operations3:
• Mining - 52%
• Engineering & Construction - 41%
• Services (incl. POSB, PT Tirta Kencana Cahaya Mandiri) - 7%
Current Business Operations
Petrosea
Offshore
Supply
Base
Engineering &
ConstructionMinerals & Infrastructure
Offshore Marine Construction
Oil & Gas Asset Support
Engineering
MiningContract Mining
Mine Services
PT Tirta
Kencana
Cahaya
Mandiri
PT Santan
Batubara
Business Lines Investment(Partnering)
1Based on PTP Annual Turnover for the Years Ended 31 December 2004-2008 2As of 31 April 20093Based on PTP Annual Turnover for the Year Ended 31 December 2008
PT Petrosea Tbk – Public Expose – 27 May 2009
Overview
1. PETROSEA COAL EXPL - MEULABOH
2. MOBIL OIL - ARUN
3. ESSO - DUMAI
4. CALTEX PACIFIC IND. - DURI
5. HUDBAY OIL - PADANG ISLAND
6. TOTAL OIL CO. - MUARA KAMPAR
7. KARIMUN GRANITE - KARIMUN ISLAND
8. BARISAN TROPICAL MINING - MUSI RAWAS
9. LUSANG MINING - LEBONG TANDAI
10. WIDJAJA GROUP - LAIS
11. DANAU MAS HITAM - AIR MANGGUS
11. BUKIT SUNUR - ARAN TIGA
12. JAMBI SHELL - JAMBI
13. KOBATIN - BANGKA ISLAND
14. BHPSI - CILEGON
15. CSD - CIBALIUNG GOLD PLANT
16. BUKIT SENTUL - SENTUL BOGOR
17. PREMIER OIL - ANOA
18. PREMIER OIL - GAJAH BARU FIELD
19. AMOSEAS - SOUTH CHINA SEA
20. GULF RESOURCES (STAR ENERGY) - KAKAP FIELD
21. CONOCO - MATAK ISLAND
22. BP MINERALS - KUALA KURUN
23. AMPALIT MAS PERDANA - AMPALIT RIVER
24. ADARO INDONESIA - TANJUNG
25. PALMABIM DIAMOND - BANJAR BARU
26. DASA EKA JASATAMA - BANJAR BARU
27. ARUTMIN - AIR TAWAR
28. ARUTMIN- SATUI
29. TOTAL INDONESIE - TUNU
30. UNOCAL - ATTAKA FIELD
31. SANGA COAL INDONESIA - SANGA COAL
32. LASMO RUNTU RUNTU
33. INDOMINCO MANDIRI COAL TERMINAL –
BONTANG
34. ELF AQUITAINE - DATAH BILANG
35. INDO MURO KENCANA - GOLD PROCESS
PLANT
36. UNOCAL - MUARA TEWEH
37. INDO MURO KENCANA - PURUK CAHUH
38. KELIAN EQUATORIAL MINING KELIAN /
NAMUK DAM
39. KALTIM PRIMA COAL - SANGATA
40. INCO - SOROAKO
41. ARCO DRILL SITE - LUWUK
42. TRAKINDO UTAMA - MESEL
42. NEWMONT MINAHASA RAYA - MESEL
43. MEARES SOPUTAN MINING –
SANGIHE ISLAND
44. NEWCREST MINING GOSOWONG
44. MARINE WORKS GOSOWONG
45. CSR PETROLEUM - CUFPEC BULA
46. CONOCO - KEPALA BURUNG
47. BP BERU AIRSTRIP UPGRADE - BABO
48. TRAKINDO UTAMA – TIMIKA
WAREHOUSE
49. FREEPORT INDONESIA –
TEMBAGAPURA
50. FREEPORT INDONESIA - TIMIKA
51. PRIMA LIRANG MINING - WETAR
52. NEWMONT / FLUOR DANIEL - BATU HIJAU
53. BP KANGEAN - PAGERUNGAN ISLAND
54. KODECO KE 40 - FIELD DEVELOPMENT
55. TRAKINDO UTAMA - SURABAYA
56. BP INDONESIA - PORONG / GRESIK
57. BUMBUM CAMP PURUK CAHU - BHPB
58. PAKAR GREENFIELDS COAL DEVELOPMENT - IBU
59. TOM’S GULLY MINING
Kalimantan
Sulawesi
Java
SumateraPapua
PT Petrosea Tbk – Public Expose – 27 May 2009
(in US$ Thousand) 2008 2007
Operating Revenue 205,794 125,962
Operating Income 10,869 12,622
Net Income 1,775 7,097
Earning Per Share (US$) 0.0176 0.0704
Dividend Per Share (US$) - 0.0297
Cash 9,068 21,582
Working Capital 16,698 37,607
Capital Expenditure 45,080 25,684
Total Assets 178,268 148,638
Debt 43,691 24,226
Total Equity 70,657 76,411
Operating Income / Operating Revenue (%) 5.28% 10.02%
Net Income / Operating Revenue (%) 0.86% 5.64%
Net Income / Total Assets (%) 1.00% 4.78%
Net Income / Equity (%) 2.51% 9.29%
Debt / Equity Ratio 0.62 0.32
Current Ratio 1.22 1.71
*Audited, Years Ended 31 December
Financial Performance
PT Petrosea Tbk – Public Expose – 27 May 2009
*Audited, Years Ended 31 December
Financial Performance
106
126
206
0
50
100
150
200
250
2006 2007 2008
Mill
ion U
S$
Operating Revenue
Operating revenue (LHS)
76
32
18
106
82
17
0
10
20
30
40
50
60
70
80
90
100
110
120
Mining Engineering and Construction
Services
Mill
ion U
S$
Operating Revenue by Business Segment
2007 2008
Strong Revenue Growth
• Strong Operating Revenue growth 63% to
US$205.79m
• E&C 160% to US$82m
• Mining 41% to US$106m
• Services 7% to US$17m
• In 2008, from total operating revenue,
Mining contributed 52%, E&C 41%, and
Services 7% consecutively
*Audited, Years Ended 31 December
PT Petrosea Tbk – Public Expose – 27 May 2009
Financial Performance*
6.44
7.10
1.77
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
2006 2007 2008
Mill
ion U
S$
Net Income
Net income (LHS)
1.40 1.29
8.18
3.20
-2.52
5.76
-3.00
-2.00
-1.00
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
9.00
Mining Engineering and Construction
Services
mill
ion
US
$
Net Income by Business Segment
2007 2008
*Audited, Years Ended 31 December
• Net Income 75% to US$1.77m
• Mining 129% to US$ 3.2m
• E&C 295% to US$2.52m
• Services 30% to US$5.76m
Reduction in Net Income due to provision for
Impairment (Pakar Coal mine infrastructure), increased
interest expenses & finance charges, and overhead.
PT Petrosea Tbk – Public Expose – 27 May 2009
Increase in Work in Hand
• Work in Hand by 26.8% to US$582*
million as a result of:
• Securing additional mining services
contracts of US$250 million with PT
Santan Batubara
• US$315 million with Gunung Bayan
Pratamacoal (GBP) extension contract
• Additional clients in oil & gas supply
services at the Petrosea Offshore Supply
Base (POSB)
Financial Performance
192
459
582*
0
100
200
300
400
500
600
2006 2007 2008
mill
ion U
S$
Work in Hand
*As at April 2009
PT Petrosea Tbk – Public Expose – 27 May 2009
Financial Performance
5.7
-11.2
-7.1
-12.5
9.1
21.6
-3.7
-10.6
7.3
21.6
-15.0
-10.0
-5.0
0.0
5.0
10.0
15.0
20.0
25.0
Operating Activities
Investing Activities
Financing Activities
Net Increase Ending Balance
mill
ion U
S$
Cash Flow Position
2008 2007
42.1
37.6
16.7
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
2006 2007 2008
Mill
ion U
S$
Net Working Capital
Net working capital (RHS)
*Audited, Years Ended 31 December
Cash flow deteriorated:
Cash Ending Balance 58% to
US$9.1m
• Operating: 74%
• Investing: 199%
• Financing: 33%
Working Capital 56% to
US$16.7m
• Current Assets 0.56%
to US$91m
• Current Liabilities
40.5% to US$74.3 m
1.71
1.22
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
2007 2008
Curr
ent R
atio
Current Ratio
PT Petrosea Tbk – Public Expose – 27 May 2009
Financial Performance
• Debt to Equity Ratio from 0.32 to 0.62 as
a result of large fleet acquisition program
on the back of securing additional long
term mining contracts
• Debt (Finance leases) 80% to
US$43.7m
• Equity 7.5% to US$76.4m
24.23
43.69
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
45.00
50.00
2007 2008
mill
ion U
S$
Debt - Finance Leases
0.32
0.62
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
2007 2008
Debt to
Equity R
atio
Debt to Equity Ratio
*Audited, Years Ended 31 December
PT Petrosea Tbk – Public Expose – 27 May 2009
Financial Performance
*Audited, Years Ended 31 December
• Capital Expenditure 75% to US$45.1m
• Mining 45% to US$35.4m
• Services to US$9m
• Capital Expenditure primarily relates to
acquisition of mining fleet to execute the
GBP extension contract worth US$315m
and the Santan mining contract worth
US$250m
16.6
25.7
45.1
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
50.0
2006 2007 2008
Mill
ion U
S$
CAPEX
Capex (LHS)
24.3
0.01.0
35.4
0.0
9.0
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
Mining Engineering and Construction
Services
mill
ion U
S$
CAPEX by Business Segment
2007 2008
PT Petrosea Tbk – Public Expose – 27 May 2009
Indominco Mandiri - Bontang Coal
Terminal Expansion Stage 1 & 2
US$38.4 million
TKCM - Water Treatment Plant
US$7.8 million
Santan Batubara Coal Mining
Multidisciplinary Engineering*
*As of 30 April 2009
Sanga Coal Indonesia –
Sanga-Sanga Coal Mining
US$140 million
Gunungbayan Pratama
Coal - GBP Extension
US$315 million
Santan Batubara -
Santan Coal Mining
US$250 million
POSB - Total Indonesie, ENI Bukat,
Halliburton,MI,Chevron,ExxonMobil
US$52.5 million
Diversified Business Lines with Work in Hand over US$0.5 billion*
PT Petrosea Tbk – Public Expose – 27 May 2009
Health, Safety and EnvironmentOutstanding Safety Performance
• LTIFR (Lost Time Injury Frequency Rate) currently 0.66*
HSE Awards
• Cibaliung Gold Project Phase 2-closed project without LTI
• Zero Accident Award from Minister of Manpower and Transmigration for POSB Tanjung Batu
• Zero Accident Award from Minister of Manpower and Transmigration for Sanga Project
• Zero Accident Award from Governor of East Kalimantan for POSB, Tanjung Batu
• Zero Accident Award from Governor of East Kalimantan for Sanga Project
• TOP Muara Wahau Coal Mine Feasibility study – closed project without LTI
• Bontang Coal Terminal Alliance Project-achievement without LTI
• Pakar Coal Project – achievement without LTI
• Bumbun Exploration Camp – closed project without LTI
*As of 30 April 2009 – Based on AS/NZ Standard
PT Petrosea Tbk – Public Expose – 27 May 2009
Quality Assurance
• Petrosea Management System has been certified to ISO 9001 since 2000
• Up-graded to ISO 9001:2008 version in April 2009
• Petrosea Management System is an integrated system of process documents,
tools and technologies designed to meet the needs of Operations, Quality,
Health, Safety and Environment within which reside the fundamental business
processes of:
• Mining Operations
• Engineering & Construction Projects
• Offshore Supply Base Operations
ISO 9001:2008
PT Petrosea Tbk – Public Expose – 27 May 2009
Corporate Social Responsibility
Community Support
Education
• Transportation support for school children in Gunung Bayan
• Renovation of Kenanga Kindergarten, Balikpapan (materials, skills & cash)
• Donated 70 used reusable computer sets
Local Recruitment
• 60 of 350 POSB employees are local
• Collaboration with local forums on recruitment
• Joint Apprenticeship Program for Mechanics in Sanga-sanga
Economic Empowerment
• Sewing course & garment production to empower housewives in Santan
Charity & Donation
• Situ Gintung Charity Drive
• Various participation in sports, religious and social festivities
CSR Commitment
• Policy on CSR (May 2009)
• Dedicated personnels for CSR tasks
PT Petrosea Tbk – Public Expose – 27 May 2009
Market Outlook
• Mining and mineral market has driven the company growth during the year but with the current
commodity plunge, we expect this market to consolidate in the medium term
• Strong demand throughout Asia and supply disruptions in major coal producing countries have
tightened the coal supply in the global market
• Indonesia is currently the world’s largest exporter of thermal coal
• Domestic demand is projected to drive Indonesian thermal coal production in the medium term as the
government rapidly builds coal-fired power plants
• World prices for most of mineral commodities have been trending-down to new equilibrium levels
• The outlook for the Indonesian mineral market is still positive following the recent production increase
Mining & Mineral*
*Source: Barlow Jonker, Indonesia Coal Mining Association, Mitrais Mining News Report, Minister of Energy and Mineral Resources
Indonesia Macro Economic Outlook
Key Macro Economic Indicator 2008 2009E* 2010E*
Real GDP (% y-o-y) 6.1 4.3 5.3
GDP (US$ billion)- nominal 450 453 520
Currency/US$ (Year-end) 11,120 10,200 10,000
Currency/US$ (Average) 9,767 10,650 10,100
BI Policy Rate (% year end) 9.25 7.00 7.50
Consumeer Price (% year end) 11.20 5.00 6.50
Source: CEIC, *Danamon Estimates
PT Petrosea Tbk – Public Expose – 27 May 2009
Market OutlookMining & Mineral*
*Source: Minister of Energy and Mineral Resources
131.00
154.00
193.00
217.00 225.00
250.00
17.56%
25.32%
12.44%
3.69%
11.11%
-30.00%
-20.00%
-10.00%
0.00%
10.00%
20.00%
30.00%
0.00
50.00
100.00
150.00
200.00
250.00
300.00
2004 2005 2006 2007 2008 2009F
Mill
ion
US
$
Coal Production
Coal Production (million ton), LHS Growth (%), RHS
No. Commodity 2007 2008 2009F
Unit
1 Copper 797.40 580.95 826.37 Thousand Ton
2 Gold 117.73 57.94 99.34 Ton
3 Silver 269.38 209.06 238.61 Ton
4 Tin 91.28 79.21 105.00 Thousand Ton
5 Bauxite 15,406.04 14,986.52 14,439.32 Thousand Ton
6 Nickel in Mate 77.93 74.40 88.18 Thousand Ton
7 Nickel in Ore 6,623.02 14,902.26 14,166.14 Thousand Ton
8 Ferronickel 18.53 18.70 22.42 Thousand Ton
9 Granite 1.88 2.05 2.50 Million m3
10 Diamond 22,980.68 20,359.20 96,000.00 Carrat
11 Iron Ore 1,894,757.98 4,609,540.54 4,609,540.54 Ton
12 Coal 217.00 225.00 250.00 Million Ton
Source: EMR Department 2009
MINERAL and COAL PRODUCTION
Bumi Resources, PT31.16%
Adaro Indonesia, PT23.20%
Kideco Jaya Agung, PT14.14%
Berau Coal, PT7.80%
Indominco Mandiri, PT6.49%
Tambang Batubara Bukit Asam, PT
5.92%
Bayan Resources, PT3.65%
Baramarta, PD2.73%
Trubaindo Coal Mining, PT
2.72%Bahari Cakrawal Sebuku,
PT2.18%
TOP TEN INDONESIAN COAL PRODUCERS (2008)
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
45.00
50.00
55.00
60.00
Bumi Resources, PT
Adaro Indonesia, PT
Kideco Jaya Agung, PT
Berau Coal, PT
Indominco Mandiri, PT
Tambang Batubara Bukit Asam, PT
Bayan Resources, PT
Baramarta, PD
Trubaindo Coal Mining, PT
Bahari Cakrawal Sebuku, PT
52.12
38.80
23.64
13.0510.86 9.90
6.10 4.57 4.55 3.65
Milli
on To
ns
TOP TEN INDONESIAN COAL PRODUCERS (2008)
PT Petrosea Tbk – Public Expose – 27 May 2009
Market Outlook
• Oil and gas market has been a difficult market for the company during theyear, but we anticipate improving activity in this area in the medium term forboth onshore and offshore project opportunities. Focus still in the mining forshort term horizon
• Decline rates of the Indonesian oil production and proven oil reserves havetapered off as a result of increased development activities in existingproducing oil company and new field development projects
• Recent increases in exploration drilling and licensing activities should alsorestore Indonesian oil production growth in the coming years
• The outlook for the Indonesian gas market is positive as Indonesian gasproduction is expected to continue its historical growth trend and projectionsof sustained growth
• Indonesian gas reserves have also increased as a result of numerousdiscoveries by both producing and exploration oil companies
Oil and Gas*
*Source: Indonesia Petroleum Association
PT Petrosea Tbk – Public Expose – 19 June 2008 25
Profit Outlook
• Strong EBIT growth - Mining Business Line.
• Three contract mining projects in operation and one project forecast to
start in the near term
• PT Santan Batubara has commenced production stage. Will contribute
to EBIT growth in upcoming years
• Steady EBIT growth – POSB and E&C
• POSB to service multiple major oil and gas operators
• One construction project under E&C and potential 2-3 projects in the
pipeline
PT Petrosea Tbk – Public Expose – 27 May 2009
Petrosea – Grow with Us
• Strong operating performance through underlying Revenue
• Focus to improve the EBIT before growth in 2010
• Work in Hand over US$0.5 billion*
• Maintain outstanding safety performance
• Indonesia mining and mineral market consolidated
• Future earning growth - driven by Mining Business Line and POSB.
• Synergy with the new shareholder, seize the opportunities to support company growth
*April 2009