Ancora Indonesia Resources

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Business Summary

Ancora is active in Indonesia's mining sector through its subsidiaries Multi Nitrotama Kimia, which is market leader in Indonesia for mining explosives (ammonium nitrate) and Ancora Indonesia Mining. In the oil & gas sector, the company is active through its subsidiary Bormindo Nusantara, which provides onshore drilling rig services to oil & gas operators in Indonesia. In the logistics sector, it is active through its subsidiary Ancora Shipping, a shipping company that provides supporting services to other business units within the company.

Ancora Indonesia Resources business model is based on expansion through acquisitions of a diverse range of businesses in order to realize the company’s vision in becoming the pre-eminent natural resources company in Indonesia.

Former politician Gita Wirjawan owns a large stake in Ancora Indonesia Resources through Ancora Resources and Emas Hitam Investindo.

Ancora Indonesia Resources' main business activities are conducted by the company's two key subsidiaries: Multi Nitrotama Kimia and Bormindo Nusantara.

Multi Nitrotama Kimia

Multi Nitrotama Kimia (MNK) is a manufacturer of Ammonium Nitrate and Nitric Acid. Both are compounds used as explosives to support activities in coal and mineral mining, general work, and the cement industry. Industrial explosive manufacturing is considered as a niche industry because of the strategic interests and risks associated with the industry. MNK operates as an explosive manufacturer, importer and distributor, in particular of Ammonium Nitrate, dominating Indonesia’s market with an almost 37 percent market share in 2012. MNK owns and operates the MNK-1 and MNK-2 plants in Cikampek, West Java.

Bormindo Nusantara

Bormindo Nusantara (BN) is an oil drilling services contractor specialized in onshore oil and gas rigs in Indonesia. With an experience of almost 30 years BN is ready to diversify to provide comprehensive services related to drilling, including drilling services, workover and well management, integrated project management services equipment and supplies rental, as well as workforce training services. Drilling services are currently conducted with ten high-specification rigs that are owned by BN. BN also provides various drilling-related services; among others are high-pressured well control equipment, special drilling pipes, drilling recording and monitoring systems, top drive drilling, and equipment rig transfer.

Ancora Indonesia Resources' Financial Highlights:

	2010	2011	2012	2013	2014	2015	2016
Net Sales	155.5	136.2	180.8	199.4	183.4	160.9	101.3
Gross Profit	26.9	21.4	33.0	32.8	33.3	20.1	9.6
Net Income (loss)	2.0	(1.3)	(7.6)	(2.6)	(5.4)	(10.4)	(4.3)
Income before Tax (loss)	9.4	0.4	(3.3)	(0.5)	(7.7)	(21.0)	(10.3)
Total Assets	142.2	172.1	221.1	228.8	242.0	187.4	167.8
Total Liabilities	93.5	125.2	174.4	184.7	205.9	167.3	156.8
Earnings per Share (loss)¹	0,0011	(0,0008)	(0,0043)	(0,0015)	(0,0031)	(0,0059)	(0,0024)

^{in million US dollar
¹ in US dollar
Source: Ancora Indonesia Resources, Annual Report 2016}

Projection Ancora Indonesia Resources's Future Corporate Earnings:

	2015	2016	2017F	2018F	2019F
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Net Profit
EBITDA
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^{in billion IDR, unless otherwise stated
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