BULL Announces Share Buy-Back with a maximum value of Rp 270 billion

BULL'S SHARE BUY-BACK PROGRAM WITH A MAXIMUM VALUE OF RP 270 BILLION

 

PT Buana Lintas Lautan Tbk (“BULL”), the largest Indonesian oil and gas tanker company with a global footprint, today announced its first share buyback program. The management of the Company has approved the share buy-back program and the repurchase of the shares will be carried out over the next 3 (three) months, based on prevailing market conditions and will encompass up to a maximum of 600,000,000 (six hundred million) shares representing 5.1% of the Company’s outstanding shares, at a price not higher than Rp 450,- per share. At the maximum buy-back price for the maximum number of approved shares, the total value of the program is up to a maximum of Rp 270,000,000,000,- (two hundred seventy billion Rupiah). The timing and amount of any repurchases will be determined by the management of the Company and will depend on market conditions, capital allocation alternatives, applicable securities laws, and other factors.

 

BULL's Commitment to Enhancing Shareholder Value

 

BULL is committed to optimizing shareholder value, and the Company views the share buy-back program as one of the options available to increase value for its shareholders. As the share price    is    currently    trading    well    below the Company's evaluation of its intrinsic value, the management of the Company is confident that buying back the Company’s shares will create long term value for all stakeholders. At the current share price, the Price-to-Earnings Ratio is only 2.5 – 3.5x of expected earnings for 2020. Even at the maximum approved share price of Rp 450,- per share, the valuation is expected to remain very attractive with a Price-to-Earnings Ratio of 4.0 – 5.5x compared to the average of 12.6x for publicly-listed shipping companies. This is not even factoring in the fact that BULL’s operational and earnings growth and consistency far surpasses the other shipping companies.

 

BULL Is Committed to Growth

 

It is important to stress that funding of this share buy-back program is from the Company’s existing ample liquidity and thus does not affect its ability to continue to grow. This share buyback reflects the strength of BULL’s balance sheet and the management’s confidence towards the long term value of the Company's shares, supported by profitable growth bolstered by a strategy which focuses on at least 80 – 90% of normalized revenues from time-charter contracts. In fact, the successful conclusion of the program is expected to enhance the Company’s ability to execute on additional highly profitable growth as it will further diversify the Company’s funding options.

 

Commenting on the share buy-back program, Kevin Wong, President Director of the Company, stated:

 

“The Company has been delivering on its commitment to increase value for our shareholders from consistently strengthening operating and financial performances. We now seek to complement this with our share buy-back program to emphasize our confidence that the Company’s current share price severely undervalues the Company’s intrinsic value.”

 

About PT Buana Lintas Lautan Tbk

 

BULL is the largest and the fastest growing oil and gas tanker shipowning company in Indonesia with 2.3 million DWT capacity operating in domestic Indonesian waters as well as internationally. The Company is uniquely positioned to enjoy consistent cash flows as the majority of its revenues are from contracts with strong counterparties such as Pertamina and the Indonesian cabotage market for shipping. It is the only Indonesian tanker company with substantial operations in the international market, benefiting from international tanker rates which historically are at a substantial premium to Indonesian domestic tanker rates. The foregoing reflects the Company’s intense focus on consistently identifying, managing, and minimizing risk.

 

Source:XINDE MARINE NEWS

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