MYOH beats coal target, APEX plans debt conversion
PT Samindo Resources Tbk beat its 2026 coal production target through July, while PT Apexindo Pratama Duta Tbk is preparing a debt-to-equity conversion that would shrink its foreign syndicated liabilities and dilute existing shareholders.
For MYOH, the stronger-than-planned output matters because it shows the coal contractor is benefiting from favorable operating conditions and still adding volume even as the sector faces longer-term pressure from the energy transition. Production reached 3.33 million tons by July, above the 3.16 million-ton target and up from 2.90 million tons a year earlier.
The company also said coal hauling came in at 14.09 million tons, slightly above target, while overburden removal reached 21.01 million bcm, exceeding plan. MYOH attributed the outperformance to supportive weather, more efficient hauling distances and additional volume from key client PT Kideco Jaya Agung, with the backdrop of firmer global coal prices helping sentiment across the name.
Shares of MYOH were still trading in a narrow range around Rp1,110-Rp1,185, suggesting investors are waiting to see whether the production beat translates into stronger earnings and cash flow in coming quarters.
APEX, meanwhile, is turning to shares to settle debt, a move that eases near-term balance-sheet pressure but comes at the cost of dilution. The company plans to issue 218.09 million new Series B shares, equal to 5.79% of paid-in capital, at Rp325 apiece for a transaction value of about Rp70.88 billion, or $4.11 million.
The new shares will not raise cash; instead, they will be used to repay obligations to HSBC Bank PLC and The Hongkong and Shanghai Banking Corporation Limited. APEX said the move would reduce its foreign syndicated creditor balance to $8.67 million from $36.25 million due in 2026, pending shareholder approval at an extraordinary meeting on Oct. 7, with conversion targeted by Oct. 31.
The trade-off is straightforward for investors: less debt and lower refinancing risk on one side, but a 5.79% dilution hit on the other. For a heavily indebted driller, the bigger question is whether the conversion improves financial flexibility enough to support operations and contract wins without further balance-sheet strain.
Broader market sentiment in Indonesia was mixed, with the benchmark index little changed and foreign investors still net sellers, while coal-related names continued to draw attention from traders tracking commodity prices and corporate restructuring. The next catalysts are APEX’s shareholder vote and any follow-through in coal prices and operating results for MYOH.
| Entity | Gains | Losses |
|---|---|---|
| MYOH shareholders | ▲Production beat, stronger operating momentum | ▼Coal price reversal risk |
| APEX creditors | ▲Partial debt repayment, lower default risk | ▼Reduced claims upside |
| APEX existing shareholders | ▲Balance-sheet relief | ▼5.79% dilution |
| Coal-linked investors | ▲Better sector sentiment | ▼Policy and commodity volatility |