Company Coverage
Buana Lintas Lautan (BULL IJ): 1H26: Elevated Rates Drive Earnings Upgrade
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
Rp428
Rp770
+79.9%
Rp750
Analyst
Analyst
Highlights
1H26 results beat expectations with EBITDA up 191.1% yoy and core profit reaching US$52.6m, due to a spike in Aframax and MR freight rates.
Fleet expansion is running ahead of our base case with 16 confirmed by 3Q26. We raise our 2026-28 forecasts on stickier freight rates and additional vessel purchases. Maintain BUY with a higher target price of Rp770.
Analysis
1H26 results are well above expectations. Buana Lintas Lautan's (BULL) 1H26 revenue grew 84.0% yoy to US$128.7m, entirely driven by spot vessel charters (+100.2% yoy to US$126.3m), which captured the higher freight rates that followed the US-Iran tensions. Direct costs grew 23.6% yoy accordingly, driven by the two vessels added 1H26, as depreciation (+17.0%) and port charges (+15.4%) scaled with fleet size, while fuel (+47.7%) rose on higher Brent. EBITDA surged +191.1% yoy to US$71.2m, with the EBITDA margin seen expanding to 55.3% (1H25: 35.0%), while net profit jumped 736.5% yoy to US$58.4m.
Balance sheet remains manageable despite the fleet build-up. BULL spent US$55.7m on vessel additions in 1H26, taking the fleet from 10 to 12 vessels. Gross debt rose 48.3% yoy to US$156.2m, though cash also increased to US$18.8m (1H25: US$3.8m) on stronger cash flows, leaving net debt at US$137.4m and net gearing at 52.4% (vs 49.6% in 1Q26). Retained earnings of US$58.4m lifted equity broadly in line with net debt, leaving net gearing almost flat despite the vessel purchases.
Highlights
1H26 results beat expectations with EBITDA up 191.1% yoy and core profit reaching US$52.6m, due to a spike in Aframax and MR freight rates.
Fleet expansion is running ahead of our base case with 16 confirmed by 3Q26. We raise our 2026-28 forecasts on stickier freight rates and additional vessel purchases. Maintain BUY with a higher target price of Rp770.
Analysis
1H26 results are well above expectations. Buana Lintas Lautan's (BULL) 1H26 revenue grew 84.0% yoy to US$128.7m, entirely driven by spot vessel charters (+100.2% yoy to US$126.3m), which captured the higher freight rates that followed the US-Iran tensions. Direct costs grew 23.6% yoy accordingly, driven by the two vessels added 1H26, as depreciation (+17.0%) and port charges (+15.4%) scaled with fleet size, while fuel (+47.7%) rose on higher Brent. EBITDA surged +191.1% yoy to US$71.2m, with the EBITDA margin seen expanding to 55.3% (1H25: 35.0%), while net profit jumped 736.5% yoy to US$58.4m.
Balance sheet remains manageable despite the fleet build-up. BULL spent US$55.7m on vessel additions in 1H26, taking the fleet from 10 to 12 vessels. Gross debt rose 48.3% yoy to US$156.2m, though cash also increased to US$18.8m (1H25: US$3.8m) on stronger cash flows, leaving net debt at US$137.4m and net gearing at 52.4% (vs 49.6% in 1Q26). Retained earnings of US$58.4m lifted equity broadly in line with net debt, leaving net gearing almost flat despite the vessel purchases.
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
Rp428
Rp770
+79.9%
Rp750
Analyst
Analyst
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