Banpu reports lower coal sales from RI operations due to bad weather
Tuesday, August 15 2017 - 03:13 AM WIB
Thailand?s diversified energy group Banpu PCL saw lower coal sales volume from its mines in Indonesia during the second quarter of this year due to unusual rainy season.
The company said in a statement last week that sales volume in the quarter ending June of this year reached 5.56 million tons, a slight 3 percent increase quarter-on-quarter (QoQ), but an 11 percent decline year-on-year (YoY) as a result of prolonged rainy season in this year.
Banpu said during this year all the company?s mines experienced the heaviest rainfall in the last seven years. The unusual weather condition is likely to affect production performance in short-term. Nevertheless, sale revenue rose higher 5 percent QoQ and 33 percent YoY driven by firmer coal prices. The Average Selling Price (ASP) reached US$70.43 per ton (+2% QoQ, 52% YoY).
The favorable coal prices allowed company to optimize mine plans by mining from deeper areas, making Average Cost of Sale strategically increased to $ 43.12 per ton (+14% QoQ, 32% YoY). Gross Profit Margin (GPM) maintained at a strong level of 38 percent compared with 47 percent in previous quarter and 32 percent in last year.
Banpu runs its coal mining business in Indonesia through subsidiary IDX-listed PT Indo Tambangraya Megah Tbk (ITMG), which has five coal mine units including PT Indominco Mandiri, PT Trubaindo Coal Mining, PT. Bharinto Ekatama, PT. Kitadin and PT Jorong Barutama Greston.
| 2Q17 | 1Q17 | 2Q16 | |
| ROM Production (M. tonnes) | |||
| Indominco - West Block Indominco | 0.35 | 0.30 | 0.52 |
| - East Block Trubaindo | 2.82 | 2.88 | 3.29 |
| Bharinto Jorong | 0.94 | 1.04 | 1.24 |
| Kitadin - Embalut | 0.45 | 0.51 | 0.52 |
| 0.18 | 0.21 | 0.20 | |
| 0.20 | 0.20 | 0.27 | |
| Total Production | 4.93 | 5.15 | 6.04 |
| Coal sales volume (M tonnes) | |||
| Indominco - West Block Indominco | - | 0.18 | 0.47 |
| - East Block Trubaindo | 3.27 | 2.98 | 3.39 |
| Bharinto Jorong | 1.07 | 1.09 | 1.21 |
| Kitadin - Embalut | 0.59 | 0.52 | 0.49 |
| Kitadin - Tandung Mayang | 0.21 | 0.21 | 0.27 |
| 0.21 | 0.18 | 0.27 | |
| 0.01 | |||
| Coal Sales | 5.34 | 5.16 | 6.10 |
Editing by Reiner Simanjuntak