Bayan reports lower net profit

IDX-listed coal mining group PT Bayan Resources Tbk said Monday its 2008 net profit was down to only Rp 38.50 billion (US$=Rp 11,500) from Rp 252.74 billion.

Revenue increased to Rp 4.88 trillion from Rp 3.44 trillion a year earlier. However, production costs rose to Rp 3.9 trillion from Rp 2.5 trillion, while sales costs were up to Rp 522 bilion from Rp 451 bilion and general and administrative costs up to Rp 215 billion from Rp 93 billion.

In a presentation released on March 6, 2009, the company said its sales volume is expected to increase to 10 metric tons (MT) in 2009 from 6.7 MT in 2008 with some 600,000 tons of coal to be purchased from third party.

The increase would come as a result of the start of its Firman Ketaun Perkasa (FKP) mine in East Kalimantan and expansion at Wahana Baratama Mine in South Kalimantan, Perkasa Inakakerta in East Kalimantan, Teguh Sinar Abadi and Fajar Tabang Brian mines in East Kalimantan

Bayan will also increase the production of PT Gunungbayan Pratamacoal in East Kalimantan from 3.7 million tons in 2008 to 4 million tons this year.

Bayan, the 8th largest coal producing group in Indonesia, operates eight mining companies including five operated under CCoWs. (denny)