Berau Coal remains in the red

IDX-listed coal mining firm PT Berau Coal Energy Tbk remained in the red during the first quarter of this year due to a combination of low coal prices and rising costs, Kontan reported on Saturday.

The company reported a net loss of US$10.18 million in the first quarter of this year, shrinking from a net loss of $32.19 million in the same period of last year.

The smaller loss was attributed to an 8.25 percent increase in sales to $373.3 million during the first quarter as production and sales volume increased by 15 percent to 6.1 million tons and 6.3 million tons, respectively, Kontan said.

Berau initially planned to increase coal production this year by 10 percent to 25.75 million tons, but the Ministry of Energy and Mineral Resources limits the company?s output this year to only 22.35 million tons, lower than last year?s 23.5 million. The government is trying to limit the country?s coal production in a bid to help stabilize price and ensure future supply at home. (*)