BUMI books 74% increase in operating income

IDX-listed coal miner, PT Bumi Resources Tbk reported that the company booked a 73 percent increase in operating income in 2011 partly driven by the 30 percent increase in selling price of coal.

Bumi, the country's largest coal producer, said that its sales revenue increased by over US$ 1 billion or 37 percent to US$ 4 billion from US$ 2.92 billion during the same period in 2010.

The company's gross profit rises sharply by 65 percent, or by US$ 629.8 million, to over US$ 1.59 billion year from US$ 964.4 million in 2010. As a result, operating income increased significantly by 73 percent to over US$ 1.12 billion last year.

Moreover, income before tax in 2011 is US$ 598.6 million or an increase by 13 percent compared with only US$ 530.5 million in 2010.

The results underline the management?s full commitment in increasing international reputation through greater transparency followed by a sharp focus in enhancing all of Bumi?s operating matrices, especially in Kaltim Prime Coal (KPC) and Arutmin.

?2011 was a challenging year for Bumi as we transformed the way we do business in almost every aspect such as operation, administration, and governance while addressing uncertain market condition as well as meeting our commitment in safety and environmental preservation," Bumi President Director Ari S. Hudaya.

"All of this in order to enhance our operational and financial performance in the short term, while increasing market dominance and promoting reputation in Indonesia and globally for the medium term.?

?Bumi has made payments of US$ 972.3 million as tax and royalty in 2011. Our effective tax rate on our operating income this year is about 42%. However, we have recorded some gains from equity interest in PT Bumi Resources Minerals Tbk (BRMS) and Newmont Nusa Tenggara (NNT). Our selling price in 2011 was not only fully transparent, they were also much higher than in 2010 which underlines the company?s marketing strengths,? said BUMI?s Director for Investor Relations Dileep Srivastava.

After adjusting for minority interest, Bumi?s 2011 net income rises to US$ 220.5 million from US$ 207.1 million in 2010, or equal to an increase of 6 percent or US$ 13.4 million.

Editing by Adianto P. Simamora