Bumi records 100 percent jump in Q1 net
Saturday, May 1 2004 - 01:35 AM WIB
The company's coal production surged 135% to 8 million tons in the first quarter of 2004, compared to 3.4 million tons in the same period last year, due to the addition of Pinang, Prima and Melawan products. In the first quarter of 2004, the company sold 7.9 million tons of coal, which is in line with its internal quarterly target to meet its anticipated annual coal sales of 43 million tons in 2004.
BUMI controls two of Indonesia?s top mining firms: PT Kaltim Prima coal (KPC) in East Kalimantan and PT Arutmin Indonesia in South Kalimantan. Bumi did not give production breakdown, but according to Petromindo.Com's data, during the first quarter of 2004, KPC produced 4.7 million tons of coal.
The company recorded a marginal increase in its weighted average FOB sales price of US$26.6 per ton in the first quarter of 2004 compared to $23.6 per ton in the first quarter of 2003. The increase was limited by several long-term coal contracts signed at the beginning of 2003, which set prices in the first quarter of 2004 at early 2003 levels. In the following quarters of 2004, the company expects to realize higher coal contract prices as the sales prices under its existing coal contracts come up for renegotiation.
Consolidated revenue in the first quarter of 2004 surged 129% to Rp1,647 billion ($193.9 million) from Rp719 billion ($84.7 million) in the first quarter of 2003.
"The first quarter 2004 was a good start for us. In terms of production, the company has achieved its internal first quarter production target despite higher rain fall than average during this quarter. Meanwhile, the company's first quarter 2004 weighted average sales price has already improved but does not yet reflect the current level of world coal prices due to the several long-term contracts signed at the beginning year of 2003. Going forward, the company expects to benefit from higher production and higher coal contract prices which we expect will significantly add to the company's bottom line," President Director Ari Hudaya said.
PT Bumi Resources Production, Sold and Average Sales Price (FOB)
| 1Q2003 | 1Q2004 | ||||
| Production | Sold | AverageSales Price | Production | Sold | Average Sales Price |
| 3,400 | 3,514 | $23.6 | 8,002 | 7,856 | $26.6 |
BUMI's cost of production rose 135% to Rp1,240 billion ($146 million) in the first quarter of 2004 compared to Rp527 billion ($6 2 million) in the same period last year due to the consolidation of KPC. In the first quarter of 2004, Bumi's cash cost of production (direct costs excluding depreciation and interest) improved to $16.7 per ton from $17.0 per ton in the same quarter last year.
The company's gross profit rose 112% to Rp. 407 billion ($47.9 million) in the first quarter of 2004 compared to Rp192 billion ($22.6 million) in the same quarter last year while gross profit margin booked at 24.70% in the first quarter of 2004, lower than the same quarter last year at 26.75%.
Total operating expenses increased by 18% to Rp113 billion ($13.4 million) in the first quarter of 2004 from Rp96 billion ($11.4 million) in the same quarter last year mainly due to increased marketing expenses. As a result, the company's total operating income soared by 206% to Rp293 billion ($34.5 million) in the first quarter of 2004 compared to Rp96 billion ($11.3 million) in the same period last year.
The company's other expenses jumped 766% to Rp172.3 billion ($39.2 million) in the first quarter of 2004 from Rp19.9 billion ($3.45 million) in the same period last year. The increase was mainly due to the increased interest expense and increased amortization of goodwill from the acquisition of KPC.
Net debt surged to Rp5,362billion ($631.9m) in the first quarter of 2004 from Rp1,105billion ($130.1m) in the first quarter of 2003. The increase was due to the acquisition of KPC. A loan of $404 was raised in October 2003 for the acquisition and an additional loan of $40m was raised from Mitsubishi Corporation in January 2004. (alex)