Bumi records net income of Rp1.2 trillion in 2004

Publicly listed coal mining company PT Bumi Resources Tbk announced an audited consolidated net income of Rp1,211.8 billion (US$135.3 million) in 2004 (Rp62.45 per share), a 1,027 percent increase compared to Rp107.6 billion (US$12.5 million) in 2003 (Rp5.54 per share).

Bumi said its net revenue (after government royalty) in 2004 increased 154 percent to Rp9,811.8 billion (US$1,095.3 million), compared to Rp3,863.3 billion (US$450.7 million), in 2003 mainly due to higher coal prices and increased volumes.

Bumi?s sales volume increased 17.6 percent to 36.0 million tons of coal in 2004, compared to 30.6 million tons in 2003.

Bumi also recorded a 25.4 percent increase in its weighted average realized coal sales price (FOB) of US$31.1 per ton in 2004, compared to US$24.8 per ton in 2003. The company?s export sales represented around 96 percent of its total sales in 2004.

Meanwhile, the company?s cash cost of production (direct costs excluding depreciation and freight) decreased to US$16.3 per ton in 2004 from US$17.1 per ton in 2003, due to a combination of lower stripping ratios at PT Kaltim Prima Coal (KPC) and increased production efficiency.

?Our production volumes increased 22% to 36.4mn tons in 2004 compared to 29.9mn tons in 2003, achieving a new annual production record at both Arutmin and KPC,? Bumi president Ari Hudaya commented.

Bumi?s gross coal production in 2004 was lower than its earlier planned target. The production shortfall was mainly attributable to a delay in the arrival of heavy equipment from Bumi?s contractors major international equipment suppliers. Heavy rainfall also adversely affected production.

Bumi targets to produce around 51 million tons of coal this year from both coal producers of which around 32.8 million tons will contribute from KPC following the commencement production at Bengalon coal mine.

KPC coal mine is located in East Kalimantan, while Arutmin Indonesia in South Kalimantan. (godang)