Bumi reports higher sales volume, but profit down
Saturday, November 2 2013 - 05:04 AM WIB
The company said that sales volume during the period ending September increased to 58.6 million tons compared to 47.7 million tons in the same period of last year.
The company added that overburden removed fell by 4.9 percent year-on-year to 532.2 bcm, while coal mined increased by 18.8 percent year on year to 60.8 million tons from 51.2 million tons, and strip ratio was reduced by 20 percent to 8.8 bcm/ton of coal mined.
The company, however, said as average selling price dropped by 21.9 percent year-on-year to US$66.8 per ton from $85.5 per ton, revenue and operating profit suffered. It said that operating profit during the nine-month period ending September declined to $216 million, but did not provide comparative figure.
Bumi said that higher efficiencies and cost reduction efforts have help restricted revenue decline at 3.9 percent year-on-year. The company said that the drop in coal prices was partially offset by the increase in sales volume and lower strip ratio, resulting a 20.9 percent reduction in operating expenses and a drop in production cash cost by $4.8 per ton.
Elsewhere, the company said that there was significant $303m positive change in derivative losses during the period ($119 million vs $422 million last year), while forex loss reduced by $129 m ($119m vs $248m last year), and net interest and finance charges shrink by 3.4 percent to $399 million ( vs $413m last year)
Net loss (attributable to owners of parent) declined by $255 million (or by 40% yoy) to $377 million compared with $632 million last year.
Bumi said there was no change in 2013 sales and production guidance, but added it will review the outlook in November.
It added that the company was focusing to accelerate repayment of remaining CIC loan through announced debt for equity swap asset by this year end. The objective is to reduce interest cost in 2014.
The company sees upside potential in the coal market, with more China sales, possible customary demand surge in winter, and evidence of some hardening in coal price.
Editing by Reiner Simanjuntak