Bumi Resources books profit, fundamentals remain weak

IDX-listed coal giant PT Bumi Resources reported a net profit of US$13.3 million in the first nine-month of last year, compared to a net loss of $377.51 million in the corresponding period of the previous year.

Despite the profit, the company?s fundamentals are seen to remain weak amid lingering weak coal price and huge debt load.

Reflecting the weak global coal market, net revenue in the January-September 2014 period fell by 17.42 percent to $2.18 billion year-on-year, the company said in quarterly report on Monday.

Bumi Resources managed to book a slim profit mainly due to proceeds from the divestment of shares in a subsidiary and foreign exchange gain made during the period.

Kontan daily quoted Bumi Resources Director and Corporate Secretary Dileep Srivastava as saying Tuesday that despite the lingering weak coal price, the company aims to boost coal production this year by 20.48 percent to 100 million tons compared to the 83 million tons target for last year.

Huge debt load and losses in the past have caused Bumi Resources to suffer capital deficiency, which in the first nine months of last year further swollen US$320.93 million compared to $302.95 million at the end of 2013. (*)