Bumi Resources provides 2007 highlights of performance results

Below are key highlights from Bumi's full year 2007 financial results released on Wednesday.

PT Bumi Resources Tbk. reported a sharp 255% increase in net income in 2007 of $ 789 million compared with $ 222 million in 2006.

Core net income rose 94% to $369 million in 2007 compared with $ 190 million in 2006 on 100% basis for an apple to apple comparison.

Core net income rose by 67% to $ 317 million in 2007 compared with $ 190 million in 2006 after adjusting for Tata Power's minority interest in our coal assets from 1 July 2007.

Operating parameters sharply improved reflecting all round enhanced performance efficiencies demonstrated by Bumi.

Sales revenue rose by 22% to $ 2,265 million in 2007 compared with $ 1,851 million in 2006 or an increase of $ 414 million.

Average FOB price increased by 8% to $ 44.0 per ton in 2007 compared with $ 40.8 per ton in the previous year.

Notably, sales volume rose by 11% to a record 55.4 million tons in 2007 compared with 50.0 million tons in 2006 - in spite of the very challenging operating environment for most of 2007.

Bumi reduced its production cash costs by 1% to $ 25.9 per ton compared with $ 26.1 per ton in the previous year in spite of sharp increases in costs including fuel prices.

EBITDA increased by 20.6% to a record $ 480 million in 2007 compared with $ 398 million in 2006 reflecting increasing liquidity.

Bumi is also now debt free.

"We are proud of our outstanding performance in 2007 in spite of heavy unseasonal rainfall. Not only was Bumi able to achieve an increase of 11% in sales volume but we continued uninterrupted shipments to our global clientele when many producers declared force majeures and reneged on contracts. Bumi preserved its unblemished record of being the world's most reliable thermal coal supplier", said Ari Hudaya, President Director, PT Bumi Resources Tbk.

He added that "we successfully concluded the 30% sale of our coal assets to Tata Power Company during the year and we are almost debt free saving annualised interest of over $ 100 million".

It is opportune now to refer to Bloomberg's story on 1 April 2008 on our published 2007 results. The true position is that for quarter Oct/Dec '07 Bumi reported a record net operating profit of $71 million because of its highest ever quarterly sales and better prices. In fact Bumi's business fundamentals today are stronger than ever in the past.

For 2008, Bumi plans to increase coal production and sales by 12% and realize average fob prices by at least 40% compared with 2007.

Bumi is implementing plans to raise its annual coal production capability 100 million tons by the end of 2010.(end of highlights)