Bumi Resources provides highlights of performance results Jan-Sept 2007
Thursday, November 1 2007 - 04:14 AM WIB
NET INCOME
Core net income increases 61% to $ 246.5 million ( after adjusting 30% Tata minority interest )
Unadjusted net income actually increases 78% to $ 272 million (on 100% basis)
Net Income Increases 423% to $ 800 million ( counting XO gain of $553.5 million coal asset sale to Tata Power)
Comparisons above are with net income of $ 153.0 million in the same period last year
NET REVENUES
Net revenue Increases 22% to $1645.4 million from $ 1,343.3 milllion in 2006
Gross Margin Increases 32% to $548.0 million from $ 416.3 million in 2006
EBITDA
EBITDA increases 17% to $ 335.9 million from $ 286.9 million in 2006.
COAL METRICS
Thermal Coal Sales Volume increases 14% to 40.7 million tons from 35.7 million tons in 2006.
Average FOB price increases 5% to $42.60/ ton from $ 40.60/ton in 2006.
Coal Conveyed increases 9% to 39.3 million tons from 36.2 million tons in 2006.
Production cash costs reduce 3% to $ 25.62/ton from $ 26.42/ ton in 2006.
Coal inventory on 30 Sep ?07 increases 104% to 2.86 million tons from 1.40 million tons on 30 Jun 2007
The first 9 months of 2007 were characterized by heavy unseasonal rainfall, yet performance exceeds the previous period significantly.
MAJOR BUSINESS DEVELOPMENTS
The coal assets are debt free.
Tata Power has its management presence , including, CFO position in the coal assets.
Plans to ramp up annual coal production capability to 100 million tons around 2011 are under implementation. These plans will include procurement of additional mobile equipment, more than double our conveyor belt capacity, enhance ship loading rate from 4700 tons/ hour to 7000 tons/ hour and build 2 x 12 MW coal fired power plants for captive use.
Development of our copper and gold assets in Sulawesi and iron ore in Mauritania are being progressed to determine resource, followed, thereafter, by a fast track commercialization plan.
Exploration activities for coal bed methane on our coal properties has begun with our overseas joint venture specialist partner, Westside Corporation, Australia.
Plans to upgrade our low ranked brown coal into higher energy produce is being progressed working with Kobe Steel Ltd, Japan.
A second zero coupon convertible bond issue for $150 million was successfully launched in early Sep ?07 and closed on 1 Oct ?07 ? 3 to 4 times oversubscribed by overseas investors. The proceeds would be used for start up capital expenditure for our non coal development assets.
2007 OUTLOOK
In spite of a challenging production year because of extended rainfall Bumi has successfully improved upon its performance levels compared with 2006 and is confident of exceeding market expectation on all financial parameters in 2007.
About Bumi Resources
In 2006, Bumi Resources? coal subsidiaries shipped approximately 50 MT of coal, of which 95% was sold in overseas markets ? predominantly Asia, including Japan, Taiwan, South Korea, India and China, followed by Europe and the Americas.
Bumi Resources expects to produce approximately 59 MT of coal in 2007, and expects to ship approximately 58 MT of coal in 2007, compared with approximately 50 MT in 2006 ? a projected increase of 16%. They have already sold approximately 28.3 MT between January and June in 2007.
The production and sales volume figures noted above include the Indonesian government?s entitlement of 13.5% under our coal contracts of work with the government. (end of highlights)