Bumi Resources' sales increase sharply

By Cepi Setiadi

IDX-listed giant coal company PT Bumi Resources Tbk sharply increased sales volume by 26.4 percent or 7.4 million tons along the first half 2013 compared to the same period of 2012.

Director and Corporate Secretary Dileep Srivastava told Petromindo.com on Tuesday that in the same period, the company was also able to reduce stripping ratio by 2 percent and cut operating expenses by 26 percent to US$232.9 million from $314.9 million in the first half of 2012.

Dileep added that the above-mentioned efficiency measures were able to partially offset the $19.6/ton reduction in coal price or by 22.2 percent year on year. Consequentially, he said, sales revenue decline year on year was restricted to 4.59 percent. "Thanks to an increase in sales volume in spite of a problem with a foreign mining operator in Arutmin," he added.

Dileep said that the company was still able to record an operating profit of $142.9 million, albeit lower year on year. Furthermore, he revealed that the fuel prices continue to be high (above $100/bbl) which resulted in higher direct costs. Bumi consumes almost 1 billion liters of diesel oil/year.

Editing by Johannes Simbolon