Bumi Resources to increase capital expenditure to $25 million
Friday, October 29 2004 - 03:12 AM WIB
"The planned increase in the capital expenditure is possible due to the success of the company to refinance its debts," said Ari S. Hudaya, company president told securities analysts.
He said that the ability of the company's subsidiary PT Kaltim Prima Coal (KPC) to raise funds worth $385 million from Credit Suisse First Boston (CSFB) to refinance the company's debt had significantly improved the company's financial condition.
According to Ari, the larger part of the capital expenditure would be used to improve the infrastructure facilities so that the company would be able to further increase its coal production.
He said Bumi Resources, the majority shareholder of the country's two major coal producers KPC and Arutmin, booked $312 million from the sales of coal during the third quarter of this year, a sharp increase compared to the previous year thanks the rise in coal prices in the international market. The improvement in the sales performance enabled the company to book net profit of $42 million in the first three months.
Bumi?s sales in the first nine months have reached $797 million or Rp 7.7 trillion or Rp 1.99 trillion higher than the last year?s sales figure during the same period.
Ari estimated that total sales and net profit would reach $1.2 billion and $133 million, respectively, this year.
He said that the realized coal price during the third quarter was $33.7 per ton while the total coal production reached between 38 and 39 million tons. Ari estimated that the coal price would remain stable at between $50 and $52 per ton until 2007.(*)