Bumi returns to profit

By Romel S. gurky

Despite the lingering weak coal price, IDX-listed coal giant PT Bumi Resources Tbk said that it has managed to book a profit of US$130.1 million million in the first six months of this year, compared to a net loss of $269.7 million in the corresponding period of last year, thanks to higher sales volume and lower cost.

The company said in a presentation material filed with the Indonesia Stock Exchange seen Saturday that coal production in the January-June period of this year increased by 10 percent to 45.3 million metric tons from 41 million tons in the same period of last year.

The higher production volume helps pushed sales volume to rise by 12 percent to 44.2 million tons from 39.6 million tons.

Bumi, however, said that coal price in the first six-month of this year fell by 23 percent to $52.7 per ton (FOB), compared to $68.8 per ton in the same six-month period of last year.

As a result, revenue in the first semester of this year dropped by 15 percent to $1.58 billion from $1.86 billion in the corresponding period of 2013.

Elsewhere, Bumi said that its recent decision to postpone a planned $275 million rights issue was also made due to lack of demand (under subscription) and the fact that creditors are not willing to be repaid with new shares in the company.

Bumi announced September 25 it was delaying the rights issue plan following rising opportunity for debt payment renegotiation with creditors.

?The company saw positive opportunity for further talks with the creditors to determine the next step,? Bumi said in a filing with the Indonesia Stock Exchange.

Bumi has total debts of $1.3 billion to China Investment Corp, which carries 12 percent interest a year. Of that amount, $600 million will mature in October this year and $700 million in October next year.

Editing by Reiner Simanjuntak