Bumi?s net profit jumps 261%, targets 10% rise of coal output next year
Wednesday, December 6 2017 - 12:30 AM WIB
IDX-listed coal mining company PT Bumi Resources Tbk said that net profit in the first nine months of this year soared by more than 261 percent compared to the corresponding period of last year on the back of stronger coal price.
The company said in a statement on Tuesday that net profit in the January-September period of this year jumped to US$263.8 million (full consolidation basis) from $73 million in the same period of last year.
The company has actually reported its nine-month 2017 financials based on PSAK 66 of Indonesia Accounting Standard (IAI) on Joint Venture Agreements and, hence, does not consolidate KPC and Arutmin. The 51 percent stake in coal firm PT Kaltim Prima coal (KPC) and 70 percent stake in Arutmin that Bumi holds is equity accounted. However, for ease of understanding, the company also provides internal estimates of the full consolidated figures including 100 percent contribution from KPC and Arutmin for comparison.
On full consolidation basis, sales revenue in the first nine months of this year increased by 38.5 percent to $3.6 billion from $2.6 billion in the same period of last year.
Bumi said that coal production during the nine-month period of this year was relatively flat at 62.1 million tons compared to 62.7 million tons in the corresponding period of last year. ?Unusually, heavy rains impacted production,? the company said.
Coal sales volume was 62.6 million tons in the nine-month 2017 period compared with 64.6 million tons in the same period of last year.
The company, however, said that its coal selling price increased by 39.6 percent to $55.9 per tons in the January-September 2017 period from $40.1 per ton in the same period of last year.
?There is indication of a continuing rise in coal price and this augurs well for prospects for the company for rest of the year,? Bumi said, adding that sales volume for this year is expected at 86 million tons at a price 40 percent higher than realized FY?16 level of $42.1/ton.
Elsewhere, Bumi said the debt composition plan is in its final stage of implementation on December 11, 2017 when the debt for equity and MCBs is expected to be exchanged with eligible lenders.
The above debt for equity conversion has turned net equity to positive $207 million compared with negative net equity of $2.8 billion in the first-half of this year, the company said.
Bumi said it expects to recommence production of high ranked coal from Arutmin of 8 million tons in 2018. ?Hence, we plan a coal production of at least 10 percent above FY?17 levels.?
?Coal sector conditions continue to be buoyant and Bumi expects a further coal price increase of 5 percent compared with present realized levels,? it added.
Editing by Reiner Simanjuntak