Bumi says cost hikes to affect revenue
Monday, December 12 2005 - 10:13 PM WIB
Indonesia's largest coal producer, PT Bumi Resources Tbk , said on Monday that its 2005 revenue would be hit by cost increases caused partly by rising fuel prices.
But the company was expected to reach its US$1.6 billion sales target from a sales volume of 45 million tonnes this year, Bumi said in a statement.
"The company's average fuel cost per litre in the third quarter of 2005 has increased by 46 percent to 4,897 rupiah ($0.50) from 3,350 a litre in the second quarter of 2005," the statement said.
Indonesia has cut fuel subsidies for companies operating in the oil and mining industry, as the government has been trying to ease the pressure on its budget caused by soaring international oil prices.
For the full year of 2005, Bumi has committed to sell 43.7 million tonnes of coal.(*)