BUMI swings to profit

IDX-listed coal giant PT Bumi Resources Tbk recorded a net profit of $349.3 million in the first three months of this year, compared to a $62.9 million losses in the same period a year earlier, the company said in a statement Tuesday.

The stellar performance was not the result of its coal mining operation as revenue during the first quarter fell by more than 10 percent to $839.39 million from the same period of last year amid the lingering weak global coal market condition.

Bumi said it gained $746.9 million thanks to an investment that helped the company to book a profit in the first quarter. It described the gain as the difference between the carrying value and proceeds from the sale of its 19 percent interest in coal subsidiary, Kaltim Prima Coal, to Country Forest Limited, a subsidiary of China Investment Corporation (CICC), a Chinese sovereign wealth fund. The sale was part of Bumi?s debt-to-share swap deal with CIC. Bumi?s stake in KPC has now declined to 51 percent.

The coal miner owes CIC $1.3 billion from a loan dating back to 2009. Around $600 million matures on Sept. 18 with an additional $700 million maturing 12 months later.

Editing by Reiner Simanjuntak