Despite coal downturn, Baramulti to distribute hefty dividend

By Thomas Sembiring

Despite the current coal industry downturn, IDX-listed coal mining company PT Baramulti Suksessarana Tbk plans to allocate about 57 percent of its net profit for dividend.

Baramulti Director Erick Rahardja said recently that the hefty dividend, to be distributed in April, is quite fair as the company had only distributed measly dividends to shareholders during the past three years.

He added that the dividend payout ratio has taken into account the company?s funding requirement for this year including a planned capital expenditure of US$6.6 million to among others finance infrastructure development.

Baramulti, which operates coal mines in South and East Kalimantan last year managed to increase net profit by tenfold at US$26.38 million from $2.5 million in the previous year thanks to gains resulting from various efficiency measures including the completion of infrastructure facilities in the previous year.

Editing by Reiner Simanjuntak