Harum reports sharp drop in H1 production, sales volume
Saturday, August 16 2014 - 04:09 AM WIB
IDX-listed coal miner PT Harum Energy Tbk reported a sharp drop in first-half (H1) coal production, leading to a plunge in coal sales volume, contributing to lower revenue.
The company said in a presentation material seen on Saturday that production volume in the first six months of this year dropped by 31.1 percent to 4.2 million tons compared to 6.1 million tons in the same period of last year.
Sales volume in the first semester tumbled to 4.4 million tons from 7.4 million tons in the corresponding period of last year. The first-half 2014 sales volume was primarily contributed by subsidiary PT Mahakam Sumber Jaya (MSJ) at 4 million tons, with remaining 0.4 million tons coming from PT Santan Batubara (SB).
Average selling price (ASP) in the first six months of this year fell 8.9 percent to US$63.6 per tons from $69.9 in the corresponding period of last year. The ASP in the second quarter fell to $62.8 from $64.6 in the first quarter as global coal price continued to be under pressure during the period.
FOB vessel cash cost declined to $41.8 per ton during the first semester of this year from $49.8 in the same period of last year, mainly due to declining cost of mining contractor since early in the year, and lower stripping ratio of 7.2X during the first half.
The combination of lower sales volume and ASP, drove Harum?s revenue in the first semester of this year to drop by 43.6 percent to $262.5 million from $465 million in the same period of last year.
EBITDA during the first half of this year was 30.2 percent lower at $29.7 million compared to $42.6 million in the same period of last year.
EBITDA margin and net profit margin, however, increased by 11.3 percent and 6.9 percent, respectively, thanks to greater decline in lower production cost than the fall in average selling price.
Harum has allocated US$10 million in capital expenditure for this year to help finance hauling road development, construction of other facilities, and to finance drilling and exploration activities. As of June 30 of this year, about $1.6 million has been spent particularly to finance drilling and exploration activities of PT Karya Usaha Pertiwi, and PT Tambag Batubara Harum.
Editing by Reiner Simanjuntak