Harum?s Q1 output drops 31.25%

IDX-listed coal miner PT Harum Energy Tbk saw coal production in the first quarter of this year dropped by 31.25 percent to 2.2 million tons compared to 3.2 million tons in the same period of last year due to the lingering weak global coal market, Kontan reported on Tuesday.

The output came from concessions held by the company?s subsidiaries PT Mahakam Sumber Jaya (1.9 million tons) and PT Santan Batubara (300,000 tons).

The paper quoted Harum Head of Investor Relations Veronica Jordan as saying that the lower output forms part of the firm?s strategy to help optimize margins amid the current drop in coal prices.

Veronica said that Harum saw its average selling price during the quarter fell by 6 percent to US$64.6 per ton from $69.1.

Given the weak market situation, Harum sold only 2.1 million tons of coal during the first three months of this year, down 42.2 percent from 3.6 million tons in the January-March period of last year. As a result, revenue in the first quarter dropped by 42.7 percent to $128.1 million.

Veronica, however, said that the company managed to maintain profitability despite the difficult condition as first quarter net profit increased by 54.8 percent to $10.8 million compared to the level in the same period of last year. (*)