Merrill cuts Bumi profit forecast
Thursday, February 2 2006 - 01:59 AM WIB
PT Bumi Resources, Indonesia?s biggest coal exporter, has had its profit forecast cut by Merrill Lynch & Co. for a second time in less than two months on lower-than-expected sales growth, The Jakarta Post reported on Thursday.
Merrill lowered its 2006 profit forecast for Bumi 9 percent to Rp 114.94 a share, and the 2007 forecast 7 percent to Rp 111.22 in a report dated Jan. 27. Merrill also cut the 2005 estimate 8 percent to 106.16 a share and its 12-month share price target to Rp 1,300, compared to Rp 1,350 previously.
Last year, Bumi produced 44.7 million tons of thermal coal, which is used to fire power plants, 23 percent more than the 36.4 million tons produced in 2004. Still, that was below Merrill?s forecast of 45.9 million tons, the report said.
?We believe the softness was caused mainly by an extended rainy season that affected production,? Merrill analyst Verdi Budiman said in the report. (*)