PTBA reports 9% increase in net profit

Despite the weak global coal market, IDX-listed coal giant PT Bukit Asam Tbk (PTBA) booked a 9 percent increase in net profit thanks to higher sales volume and average price as well as efficiency measures.

The company said in a press statement Tuesday that net profit in 2014 increased to Rp 2.02 trillion from Rp 1.85 trillion in the previous year.

Revenue rose by 16.7 percent to Rp 13.08 trillion from Rp 11.21 trillion as sales volume increased slightly to 17.96 million tons from 17.76 million tons, of which 52 percent went to the domestic market, and the remainder to the export market. Meanwhile, average selling price increased by 15 percent to Rp 723,635 per ton compared to Rp 629,737.

The company said that own production and coal purchase from third parties last year increased to 18.17 million tons, compared to 17.81 million tons in the previous year.

Various efficiency measures notably the optimum use of electricity to run its mining operations and optimization of hauling routes have also contributed to the higher profit performance of the company last year, PTBA said. The electricity is produced by its own 3x10 MW mine-mouth power plant. The company also operates a 2x8 MW power plant to support its Tarahan port in Lampung.

Elsewhere, PTBA said that sales volume this year is estimated to increase by 33 percent to 24 million tons, while production volume is targeted to rise by 30 percent to 23.70 million tons.

Editing by Reiner Simanjuntak