PTBA says 90% of 2017 output has been contracted

By Thomas Sembiring

Petromindo|Khalsa

IDX-listed coal giant PT Bukit Asam Tbk (PTBA) said that about 90 percent of its planned coal output for this year has been contracted, while the remainder will be sold via the spot market.

?We have contract commitment for about 90 percent of the planned production for this year,? said PTBA President Director Arviyan Arifin to Petromindo.com on Thursday.

Arviyan said that a large part of the contracted volume will be allocated for state-owned electricity firm PT PLN, while the remainder for the export market.

The company this year has set a coal production target of 24.07 million tons, while coal purchase from third parties by its subsidiary is targeted to reach 3.03 million tons. PTBA has set sales volume target this year of 27.29 million tons, or 31 percent increase from last year.

In a bid to support PTBA?s sales target this year, state-owned railway firm PT Kereta Api Indonesia has agreed to transport about 21.70 million tons of the company?s coal output, an increase from last year?s transport volume of 17.72 million tons. About 18 million tons of the coal output this year will be transported to the Tarahan port, and 3.7 million tons to the Kertapati port.

PTBA allocates cash dividend of Rp 601.86 billion for shareholders, which represents 30 percent of the company?s 2016 net profit of Rp 2.01 trillion. Last year, the company saw its sales volume increased by 9 percent to 20.75 million tons, year-on-year, of which 12.27 million tons were sold in the domestic market, and 8.49 million tons exported. Revenue last year increased by 2 percent to Rp 14.06 trillion.

Editing by Reiner Simanjuntak