Resources Alam net profit jump on higher coal output, price

Indonesia-listed coal firm PT Resources Alam Indonesia (RAI) booked revenue of Rp969.4 billion (1US$ = Rp 8,772) in 2010, a 138.4 percent increase from Rp 406.6 billion in the previous year.

Audited net profit in 2010 was booked at Rp 166.0 billion, representing a significant growth of 418.8% versus the audited 2009 result.

RAI said in a statement Thursday that the increase in 2010 revenue resulted from higher coal production and better average selling price recorded by its coal mine PT Insani Baraperkasa (IBP).

Production volume doubled from 1.0 million tonnes in 2009 to 2.25 million tonnes in 2010 with the average selling price increasing by 19.4% from $40.3 to $48.1 a tonne.

Coal sales reached 2.21 million tonnes during 2010, up by 133.8 percent from 945,000 tonnes in 2009.

Average production cost per metric ton dropped by 8.4% from $26.2 to $24.0 in 2010 as greater economies of scale was achieved with larger production, it said. (denny)