Resources Alam revenue down 25.63% on weak coal market

IDX-listed coal miner PT Resources Alam Indonesia Tbk saw its revenue in the first semester of this year declined by 25.63 percent to US$76.16 million compared to the same period of last year due to the lingering weak global coal market, Kontan reported on Saturday.

Meanwhile, profit attributed to shareholders of parent entity plunged by 38.65 percent to $6.62 million.

The paper quoted Resources Alam Commissioner Suria Martara Tjahaja as saying that there were three factors contributing to the weaker financial performance of the company.

First, a 12.14 percent decline in coal production volume during the first semester of this year to 1.8 million tons compared to the same period of last year, due to a combination of wet season and weak market demand.

Second, a 12.74 percent drop in coal sales volume to 1.85 million tons in the first six months of this year, compared to 2.12 million tons in the same period of last year.

And third, a drop in the company?s average selling price to $41.72 per ton (FOB barge), compared to last year?s average of $48.17 (FOB barge).

Regarding the company?s Loa Haur concession in Central Kalimantan, Suria said that the company was hoping to start production once coal price recovers to near $100 per ton.

Meanwhile, Bisnis Indonesia quoted Suria as saying that due to the bad weather condition and slowing demand in China, the company has revised downward its production target for this year to 4.2 million tons from the original target of 5.2 million tons. (*)