Resources Prima reports lower coal output, revenue
Saturday, November 12 2016 - 04:26 AM WIB
SGX-listed Resources Prima Group Limited reported coal production decreased by 7.8 percent to 1,110,274 tons in the first nine months of this year ( 9MFYE12/16 ) from1,204,634 tons for 9MFYE15.
The company said in a statement Friday coal production fell 13.9 percent to 345,880 tons for 3QFYE12/16 from 401,807 tons for 2QFYE12/15.
The firm said the main determinant of coal production is the mine plan and related stripping ratio. Mining activity and the stripping ratio for 9MFYE12/16 and 3QFYE12/16 were in accordance with the Group?s mine plan.
Coal production during 3QFYE12/16 was however adversely impacted by the unusually heavy rainfall in September 2016.
Coal sales increased by 0.2 percent to 1,112,341 tons for 9MFYE12/16 from1,109,607 tons for 9MFYE15 but decreased by 18.21 percent to 297,868 tons for 3QFYE12/16 from 364,239 tons for 2QFYE12/15. Coal sales during3QFYE12/16 were adversely impacted by lower production due to the unusually heavy rainfall as noted above.
The company said revenue is generated primarily by Rinjani, through the sale of coal from its coal mining activities. Rinjani sells its coal through an offtake agreement with a sole trader. Since November 2015 such sales were transacted through a subsidiary, RPG Trading Pte. Ltd. The price of such coal sales is based on international prices. Additional revenue is generated from the use of Rinjani?s coal facilities by a third party mine owner. Rinjani operates a coal concession in Kutai Kartanegara, East Kalimantan
In 9MFYE12/16, revenue decreased by 18.4 percent ($9.8 million) to $43.6 million from $53.4 million in 9MFYE15 and by 21.8 percent ($3.5million) in 3QFYE12/16 to $12.9 million from $16.4 million in 2QFYE12/15.
Revenue from coal sales decreased by 18.2 percent ($9.4 million) to $42.3 million from $51.7 million mainly due to a decrease in average sales price of 18.2 percent in 9MFYE12/16. In 3QFYE12/16, revenue from coal sales decreased by 26.2 percent ($4.1 million) to $11.7 million from $15.8 million in2QFYE12/15 due to a decrease in both the sales quantity of 18.2 percent and sales price of 10.5 percent.
Revenue from facility usage decreased by 26.8 percent ($0.5million) to $1.2 million in 9MFYE12/16 from $1.7 million in 9MFYE15 but increased by 94.0 percent ($0.6 million) to $1.2 million in 3QFYE12/16 from $0.6million in 2QFYE12/15 as a result of changes in the quantity of coal throughput from a third party mine owner.
In 9MFYE12/16 and 3QFYE12/16, the gross profit decreased by $5.9 million and $1.2 million respectively, mainly due to a decrease in revenues in both periods. The decrease in revenue in 9MFYE12/16 resulted from a decline in the average selling price of coal.
In 9MFYE12/16 the gross profit margin decreased to 17.8 percent from 25.6 percent. In 3QFYE12/16 the gross profit margin decreased to 16.9 percent from 20.2 percent. Both decreases were due primarily to a decrease in the average selling price of coal.
Editing by Reiner Simanjuntak