PT Bumi Resources Tbk. (BUMI) targets a coal production volume of 75 million-80 million tons in 2023. BUMI is the largest coal producer in Indonesia.
Dileep Srivastava, Director & Corporate Secretary of BUMI, said that in 2023 the company targets a coal production volume of 75 million-80 million tons. The average selling price is around USD 80-USD 90 per ton with estimated cash production costs of USD 55-USD 60 per ton.
“coal production guidelines in 2023 are 75 million-80 million tons,” he explained in a press release, Friday (1/12/2023).
As of September 2023, BUMI produced 56.2 million tons of coal and sold 54.3 million tons. The coal comes from two of its subsidiaries, namely PT Arutmin Indonesia (AI) and PT Kaltim Prima coal (KC).
AI produced 16.1 million tonnes of coal and sold 15.9 million tonnes as of September 2023. In the same period, KPC produced 40.1 million tonnes of coal and marketed 38.4 million tonnes. However, according to PSAK 666, BUMI only consolidates AI in financial reports, without KPC.
Until the third quarter of 2023, BUMI achieved revenue of USD 1.17 billion or the equivalent of IDR 18.34 trillion (estimated exchange rate of IDR 15,625 per US dollar). This revenue achievement fell 15.78% year-on-year (YoY) from the previous year’s period of USD 1.39 billion.
Dileep Srivastava explained that the company’s weakening revenue was caused by coal prices which fell sharply compared to the benchmark price last year.
Apart from that, coal market uncertainty followed by the global geopolitical and economic situation and conditions are also considered to be factors that weaken BUMI’s income.
“Even though production and sales increased 5% from last year, coal prices which fell 28% had a significant impact on the volatile coal market conditions,” said Srivastava in a written statement received by Bisnis , Thursday (30/11/2023).
He added that the company also bears royalty payments of 32% of revenue, taxes, domestic price subsidies, high fuel prices, inventory and high production in India, China and Indonesia.
On the other hand, the cost of revenue as of September 2023 reached USD 1.09 billion or decreased from USD 1.10 billion in the previous year. However, BUMI’s gross profit fell to USD 78.92 million from the previous USD 294.27 million.
After deducting various other expenses, BUMI recorded a profit for the period attributable to the owners of the parent entity of USD 58.26 million or the equivalent of Rp. 910.31 billion. BUMI’s net profit plunged 83.78% from the previous USD 365.49 million as of September 2022.
As of the third quarter of 2023, BUMI’s cash and cash equivalents fell to USD 60.22 million. One of them is because BUMI used net cash for operations of USD 168.32 million, from previously receiving net cash from operating activities of USD 76.01 million.
Meanwhile, BUMI’s total assets decreased to USD 4.18 billion as of September 2023 or from a position of USD 4.48 billion at the end of 2022. As of September 2023, BUMI’s equity reached USD 2.81 billion, while liabilities were USD 1.37 billion.
Image source: bumiresources.com
Source: https://market.bisnis.com/read/20231201/192/1719937/bumi-targetkan-produksi-batu-bara-80-juta-ton-terbesar-di-indonesia
Source https://djakarta-miningclub.com