Bumi Resources Tbk PT (IDX: BUMI) – Indonesia’s biggest thermal coal producer by volume – has stood firm with its production forecast for the year regardless of a sharp decline in its profits during the first half because of the persistent weakness in the global seaborne coal markets.
In the January to June period of this year, Bumi’s total revenue fell 14.15% year-over-year (YoY) to US$ 481.36 million, according to the latest company statement published on the Indonesia Stock Exchange’s (IDX) website.
It had also posted a ~47% Y-o-Y decrease in net profit throughout the first six months of this year to US$ 80.67 million from US$ 151.72 million in the year-ago period.
The company, part of the widely-diversified family-owned Bakrie Group, sold 41.5 million tons (MT) of the power station fuel during the first six months of this year (January-June 2019), barely unchanged from the corresponding period in 2018.
Bumi Resources’ overall sales volume remained flat in the January to June period, in part largely due to an 18% drop in sales of its subsidiary, PT Arutmin Indonesia; in spite of an increase in export shipment out of its other coalmining unit, Kaltim Prima Coal (KPC).
In 1H CY2019, Arutmin shipped 11.4 MT of coal, against 13.9 MT sold over the same period last year.
In the meantime, however, KPC sold 30.1 MT, up by over 9% from 27.5 MT in 1H18.
Even so, the company maintains production guideline for full year 2019 at 87-90 MT.
However, the company “will possibly review coal prices at the end of this quarter to adjust market developments”, Kontan reported citing Dileep Srivastava, a company director of BUMI.
He further stated that the average selling price (ASP) of Bumi fell 8% to US$ 53.2/ton in the first half of this year from US$ 58/ton in the same period last year.
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