PT Bukit Asam Tbk (IDX: PTBA), Indonesia’s state-owned coal miner, stated that it expects to post a 4% year-on-year rise in its production, as well as 1% increase in its sales in the first quarter of this year, notwithstanding the falling trend of the energy commodity prices internationally, Kontan reported citing the company’s corporate secretary, Suherman.
Mr. Suherman, however, did not provide any numeric figures for the company’s coal output and sale.
Bukit Asam had produced 5.3 MnT of coal in the January – March quarter of CY 2018; but no sales data were provided for the first quarter of last year.
Earlier this year, the company had set its annual coal production target at 27.3 MnT. It had produced 26.35 MnT of coal last year.
The company spokesperson also mentioned that the global downtrend in export prices from key coal producing countries could affect its revenue this year, as foreign exchange earnings from its export sales might decline.
Notably, the company sells 51% of coal in the domestic market, especially to state electricity company PT Perusahaan Listrik Negara (PLN) and the remaining 49% is sold to overseas markets—including India and China, in particular.
He further added that the recent fall in the domestic coal price would not affect the company’s earnings and revenues in the first quarter of this year, as coal price remains above USD 70/MT.
Nevertheless, “the decline in coal price would mainly affect domestic sales to PLN because the benchmark coal price is pegged at above USD 70/MT,” Kontan reported quoting Suherman as saying.
Meanwhile, the Indonesian government has set the benchmark coal price (HBA) at USD 88.85/MT in April, falling below the USD 90/MT mark in March when it was set at USD 90.57/MT.
Seaborne thermal coal prices have continued on their downward sloping trajectory since September last year, majorly due to the huge decline in import demand from China.
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