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View all search resultsBumi shares up as overall performance beats predictions
The world’s largest thermal coal exporter PT Bumi Resources saw its shares jump 10 percent to Rp 2,675 ($29 US cents) on Tuesday after the company reported a first-nine month’s performance beating analysts’ predictions
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T
he world’s largest thermal coal exporter PT Bumi Resources saw its shares jump 10 percent to Rp 2,675 ($29 US cents) on Tuesday after the company reported a first-nine month’s performance beating analysts’ predictions.
But despite improved performance up to the end of September the firm’s net profits fell by 26.5 percent to $360.22 million down from $490 million in the same period of 2008, due to lower coal prices and higher taxes.
Bumi corporate secretary Dileep Srivastava said the firms “better than estimated” performance was helped by record production and sales volume in the third quarter.
Coal output rose 48 percent to 17.5 million metric tons in the third quarter and sales volume climbed 24 percent to 15.5 million tons.
“2008 profit was higher because of tax credits earned in the first half of the year, and one-off atypical market buoyancy,“ Dileep said.
But Bumi’s income tax expenses jumped by 24 times to more than $173 million from last year’s $6.9 million, while its revenues fell by 4 percent to $2.3 billion from $2.4 billion posted a year earlier.
The company had to pay more than $395 million in income tax including prepaid tax and previously unpaid tax due for 2005 to 2007. It also paid tax due on two of its coal mining subsidiaries, namely Kaltim Prima Coal (KPC) and Arutmin Indonesia, for the fiscal year 2008.
Bumi said however that it believed that the prepaid amount “could be recovered or used for future tax liabilities”. The company differs with the tax authorities as to the extent of its tax obligations.
KPC and Arutmin also paid more than $119 million and $92 million, respectively in additional prepaid taxes in connection with the revision of the annual tax returns of the two companies.
“The revision has not been approved by the tax authorities, who are still conducting a tax examination of corporate income tax, and the results have not yet been received by KPC and Arutmin,” Bumi said in a report.
The tax office said in December last year that it was investigating possible tax evasion by Bumi, KPC and Arutmin amounting to Rp 2.1 trillion. (adh)
