BUMI reports $107.16m in net losses in Q1

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Publicly listed coal miner PT Bumi Resources (BUMI) reported a massive drop in net profits for the first quarter of the year as a consequence of high operational and non-operational costs, including interest expenses.

According to a financial report submitted to the Indonesia Stock Exchange (IDX) on Wednesday evening, the company booked net losses of US$107.16 million in the first three months of the year, a sharp setback compared to net profits of $111.26 million in the same period last year.

BUMI actually saw an 18 percent increase in revenues, reaping $1 billion from January to March of the year, compared to $849.93 million in the same period last year.

The increase was supported by the company’s increasing coal production and average selling price from its two main subsidiaries, PT Kaltim Prima Coal (KPC) and PT Arutmin Indonesia.

BUMI owns a 13.6 percent stake in the country’s largest coal producer, KPC, and 70 percent in PT Arutmin Indonesia, which is Indonesia’s fourth-largest coal producer.

According to a file published by BUMI’s controlling shareholder Bumi Plc, KPC mined 8.4 million metric tons of coal, a flat figure compared to 8.3 million metric tons in the same period last year. KPC’s coal average selling price stood at $100.40 per metric ton in the first quarter of the year, an 8 percent increase from $92.80 in the same period last year.

“The months of January and February were impacted by heavy rainfall, with March reflecting improved production levels,” the file said, referring to KPC’s flat production.

Meanwhile, production from Arutmin reached 7.5 million metric tons in the first three months of the year, a 25 percent increase compared to 6 million metric tons in the same period last year. The average selling price for Arutmin’s coal stood at $82.90 per metric ton in the first quarter of the year, an 8 percent increase compared to $77.10 in the same period last year.

In line with the growing production, BUMI’s cost of revenue also rose to $686.53 million in the first three months of the year, increasing 18 percent from $578.96 million in the same period last year.

Operating expenses soared 73 percent to $172.2 million.

The company suffered from growing non-operational costs, including interest expenses and financial charges of $143.68 million, losses on derivative transactions of $16.22 million, amortization expenses of $14.18 million and loss on foreign exchange of $8.19 million.

BUMI’s cash and cash equivalent stood at $83.34 million at the end of March, a 59 percent drop from $204.46 million at the end of March last year.

The company’s total assets were worth $7.39 billion at the end of March, with total liabilities of $6.41 billion and equity of $979.52 million.

Shares in BUMI closed at Rp 1,210 a piece on Wednesday, a 2.54 percent increase compared to Rp 1,180 a piece a day earlier.