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Economy in brief: Bumi Resources strikes gold in Q1
Indonesia’s largest thermal coal mining company, PT Bumi Resources, has struck gold with rebounding coal prices and internal efficiency measures as its net profit in the first quarter of this year multiplied nearly fourfold year-on-year
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ndonesia’s largest thermal coal mining company, PT Bumi Resources, has struck gold with rebounding coal prices and internal efficiency measures as its net profit in the first quarter of this year multiplied nearly fourfold year-on-year.
The company saw its net profit jump to US$88.05 million in the January-March period, almost four times the $22.5 million it booked in the corresponding period of 2016. Revenue rose by 59.1 percent to $10.3 million over the same period.
“Production and sales were relatively flat in the first quarter of 2017 compared to the first quarter of 2016 due to heavy unseasonal rain, but that was compensated for by a 35.7 percent increase in the realized coal price to $54.2 per ton,” Bumi director and corporate secretary Dileep Srivastava told The Jakarta Post on Tuesday.
Bumi produced 20.2 million tons of coal in the first quarter of 2017, more or less the same as a year earlier. However, it got a boost from a recent surge in global coal prices.
The price of Asian benchmark Australian thermal coal, widely used in power generation, averaged $87.41 per ton in the first quarter, much higher than $65.9 per ton on average throughout 2016.
Bumi also attributed the significant net income jump to various efficiency measures, such as a reduction in fuel use and the optimization of electricity supplies from its own power plants.
