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Bukit Asam upbeat about 2019 revenue, despite Q1 decline
Bukit Asam plans to increase production and boost efficiency in coal transportation to meet its 2019 profit target.
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A worker monitors a heavy coal excavator at an open-pit coal mine belonging to PT Bukit Asam. (Courtesy of/www.ptba.co.id)
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tate-owned coal miner PT Bukit Asam (PTBA) is upbeat that it will surpass its revenue target this year, even though the company saw a 7.13 percent decline in its first-quarter revenue.
PTBA president director Arviyan Arifin expressed his optimism that sales would continue to increase through the rest of the year.
“We're still on track. I do believe that this year will be better than 2018 in terms of production, sales and also revenue,” he told reporters on Thursday after a shareholders meeting.
PTBA produced a total coal output of 5.7 million tons in the first quarter, which accounts for 20 percent of the 27.26 million tons it has targeted in 2019. The company recorded a year-on-year (yoy) increase of 5.6 percent in its first-quarter sales of 6.65 million tons, which accounts for 23.38 percent of this year’s sales target.
However, the company recorded a 7.13 percent yoy decline in its first-quarter revenue from Rp 5.75 trillion (about US$410 million) to Rp 5.34 trillion. The loss in revenue contributed to a 21.37 percent fall in first-quarter profit from Rp 1.45 trillion to Rp 1.14 trillion.
Arviyan attributed the revenue loss to a 13 percent fall in the average selling price of coal in the first quarter to Rp 772,000 per ton.
“The lower selling price is in line with the year-on-year decline in the price of coal on the Newcastle index and the price of thermal coal on the Indonesian Coal Index [ICI] of 7 percent and 24 percent, respectively,” he said.
