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Bumi Resources eyes 10 percent increase in gross revenue
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Coal mining. (Courtesy of arutmin.com/-)
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ublicly listed coal miner PT Bumi Resources has set a target to increase its consolidated gross revenue, which includes revenue from a number of its mining subsidiaries, by 10.93 percent to 12.13 percent this year as part of its plan to export more coal to Japan.
Bumi sold a total of 83.9 million tons of coal in 2017, down 4.3 percent from the 87.7 million tons it sold in the previous year. In 2018, Bumi aims to jack up its sales volume to 91 to 92 million tons, partly driven by an additional export of 5 million tons to Japan.
Subsequently, Bumi’s consolidated gross revenue is expected to soar to US$5.54 billion to $5.6 billion in 2018 from only $4.9 billion last year, as its average coal selling price is projected to increase by 5 percent this year.
“Bumi’s objective in 2018 is to protect its EBITDA [earnings before interest, tax, depreciation and amortization] and profits,” Bumi corporate secretary Dileep Srivastava told The Jakarta Post on Monday.
Furthermore, Srivastava said it expected the additional export to Japan to offset the decline in Bumi’s revenues from the domestic market this year following the government’s recent decision to set discounted prices for coal supplied to state electricity firm PLN until 2019.
Under the new price formula, Bumi’s Ecocoal coal brand with 4,200 kilocalorie/kilogram gross as received (GAR), for instance, must be sold at $38.95 per ton, down from the actual economical level of $53.54 per ton in March. (bbn)
