Jun 2, 2010

Soaring debt erodes Bumi Q1 profit

Indonesia's largest thermal coal producer controlled by Bakrie family PT Bumi Resources Tbk (BUMI) reports a 22.27% drop in net profit during the first quarter this year as a result of soaring both cost of revenue and operating expenses.
Bumi posted US$96.81 million in net profit in Q1 2010 compared to the same period last year of US$124.54 million. 
Parent company of PT Kaltim Prima Coal and PT Arutmin Indonesia booked  a 22.12% growth in revenue from US$832.66 million in Q1 2009 to US$1.01 billion in Q1 2010.
BUMI posted a 22.76% plunge in operating profit from US$283.30 million as of March 2009 to US$218.81 million during the first three months this year. The company's cost of revenue ballooned 52.69% from US$440.12 million in Q1 2009 to US$672.03 million in Q1 2010. Adding to that, operating expenses rose 15.33% from US$109.24 million in Q1 2009 to US$125.99 million in Q1 2010.
Bumi should use gain on sale investment of US$93.74 million and foreign exchange gain of US$32.15 million to boost its bottom line. But, a ballooning interest expenses by 558.86% from US$20.44 million to US$134.67 million in Q1 2010 had steeply eroded its net profit and cash from US$140.06 million in Q1 2009 to US$59.62 million in Q1 2010.      

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