Jul 11, 2010

BUMI 1H sales may reach US$2.09 bio

Indonesia's largest thermal coal producer PT Bumi Resources Tbk (BUMI) today reports a 21.09% rise in coal sales volume in the first half this year (1H 2010) compared to the same period last year.
BUMI Director Dileep Srivastava said the company posted 31 million tons of coal sales volume in 1H 2010 from a year earlier of 25.6 million tons.
In the first quarter this year, the company booked 16 million tons of coal sales, while in the second quarter, Bumi made 15 million tons of coal sales volume.  
According to him, average selling price (ASP) of Bumi's coal in the second quarter was US$71.6 per ton, a US$9 per ton increased compared to the first quarter this year of US$62.7 per ton. "It is an evidence of significant price hardening," told Dileep to Insider Stories today.
Considering these ASPs, Bumi booked US$1.07 billion of sales value in second quarter this year. The company posted US$1.02 billion of revenue in the first quarter 2010.
Bumi is estimated to book US$2.09 billion of sales value in 1H 2010, a 36.60% jump compared to the same period last year of US$1.53 billion.
"All in all, evidence of a very strong volume and revenue growth and we are on track to crossing our 2010's guidance of sales volume at 64 million tons, 67 million tons production, and a minimum FoB price of US$67 per ton," Dileep said. 
Christine Salim, Head of Research PT Samuel Sekuritas, said BUMI's 1H 2010 production represents 45% of Samuel's 2010 target of 67 million tons.
"Our assumption of BUMI's ASP is US$73 per ton this year, slightly higher than 1H 2010 achievement. Overall 1H 2010 is inline with our expectation. We expect stronger quarter ahead as production should increase in the third and fourth quarters this year," she said.
Christine said Samuel has set a target price for BUMI stock at Rp3,250 per share with maintain a buy rating. Dileep added BUMI is conduction a limited audit review in the second quarter 2010, hence its financial for this period would be available at the end of August 2010. 

Disclosure: No position at the stock mentioned above. 

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