Aug 13, 2010

Bukit Makmur 1H net profit falls 41.5%

Indonesia's second largest coal mining contractor PT Bukit Makmur Mandiri Utama (BUMA), a wholly owned subsidiary of publicly listed PT Delta Dunia Makmur Tbk (DOID), suffered a 41.5% drop (in term of IDR terms) in the first half's net profit.
In company update published by Delta Dunia recently, the bottom line's drop was due to lower foreign exchange gains and higher interest cost in the first half of this year (1H 2010). But, in US$ terms, BUMA's net profit decreeased by 30% year on year (YoY).
Bukit Makmur posted Rp256 billion net profit in 1H 2010 from a year earlier of Rp438 billion. Net margin also fell to 10.5% YoY from 17.3%
Net revenue (excluding fuel costs) declined by 3% YoY to Rp2.45 trillion from Rp2.53 trillion, largely due to the strengthening of the rupiah.
In US$ terms, however, BUMA's net revenue grew by 16% YoY to US$267 million, despite of relatively flat production growth, on the back of longer hauling distance (14% YoY) and contract re-pricing in 2010.
Bukit Makmur's operating profit abated 9.3% to Rp512 billion (YoY) from Rp564 billion. In return, the company's operating margin fell to 20.9% YoY from 22.3%.
EBITDA decreased by 2% YoY to Rp954 billion in 1H 2010 from Rp974 billion. In US$ terms, EBITDA grew 18% YoY to US$104 million, translating into an EBITDA margin to net revenue of 38.9% (38.5% in 1H 2009). Bukit Makmur's EBITDA margin rose to 38.9% YoY from 38,5%
The company had spent capital expenditure (capex) worth US$115 million during the first 6 months of 2010, mostly attributed to the purchase of new heavy equipment to support production growth.
BUMA expects to spend approximately US$180 million of capex in 2010.
Historically, the first quarter has the lowest production numbers due to seasonal rainfall in Kalimantan.
Operational achievement typically strengthens in the second quarter with lower rainfall. However, this year rain hours increased by 9% quarter on quarter (QoQ) compared to a 36% QoQ decline in the second quarter of 2009.
Production has been constrained due to rainfall, staged delivery of new heavy equipment to the mine sites and higher hauling distances.
Coal production and overburden removal grew by 8% YoY and 5% YoY respectively, in 2Q 2010.
Cumulatively, Bukit Makmur's overburden removal grew by 1% YoY to 134.8 million bank cubic meter (bcm) and coal production reached 16.5mm tons (5% YoY) in 1H 2010.

Disclosure: No position at the stock mentioned above.

Print This Article

No comments: