Sep 22, 2010

BUMA buys US$285 mio equipments

Indonesia's second largest coal mining contractor PT Bukit Makmur Mandiri Utama (BUMA) has purchased US$285 million heavy equipments from three suppliers, PT Hexindo Adiperkasa Tbk (HEXA), PT United Tractors Tbk (UNTR), and Caterpillar.
A source familiar with the matter said BUMA, wholly owned subsidiary of PT Delta Dunia Makmur Tbk (DOID) has signed purchase orders of heavy equipments with three suppliers.
"We have signed US$40 million purchase from Hexindo, US$45 million from United Tractors, and US$200 million from Caterpillar. The heavy equipments will be delivered until 2012." the source told Insider Stories.
Delta Makmur Director Ariani Vidya Sofjan said several heavy equipment purchases are in line with the company's expansion growth until 2012.
"I have to check about the total purchases. But we will spend capital expenditure to underpin coal production expansion until 2012," she said.
Hexindo Corporate Secretary Heri Akhyar confirmed that the company has obtained purchase contract worth US$40 million from BUMA.
"We have signed the contract. One heavy equipment have been delivered to BUMA. The purchase is in line with BUMA's capital expenditure," he said.
Regarding to the purchase, Heri said, BUMA also obtains financing from Hitachi Construction Machinary Finance Indonesia.
"We haven't any information about the purchase order," said United Tractors Investor Relations Ari Setyawan.
BUMA spent US$115 million capital expenditure (capex) during the first 6 months of 2010, mostly attributed to the purchase of new heavy equipments to support production growth.
BUMA, wholly owned subsidiary of PT Delta Dunia Makmur Tbk (DOID), expects to spend approximately US$180 million of capex in 2010.
Bukit Makmur suffered a 41.5% drop (in term of IDR terms) in the first half's net profit.
The company's bottom line's drop was due to lower foreign exchange gains and higher interest cost in the first half of this year (1H 2010). But, in US$ terms, BUMA's net profit decreeased by 30% year on year (YoY).
Bukit Makmur posted IDR256 billion net profit in 1H 2010 from a year earlier of IDR438 billion. Net margin also fell to 10.5% YoY from 17.3%
Net revenue (excluding fuel costs) declined by 3% YoY to IDR2.45 trillion from IDR2.53 trillion, largely due to the strengthening of the Rupiah.
In US$ terms, however, BUMA's net revenue grew by 16% YoY to US$267 million, despite of relatively flat production growth, on the back of longer hauling distance (14% YoY) and contract re-pricing in 2010.
Bukit Makmur's operating profit abated 9.3% to IDR512 billion (YoY) from IDR564 billion. In return, the company's operating margin fell to 20.9% YoY from 22.3%.
Earning before interest, tax, depreciation, and amortization (EBITDA) decreased by 2% YoY to IDR954 billion in 1H 2010 from IDR974 billion.
In US$ 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%.

Disclosure: No position at the stock mentioned above.  

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