Oct 31, 2010

Berau Coal suffers 35% net profit drop

Coal mining company PT Berau Coal Energy Tbk (BRAU) suffered a 35.57% plunge in net profit during the first 9 months of this year (9M 2010) from a year earlier as a result of soaring net other expenses and both cost of goods sold and operating expenses.
BRAU posted Rp395.85 billion net profit in 9M 2010 from Rp614.41 billion in 9M 2009. The company's net others expenses ballooned a steeply 10,413% from Rp4.79 billion at the end of September 2009 to Rp503.60 billion in 9M 2010.
Loan interest surged two folds from Rp281.80 billion to Rp491.55 billion in 9M 2010, amortization of deferred financing charges, and amortization of goodwill had gone up sharply in 9M 2010. 
At the operational line, income from operations dropped 20.25% from Rp2.37 trillion in 9M 2009 to Rp1.89 trillion in 9M 2010, shrinking operating margin from 38.54% to 27.12% in 9M 2010.
Operating expenses swelled 68.25% from Rp199.58 billion in 9M 2009 to Rp335.79 billion in 9M 2010. Berau Coal's gress margin fell 13.23% from Rp2.57 trillion in 9M 2009 to Rp2,23 trillion in 9M 2010. The rise of cost of goods sold by 32.12% had reduced a 13.17% increase in sales from Rp6.15 trillion to Rp6.97 trillion.  

Disclosure: No position at the stock mentioned above.

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