Nov 4, 2010

Berau Coal output to reach 17 mio tons

Indonesia listed coal producer, PT Berau Coal Energy Tbk (BRAU), is on track to produce 17 million tons of coal in 2010, with full year revenues set to exceed the US$1 billion.
Berau Coal in a press release announced its third-quarter financial results, with revenue of Rp6.96 trillion billion, operating income of Rp1.89 trillion, and net income of Rp396 billion (Rp16.22 per share).
At Rp9,000/US$, this equates to revenue of US$774 million, operating income of US$210 million, and net income of US$43.
Separately, Berau Coal announced that it is now in a position to forecast coal production of at least 17 million tons in 2010, slightly off its previous projection for the full year but at least 19% in excess of its 2009 production.
“We are pleased to report that we have largely overcome the challenges of heavy rainfall in Kalimantan throughout the dry season, with our revised full year forecast only 5% below our original projection of 17.9 million tons,” said Arief Wiedhartono, Director of Operations for Berau Coal, as reported by today.
“With 17 million tons of production and slightly higher than expected average selling prices, we can now forecast that our full year revenue will exceed US$1 billion,” said John Ramos, Chief Financial Officer.
The Company experiences heavy noncash amortization charges against net income associated with its acquisition in late 2009 of a 90% stake in PT Berau Coal, the fifth largest coal mining company in Indonesia as calculated by production tonnage. Before such noncash amortization charges, Berau Coal’s net income for the first nine months of 2010 is IDR980 billion (US$108 million), or IDR40.17 per share.
Berau Coal Energy is a holding company that indirectly owns 90% of Berau Coal, the fifth largest coal producer in Indonesia in terms of production volume in 2009, according to the Annual Coal Production Report dated December 2009 by Indonesia’s Ministry of Energy and Mineral Resources. Berau Coal engages in open-cut mining of coal in its concession area in East Kalimantan, Indonesia.
  Disclosure: No position at the stock mentioned above. 

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