May 5, 2011

Bukit Asam to close coal takeover in 2Q

The state-controlled PT Tambang Bukit Asam Tbk (PTBA) expects to complete acquisition of two coal mining companies from four companies which is now reviewed.
The acquisition, said Bukit Asam CEO Sukrisno, is expected to complete in the second or third quarter of this year. These two coal mines are expected to start production by 2012 with capacity of 1 million tons-2.5 million tons.
Besides the acquisition, Bukit Asam and its consortia has passed the qualification for tender of four power plants.
Bukit Asam has tied up Chinese Hua Tian for the power plant project with capacity of 2x600 MW in South Sulawesi, 2x300 MW in South Sumatra in partnership with subsidiary of PT United Tractors Tbk. Bukit Asam will bankroll the project with internally generated cash flow which reached Rp5 trillion.
The company expects to reach net profit of above Rp3 trillion in 2011 from Rp2 trillion last year because of higher sales volume and prices. 
Sales volume is expected to increase 31% to 16.9 million tons of coal in 2011 from 12 million tons last year. The revenue is estimated to rise 46.34% to Rp12 trillion from Rp8.2 trillion. 
"We estimate our 2011's average selling prices of US$80 per ton from $61.5 ton," He said. 
The company provides capital expenditure of Rp1.8 trillion to support this target will finance from generated internally cash.

Disclosure: No position at the stock mentioned above.

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