Aug 17, 2011

Bumi & Berau Coal 1H coal production

Two coal miners PT Bumi Resources Tbk (BUMI) and PT Berau Coal Energy Tbk (BRAU) in the first half of this year reported a 5.48% decrease and 17.07% increase in coal sales volume.
In an official statement published by Bumi Plc today, BUMI reported 29.3 million tons in coal sales volume in 1H 2011 from 31 million tons in 1H 2010.
Coal production slightly decreased 2.29% to 29.9 million tons from 30.6 million tons. FoB average selling price (ASP) rose 36.07% to US$91.3 per ton from US$67.1 per ton. Berau Coal's sales volume was 9.6 million tons in 1H 2011 from 8.2 million tons.
Coal production surged 40.63% to 9 million tons from 6.4 million tons, while FoB ASP rose 33.21% to US$74.6 per ton from US$56 per ton. 
Bumi Plc, parent of BUMI and BRAU, is scouting 86 million tons this year, a 11.69% higher than 77 million tons last year.
BUMI aims to boost coal production to 66 million tons from 60 million tons last year, while BRAU intends to jack up its output to 20 million tons from 17 million tons.
BUMI plans to spend US$310 million capital expenditure this year, while Berau Coal will spend US$106 million. 
Robust first half performance 
In the last 4 months ended June 30 2011, Bumi Resources reported net profit of US$41 million, while Berau Coal's net profit was US$31 million.
Assuming 25% stake of BUMI owned bu Bumi Plc, BUMI is calculated to post US$246 million net profit in 1H 2011, counting 80% of the full year in 2010 or a 82% jump from US$135 million in 1H 2010. Assuming 75% stake of BRAU owned by Bumi Plc, BRAU is estimated to book US$60.45 million net profit in 1H 2010. 

Disclosure: No position at the stock mentioned above.

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