Coal miner PT Berau Coal Energy Tbk (BRAU), that is owned by Bakrie family via Bumi Plc, suffered a 65.88% drop in net profit in the first 3 months of this year as finance cost rose.
Berau posted a US$12 million net profit in 1Q 2012 from US$35.17 million in 1Q 2011. Operating profit fell 17.28% to US$94.04 million from US$113.69 million, signalling a steep drop in margin to 25.51% from 33.61%.
Gross profit decreased 6.09% to US$125.07 million from US$133.19 million, while sales increased 8.97% to US$368.57 million from US$338.24 million. Berau's return on equity was 2.30%
Regarding to Chateau Asset Management's investment with initial principal of US$75 million, Berau Coal also suffered a US$27.91 million loss with such investment for the year ended 31 December 2011. By end of March 2012, Berau Coal's investment principal narrowed to US$47.09 million.
However, Berau Coal paid a management fee of approximately 1% per annum of the assessed fair value for management of the invested fund.
Disclosure: No position at the stock mentioned above.
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