Bukit Asam Had a Profit Over IDR2 Trillion Amid the Slow Coal Prices
Jakarta, September 16, 2019 – Until the first half of 2019, PT Bukit Asam Tbk recorded an increase in its operational performance. The sales rose to 13.40 million tons, 9.7% increase from the same period the previous year. The increase in sales was supported by the increasing of the Company's coal production to 12.8 million tons or 14.1% increase from the first semester of 2018 and coal transportation capacity of 11.7 million tons or 5.5% increase from January to June 2018 period.
This Company's operational performance achievement was highly determined by the management strategy in optimizing export market opportunities to several countries such as India, South Korea, Hong Kong, the Philippines, Taiwan and some other Asian countries, amid the decline in the coal price reference (HBA), and by the success of the optimization strategy of sales of medium to high calorie coal exports to the premium market.
During the first semester of 2019, the Company recorded operating revenues of IDR10.6 trillion, consisting of 53% domestic coal sales, 45% export coal sales and 2% other activities such as electricity, briquettes, oil sales crude palm oil, hospital health services and rental services.
This operating income was influenced by the average selling coal price which dropped by 6.8% to IDR778,821 / ton from IDR835,965 / ton in the first semester of 2018. The decline was caused by the weakening of Newcastle coal prices by 38% and Indonesian thermal coal prices (Indonesian Coal Index / ICI) GAR 5000 by 26% compared to the average price of Semester I 2019.
Until half of 2019, the cost of goods sold was recorded at IDR 6.96 Trillion or 13% increase from the same period the previous year, which was IDR 6.14 Trillion.
The largest composition and increase occurred in rail transportation costs which was in line with the increase in coal transportation volume, mining service costs, production and stripping ratio in the first half of 2019 amounted to 4.6 from 4.3 in Semester 1 2018.
With the revenues and the increased costs, the Company's net profit reached IDR2.01 trillion with an EBITDA of IDR3.19 trillion.
The Company's assets as of June 30, 2019 reached IDR23.41 Trillion with the largest composition in fixed assets of 29% and cash equivalents of 23%. Cash and cash equivalents (excluding deposits with maturities of more than six months) owned by the Company amounted to IDR5.29 trillion, 16% decrease as of December 31, 2018 which was IDR6.30 trillion.
The company's total liabilities amounted to IDR7.16 trillion, of which 60% were short-term liabilities. The total liabilities decreased compared to the liabilities as of December 31, 2018.
This condition caused the cash ratio or cash and equivalent to the Company's short-term liabilities to be 122%, which signified that the Company had strong liquidity or was very capable of meeting short-term liabilities on time.