Bukit Asam Had Net Profit Over IDR4 Trillion in 2019 Amid the Slow Coal Prices
Jakarta, March 4, 2020 - Amid the weakening trend in coal prices, PT Bukit Asam Tbk successfully recorded a net profit in 2019 of IDR4.1 Trillion with an EBITDA of IDR6.4 Trillion. This success was the impact from implementing the right strategy and efficiency efforts made by the Company.
This achievement was supported by the increasing company's operational performance compared to the previous year. In 2019, the company's coal production increased 10.2% from the previous year or increased to 29.1 million tons. The capacity of coal transportation had also increased to 24.2 million tons, up 7.0% from 2018.
The increase in coal production and transportation had also boosted coal sales. Throughout 2019, the company managed to sell 27.8 million tons of coal, 13% increase from the previous year. The increase in sales volume was due to expansion into potential markets including Japan, Hong Kong, Vietnam, Taiwan and the Philippines, also into new potential markets such as Australia, Thailand, Myanmar and Cambodia. Besides increasing export sales to Asian countries, the Company also applied the strategy of medium to high calorie coal export sales to the premium market.
In 2019, the Company recorded operating revenues of IDR21.8 trillion, an increase of 3% from the previous year of IDR21.2 trillion. The revenue consisted of 57% domestic coal sales revenue, 41% export coal sales and 2% other activities including electricity sales, briquettes, crude palm oil and palm kernel, hospital health services and rental services. The increase in revenue was influenced by the increasing number of sales tonnages.
Although coal prices continued to show a declining trend, the Company still recorded an encouraging performance of IDR4.1 Trillion net profit. The decline in coal prices was in line with the weakening of the Newcastle coal price index (GAR 6322 kcal / kg) by 28% to an average up to December 2019 of US$ 77.77 per ton compared to US$ 107.34 per ton in the same period last year.
Likewise, the GAR 5000 Indonesian coal price index (ICI) was weakened by 17% to an average as of December 2019 of US$ 50.39 per ton compared to US$ 60.35 per ton last year.
The cost of goods sold in 2019 was recorded at IDR14.18 Trillion with rail transportation as the largest composition. This cost was in line with the increase in coal transportation volume and the increase in mining service costs due to increasing production and the average stripping ratio in 2019 to 4.6 bcm/ton.
The Company's assets as of December 31, 2019 reached IDR26.1 trillion, with 28% fixed assets and 18% cash equivalents as the largest composition. Cash and cash equivalents and deposits with maturities of more than 3 months owned by the company as of December 31, 2019 amounted to Rp7.3 trillion, an increase of 12% compared to the previous year.