JAKARTA (TheInsiderStories) - The financial performance of Indonesian coal miners like PT Bukit Asam Tbk (IDX: PTBA), PT Adaro Energy Tbk (IDX: ADRO), PT Bumi Resources Tbk (IDX: BUMI), and PT Bayan Resources Tbk (IDX: BYAN) dropped in nine months (9M) of this year. Based on the issuers financial report the declining partly due to COVID-19 pandemic.
State-owned firm, PT Bukit Asam Tbk (IDX: PTBA) reported its net profit fell 82.35 percent from Rp3.1 trillion in 9M of 2019 to Rp1.7 trillion in the same period of 2020. In terms of revenue, the producer posted Rp12.8 trillion, or dropped 20.83 percent from a year ago worth of Rp16.3 trillion caused of the low coal price and energy consumption from China and India.
Based on data from the energy and mineral resources (EMR) ministry, the benchmark coal price has fallen by around 24 percent, from $65.93 a metric ton (MT of coal) in January to $49.92 per MT of coal in September 2020. The consumption for domestic market obligation also estimating only reach 141 MT of coal in this year. The amount representing 90.9 percent of this year’ target of 155 MT of coal.
Then, PT Adaro Energy Tbk (IDX: ADRO) recorded a net profit for 9M of $109.38 million, a 73.05 percent declined from the same period last year which exceeded $405.99 million. The revenues fell 26.35 percent to $1.95 billion from previous year worth of $2.65 billion.
The president director and CEO, Garibaldi Thohir, said the decline in demand due to slowing economic growth and weak buying interest in major importing countries and had an impact on global coal prices. He explained that the 26 percent decline in operating income was driven by the decrease in average selling price and sales volume, which fell 18 percent and 9 percent, respectively.
BUMI and BYAN
Bumi Resources, the largest mining operator in Indonesia through Kaltim Prima Coal and Arutmin Indonesia, even suffered losses in September 2020 due to several factors. The company owned by Bakrie Group announced the net profit in 9M of 2020 was $137.3 million or decreased by 280 percent from last year’ profit.
The cause was because the realization of the coal price lowered by 14 percent, triggered by negative global economic conditions. The pressure also hit other coal miner, Bayan Resources. The issuer’ revenue down 12.28 percent from $1.14 billion to $1 billion in 9M of this year.
The net profit fell even deeper than that income. In 9M of this year, the producer earned $108.23 million in profit, slumped by 48.36 percent of last year’ net profit amounting to $209.57 million. Majority of the publicly listed company’ revenue was obtained from coal sales to the export market of $868.79 million. Most of its export sales went to Southeast Asia, such as Malaysia, Thailand and the Philippines, amounting to US$ 417.35 million.
US$1: Rp14,000
Written by Editorial Staff, Email: theinsiderstories@gmail.com
