PT Bumi Resources Tbk mine operation - Photo by the Company

JAKARTA (TheInsiderStories) – The Bakrie Group subsidiary, PT Bumi Resources Tbk (IDX: BUMI) has paid debts of $270.4 million until July 2019. The debts consisted of Tranche A principal debt of $168 million and interest of $102.4 million, said management on disclosure information on Indonesia Stock Exchange (IDX) recently.

Bumi Resources’ director & corporate secretary Dileep Srivastava said that on July 9, 2019, the company processed the sixth payment of $30.99 million through an agency facility that consisted of principal loans of $22.54 million and interest of $8.45 million for Tranche A. The next payment for Tranche A will mature in October 2019, he said.

Last year, Bumi Resources made a deal with some of its creditors to solve the company’s debts issue. In the agreement, the company must issue $1.99 billion new shares as a new secured facility that consists of three tranches. The tranches A and B facilities valued $600 million respectively while trance C is $406.9 million.

In September 2018, BUMI holds $53.99 million short-term loans, unchanged from its position in the last of 2017. Meanwhile, it has $212.37 million capital deficiency.

In the first quarter (1Q) of 2019, the controversial Bakrie-Owned Company felt other gloomy days. Its profit slashed almost half to $48.44 million, from $90.15 million a year ago.

The disconcerting result impacted by its falling revenue, share in net income of associates and joint ventures, and interest income. Other than that, Bumi Resources also suffered foreign exchange loss for $865,511, while previously it gained forex profit.

The coal miner revenues also declined by 24.58 percent to $234.15 million. Among all posts, domestic coal sales fell the deepest by 28.22 percent. Furthermore, export sales decreased by 19.91 percent, while consultation services jumped by 52.79 percent.

It seems that BUMI is still a long way to reach its target. This year, the company aimed to gather $5 billion in revenue. But in the first quarter, its revenue is not even 5 percent of the target.

Written by Staff Editor, Email: theinsiderstories@gmail.com