Moody's Investors Service has downgraded the corporate family rating (CFR) for PT Bumi Resources Tbk (IDX: BUMI) to Caa1 from B3- Photo by the Company

JAKARTA (TheInsiderStories) – The controversial Bakrie-owned company PT Bumi Resources Tbk (IDX: BUMI) felt other gloomy days. In the first quarter (1Q) of 2019, its profit slashed almost half to US$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 revenue. But in the first quarter, its revenue is not even 5 percent of the target.

In the first quarter financial report, Bumi Resources could manage its debt stable, as its liabilities recorded at $3.34 billion, decreased very slightly compared to the same period last year. Meanwhile, through its subsidiary PT Bumi Resources Mineral Tbk (IDX: BMRS), Bumi still holds US$53.99 billion short-term loan from Wexler Capital Pte. Ltd.

Bumi Resources Mineral received $100.96 million loan from Credit Suisse AG and Wexler Capital Pte. Ltd in 2016, with 10 percent interest rate and 2 years maturity. Considering the impossible condition to fulfill the agreement, Wexler filed a lawsuit in 2017.

To realize the peace agreement Bumi Resources and Wexler agreed to first convert a portion of the loan into 15.98 billion Series B shares. Now, the outstanding balance of the Wexler loan is amounted to $53.99 billion, by the unit.

Besides, Bumi Resources has $145.39 million trade payables to third party, fell from $165.51 million. Moreover, the trade payables to related party was $1.66 million, jumped from $355,157. Then, the miner’ current maturities of long-term liabilities recorded at $110,671.

The company’ equity is not big enough to cover all of these liabilities. Bumi Resources has $2.64 billion capital reserves deficit, so its equity in the first quarter is only $554.48 million.

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