JAKARTA (TheInsiderStories) – State-owned mining holding, PT Indonesia Asahan Aluminium (Inalum) bought 788.66 million treasury stocks of PT Bukit Asam Tbk (IDX: PTBA) at Rp3,400 a share with total amount Rp2.67 trillion (US$188.02 million), said the company today (05/09). To date, Inalum owns 65 percent of the coal miner’ shares.
The company has 576 million treasury shares that have matured on May 23. This amount is equivalent to five percent of the total outstanding shares.
Based on the announcement at Indonesia Stock Exchange, Inalum sad has plan to rise the ownership in PTBA due to high calorie coal (HCV) sales prospect. Its estimated the production will reach 3.8 million tons in this year from a year ago was under 1 million tons.
Other reasoned, PTBA’ dividend payment which will be maintained at the level of 75 percent of net income, is also a trigger for Inalum to increase the ownership. Lately, Bukit Asam decided to distributed dividend Rp3.76 trillion or 75 percent of the 2018′ total net income of Rp5.02 trillion.
In 2018, the state-owned company posted a net profit of Rp5.02 trillion in 2018 which was influenced by the operating income and efficiency. The company’ operating revenues were recorded at Rp21.17 trillion consisting of 49 percent of domestic coal sales revenue, 48 percent of export coal sales and 3 percent of which was derived from other business activities, such as electricity sales, briquettes, crude palm oil, services. hospital health and rental services.
Last year, PTBA‘ export coal more than 1.54 million tons. This is in line with the company’ strategy to optimize the export market to India, South Korea, Hong Kong and Thailand, amid import restrictions imposed by China as the largest export market share.
Aside from being influenced by volume, the increase in business revenue was also influenced by the average selling price of 2018 coal which increased three percent to Rp834,558 a ton from last year of Rp808,690 every ton .
The coal price rise was due to the significant increase in Newcastle’ average coal prices during 2018 of 21 percent, as well as the average increase in Reference Coal Prices of 15 percent, compared prior year.
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