PT Bumi Resources Tbk (BUMI) has made the existing target market a top priority in the midst of developing European market opportunities.

Director and Corporate Secretary of BUMI, Dileep Srivastava said, his party is still focusing on meeting coal supply to existing customers.

"Rainfall continues to be high, the availability of coal supply is currently quite tight, making it difficult to meet the demand from the European Union for the time being," said Dileep when contacted by Kontan.co.id (23/10).

As previously reported by Kontan.co.id, the Central Statistics Agency (BPS) noted that coal exports to the European Union reached $ 161.69 million in September 2022. This amount increased by 68.05% from coal exports to the European Union in August 2022 which amounted to US$ 96.21 million.

In addition to growing on a monthly basis, the realization of coal exports to the European Union in September was also touted as the highest export value in the last year.

"Coal exports to the European Union of US$ 161.69 million, from our export records, are the highest value in the last four years," said Deputy for Distribution and Services Statistics of BPS, Setianto in reading the results of the trade balance in September 2022, Monday (17/10) at the Central BPS office, Jakarta.

Meanwhile, BUMI's target market is more targeting the Asian market. BUMI's annual report in 2021 stated that as much as 62% of BUMI's total coal production in 2021 was absorbed by the international market, while the remaining 38% was absorbed by the domestic market. In detail, the international market in question consists of China as much as 29%, India 10% and Japan 8%.

"When our production starts to normalize later, we can only consider new target markets," said DIleep.

Until the end of 2022, BUMI will pursue a coal production target of 70 million - 78 million tons. During January-June 2022, BUMI has posted coal production of 34.5 million tons, down around 14% compared to the realization of January-June 2021 which reached 40.1 million tons.

Meanwhile, the realization of BUMI's coal sales volume reached 33.8 million tons in January-June 2022, shrinking by 16% compared to the realization of the January-June 2021 period which reached 40.2 million tons.

Even so, the decrease in sales volume by 16% was successfully offset by an increase in the average selling price (ASP) of 92% on an annual basis or year-on-year (YoY) in January-June 2022.

As a result, BUMI's financial performance was boosted. The company's audited interim financial statements show that BUMI's revenue rose 129.62% on an annual basis from THE original US$ 421.86 million in the first half of 2021 to US$ 968.68 million in the first half of 2022.

From the revenue, BUMI pocketed the Current Period Profit attributable to the Owners of the Parent Entity, aka net profit of US$ 167.67 million. This amount increased by 8768.17% compared to the realization of the first semester of 2021 which amounted to US$ 1.89 million.

Image source: KONTAN/Kenia Intan

Source: https://industri.kontan.co.id/news/ada-peluang-pasar-dari-eropa-bumi-resources-bumi-masih-fokus-pada-pasar-eksisting