PT Bumi Resources Tbk ( BUMI ) plans to boost coal production in the second quarter of this year. Director and Corporate Secretary of PT Bumi Resources Tbk (BUMI) Dileep Srivastava said, BUMI hopes to produce more coal than the first quarter of 2022 in the second quarter of 2022. "Production in the second quarter of 2022 is expected to be higher than the first quarter of 2022 with higher prices," said Dileep to Kontan.co.id (8/5)
Dileep admitted that he could not reveal how much BUMI's coal production was realized in the first quarter of this year. However, he admitted, BUMI's coal production in the first quarter of 2022 was still affected by heavy rainfall due to the La Nina effect, even though BUMI still hopes to pocket an increase in revenue in the first quarter of 2022 with the increase in existing coal prices.
Until the end of next year, BUMI is aiming for a coal production target of 83 million tons - 89 million tons for the 2022 financial year. This figure is greater than the realization of BUMI's coal production which amounted to 78.8 million tons in 2021.
Meanwhile, BUMI's coal sales volume reached 79 million tons in 2021, while BUMI's consolidated revenue reached US$ 5.4 billion with a net profit of US$ 489 million. With a higher production target in 2022, BUMI hopes to pocket higher revenues this year compared to 2021. Dileep is optimistic that coal prices will be at a high level in 2022 and in the following years.
The driving catalyst, according to Dileep, was the widening gap between coal supply and increasing demand due to a number of factors, ranging from the global energy crisis, unaffordable gas prices, the inability of renewable energy to meet the soaring energy needs after the Covid-19 pandemic, to replace fossil fuels such as coal, and much more.
“Moreover, the reluctance of institutions and banks to finance the expansion of coal production capacity expansion in line with the spirit of green energy and renewable energy is also increasingly pushing the gap between supply and demand for coal to widen. The possibility of sanctions against Russian coal also further reduces the supply of coal," added Dileep.
Dileep ensured that BUMI would prioritize fulfilling PLN's coal needs in coal sales. After fulfilling the supply obligations to PLN, BUMI will focus on fulfilling export orders from existing customers.
Source: https://industri.kontan.co.id/news/bumi-resources-bumi-pacu-produksi-batubara-pada-kuartal-ii-2022
