PT Bumi Resources Tbk (BUMI) has revised its coal production projection for this year downward, citing heavy rainfall at its subsidiaries' mines.
Bumi Resources Corporate Secretary, Dileep Srivastava, estimates that BUMI's coal production for this year will be between 76-78 million tons. This is lower than the company's initial guidance of 78-82 million tons.
"The high rainfall levels in South Kalimantan, market factors, and a decline in production at Arutmin contributed to this adjustment," Dileep said, as quoted on Thursday (5/12/2024).
As of Q3 2024, BUMI has produced 57.3 million tons of coal. This figure includes 42.9 million tons from PT Kaltim Prima Coal (KPC) and 14.4 million tons from PT Arutmin Indonesia.
In the same period, BUMI reported revenue of USD 926.9 million, down 21% compared to USD 1.17 billion in the same period in 2023. This decline was attributed to a 13% drop in benchmark coal prices.
BUMI's average free-on-board (FOB) coal price was USD 73.7 per ton. Coal prices at KPC, with higher calorific value, reached USD 78.7 per ton, while coal from Arutmin's mining areas sold at USD 58.2 per ton.
Nevertheless, BUMI successfully reduced its cost of revenue by 24%, from USD 1.09 billion to USD 833.3 million. This helped increase the company's gross profit by 19% to USD 93.6 million.
"The strip ratio decreased by 14%, leading to a 13% reduction in overburden removal to 500.9 million bank cubic meters (bcm)," Dileep added.
In the first nine months of 2024, Bumi Resources reported a net profit of USD 122.9 million, a significant 111% increase compared to USD 58.2 million in the same period in 2023.
