Bumi Plc Subsidiary Posts US$38m Net Loss

TEMPO.CO, Jakarta - Listed coal company Berau Coal Energy (IDX: BRAU), the subsidiary of Bumi Plc (LSE: BUMI), posted a net loss of US$38.03 million in the first semester of 2013. In the same period last year, BRAU posted an even greater loss of $95.87 million.

The company's expose on the Indonesia Stock Exchange's (IDX) website last weekend shows that the first-half net sales amounted to $722 million, a 6.27 percent year-on-year (YOY) decline from $770 million. Meanwhile, Berau's cost of goods sold (COGS) increased to $535.01 million from $503.11 million, YOY. The company also experienced a foreign exchange loss of $5.66 million.

Bumi Plc's official statement said that Berau produced 11.5 million tons of coal in the first semester, up 19 percent from 9.6 million tons, YOY. Unfortunately, the volume increase was not offset by the average sales price (APS) of coal. Berau recorded an average sales price of just $61.4 tons, down from $76.6 tons in the first half of 2012.

This year, Berau set its production volume target at 23 million tons, higher than 2012's actual production of 21 million tons. The company has mines in Lati, Binungan, and Sambarat. As of June 2013, Lati mine has produced 5.1 million tons, while Binungan mine produced 3.9 million tons and Sambarat mine managed to produce 2.1 million tons.

RIRIN AGUSTIA