Jakarta: PT Bukit Asam Tbk managed to record an increase in coal sales until September 2019 to 20.6 million tons, 10.7 percent higher from the same period the previous year.
The sales increase was due to coal production increase to 21.6 million tons, 9.6 percent higher from the same period the previous year, as well as coal transportation capacity increase to 17.8 million tons, 4.7 percent higher compared to January to September 2018 period.
This coal sales increase was inseparable from the Company’s sales strategy by targeting coal exports to several countries such as India, Hong Kong, the Philippines and some other Asian countries, also targeting new export markets such as Japan and South Korea.
"Besides encouraging export sales to Asian countries, the Company also exported medium to high calorie coal to the premium market," the mining company said in a press statement released on Monday, October 28, 2019.
Until the third Quarter of 2019, the Company recorded operating revenues of IDR16.3 trillion, consisting of 56 percent domestic coal sales revenue, 42 percent export coal sales and two percent other activities such as electricity, briquettes, crude palm oil, hospital health services and rental services.
This operating income was affected by the average selling price of coal which dropped by 7.8 percent to IDR775,675 / ton in September 2019 compared to previous year of IDR841,655 / ton.
The decline was caused by the weakening of the Newcastle coal price index (GAR 6322 kcal / kg) by 25 percent to average until September 2019 of US percent 81.3 per ton from US$ 108.3 per ton in the same period last year.
Likewise, the GAR 5000 Indonesian coal price index (ICI) fell 21 percent to average until September 2019 of US$ 50.8 per ton from US$ 64.5 per ton in the same period last year.
The cost of goods sold until September 2019 was recorded at IDR10.5 trillion or an increase of 13 percent from the same period the previous year which was IDR9.4 Trillion.
With the composition and the largest increase occurred in rail transportation costs in line with the increase in coal transportation volume and mining service costs and in line with the increased production and average stripping ratio until September 2019 of 4.6 bcm / ton from 4.1 bcm / ton in the same period last year.
The increase in stripping ratio was due to high calorie coal production (> 6100 kcal / kg GAR) of 1.9 million tons until September 2019.
"Even in the midst of the declining world coal prices, the Company still posted a net profit of IDR3.1 Trillion with EBITA of IDR5.0 Trillion owing to the strategy and efficiency efforts undertaken by the Company," it noted.
As of September 30, 2019, the Company's assets reached 25.2 trillion with the largest composition of 28% fixed assets and 17% cash equivalents.
Cash and cash equivalents (excluding deposits with periods of more than 3 months) owned by the Company currently amount to IDR4.2 Trillion, 33 percent decrease as of December 31, 2018 amounting to IDR6.30 Trillion.
However, taking in the deposits over 3 months, the Company's total cash was IDR7.1 Trillion, 13% percent increase from the same period in 2018).