Bumi Resources' First Profit Since 2012

PT Bumi Resources Tbk (BUMI) achieved a profit of US$100.4 million in 2016, compared to a loss of US$1.93 billion in the previous year. This profit is the first since 2012, as BUMI suffered losses from 2012 to 2015. However, Bumi Resources' profit did not come from sales, but from other income. This is because sales of Indonesia's largest coal mining company in 2016 were only US$23.4 million, down 42 percent from US$40.5 million in the previous year.

Total assets in 2016 decreased by 9 percent to US$3.08 billion from US$3.39 billion in the previous year. Meanwhile, total debt decreased by 7 percent to US$5.8 billion from US$6.29 billion in 2015. As a result, at the end of 2016, BUMI still recorded negative equity of US$2.77 billion, compared to US$2.9 billion in 2015.

In a media briefing on February 23, 2017, Bumi's management stated that the company would restructure debt worth US$1.992 billion (approximately Rp 26.4 trillion) by issuing new shares through a rights issue. Based on a net asset equity value of US$4.6 billion, the conversion price was set at Rp 926.16 per share, using an exchange rate of Rp 13,235 per US dollar.