Coal Prices Soar, Bumi Resources Profit Jumps 473.8%

PT Bumi Resources Tbk (BUMI) reported positive performance in the third quarter of 2022. This profit increase stemmed from a surge in the company's revenue.

Based on BUMI's Q3 2022 financial report, the company recorded a net profit attributable to the parent entity reaching US$365.5 million, or the equivalent of Rp 5.76 trillion, from January to September 2022. This profit figure increased by 473.8% compared to the same period last year, which was US$63.7 million.

This mining issuer generated revenue of US$1.39 billion, or the equivalent of Rp 21.8 trillion. This achievement increased by 109% from the revenue in Q3 2021 of Rp 666.1 billion. The cause was the increase in coal prices since the beginning of this year.

"A sharp increase in coal prices by 89% (US$118.7 per ton vs. US$62.8 per ton year-on-year)," stated Bumi Resources in its official release on Thursday (3/11).

Along with the increase in revenue, the company's cost of goods sold also increased. BUMI also had to face the impact of inflation, high coal royalties that had to be paid, and the priority given to PLN under the Domestic Market Obligation (DMO) scheme.

"Continuous heavy rain due to La Niña since December 2021 impacted production (which decreased) by 9% year-on-year," according to the company's statement. The issuer with the code BUMI also recorded a 6.3% increase in operating expenses to US$201.9 million from January to September 2022. The company also recorded a 57.4% increase in cost of revenue to US$4.42 billion.

Previously, Bumi had announced the completion of its rights issue without pre-emptive rights (PMHMETD) or private placement. The transaction, worth US$1.6 billion or equivalent to Rp 24 trillion, was executed on Wednesday (19/10).

"200 billion shares have been listed on the Indonesia Stock Exchange today, so the number of outstanding shares has increased to 343,841,242,189 from the previous 143,841,242,189 shares," said Dileep Srivastava, Director and Corporate Secretary of BUMI, as quoted from the disclosure of information on Thursday (20/10).

The completion of the private placement has freed the issuer under the Bakrie Group from all PKPU obligations. BUMI has paid all company debts in cash.