JAKARTA. Publicly listed mining companies Bukit Asam and Timah posted significant growth in their total revenues last year despite a sluggish global commodity market.

Coal miner Bukit Asam reported a 17 percent increase in total revenues to Rp 13.08 trillion (US$1 billion) last year from Rp 11.2 trillion the previous year, while net profit grew by about 10 percent year-on-year to Rp 2.01 trillion from Rp 1.8 trillion in 2013.

This was in contrast with the 3.3 percent and 37 percent declines in revenue and net profit, respectively, that the company saw in 2013 as a result of slumping commodity prices.

While coal prices stayed low last year, Bukit Asam corporate secretary Joko Pramono said that the company had booked growth in its top and bottom lines thanks to a significant increase in its average selling price (ASP) following a fresh branding strategy.

“Our company saw our average prices increase by 15 percent to Rp 723,635 per ton last year from Rp 629,737 in the previous year,” Joko said in a statement.

The company’s full-year report was in contrast with most coal miners, who performed sluggishly last year as global coal prices remained weak. Indonesia’s coal reference prices (HBA) slumped by around 27 percent along 2014, while global prices plunged around 24 percent in the same period.

Joko previously said that the company had managed to maintain its ASP through a multibranding strategy, marketing its coal in seven brands to cushion losses from a dwindling global coal market with premium pricing.

He said that his company was expected to be able to maintain its growth this year, having joined the Jakarta Future Exchange, allowing the company to sell its coal online to the highest bidders. The move, he said, would ensure the company got the best prices for its products despite the bearish coal market.

The marketing strategy managed to help Bukit Asam boost revenue despite lower sales and production volume.

Bukit Asam sold 17.96 million tons of coal — including from third parties — in 2014, up only 1 percent from the previous year. Meanwhile, production was up by around 8 percent year-on-year to 16.4 million tons.

About 52 percent of the company’s sales volume was sold in the domestic market while the remainder was for exports.

Meanwhile, tin miner Timah saw its revenue up by around 26 percent from Rp 5.85 trillion in 2013 to Rp 7.37 trillion last year, while its net profit grew by around 10 percent to Rp 637.97 billion in 2014 from Rp 580.54 billion in the previous year.

Timah corporate secretary Agung Nugroho said that the company relied on greater production as well as efficiency strategies to maintain its financial performance amid tin prices hit by weak commodity markets. Timah’s ASP last year was $21,686 per ton, lower by around 4.6 percent than the 2013 level. The company’s total ore output for 2014 was 32,316 tons, up by 23.32 percent year-on-year.

“By boosting our production we managed to save production costs and boost revenue despite lowering prices,” Agung explained. (Anggi M. Lubis)

Editor: Yudho Winarto