JAKARTA. Despite higher sales volume and production output, a steep decline in commodity prices last year saw state-run coal miner PT Bukit Asam’s profits slump by 38 percent year-on-year in 2013.Bukit Asam saw profits after tax plunge to Rp 1.85 trillion (US$158.9 million), or down by 38 percent compared to Rp 2.91 trillion the previous year, according to its latest financial statement on Wednesday evening.Revenue remained stagnant at Rp 11.2 trillion, compared to Rp 11.6 trillion in 2012.Joko Pramono, the company’s corporate secretary, said that a significant drop of global commodity prices had diminished the company’s earnings, which had actually produced and sold more coal in 2013 than in 2012.The company’s coal output last year hit 15.1 million tons, up by 8 percent compared to the previous year.Bukit Asam’s sales volume rose by 16 percent to 17.76 million tons last year, compared to 15.33 million tons in 2012.Joko explained that with decreased global coal prices of about 20-25 percent last year, Bukit Asam’s average selling prices (ASP) in 2013 was only Rp 629,737 per ton, a 16.5 percent drop compared to Rp 754,544 per tons in theprevious year.“We focused on boosting export volume to help cushion ourselves from the coal-price crisis, which has been ongoing since mid 2012 and limitations imposed by coal importers.We prioritized exports of high calorific coal needed by international markets, such as China and Taiwan,” he explained.Bukit Asam’s exports constituted 54 percent of the company’s total sales last year with 9.59 million tons, increasing by 39 percent compared to 2012.The company, he said, also tried to maintain costs by relying on its own coal-fired power plants — such as the 3x10 megawatt Tanjung Enim plant in South Sumatra and the 2x8 megawatt Tarahan Port plant in Lampung — that were powered by unmarketable fine coal.Moreover, he said, the oversupply of electricity from the plants was sold to the state-owned electricity company (PLN).As for 2014, Bukit Asam aims at boosting sales by 39 percent year-on-year to 24.7 million tons.To further buffer a potential drop in coal prices, the company targets to boost its exports by 41 percent to 13.53 million tons, compared to last year.Bukit Asam wants production to hit 19.8 million tons, an increase of 31 percent compared to last year. Its third-party purchase is expected to increase by 46 percent year-on-year to 3.98 million tons.Bukit Asam plans to enhance the capacity of Tarahan Port from 13 million tons of coal a year to 25 million tons a year by the second half of this year.Currently, the port channels 20 million tons of coal a year.
Bukit Asam’s profits slump amid higher coal output
JAKARTA. Despite higher sales volume and production output, a steep decline in commodity prices last year saw state-run coal miner PT Bukit Asam’s profits slump by 38 percent year-on-year in 2013.Bukit Asam saw profits after tax plunge to Rp 1.85 trillion (US$158.9 million), or down by 38 percent compared to Rp 2.91 trillion the previous year, according to its latest financial statement on Wednesday evening.Revenue remained stagnant at Rp 11.2 trillion, compared to Rp 11.6 trillion in 2012.Joko Pramono, the company’s corporate secretary, said that a significant drop of global commodity prices had diminished the company’s earnings, which had actually produced and sold more coal in 2013 than in 2012.The company’s coal output last year hit 15.1 million tons, up by 8 percent compared to the previous year.Bukit Asam’s sales volume rose by 16 percent to 17.76 million tons last year, compared to 15.33 million tons in 2012.Joko explained that with decreased global coal prices of about 20-25 percent last year, Bukit Asam’s average selling prices (ASP) in 2013 was only Rp 629,737 per ton, a 16.5 percent drop compared to Rp 754,544 per tons in theprevious year.“We focused on boosting export volume to help cushion ourselves from the coal-price crisis, which has been ongoing since mid 2012 and limitations imposed by coal importers.We prioritized exports of high calorific coal needed by international markets, such as China and Taiwan,” he explained.Bukit Asam’s exports constituted 54 percent of the company’s total sales last year with 9.59 million tons, increasing by 39 percent compared to 2012.The company, he said, also tried to maintain costs by relying on its own coal-fired power plants — such as the 3x10 megawatt Tanjung Enim plant in South Sumatra and the 2x8 megawatt Tarahan Port plant in Lampung — that were powered by unmarketable fine coal.Moreover, he said, the oversupply of electricity from the plants was sold to the state-owned electricity company (PLN).As for 2014, Bukit Asam aims at boosting sales by 39 percent year-on-year to 24.7 million tons.To further buffer a potential drop in coal prices, the company targets to boost its exports by 41 percent to 13.53 million tons, compared to last year.Bukit Asam wants production to hit 19.8 million tons, an increase of 31 percent compared to last year. Its third-party purchase is expected to increase by 46 percent year-on-year to 3.98 million tons.Bukit Asam plans to enhance the capacity of Tarahan Port from 13 million tons of coal a year to 25 million tons a year by the second half of this year.Currently, the port channels 20 million tons of coal a year.
