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Tuesday, 21 June 11
SURGE IN PRODUCTION AND PRICES TO PUSH BUKIT ASAMS NET PROFITS ABOVE RP 3T - THE JAKARTA GLOBE


State-owned coal company Perusahaan Tambang Batubara Bukit Asam expects its net income to increase about 50 percent this year on the back of rising coal prices and higher production, a company executive said.

Profit at Bukit Asam may rise to more than Rp 3 trillion ($348 million) this year from Rp 2 trillion last year, the coal miner’s president director, Sukrisno, said on Monday.

“As coal production and prices increase, I believe that we can earn a net profit of more than Rp 3 trillion this year,” Sukrisno said at the hearing at House of Representatives Commission VII, which oversees energy affairs.

Bukit Asam’s coal production is projected to increase 34 percent to 17.6 million tons this year, he said.

The average coal price was Rp 615,000 per ton last year, he said, without providing any forecasts for this year.

Bukit Asam spokesman Ahmad Sudharto said the increase in global coal prices and production helped it post a surge in its first-quarter net income. Net income for the quarter doubled to Rp 800 billion from Rp 400 billion a year earlier. The average coal price surged 35 percent to Rp 751,000 per ton in the first three months of this year.

Pardomuan Sihombing, an analyst from Recapital Securities, said Bukit Asam was likely to meet its income target of Rp 3 trillion this year as its coal production increased.

“Coal companies, on average, are showing good revenue growth,” Pardomuan said.

Shares in Bukit Asam dipped 0.1 percent to Rp 20,550 on the Indonesia Stock Exchange in Monday trading.

To meet rising production, Bukit Asam expects state-owned railway company Kereta Api Indonesia to add more cars to deliver coal from its mining plant on Sumatra, Ahmad said.

KAI handles the miner’s coal shipments, carrying 11.5 million tons per year. Sukrisno said Bukit Asam would upgrade the capacity of its existing coal railway in Sumatra this year to transport 22.7 million tons annually.
Source:
The Jakarta Globe (By Ririn Radiwati Kusuma)



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