PT Bumi Resources, Indonesia's largest thermal coal miner, says its huge success in 2017 was only a one-off event and it is unlikely the company will repeat it again this year.
“The year 2017 was a landmark year and we expect 2018 to be a more representative year for Bumi without the one-offs [that occurred last year],” Bumi corporate secretary Dileep Srivastava told The Jakarta Post recently.
Bumi, affiliated with politician and tycoon Aburizal Bakrie, saw its revenues fall by 25.7 percent year-on-year to US$17.36 million in 2017. However, its net income from associates and joint ventures soared by 145.23 percent to $206.6 million.
Moreover, after increasing its ownership of PT Arutmin Indonesia from 70 to 90 percent last year, Bumi revaluated Arutmin’s assets, resulting in a significant jump in the assets’ value from only $262 million to $1.35 billion. Subsequently, Bumi included $740.38 million in its other income posted as a gain on an increase in share investment value.
Then, after taking into account other variables, including asset impairment worth $486.4 million and taxes of $66.97 million, Bumi was able to record a net profit of $373.25 million, a staggering 451.39 percent jump compared to its 2016 achievement.
Furthermore, Bumi’s debt-restructuring efforts last year eventually led to a 42.07 percent reduction in its total liabilities to $3.41 billion.
In 2018, Bumi expects to boost its coal production by 10 percent from the 83.7 million tons it recorded last year. (evi)
Source: Viriya P. Singgih / The Jakarta Post
1 April 2018