− BUMI REPORTS USD 162.3 MILLION PROFIT IN FIRST SEMESTER
− POSITIVE PROFIT SWING BY USD 183.1 MILLION YOY
− CONSOLIDATED REVENUE INCREASES TO USDS 2,344 MILLION
− COAL PRICE 37.6% HIGHER
− $2.6 BILLION DEBT REDUCTION ON TRACK
Jakarta, 2 August 2017
The Company has published its unaudited Semester I Financials on IDX Website and summary in Suara Pembaruan on 31 July 2017.
BUSINESS TURNAROUND
The Company has reported a net income (attributable to owners of parent) of $162.3 million in 1H17 compared with a corresponding loss of $20.8 million in 1H16, or a positive profit swing by $183.1 million, year on year.
In FY'16, the Company turned around to a net attributable income of $67.7 million.
FINANCIAL REPORTING
The Company has reported its H1’17 financials based on PSAK 66 of IAI on Joint Venture Agreements and, hence, does not consolidate KPC and Arutmin. 51% KPC and 70% Arutmin stakes that Bumi holds is equity accounted.
However, for ease of understanding, the company also provides internal estimates of the full consolidated figures including full contribution from KPC and Arutmin for comparison.
Your attention is invited to para 40 (page 178 - 179) in notes to the Company's unaudited 1H'17 financials for detailed explanation and the estimated consolidated figures – Appendix 2.
FINANCIAL HIGHLIGHTS ON FULL CONSOLIDATION BASIS
1H'17 financial highlights on full consolidation basis (including 100% KPC & Arutmin)
- Sales Revenue is $2,344 million
- Operating Income is $473 million
- Profit Before Tax is $545 million
- Consolidated Net Income is $248.1 million in 1H17
- Net Income (after adjustment for non controlling interest) is $162.3 million compared with loss of $20.8 million in 1H16, or a positive profit swing by $183.1 million
The consolidated numbers are internal estimates of the Company, subject to reconciliation processes.
OPERATING HIGHLIGHTS ON FULL BASIS
Appendix 2 provides the operating metrics for 1H'17 vs 1H'16 on full consolidation basis (100% KPC & Arutmin) subject to reconciliation.
However.
The increase in Coal Price by $15/ton yoy resulted in Sales Revenue of $2,344 million in 1H17 – several times higher yoy.
OUTLOOK FOR 2017
There is indication of continuing rise in Coal price presently this augurs well for prospects of the Company for rest of the year.
The Company has been able to increase inventory since end 2016 and expects to improve output and shipments in 2H17 as rains subside and the additional efficiency measures taken.
For the present there is no change in Guidance of 5% increase in Coal Mined and minimum 30% increase in Coal Price compared with FY16.
COMPANY UPDATES
STAKEHOLDER ENGAGEMENT
Appendix 2 provides the operating metrics for 1H'17 vs 1H'16 on full consolidation basis (100% KPC & Arutmin) subject to reconciliation.
- Coal mined was higher by 0.9% at 40.2 million tons in 1H'17 compared with 1H16. Unusually, heavy rains impacted production
- Coal sales relatively flat at 41.5 million tons in 1H'17 compared with 1H'16
- Combined Strip Ratio reduced by 4.5% to 7.2 in 1H'17 compared with1H'16
However.
- Coal Price increased to $54.8/ton in 1H17 compared with $39.8/ton in 1H16 – or an increase by 37.6%
- In 2Q17 the realized Coal Price was $55.8/ton compared with $39.7/ton in 1H16 or an increase by 40.3%
The increase in Coal Price by $15/ton yoy resulted in Sales Revenue of $2,344 million in 1H17 – several times higher yoy.
OUTLOOK FOR 2017
There is indication of continuing rise in Coal price presently this augurs well for prospects of the Company for rest of the year.
The Company has been able to increase inventory since end 2016 and expects to improve output and shipments in 2H17 as rains subside and the additional efficiency measures taken.
For the present there is no change in Guidance of 5% increase in Coal Mined and minimum 30% increase in Coal Price compared with FY16.
COMPANY UPDATES
- Bumi held its Annual General Meeting 2016 followed by an Extra Ordinary General Meeting on 16 June 2017. All resolutions were approved by shareholders including:-
- The Appointment of 8 new Board Members, including 6 from lenders
- Approval to Management and Employee Stock Option Scheme
- The $2.6 billion rights issue including OWK’s for MCB’s successfully closed on 27 July 2017
- Deadline for acceptance of EOM’s (Exchange Offer Memorandum) has been extended to 4 Aug’17 and allotted to eligible lenders through their Standby Buyer by end Aug’17.
- The restructuring impact is expected to be reflected in 3Q’17 Financials.
STAKEHOLDER ENGAGEMENT
- Attended JP Morgan Emerging Markets Conference, Miami, on 1 & 2 March 2017
- Presented at Indonesia Corporate Action Forum at The Indonesian Stock Exchange on 22 March 2017
- Attended Credit Suisse Asia Investment Conference, Hong Kong, on 29 & 30 March 2017
- Presented at The Indonesia Stock Community Gathering for Rising Stars in Surabaya on 9 April 2017
- Attended JP Morgan Non Deal Roadshow to Hong Kong and Singapore on 12 &13 June 2017
- Attending Credit Suisse 2nd Annual Conference in Singapore on 7 – 8 August 2017
- Attending Maybank KimEng Roadshow to Kuala Lumpur on 10 August 2017
- Confirmed for JP Morgan Credit & Equities Emerging Markets Conference in London on 3 ? 5 October 2017
- On line interface with local Investor and Media for proactive Company updates and clarify strategy
- Site visits to coal mines are being arranged for stakeholders
Enc. :
- Financial Notes - paragraph 40 (page 178 - 179)
- Operational Summary (ON FULL BASIS) - Unaudited - 1H 2017
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PT. BUMI RESOURCES Tbk.
Bakrie Tower Lt. 12
Komplek Rasuna Epicentrum
Jl. H. R. Rasuna Said
Karet Kuningan, Setiabudi
DKI Jakarta 12940
©2024 PT. BUMI RESOURCES Tbk.
