- BUMI REPORTS USD 263.8 MILLION PROFIT TILL 3rd SEMESTER
- POSITIVE PROFIT SWING BY USD 190 MILLION YOY
- CONSOLIDATED REVENUE INCREASES TO USDS 3,599 MILLION
- COAL PRICE ALMOST 40 % HIGHER
- $2.6 BILLION DEBT REDUCTION ACHIEVED
- EQUITY TURNS POSITIVE
Jakarta, 5 December 2017
The Company has published its Semester III Financials on IDX Website on 30 Nov’2017 after a limited review audit.
BUSINESS TURN AROUND
The Company has reported a net income (attributable to owners of parent) of $263.8 million in 09’17 compared with a net income of $73.0 million in 09’16, or a positive profit swing by $190.8 million, year on year.
Based on 09’17 EPS Rp54 FY’17, EPS is Rp72 and P/E of 3.8 Net equity turned positive by $207.5 million on PSAK 66 Basis and by $552.9 million on Full Consolidation Basis.
FINANCIAL REPORTING
The Company has reported its 09’17 financials based on PSAK 66 of Indonesia Accounting Standard (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 100% contribution from KPC and Arutmin for comparison.
Your attention is invited to para 41, Supplementary Financial Information (page 149) in notes to the Company's 09'17 financials for detailed explanation please refer to Appendix 2.
FINANCIAL HIGHLIGHTS ON FULL CONSOLIDATION BASIS
09'17 financial highlights on full consolidation basis (including 100% KPC & Arutmin)
- Sales Revenue is $3599, 2 million
- Gross Profit is $1109,2 million
- Operating Income is $825,3 million
- Profit Before Tax is $887.2 million
- Consolidated Net Income After Tax is $439.0 million
- Consolidated Net Equity turns positive by $552.9 million
- Net Income (after adjustment for non controlling interest) is $263.8 million
The consolidated numbers are internal estimates of the Company, subject to the usual reconciliation processes.
OPERATING HIGHLIGHTS ON FULL BASIS
Appendix 1 provides the operating metrics for 09'17 vs 09'16 on full consolidation basis (100% KPC & Arutmin) subject to reconciliation.
- Coal mined was relatively flat at 62.1 million tons in 09'17 compared with 62.7 million tons in 09’16. Unusually, heavy rains impacted production
- Coal sales volume was 62.6 million tons in 09’17 compared with 64.6 million tons in 09’16
- Combined Strip Ratio is 7.2 in 09’17 compared with 7.1 in 09’16
However.
- Coal Price increased to $55.9 ton in 09’17 compared with $40.1 ton in 09’16 – or an increase by 39.6%
- In 3Q17 the realized Coal Price was $58.0 ton and in Oct’17 is estimated at $59.4/bn
- The YOY increase in Coal Price by $15.8/ton yoy resulted in Sales Revenue of $3599.2 million in 09’17 – approx. 38% higher than last year and overcompensated for volume impact.
- Oct’17 Sales Volume is estimated at 7.5 million tonnes at $62.9/tonne
OUTLOOK FOR 2017
There is indication of a continuing rise in coal price and this augurs well for prospects for the Company for rest of the year.
Sales Volume is expected at 86 million tons at a price 40% higher than realized FY’16 level of $42.1/tonne.
COMPANY UPDATES
- The $2.6 billion rights issue including OWK’s for MCB’s successfully closed on 27 July 2017 and Exchange of Shares & MCB’s is planned for 11 Dec’17 to eligible lenders.
- The restructuring impact has been reflected in 3Q’17 Financials.
Bumi confirms that it has published its 09’17 financials on IDX web today after a limited audit review.
OPERATING METRICS
Higher coal price of $55.9/ton (vs $40.1/ ton in 09’16) or by 39.6% YOY (vs guidance of 30% increase) compensated for relative flat coal mined due to unusually heavy rains during the year.
Fully consolidated gross revenue consequentially increased to $3.6 billion vs $2.6 billion in 09’16 or an increase by 38.5% YOY.
Strip ratio was controlled at 7.2 vs 7.1 in 09’16.
CORPORATE DEVELOPMENTS
The debt composition plan is in its final stage of implementation on 11 Dec ’17 when the debt for equity and MCBs is expected to be exchanged with eligible lenders.
The above debt for equity conversion has turned net equity to positive $ 207 million compared with negative net equity of $2.8 billion in 1H’17.
Bumi’s boards have been strengthened since Jun’17 with the induction of 6 members representing lenders (4 from CIC, 1 from CDB and 1 from secured note holders) and 2 Indonesian eminent personalities. Details and CV’s of the new members have already been communicated in Bumi’s announcement on 6 July 2017.
KPMG has been appointed Cash Monitoring Agent.
BRMS is now debt light and ready for strategic partnering to unlock value. Commercial production for zinc, gold, copper and lead is being progressed in stages from its various major metal ore assets.
AWARDS & DISTINCTIONS CONFERRED
- Bumi received Most Powerful Company 2017 for Coal Mining category by Warta Ekonomi’s Indonesia Most Powerful Companies Award (MPCA) 2017, held in Jakarta on Friday, 27 October 2017. Based on Debt to Equity Ratio (DER), Earning per Share (EPS), Price to Earning Ratio (PER), and Price to Book Value (PBV).
- Bumi received Top 5 GCG Issues in Mining Sector Indonesia Corporate Secretary Award 2017 from Warta Ekonomi, based on media coverage relating to Good Corporate Governance (GCG) activities conducted by the companies. This GCG assessment conforms to the 5 rules as determined by The Governance Policy National Committee (“KNKG”), which include transparency, accountability, responsibility, independency, and fairness.
INVESTOR PROMOTIONS
Bumi has attended several credit and equity investor forums in Indonesia and abroad with quality international and local brokering houses to highlight its turnaround story.
The credit community has responded positively to the debt composition agreement and the residual debt is reportedly trading at a premium and MCBs at a deemed value above the present share price.
A major effort is being made starting Jan ’18 to promote Bumi’s undervalued equity to global and local investors. The expected share and MCB exchange has already been announced for 11 Dec’17.
2018 PROSPECTS
Bumi expects to recommence production of high ranked coal from Arutmin of 8 million tonnes in 2018.
Hence, we plan a coal production of at least 10% above FY’17 levels.
Coal sector conditions continue to be buoyant and Bumi expects a further coal price increase of 5% compared with present realized levels.
Enc. : - Operational Summary (ON FULL BASIS) - Unaudited – 9M – 2017
- 09’17 Summarised Financials – PSAK 66 and Fully Consolidated
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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.
