This Mining Company Owned By Conglomerate Aburizal Bakrie Has Lost Rp4.9 Trillion In 2020

JAKARTA - PT Bumi Resources Tbk experienced a bad period in 2020. The performance of the issuer coded as BUMI shares dropped significantly in terms of revenue and net profit.

Quoted from BUMI's financial report published on the Indonesia Stock Exchange (IDX) website, Tuesday, May 18, this company owned by conglomerate Aburizal Bakrie posted revenues of 3.68 billion US dollars. This achievement is down 21 percent from 2019.

On the other hand, BUMI managed to reduce the cost of revenue to 3.24 billion US dollars or shrank 19 percent from 2019. In addition, BUMI's operating expenses also decreased 9 percent in 2020 to 205.3 million US dollars.

However, BUMI suffered a loss of US$ 338 million (around T4.9 trillion) in 2020. Meanwhile, in 2019, BUMI still recorded a profit of US$ 6.8 million.

BUMI's management, in its statement, said the drop in company performance was inseparable from a number of things. For example, the average sales price of coal is 14 percent lower, then the sales volume is also 7 percent lower.

"The company recorded an operating income of 230.3 million US dollars and an operating margin of 6.3 percent thanks to tight cost control and keeping production close to normal despite these challenging conditions," explained BUMI's management.

BUMI's management states that it is undeniable that the impact of the COVID-19 pandemic will greatly affect sector performance in 2020, however, signs of recovery in the coal sector are starting to appear and continue in the first quarter of 2021.

With the return of sector optimism and the upward trend in coal prices, BUMI's management hopes to significantly improve its performance throughout 2021.