A Coal Company Owned By The Conglomerate Kiki Barki Increases Export Portion To China To Boost Sales

JAKARTA - PT Harum Energy Tbk plans to increase the portion of coal export sales to China. The issuer with the stock code HRUM even projects that the portion of coal sales to China could be above 50 percent in 2021.

In a virtual public presentation, Tuesday, June 8, President Director of Harum Energy, Ray Antonio Gunara said the reason why his party wanted to increase coal exports to the Bamboo Curtain country. According to him, there is a huge market opportunity in China for this company owned by the conglomerate Kiki Barki, especially in coal exports.

"Based on our observations, the biggest market opportunity is China for the next few periods, so of course the company will continue to focus its marketing activities on the Chinese market, looking at the development of coal demand or consumption in the region", Ray told reporters.

If you look at it, the portion of sales contribution to China in HRUM's total coal sales has been steadily increasing lately. In 2019 and 2020, the contribution of the Chinese market in HRUM's total coal sales is still slightly below 50 percent, which is around 47 percent in 2019 and 48 percent in 2020.

During the first quarter of this year, Harum Energy's coal sales contribution to China jumped to 80 percent of total sales. The remaining coal sales consist of sales to Thailand about 8 percent, Bangladesh 7 percent, India 3 percent, and Pakistan 2 percent

Until the end of 2021, HRUM targets coal production growth of around 25 percent or around 3.5 million tons. Last year, HRUM's coal production target was recorded at around 2.8 million tons.

Even so, Ray emphasized that the actual production figures could change, depending on a number of factors such as market conditions, land readiness, and others. Throughout the first quarter of 2021, HRUM has recorded coal production and sales volume figures of 0.8 million tons.

On an annual basis, aka year-on-year (yoy), HRUM's sales volume in the first quarter of 2021 fell by 13.4 percent compared to sales volume in the first quarter of 2020. Even so, on a quarterly basis, HRUM's coal sales volume increased by about 99 percent compared to sales volume in the fourth quarter of 2020 which amounted to 0.4 million tons.

Fortunately, the average selling price of HRUM's coal increased to USD 65.1 per tonne. During the year 2020, the average selling price of HRUM's coal only reached USD 53.1 per ton.

With this average selling price, as well as a decrease in recorded sales volume, HRUM posted total consolidated revenue of USD 57.08 million in the first quarter of 2021, down 6.72 percent compared to the realization of total consolidated revenue in the first quarter of 2020 which reached USD 61.19 million.

Meanwhile, profit for the period attributable to owners of the parent entity, aka HRUM's net profit, skyrocketed from USD 821.375 to USD 17.61 million.