Profit Of Bayan Resources Owned By Conglomerate Low Tuck Kwong Drops 44.05 Percent In The Third Quarter Of 2023

Illustration. (Photo: Doc. Antara)

JAKARTA - A coal company owned by conglomerate Low Tuck Kwong, PT Bayan Resources Tbk. (BYAN) experienced performance pressure by recording a decrease in net profit and revenue as of the third quarter of 2023.

In a financial report on the IDX website, quoted on Wednesday, December 6, BYAN recorded a net profit of 910.5 million US dollars or around Rp. 14.13 trillion (exchange rate of Rp. 15,524 per US dollar) in the first 9 months of 2023. BYAN's net profit shrank 44.05 percent year-on-year (yoy) compared to the same period in 2022 of 1.62 billion US dollars or around Rp. 25.26 trillion.

The decline in net profit, BYAN, is in line with revenue which shrank 17.65 percent yoy to 2.75 billion US dollars or around Rp42.8 trillion, compared to the third quarter of 2022 of US$3.34 billion or around Rp51.97 trillion.

In detail, based on the segment, BYAN's revenue was supported by coal amounting to 4.52 billion US dollars, followed by non-coal revenue of 948.56 million US dollars. This revenue was reduced by elimination costs of 2.72 billion US dollars.

Meanwhile, BYAN's largest export customer with a contribution of more than 10 percent, namely China National Machinery Import and Export Corporation, contributed 201.61 million US dollars in revenue.

Meanwhile, income from other parties was below 10 percent, the total reached 2.18 billion US dollars. Interestingly, even though the revenue fell, the company's cost of goods actually rose 37.54 percent yoy to 1.43 billion US dollars as of 30 September 2023, compared to the same period the previous year of 1.04 billion US dollars.

As a result, BYAN's gross profit fell 42.58 percent yoy to USD 1.32 billion, compared to the third quarter of 2022 of USD 2.30 billion. Meanwhile, cash and cash equivalents at the end of the BYAN period were recorded at USD 451.04 million, including cash and cash equivalents which were limited in use related to foreign exchange of export proceeds amounting to USD 141.57 million.

This achievement also decreased compared to the same period in 2022 amounting to USD 1.32 billion. Based on the balance sheet, BYAN's total assets were due to USD 2.83 billion as of September 30, 2023, compared to the position at the end of December 2022 of USD 3.94 billion.

The company's liabilities fell to US$664.63 million, compared to the position at the end of 2022 of US$1.95 billion. Meanwhile, equity rose to US$2.16 billion, compared to the position in December 2022 of US$1.99 billion.