Coal Price Drops, Bumi Resources Net Profit Drops 97.9 Percent In 2023

Illustration. (Photo: Doc. Antara)

JAKARTA - Bakrie and Salim's joint venture, PT Bumi Resources Tbk (BUMI) recorded a decrease in net profit of 97.9 percent in 2023.

Launching information disclosure on the Indonesia Stock Exchange (IDX) website, BUMI earned a net profit of 10.92 million in 2023, a sharp decline from the previous year which was recorded at 525.27 million US dollars.

Bumi Resources Director and Corporate Secretary, Dileep Srivastava, said BUMI's gross revenue also decreased sharply by 23 percent to 6.57 billion US dollars compared to 2022 which was recorded at 8.53 billion US dollars.

"The decline was due to market conditions and coal prices which fell by 33 percent," he said, quoted on Monday, April 1.

In addition, about 40 percent of gross income is paid for royalties, taxes and subsidies that significantly affect the quality of the margin. Dileep also said the high price of fuel also had an impact on margins and net profit.

Then the company's profit before tax, depreciation and amortization (EBITDA) also fell sharply to 302.5 million from the previous record of 1,238.6 million US dollars due to royalties, taxes, DMOs, high ratio strips and fuel costs.

BUMI's cost of revenue was also observed to have decreased by 2.4 percent to 5.97 billion US dollars compared to 2022 worth 6.12 billion US dollars.

Dileep said, BUMI had made visible cost efficiency efforts through a 30.8 percent reduction in operating expenses to US$234 million from the previous year which was recorded at US$338.3 million.

In terms of operations, coal sales increased by 13 percent to 78.7 metric tons (MT) compared to the previous year period of 69.4 MT

"The realization of coal prices fell sharply by 33 percent to 81.3 US dollars per ton in 2022 amounting to 121 US dollars per ton," concluded Dileep.