Exploring European Markets, Bukit Asam Sends Hundreds of Tons of Coal to Italy

Photo: Doc. Antara

JAKARTA - PT Bukit Asam (Persero) Tbk is exploring the European market by exporting hundreds of tons of coal to Italy. PTBA Finance and Risk Management Director, Farida Thamrin, said her party was trying to open export opportunities to countries in Europe to at the same time take advantage of the moment of rising coal prices in the global market.

"Bukit Asam continues to increase the portion of exports, of course, it does not ignore domestic needs", she said in a statement to the media, Tuesday, September 20.

She explained that the main export market of PTBA is currently still dominated by India, and there has even been an increase of up to two million tons on an annual basis or year on year (YoY) in the country.

Farida said that currently India is the largest export destination for PTBA with a portion of 18 percent of total sales and followed by South Korea with a portion of 4 percent, Thailand with 3 percent, and followed by China and Cambodia with 2 percent each.

So overall, he continued, the share of coal export sales increased from 33 percent in the first quarter of 2022 to 38 percent in the second quarter of 2022.

The increase in the second quarter caused the export portion in the first semester of 2022 to be recorded at 35 percent of all sales.

Meanwhile, the Average Selling Price (ASP) or average selling price in the second quarter of 2022 was recorded at IDR 1.3 million per ton, an increase of 14 percent compared to the first quarter of 2022 due to an increase in the share of export sales.

For the domestic market, she said, the company still meets the supply of coal for domestic needs or DMOs of 65 percent.

"With the high price of coal and increased demand for exports, the company is optimistic that it can continue to improve performance until the end of 2022", Farida continued.

For information, as of the first semester of 2022, PTBA posted a net profit of IDR 6.2 trillion, up 246 percent compared to the same period last year which was valued at IDR 1.8 trillion.

The achievement of net profit was supported by revenue of IDR 18.4 trillion, an increase of 79 percent compared to the same period last year.

The position of cash reserves is well maintained even though there is the highest dividend payment of IDR 7.9 trillion in June 2022. Net cash was recorded at IDR 11.1 trillion.

This achievement is also supported by solid company operational performance throughout the first semester of 2022. Prioritizing cost leadership in each company line, the company implements sustainable efficiency optimally.

The total coal production of PTBA during the first semester of 2022 reached 15.9 million tons, an increase of 20 percent compared to the first semester of 2021 which was 13.3 million tons. Meanwhile, PTBA's coal sales as of the first semester of 2022 were 14.6 million tons, growing 13 percent on an annual basis.