PT Tambang Batubara Bukit Asam Tbk : BUKIT ASAM'S NET PROFIT JUMPED 262% IN Q1 2017

THE RISE of coal commodity prices brings blessing to PT Bukit Asam Tbk (PTBA). The performance of these coal producers jumped significantly in the first quarter of 2017 compared to the same period last year (year on year).

PTBA managed to print a net profit growth of 262% to Rp 870.8 billion. Meanwhile, in the first quarter of 2016, PTBA's net profit was Rp 332.6 billion. 'The increase in net profit is more than doubled from the first quarter of 2016,' said PTBA President Director, Arviyan Arifin at PTBA Press Conference in Jakarta, Thursday (4/27).

PTBA's net profit achievement is in line with revenues recorded in the first quarter of 2017, grew 128% to Rp 4.55 trillion compared to the first quarter of 2016. This position made net profit margin reach 19.2%, then gross profit margin of 37.2% and operating profit margin position of 25.8%.

Arviyan, who was accompanied by the entire Board of Directors of PTBA, revealed that in the first quarter of 2017, the coal-weighted average selling price reached Rp 811,342 or 22% higher than the same period in 2016 of Rp 664,001.

Not merely because of price increases, the surge in net income and sales was influenced by factors. Among the increase in coal sales volume in the first quarter of 2017 by 4% to 5.44 million tons compared to the same period last year of 5.23 million tons.

For sales volume, Arviyan explained 3.14 million tons or 57.66 percent was distributed to the domestic market, while 2.3 million tons or 42.34 percent of total sales, to meet export demand. In terms of production, the Company reported a 38% increase to 4.49% compared to the first quarter of 2016 of 3.26 million tonnes.

Another factor that impacts PTBA's net profit by Arviyan is the Company's successful strategy in efficiency since early 2016. 'The results began to be picked in the first quarter of 2017,' he said. Efficiency is done by controlling stripping ratio (SR) to 4.02. Whereas in the previous years SR reached 5.40.

Equally important, PTBA's performance growth was achieved due to a 17% increase in coal transport volume by PT Kereta Api Indonesia (KAI) to 4.99 million tonnes compared to the same period last year of 4.28% with a composition of 4.24 million tonnes through the Port Tarahan in Bandar Lampung and 0.72 million tons through Kertapati Palembang dock.

The increased volume of rail transport is supported by the addition of locomotives and carriages owned by KAI and the completion of the 'double tract' lane on the Tanjung Enim - Prabumulih track. 'We are very dependent on trains because this is the only mode of transportation that transports our products to the end users,' added Arviyan.

Optimism 2017

Reflecting on the achievement in the first quarter of 2017, PTBA management expressed their optimism in achieving the target set by the end of 2017. This year, PTBA set a production target of 24.07 million tons, up 22 percent compared to 2016's 19.62 percent.

The optimism is also supported by PT KAI's commitment to transport PTBA coal from the mine site by 21.70 million tons, up 22.5 percent compared to the previous year's 17.72 million, 18 million tons to Tarahan Port in Bandar Lampung and 3.7 million tons to the Kertapati Pier in Palembang. The Company has also completed construction of various infrastructure at the mine site at Tanjung Enim, including Train Loading Station 4 to load coal into railway cars.

While for sales target, Arviyan said it set a target of 27.29 million tons, up 31 percent from last year's realization of 20.75 million tons, with a composition of 15.93 million tons to meet domestic demand equal to 58 percent of the total target Sales, or up 30 percent compared to the actual sales in 2016 of 12.27 tons.

Export plans were set at 11.36 million tons, equivalent to 42 percent of total sales, or 34 percent higher than in the previous year. In spurring revenue contribution from the export market, PTBA plans to expand export destination countries to Vietnam and Bangladesh. 'Hopefully in those countries we get higher selling price compared to traditional countries such as India and China,' he added.

Supporting these targets, PTBA Finance Director, Orias Petrus Moedak revealed that the company has budgeted capital expenditure (capex) of Rp 5 trillion this year. Until the first quarter of 2017, the budgeted capex is only used for Rp 207 billion. (Source : www.beritasatu.com)