Jakarta – The majority of coal mining issuers reported an increase in revenue and net profit in the first half of 2022. Even though the volume of coal production and sales decreased, the increase in the average selling price (ASP) was able to support the performance of coal issuers.
For example, PT Bumi Resources Tbk (BUMI) posted a net profit attributable to the Owner of the Parent Entity of US$ 167.67 million. This number increased by 8.771% from the realization of net profit in the same period last year of US$ 1.89 million.
The increase in net profit was in line with the increase in income. In the first six months of 2022, BUMI posted revenues of US$ 968.68 million. This amount is up 129.62 percent from revenue in the same period last year of US$ 421.86 million.
However, BUMI’s production and sales volumes have decreased. Production volume in the first half of 2022 was 34.5 million tons, down 14% from the previous 40.1 million tons. In line with that, BUMI’s sales volume also fell 16 percent to 33.8 million tons from the previous 40.2 million tons.
Although sales volume decreased by 16%, the 92% higher average selling price could offset this decline. BUMI recorded a coal price of US$ 108 per ton in the first half of 2022 compared to US$ 56.2 per ton in the same period last year.
The same thing was experienced by PT Indo Tambangraya Megah Tbk (ITMG). Global coal prices continued to strengthen sharply in the first half of this year, causing the average selling price of coal obtained by ITMG to rise 134 percent to US$ 175 per ton. In the same period last year, ITMG’s ASP was only US$ 75 per ton.
The increase in ASP occurred in the midst of declining production and sales volumes. ITMG reported coal production figures of 7.7 million tons amid bad weather and heavy rainfall. This realization decreased by 11.5% year-on-year (yoy), where in the same period last year, ITMG’s production volume reached 8.7 million tons.
Meanwhile, the sales volume achieved in this period was 8.1 million tons. This volume decreased by 10% from the realization of sales in the first half of 2021 of 9 million tons. As a result, ITMG’s revenue shot up 110.20% to US$ 1.42 billion.
ITMG posted a net profit of US$ 460.82 million, up 291.7 percent from last year’s net profit of US$ 117.62 million.
However, there are also issuers that have recorded an increase in production and sales volume along with an increase in ASP. For example, PT Bukit Asam Tbk (PTBA). Director of Finance and Risk Management Farida Thamrin said the average selling price of PTBA’s coal increased 58% from last year, where ASP realization in the first half of 2022 was at the level of Rp 1.2 million.
“The majority increase in ASP occurred in the second quarter of 2022. In the first quarter of 2022, the realization of ASP was IDR 1.1 million, and increased to IDR 1.3 million in the second quarter of 2022, so the average price was IDR 1.2 million in the first half of 2022,” explained Farida, last week.
PTBA’s coal sales as of the first half of 2022 were 14.6 million tons, growing 13% on an annual basis. In terms of production, the issuer based in South Sumatra recorded total coal production during the first half of 2022 reaching 15.9 million tons. This figure is an increase of 20% compared to the realization of production in the first half of 2021 which amounted to 13.3 million tons.
The same thing was experienced by PT Resource Alam Indonesia Tbk (KKGI). During the first six months of 2022, the average selling price of coal (FOB mother vessel) owned by KKGI increased to US$ 79.81 per metric ton (MT) from the previous US$ 38.89 per MT. At the same time, KKGI’s sales volume was 1.49 million MT, 12.30% higher than 1.33 million MT in the previous period.
As a result, during the first semester of 2022, KKGI posted revenues of US$ 109.93 million. This number shot up 131.82% from the realization of revenue in the same period the previous year of US$ 47.42 million.
PT Harum Energy Tbk (HRUM) also recorded an increase in ASP which was accompanied by an increase in coal sales volume. HRUM’s ASP for the first six months of 2022 increased by 154.3% year-on-year (yoy) to US$ 177.0 per tonne. In comparison, ASP in the same period last year was only US$ 69.6 per ton.
In terms of sales, HRUM’s sales volume was 2.1 million tons in the first half of 2022. This amount was 33.9% higher than the sales volume realized in the same period last year, which was 1.6 million tons.
