Jakarta, CNBC Indonesia– PT Bumi Resources Tbk (BUMI) earned revenues of US $ 2.77 billion, equivalent to IDR 40.16 trillion (exchange rate of IDR 14,500) in the January-September 2020 period.
This income fell 18.73% from a year earlier, which was recorded at US $ 3.41 billion. As a result, this caused BUMI to record a loss of US $ 137.3 million in the January-September 2020 period.
Corporate Secretary Dileep Srivastava said the decline in revenue and losses was due to the realization of coal prices in September, which decreased by 14% from the beginning of the year, due to negative global economic and market conditions.
The Covid-19 pandemic that hit also caused coal demand in BUMI’s main market to experience a decline. “The decline in sales volume in September 2020 was 5% compared to September 2019 due to corrected demand for coal from China and India,” Dileep said in his official broadcast on Friday (30/10/2020).
The combined sales volume of the BUMI group decreased by 3.1 million tonnes, mainly from Arutmin. Although currently conditions are still detrimental due to the pandemic and the global economy, Dileep said the company is still recording revenue and is continuing to make efforts to reduce costs.
“Even though market conditions are still uncertain, the Company remains optimistic that it can maintain and improve its operational performance in the medium term,” said Dileep.
The maximum cost emphasis was placed on cost management, especially with the decrease in operating expenses by 12% to only US $ 149 million compared to US $ 169.3 million last year. For Closing Inventory, it was recorded at 3.3 million tons at the end of September 2020, compared to September 2019 at 5.2 million tons. Dileep said this reflects the efficiency of working capital.
In addition, the Omnibus Law allows the provision of incentives for downstream projects such as coal gasification. In this project BUMI acts as the appointed coal supplier for the nearest methanol project starting in 2023.
“BUMI is still waiting for official confirmation from the Ministry of Energy and Mineral Resources regarding the conversion of the extension of PT Arutmin’s business license from PKP2B to IUPK (Special Mining Business License) soon,” said Dileep.
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