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Surging coal prices buoy mining firms’ performance
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Heavy machinery is used to load coal onto trucks at the Karya Citra Nusantara (KCN) Marunda Port in Jakarta on Jan. 17,. (AFP/Adek Berry)
B
ig publicly listed coal mining companies have seen their financial conditions improve on the back of surging global prices of the fossil fuel.
PT Bumi Resources, Indonesia’s largest thermal coal miner, booked US$3.8 billion in revenue in the first half of this year, up 66 percent from $1.5 billion in the previous year.
The publicly listed company’s revenue increased significantly even though production and sales volumes decreased by 14 percent and 16 percent, respectively, over the same period due to frequent heavy rain disrupting operations.
Skyrocketing coal prices in the global market greatly boosted the company’s profit margins.
Bumi’s net income shot up to $167.7 million in the first half, up 8,726 percent year-on-year (yoy) from $1.9 million in the corresponding period last year.
Read also: Coal not ‘dead’ as prices remain high, IPOs still appear lucrative
Meanwhile, according to its corporate secretary Dileep Srivastava, the company saw its cost of revenue grow 50 percent yoy to $2.7 billion “due largely to spiraling fuel prices”.
