Bumi Resources is still affected by the low price of coal

06 November 2019 10:12

JAKARTA. The revenue of Indonesia's largest coal company, PT Bumi Resources Tbk (BUMI) fell 8.85% in Q3 2019 to US$ 751 million from US$ 824 million recorded in the same period last year. The company's net profit also fell by 62.95% to US$ 76 million from US$ 205 million recorded in Q3 2018.

On the other hand, the company's sales volume in January-September rose by 5% to 63.1 metric tons (MT) from 60 MT recorded last year, but the slowdown in the global economy caused the coal industry to slow down, which make the selling price of coal also fell by 11% to US$ 52.6 per ton ...

According to the company's financial statements, BUMI's selling expenses also rose by 4% to US$ 2.69 million.

Head of Research at Koneksi Kapital, Alfred Nainggolan believed that pressure on BUMI's financial performance in the third quarter of 2019 was still enormous. "The coal sector will not record significant financial performance growth," Alfred said on Tuesday (5/11). (AM/AR)

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