JAKARTA. PT Bumi Resources Tbk (BUMI), a coal mining company under the auspices of the Bakrie Group, recorded a loss of US$137.3 million or around Rp2 trillion during the period of January-September (9M) 2020.
Dileep Srivastava, Director & Corporate Secretary of BUMI, said that the company's net profit was 280% lower than the figure recorded in 9M 2019. In the disclosure published on the Indonesia Stock Exchange's website, Srivastava said that on 9M 2019, the company was able to book a net profit of US$76.1 million.
Srivastava admitted that the decline in the company's net profit was caused by the 14% decline in coal prices and a 5% decline in sales volume. "[The decline in sales] was due to the lower demand for coal from China and India," said Srivastava.
Apart from the low demand, BUMI's expenses during 9M 2020 also rose quite significantly, mainly to repay loans and interest (US$331.6 million).
"Although market conditions are still uncertain, the company remains optimistic that it can maintain and improve its operational performance in the medium term," said Srivastava. (KR/AR)