PTBA gains from rising coal prices, production

Posted on May 1, 2012


The Jakarta Post | Fri, 04/27/2012 12:27 PM

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Publicly listed coal producer PT Tambang Batubara Bukit Asam (PTBA) reported a 31 percent growth in revenue to Rp 3.02 trillion (US$327 million) in the January-to-March period from Rp 2.32 trillion year on year, thanks to growing production and a rising coal price.

The company said in a written statement that the increase in revenue was supported by 26 percent sales growth to 3.86 million tons compared to last year’s 3 million tons.

PTBA’s production increased by 12 percent or 3.37 million tons in the first three months of the year compared to 3.1 million tons last year. The company’s sales also comprised 360,000 tons of coal purchased from third parties.

The increased production was accompanied by a rising average selling price of Rp 781,142 per ton in the first quarter of the year, 4 percent higher than the Rp 751,457 in the same period last year.

The state-owned firm reported net profits of Rp 867.35 billion in the first quarter of the year, increasing by 14 percent from Rp 760.33 billion in the same period last year. However, growing general and administration expenses accompanied by sales and marketing costs depressed the company’s net profit margin to 28 percent from 32 percent.

PTBA’s total assets were worth Rp 12.47 trillion as of the end of March, compared to Rp 11.51 trillion year on year. Its liabilities and equities were Rp 3.44 trillion and Rp 9,04 trillion respectively.

The company said that its strong performance in the first quarter would continue and help it to meet its target of selling 18.67 million tons of coal this year, with expected total revenue of Rp 14 trillion.

PTBA plans to achieve total production of 50 million tons per year by 2016. Part of efforts to reach this target is the development of coal transportation through a partnership with state railway operator PT Kereta Api Indonesia (PT KAI), which is committed to transporting 15.6 million metric tons of coal this year.

PT KAI transport PTBA’s coal from mines in Tanjung Enim to the Tarahan Port in Bandar Lampung and Kertapati Port in Palembang, South Sumatra.

In order to secure distribution of coal from mine to port, PTBA, through its joint venture, PT Bukit Asam Transpacific Railway (BATR), is also developing a new track from Tanjung Enim to Bandar Lampung, which is expected to commence commercial operations in 2015. Transportation of coal from mining areas to ports remains a major issue for the mining business.

PTBA is also taking part in the development of power plants in order to secure electricity supply for its production. The company has completed construction of a mine-mouth coal-fired power plant (PLTU), with 3×10 Megawatts of capacity. “The PLTU will start operations at the end of this semester,” PTBA said.

Another PLTU is the Banjarsari power plant, with 2×110 Megawatts of capacity. The PLTU is still in the construction stage and is expected to commence operations in 2014.

Meanwhile, a mine-mouth power plant project in Banko Tengah of 2×620 megawatts capacity is also in the pipeline. “We are expecting that a power purchasing agreement with PT PLN (state electricity company) will be signed this semester so that construction can be started in early 2013,” it said.

“By 2016, all PLTUs will be in operation through the Java-Bali interconnection network. PTBA will supply 5.4 million metric tons of coal per year for these PLTUs”.

Despite its strong financial result, shares in PTBA declined 2.96 percent to close at Rp 18,000 a piece on Thursday from Rp 18,000 a day earlier