Bloomberg News

Bumi’s 2011 Sales May Beat Estimates as Output, Prices Gain

January 01, 2012

(Closing share price in last paragraph.)

Dec. 30 (Bloomberg) -- PT Bumi Resources, Indonesia’s biggest coal producer, expects revenue to jump 35 percent this year as it sold the fuel at a higher price amid an increase in production, Director Dileep Srivastava said.

Revenue will climb to $5.8 billion from $4.3 billion last year, Srivastava said in an e-mailed statement today. That beats the $4.5 billion mean estimates of 15 analysts compiled by Bloomberg. Output is expected to increase to 66 million metric tons, from 60 million tons in 2010, he said.

Coal producers are benefitting from an increase in prices and strong demand from China and India, the biggest buyers, boosting earnings prospects. The benchmark price in Indonesia, the world’s largest thermal-coal exporter, climbed 9 percent in December to $112.67 a ton, from a year earlier.

“We also expect the coal market to continue strengthening with increasing demand from India and Indonesia, followed by China and our traditional markets,” Srivastava said. Bumi plans to sell 75 million tons next year, a 19 percent increase from 2011 sales estimates, he added.

Jakarta-based Bumi said 2011 earnings before interest, tax, depreciation and amortization are expected to be “significantly much higher” than last year. The company is forecast to post $1.5 billion in Ebitda this year, according to the Bloomberg survey. That compares with $1.2 billion last year.

CIC Loan

Bumi’s average coal-selling price is expected to gain to more than a record of $92 per ton on a free-on-board basis this year, from $77 last year, Srivastava said.

“We are preparing for significant deleveraging in 2012, including repayment of another $600 million tranche of the CIC loan” in the fourth quarter of next year, Srivastava said, referring to China Investment Corp. by its initials.

Bumi said Nov. 8 it has repaid the first tranche of a $1.9 billion loan to CIC, two years earlier than scheduled. The $600 million tranche, which was due September 2013, was refinanced by Bank of America Merrill Lynch, Deutsche Bank AG, Barclays Bank Plc and JPMorgan Chase & Co., Bumi said at the time.

Bumi shares were unchanged at 2,175 rupiah at the 4 p.m. close in Jakarta trading today. The stock dropped 28 percent this year, compared with a 3.2 percent gain on the benchmark Jakarta Composite index.

--Editor: Greg Ahlstrand

To contact the reporter on this story: Yoga Rusmana in Jakarta at yrusmana@bloomberg.net

To contact the editor responsible for this story: Greg Ahlstrand at gahlstrand@bloomberg.net


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