Bumi reports 7% rise in coal output in H1, raises full-year guidance

Mysteel: PT Bumi Resources Tbk., Indonesia's largest coal mining group by output and the world's largest thermal coal exporter, reported a 7% rise in coal production over the first half of this year (H1), according to its latest performance report released on its website.

Despite the prolonged trading depression in Asia's spot market for seaborne thermal coal during the period, Bumi Resources managed to maintain stable output thanks to long-term contracts signed with key buyers such as China early this year, market sources noted.

The company mined 37.7 million tonnes (mnt) of coal in H1, compared with 35.4 mnt during the same period last year, the report said. Of the total output, its subsidiary KPC contributed 28.5 mnt and its other major arm, Arutmin, 9.3 mnt.

Encouraged by this performance, the company has raised its full-year coal output guidance to 78-82 mnt, with the upper limit slightly above the previously stated 80 mnt, Mysteel Global noted. In 2023, Bumi Resources mined 78 mnt of coal.

With H1 production accounting for just 48.3% of the lower limit of its annual target, the company is expected to ramp up production this half to meet its full-year guidance.

In terms of sales, Bumi Resources also reported a 7% increase in coal sales to 37 mnt during this year's first half. However, though the sales volume increased, the average selling price fell by 19% on year to $75.2/t on a FOB basis, according to the report. This decline in prices contributed to a 12.6% drop in revenue and a 10.1% fall in net profit for the first half.

Looking ahead, Bumi Resources forecasts the average selling price for the entire 2024 to be in the $71-81/t FOB range, the report showed.