JAKARTA (TheInsiderStories) - PT Bukit Asam Tbk (IDX:PTBA) has set aside Rp5-6 trillion funds that will be used to expand its business, both organic and non-organic this year. The funds for the expansion will come mostly from its internal cash flow, a company official said.
The company’s Finance Director Ahmad Sudarto said of the amount, US$15 million will be used to finance its routine operations in order to assure coal production target is achieved. Portion of the funds will be used to fund its power plant projects, both existing ones and the projects that are being tendered.
The company is currently taking part in a tender to develop 800 MW of power plant in West Kalimantan. It also plans to develop 2×100 MW of power coal-fired power plant in Vietnam and Myanmar.
Bukit Asam, said Sudarto, has a strong cash on hand, consisting of Rp3.3 trillion in treasury stocks and cash of Rp3 trillion. It also expects to book EBITDA of US$400 million per annum.
He said the company has options to issue bonds, but that could be issued either in 2018 or 2019 as the company will need greater funding.
President Director of Bukit Asam Arviyan Arifin said in 2016, the company booked revenues of Rp14.06 trillion, up 1.5% from Rp13.85 trillion in 2015, while its net profit reached Rp2.024 trillion, edged down from Rp2.037 trillion in previous year.
Last year, it sold 20.7 million tons of coal, up 9% from 19.1 million tons in previous year. Of this, 22.3 million tons (Mt) were sold in domestic market, compared to 10.1 Mt in previous year. Of its total sales, 40.9% of coal were sold to overseas market and 59.1% were sold to domestic market.
Bukit Asam’s coal production, including coal purchased from other parties of 1.2 Mt, reached 20.8 Mt in 2016, up slightly from 20.7 Mt in 2015.
The capacity of its railway to transport its coal increased to 17.72 Mt in 2016, up 12.25 from 15.79 Mt in previous year. Its average coal sales price was at Rp676,013 a ton, down from Rp707,052 a ton in previous year.
As for 2017, Bukit Asam targets to sell 27.28 Mt of coal, up 305 from 2016 of 20.8 Mt, supported by an increase of the capacity of its railway to transport coal from Tanjung Enim mining site to nearest coal ports, in line with completion of double track railway, operated by PT Kereta Api Indonesia.
When asked about coal price in 2017, Arifin said the coal price is expected to be still volatile given uncertainty in global market. (*)ggi kita sangat siap akuisisi Freeport.