PT Bumi Resources, Indonesia’s biggest coal producer, swung to a wider-than-expected net loss last year as lower coal prices hurt sales and non-operating costs jumped on derivate transactions.
Bumi posted a net loss of $666.2 million compared with net income of $216.3 million in 2011, it said in a statement published in the Suara Pembaruan newspaper today. That missed the median loss estimate of $238 million in a Bloomberg News survey of seven analysts.
“Of all Indonesian coal companies, Bumi requires a higher coal price to break even,” Wilianto Ie, head of research at PT Nomura Indonesia in Jakarta, said by telephone today. “Bumi has a higher cost of funding; its leverage is higher.”
The price of coal at Australia’s Newcastle port, a benchmark for Asia, has fallen 17 percent in the past year, according to data compiled by Bloomberg. Shares of Jakarta-listed Bumi sank 73 percent last year amid falling coal prices and concerns it may struggle to repay its debt. Bumi owes $1.3 billion to China Investment Corp., and the company said Feb. 1 that plans to repay the debt ahead of schedule are unchanged.
Shares of Bumi rose 5.6 percent to close at 760 rupiah in Jakarta trading today. Bumi Director Dileep Srivastava couldn’t be reached on his mobile phone today.
Sales fell to $3.78 billion from $4 billion a year earlier, Bumi said. The company also posted a derivative transaction loss of $344.9 million compared with a $66 million gain a year earlier, it said.
London-listed Bumi Plc, which owns 29 percent of Bumi, is working to separate from the Indonesian unit and its founders, the Bakrie Group, after shareholders in February defeated an attempt by Nathaniel Rothschild to take control of Bumi Plc’s board.
The Bakries have proposed exchanging their 23.8 percent of Bumi Plc for 10.3 percent of Bumi. That plan would also see Bumi Plc sell the remaining 18.9 percent of its Bumi stake for $278 million to the family.