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ISSUER NEWS - JAKARTA. PT Bukit Asam Tbk (PTBA) targets coal sales of 43.1 million tons this year. PTBA's sales target increased by 16.48% compared to PTBA's coal sales volume throughout last year.
PTBA's President Director, Arsal Ismail said that this member of the MIND ID Mining State-Owned Enterprises (SOEs) holding company recorded coal sales of 37 million tons in 2023. This number increased by 17% compared to sales in the previous year.
Of this amount, Arsal detailed domestic coal sales of 21.4 million tons, while export sales were 15.6 million tons. These numbers reflect an increase of 12% and 25% respectively year on year (YoY).
The increase in sales volume is in line with the growth of PTBA's coal production, which reached 41.9 million tons throughout 2023. PTBA's sales volume increased by 13% compared to PTBA's coal production volume in 2022 of 37.1 million tons.
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Arsal said, the production realization in 2023 exceeded the target set at the beginning of the year, which was 41 million tons. Meanwhile, for this year, PTBA is pursuing a coal production target of 41.3 million tons, and a transport volume of 33.7 million tons.
The sales volume target is higher than the production plan because PTBA still has a stock of about 11 million tons from last year. "We plan by observing the latest market developments and anticipating various dynamic factors," Arsal explained in a press conference held on Friday (8/3).
Reflecting on last year, supply to the domestic market dominated with a portion of 58% of total sales, while 42% was aimed at the export market. In the domestic market, PTBA supplies for the needs of PLN, cement, and fertilizer.
As for the export market, PTBA sells coal to India, China, South Korea, and Japan. PTBA has also started entering the markets of Thailand and Vietnam. "But our focus remains on China, India, and South Korea. Japan is only a few because it requires high calories," added Arsal.
PTBA's Finance Director, Farida Thamrin, stated that her party is trying to maintain financial performance to continue to make a net profit this year. Apart from the global coal price that cannot be controlled, PTBA focuses on efficiency and cost management.
"If there is efficiency from the cost side, even if the price drops, net profit can be well maintained," said Farida.
Meanwhile, last year PTBA experienced a decrease in revenue and net profit. Referring to the 2023 financial report, PTBA earned revenue of IDR 38.48 trillion or down 9.75% (YoY). In the same period, PTBA achieved a net profit of IDR 6.10 trillion, plummeting 51.43% (YoY).
Farida said, the decrease was due to the falling average selling price (ASP) of coal, which dropped about 23%. However, for ICI-3 which is widely used by PTBA, there was a correction of 34% from US$ 127.8 per ton in 2022 to US$ 84.8 per ton last year.
Meanwhile, the cost of goods sold increased, among others in the components of royalty costs, excellent train transportation, and mining services. Therefore, Arsal said PTBA will prioritize cost leadership in every line, while maximizing the potential of the domestic market and export opportunities.
