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Coal Profits in Indonesia: Resource Alam Indonesia, Bumi, Adaro Energy
Shayne Heffernan strong buy Resource Alam Indonesia, profit nearly tripled last
year on rising coal price and production.
Bumi Resources and Adaro Energy are yet to report earnings, but it is expected
they will see big gains as well.
Net income of Resource Alam rose 171 percent to Rp 450.2 billion ($49 million)
last year, the company said in a filing to the Indonesia Stock Exchange (IDX)
on Wednesday. Revenue rose 120 percent to Rp 2.13 trillion last year.
Eric Tirtana, the head of investor relations at Resource Alam, said that the
volume of production and sales each increased by 88 percent, surpassing the
company’s target.
Production rose to 4.22 million tons from its concession in East Kalimantan,
while sales volume increased to 4.15 million tons.
The company initially aimed for 3.6 million tons of coal production and 3.5
million tons of coal sales.
Eric added that the increase in revenue was also “largely contributed by
improved coal pricing and more favorable contractual terms.”
The average selling price for Resource Alam’s coal rose 22 percent to $58.50
per ton last year from $48.10 per ton in 2010.
Brokerage firm Samuel Sekuritas, in daily notes sent to clients, said that net
income at Resource Alam was below market expectations.
Other coal miners such as Bumi Resources and Adaro Energy have yet to report
their full year results for 2011.
Shares in Resource Alam gained 2.4 percent to close at Rp 8,500 in Wednesday
trading in Jakarta. The shares have gained 32 percent so far this year.
Shayne Heffernan
Shayne Heffernan oversees the management of funds for institutions and high net
worth individuals.
Shayne Heffernan holds a Ph.D. in Economics and brings with him over 25 years
of trading experience in Asia and hands on experience in Venture Capital, he
has been involved in several start ups that have seen market capitalization
over $500m and 1 that reach a peak market cap of $15b. He has managed and
overseen start ups in Mining, Shipping, Technology and Financial Services.
