PT Bumi Resources Tbk - Outturn - Q109 vs Q108

Here is a summary of Bumi’s financials Q109 vs Q108 – the unaudited financials are being posted on our web site and conveyed electronically to the IDX

Net Sales Revenue
$752.9 million vs $ 663.6 million – increases by $ 89.3 million or up by + 13.5%

Gross Margin
$392.5 million vs $250.5 million – increases by $ 142.0 million or up by + 56.7%

% Gross Margin to Net Revenue
52.1% in Q109 from 37.8% in Q108

Operating Income
$283.3 million vs $ 160.9 million – increases by $ 122.4 million or up by 76.1%

% Operating Income to Net Revenue
37.6% in Q109 vs 24.2% in Q108

EBITDA
$266.7 million in Q109 vs $ 175.9 million in Q108 – increases by $ 90.8 million or up by 51%

% EBITDA to Net Revenue
35.4% in Q109 vs 26.5% in Q108

Profit Before Tax
$212.5 million vs $ 147.4 million – increases by $65.1 million or up by 20.6%

% Profit Before tax to Net Revenue
24.3% in Q109 vs 22.8% in Q108

Net Income (on 100% basis – without minority adjustment)
$183.2 million vs $151.9 million – increases by $31.3 million or up by 20.6%

Net Income ( after minority adjustment)
$124.5 million vs $ 103.3 million – increases by $21.2 million or up by 20.6%

% Net Income (after minority adjustment) to Net Revenue
16.5% in Q109 vs 15.5% in Q108

Average FOB Selling Price of Coal
$75.4/ ton in Q109 vs $ 57.9/ton in Q108 – increase by $17.4/ton or up by 30.1%

Coal Inventories
3.8 m tons on 31 Mar ’09 vs 3.0 m tons on 31 Mar ’08 or up by 26.0%

Port Stock increases to 1.5 m tons or up by 173%

Production Cash Costs
$27.46/ ton in Q109 vs $ 30.73/ton in Q108 or reduced by 10.6%

General comments on Q109
30.1% increase in selling price and 10.6% drop in production cash costs overcompensated for a calculated drop in volume (of 1.2 m tons) characteristic of any Q1 – to control supplies in a soft market; take opportunity to rebuild inventory (to an optimal 4 m tons level), optimize and increase planned sales in Q209 and maximise sales between Q2 to Q4.

Q109 was again a challenging period on account of continuing unsually heavy rainfall which hampered mining activity – however, priority was accorded to exposing coal by exponentially increasing overburden removal activity – 146.6 Mbcm in Q109 vs 118.7 Mbcm in Q108 - an increase of 27.9 Mbcm was achieved or up by 23.5%. This augurs well for Bumi to step up coal mining activity as weather conditions normalize beginning Q2.

Contracted quantities are now around 80% of expected FY09 sales. New export markets have opened up, notably, China.

Bumi is on track to achieve its 2009 guided metrics –
+ 10% increase in production and sales volume (vs FY08)
Reduce production cash costs by 15% in FY09 (vs FY08)
Achievable FOB price in FY09 would be indicated next month when the Asian contract settlements are completed – no change to present view ie mid $60’s/ton.

Darma Henwa has been equity accounted and Fajar Bumi Sakti has been consolidated in Bumi Accounts beginning Q109.

Pendopo expenses have been capitalized as it is non-earning from Q109 in our books.

Global Non Deal roadshows, Investor Forums were attended to address the concerns of our investor fraternity directly ( through CLSA, UOB Kay Hian, Macquarie, Credit-Suisse, Citi, ICAP) to Las Vegas, Singapore, Hongkong, London, New York and Tokyo. We also held global dial in conference calls arranged by HSBC and UBS. The company is focused on governance, addressing investor concerns during this challenging environment.