ILLUSTRATION. The price and demand for coal are increasing, see the recommendation for Bukit Asam (PTBA) shares.
Reporter: Danielisa Putriadita | Editor: I knew Laoli
KONTAN.CO.ID – JAKARTA. The trend of rising coal prices opens room for better performance growth for PT Bukit Asam (PTBA) this year. Optimism for economic recovery also strengthens the potential for the performance recovery of this state-owned coal company.
Until the third quarter of 2020, PTBA’s revenue decreased 20% on an annual basis to Rp 12.85 trillion. Meanwhile, net profit decreased more than 44% on an annual basis to Rp 1.72 trillion.
This decline in performance occurred because global coal prices had plummeted from the second quarter of 2020 to the third quarter of 2020 due to the Covid-19 pandemic.
Finoriska Citraning Investor Realtion PTBA said PTBA’s performance at that time was indeed heavy because coal demand decreased as economic activity was limited during the pandemic.
]However, management was still able to record positive profits due to efficiency in production costs starting from transportation and mining services.
Fortunately, at the end of the fourth quarter of 2020, coal prices began to enter an upward trend until now.
Quoting Bloomberg, Tuesday (15/2) the price of coal for March 2021 delivery contracts at ICE Newcastle crept up to the level of US $ 83.35 per ton. In comparison, coal prices hit a record low of US $ 55 per ton in August 2020. Compact Reference Coal Prices (HBA) in February 2021 are set to increase by 15.7% on a monthly basis to US $ 87.79 per ton.
Apart from rising coal prices, the rising trend in coal demand also added to the positive sentiment. Finoriska said PTBA’s sales in the fourth quarter of 2020 increased due to increased demand from China after the country clashed with Australia.
However, in terms of production volume in the fourth quarter of 2020, Finorika said it was lower than the previous quarter. “The effect of the rainy season on production has decreased but is relatively under control, while sales are quite large. I can not describe the mango yet. Wait for release,” said Finorika. However, production in the first quarter of 2021 is projected to increase.
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Reporter: Danielisa Putriadita
Editor: did you know Laoli
BUKIT ASAM TBK