BANPU’s coal revenues fall in 2Q16

BANPU’s Indonesian coal mines delivered saleable coal production of 6.24 million t in 2Q16, according to the company’s latest quarterly results, while its Australian operations posted output of 3.03 million t.

Indonesian production was slightly down on last year’s second quarter production of 6.78 million t following the closure of the Kitadin Tandung Mayang operation earlier this year after its reserves were depleted.

The average sales price of BANPU’s Indonesian coal was down to US$46.21 per tonne, while cost of production stood at US$32.6 per tonne – flat with the previous quarter, despite a 28% increase in the cost of diesel.

In Australia, production fell 11% on the previous quarter following two longwall changeovers at the company’s Mandalong and Springvale mines. The average selling price was AUS$61.83 per tonne, 5% lower than the previous quarter on unfavourable export prices; however, it remained well above the cost of production, which fell to AUS$44.3 per tonne – 11% below the previous quarter.

BANPU’s Chinese business showed some more positive signs, reducing its loss to US$5.4 million compared to US$9.7 million “due to good mining conditions leading to higher sales.” The company did not state Chinese production figures.

Overall, the company reported a net profit of US$8 million compared to a loss of US$5 million in the previous quarter. Earnings stood at US$99 million – a 5% year-on-fall and 13% down on the previous quarter. Coal earnings stood at US$57 million – a fall of 28% year-on-year and 20% on the previous quarter, reflecting lower revenue in Indonesia and Australia.

Edited by Jonathan Rowland.

Read the article online at: https://www.worldcoal.com/coal/17082016/banpu-coal-revenues-fall-in-2q16-2016-2251/