After a fractious 2011, there's been a long overdue boardroom reorganisation at Indonesian coal miner, Bumi, which sees co-founder Nat Rothschild relinquish his co-chairmanship. Concerns over corporate governance have driven down Bumi's share price by around 40 per cent since the Rothschild/Bakrie joint venture came into being last June. Its results reflected a strengthening asset base, but concerns remain over the corporate structure and debts in its subsidiaries.
Bumi holds 85 per cent and 29 per cent stakes in PT Berau and PT Bumi, respectively. These miners produced 85.4m tonnes of coal last year, an annual rise of 9 per cent, which fed through into an operating profit of $280m (£175m), ahead of analysts' expectations. The figure benefited from higher prices for thermal coal, but unit costs were also on the rise due to increased stripping ratios. Earnings took a $286m hit from an accounting writedown connected to the fair value movement of derivatives.
To draw a line under last year's boardroom squabbles, coal entrepreneur Samin Tan, who became a major investor alongside the Bakrie family in November, has become chairman, while co-founder Nat Rothschild will remain on the board, presumably after sorting out his differences with the Indonesian partners.
Consensus adjusted 2012 EPS for Bumi stands at 91.8p (from 51.2p in 2011)
| BUMI (BUMI) | ||||
|---|---|---|---|---|
| ORD PRICE: | 701p | MARKET VALUE: | £1.27bn | |
| TOUCH: | 701-707p | 12-MONTH HIGH: | 1,400p | LOW: 680p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 2,185¢* | NET DEBT: | 5% | |
| Year to 31 Dec | Turnover ($bn) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2010** | nil | -108 | -161 | nil |
| 2011 | 1.41 | -115 | -166 | nil |
| % change | - | - | - | - |
£1 = $1.60 *Includes intangible assets of $1.32bn, or 731¢ a share **Nine-month period | ||||
