Indonesian coal miner Bumi (BUMI) produced a positive first-quarter update to accompany the release of its delayed 2012 full-year report, but the market remains focused on the scandal-hit group's attempts to separate its interests from those of the controversial Bakrie family - shareholders are due to receive an update shortly.
The group's headline loss was largely driven by an $815m (£526m) impairment charge linked to its stake in PT Berau Coal Energy, together with a $1.39bn write-off of the value of its BT Bumi assets. However, the underlying cash profit figure of $365m was in line with market expectations, although down by 29 per cent on the previous year. Overall production volumes were up by 8 per cent to 21m tonnes, but this was offset by a 13 per cent decline in realised coal prices.
Bumi also revealed $201m in unauthorised expenditure relating to PT Berau Coal from 2011-12 that had been wrongly attributed to costs relating to maintenance, haulage, consulting and goodwill. The group is seeking to recover the funds that had been spent over the past two years on what it described as a "no clear business purpose". Despite the ongoing boardroom tussle, Bumi reported a strong start to 2013, with comparative first-quarter output up by 27 per cent, augmented by a 7 per cent reduction in production costs.
Barclays has a sum-of-the-parts (SOTP) valuation of 336p a share based on the terms originally envisaged for the Bakrie's separation deal.
| BUMI (BUMI) | ||||
|---|---|---|---|---|
| ORD PRICE: | 259p | MARKET VALUE: | £468m | |
| TOUCH: | 259-259p | 12-MONTH HIGH: | 450p | LOW: 120p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 840¢* | NET DEBT: | 26% † | |
| Year to 31 Dec | Turnover ($bn) | Pre-tax profit ($bn) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2010** | nil | -0.11 | -161 | nil |
| 2011 | 1.41 | -0.12 | -176 | nil |
| 2012 | 1.53 | -2.41 | -964 | nil |
| % change | +9 | - | - | - |
£1 = $1.55 *Includes intangible assets of $518m, or 287¢ a share. **Nine-month period †Excludes $372m in PT Bumi shares classified as 'available for sale' and $124m as 'restricted cash' | ||||
