New faces at Bumi

Industry veterans Paul Fenby and Keith Downham have been appointed as the new finance director and mining director, respectively. With the outlook for coal prices still challenging, that certainly reflects a focus on reducing operating costs. But, according to chief executive Nick von Schirnding, management changes also form part of an effective relaunch for Bumi designed to cut ties with the Bakries. That involves a multi-phase transaction whereby the Bakries sell their stake to Samin Tan, Bumi's chairman, while Bumi sells its share of another venture, Bumi Resources, to the Bakries - the deal is opposed by financier and Bumi co-founder, Nat Rothschild.

Operationally, Bumi increased coal output by 19 per cent in the period to 11.5m tonnes and full-year guidance has been reiterated at 23m tonnes. But while production costs fell 10 per cent to $37.10 (£24) a tonne, an accompanying 20 per cent fall in realised thermal coal prices meant that underlying cash profit slumped to $80m, compared with $210m a year earlier. Indeed, it's the weak coal price that explains the headline loss. However, improved cost controls did enable Bumi to improve operating cash flow by $6m to $189m.

Barclays expects a full-year loss per a share of 43¢ (57¢ loss per share in 2012).