Tambang Batubara Bukit Asam

Stock Quote Tambang Batubara Bukit Asam - PTBA:

Business Summary

Bukit Asam's business activities are:

• General research, exploration, exploitation, processing and purifying of mining products (particularly coal).
• Further processing of mining products (particularly coal).
• National and international trading of mining products (including third parties' products).
• Managing and operating ports and piers specifically designated for coal.
• Managing and operating thermal power plants.
• Providing consultancy services and engineering in coal mining-related fields and processed mining output.

Recently Bukit Asam has started to invest in coalbed methane (CBM) exploration as an economic alternative fuel source.

In 2012, Bukit Asam completed the construction of the Tanjung Enim power plant (capacity 3x10MW). This power plant is important as it enables the company to fulfill its electricity needs to run mining operations in Tanjung Enim (South Sumatra). Moreover, it reduces electricity costs (the company aims to eliminate all electricity costs from the operating cost component in an attempt to improve operational efficiency). In 2014, the Tarahan Port Power Plant (2x8MW) is expected to be fully operational. With two other Power Plants still under construction, the power generation segment will generate a total power of 1,506MW by the end of 2015 (with potential income of IDR 5.73 trillion per year and low rank coal types consumption of 6,650 tons per year).

The company's expansion to power plants also means that Bukit Asam will have a new revenue source as it sells electricity to state-owned company Perusahaan Listrik Negara (PLN), the sole electricity provider in Indonesia. Bukit Asam also has a long-term and lucrative contract with PLN to supply coal to the electricity company until 2030.

In November 2015 the company began construction of its USD $1.6 billion long-delayed mine-mouth power plant in Muara Enim (South Sumatra), known as Bongko Tengah or Sumsel 8. This coal-fired plant will have a production capacity of 1,240 megawatts when completed in 2018.

In total, the company has seven mine mouth power plant development projects.

Coal Production and Sales Figures:

	2009	2010	2011	2012	2013	2014	2015	2016
Total Production	11.60	12.46	12.95	13.97	15.09	16.37	19.28	19.62
Total Sales	12.48	12.95	13.47	15.33	17.76	17.96	19.10	20.75
Domestic Sales	8.07	8.23	8.75	8.44	8.17	9.30	10.05	12.27
Export	4.42	4.72	4.72	6.91	9.59	8.66	9.05	8.49

^{in million tons of coal
Source: Tambang Batubara Bukit Asam, Annual Report 2016}

Financial Highlights of Bukit Asam:

	2011	2012	2013	2014	2015	2016
Revenue	10,581.2	11,594.1	11,209.2	13,078.0	13,845.2	14,058.9
Gross Profit	5,279.0	5,088.1	3,463.6	3,922.3	4,251.3	4,401.5
Net Income	3,088.1	2,909.4	1,854.3	1,860.7	2,035.9	2,006.2
Total Assets	11,510.3	12,729.0	11,673.9	14,860.6	16,894.0	18,576.8
Total Liabilities	3,348.1	4,223.8	4,112.7	6,335.5	7,606.5	8,024.4
Earnings per Share¹	1,339	1,262	822	856	941	952
Dividend per Share¹	804	711	n.a.	n.a.	289,73

^{in billion IDR rupiah, except stated otherwise
¹ in IDR rupiah
Source: Tambang Batubara Bukit Asam, Annual Report 2016}

Visit our Coal mining in Indonesia section for more information about Indonesia's coal mining industry.

Projection Future Corporate Earnings Bukit Asam:

	2017	2018	2019	2020F	2021F	2022F
Revenue	19,471.0	21,167.0	21,788.0	18,924.0	19,918.0	21,196.0
Net Income	4,476.0	5,024.0	4,057.0	3,071.0	3,152.0	3,166.0
EBITDA	2,968.0	6,837.0	5,568.0	4,571.0	4,577.0	4,653.0
P/E Ratio (x)	6.6	5.1	6.6	7.7	8.7	8.7
P/BV (x)	2.2	1.7	1.5	1.5	1.5	1.4
ROAA (%)	n.a.	21.8	16.1	11.9	12.2	11.9

^{in billion IDR rupiah, except stated otherwise
Source: Trimegah Sekuritas (14.06.2020)}