Berau forecast to produce 17 million tons of coal

Indonesia listed coal producer PT Berau Coal Energy Tbk announced that it is now in a position to forecast coal production of at least 17 million tons in 2010, slightly off its previous projection for the full year but at least 19% in excess of its 2009 production of 14.3 million tons.

The company was targeted with full year revenues set to exceed the US$1 billion milestone.

Berau Coal Energy announced its third-quarter financial results on Friday, with revenue of IDR 6,966 billion, operating income of IDR1,898 billion, and net income of IDR396 billion (IDR16.22 per share).

At IDR9,000 per US$, this equates to revenue of US$ 774 million, operating income of US$ 210 million, and net income of US$ 43 million.

The company experiences heavy non cash amortization charges against net income associated with its acquisition in late 2009 of a 90% stake in PT Berau Coal, the fifth largest coal mining company in Indonesia as calculated by production tonnage.

Before such non cash amortization charges, Berau Coal Energy’s net income for the first nine months of 2010 is IDR980 billion (US$ 108 million), or IDR40.17 per share.
Berau Coal Energy is a holding company that indirectly owns 90% of Berau Coal, the fifth largest coal producer in Indonesia in terms of production volume in 2009, according to the Annual Coal Production Report dated December 2009 by Indonesia’s Ministry of Energy and Mineral Resources. Berau Coal engages in open-cut mining of coal in its concession area in East Kalimantan Indonesia.