PT Bukit Asam Tbk (PTBA) Q4 2023 earnings summary

Executive summary

• 2023 revenue fell 9.75% YoY to Rp38.49T and net profit attributable to parent owners fell 51.42% to Rp6.11T as coal prices weakened and costs rose.

• Production and purchases reached a record 41.94M tonnes; coal sales grew 17% to 36.97M tonnes, while higher export share partly offset weaker prices.

Financial highlights

• Gross profit declined 49.03% to Rp9.16T; operating profit fell 52.44% to Rp7.20T; profit for the year decreased 50.76% to Rp6.29T.

• Cost of revenue rose 18.84% to Rp29.33T, led by mining services of Rp11.11T and rail transport services of Rp7.95T.

• Revenue reached 95% of the Rp40.35T plan; parent-attributable net profit was 64% of its Rp9.50T target.

• Operating cash flow was Rp3.10T versus Rp12.53T in 2022; closing cash and equivalents fell 41.13% to Rp4.14T.

Outlook and guidance

• 2024 targets: production and purchases 41.34M tonnes, transport 33.69M tonnes, sales 43.11M tonnes, revenue Rp43.72T and capital structure ratio 69.16%.

• The Tanjung Enim–Keramasan rail expansion is targeted for commercial operation in Q2 2025, with potential transport capacity growth of 20M tonnes annually.

• Energy businesses are targeted to contribute 30% of revenue by 2030; plans include renewables, carbon management and coal downstreaming, subject to project economics.

• Coal prices were projected to change little in 2024 in one outlook; another forecast anticipated slightly lower seaborne thermal coal demand and continued price weakness.