PT Buma Internasional Grup (DOID) Q4 2023 earnings summary

Executive summary

• FY23 revenue reached a record $1,833mn, up 18% YoY, and EBITDA reached a record $412mn, up 13%; net profit rose 26% to $36mn.

• Overburden removal increased 14% to a record 621MBCM; free cash flow rose to $233mn and net debt/EBITDA fell to 1.65x, its lowest in a decade.

• Revenue, EBITDA and coal-volume guidance were exceeded; overburden removal and capex guidance were met.

• The independent auditor issued an unmodified opinion under Indonesian Financial Accounting Standards.

Financial highlights

• FY23 operating profit was $152mn, up 16%; profit before tax was $60.4mn versus $40.4mn, and basic EPS was Rp73, up 31%.

• Revenue excluding fuel was $1,614mn, up 20%; EBITDA margin was 25.6% versus 27.1%, while gross margin was 15.3% versus 15.1%.

• Operating cash flow was $376mn, up 91%, and free cash flow was $233mn versus $37mn; net operating cash flow in the financial statements was $339.7M versus $252.7M.

• FY23 capex declined 20% to $121mn; coal production decreased 2% to 85Mt.

• Results included a $3.5M gain on partial Senior Notes repurchase, a $4.9M fair-value loss on financial assets and a $5.1M receivables impairment provision.

Outlook and guidance

• FY24 guidance: revenue $1,575–1,725mn, EBITDA $350–400mn, overburden removal 580–630MBCM and coal 75–80Mt.

• FY24 capex guidance is $150–190mn.

• Capital expenditure purchase commitments were $249.1M at Dec. 31, 2023, versus $127.6M a year earlier; most construction in progress was expected to be completed in 2024.

• Mining-services contracts include PT Indonesia Pratama through 2031, PT Pada Idi through 2027 and BM Alliance Coal Operations through 2026, with an extension option on the Saraji package.