PT Bumi Resources (BUMI) Q2 2025 earnings summary

Executive summary

• First half 2025 coal production was 35.9 million tons, down from 37.7 million tons due to heavy rainfall at KPC, with expectations to recover in the second half as weather improves.

• Revenue for the six months ended June 30, 2025, reached USD 677.9 million, up 13.8% year-over-year, driven by higher gold and silver sales despite a slight decrease in coal export sales volume.

• Realized coal prices dropped from $75 to $61 per ton year-over-year, mainly due to global oversupply, increased Indian and Chinese domestic production, and strong hydropower output in China.

• Cost reduction initiatives lowered production costs from $47 to $42.2 per ton, partially offsetting the price decline.

• Diversification strategy underway with acquisition of Wolfram gold and copper project in Australia and Jubilee Metals Limited, aiming to reduce reliance on coal.

Financial highlights

• Net income for the first half was $52 million, down from $134.9 million year-over-year, impacted by a $14 million asset impairment and lower deferred tax assets.

• Net income attributable to owners was USD 20.4 million, a significant decrease from USD 84.9 million in the prior year period, mainly due to lower share of profit from associates and higher operating expenses.

• EBITDA increased despite lower FOB prices, with consolidated EBITDA expected to surpass last year’s level.

• Cash and cash equivalents increased to USD 74.7 million from USD 52.5 million at year-end 2024.

• Basic/diluted earnings per 1,000 shares were USD 0.05, down from USD 0.23 in H1 2024.

Outlook and guidance

• Second half production expected to improve due to favorable weather, targeting 54 million tons at KPC for the full year.

• Coal prices are not expected to recover significantly in the near term, with realized prices projected between $60-$62 per ton for KPC and $50-$52 for Arutmin.

• Wolfram project in Australia expected to commence operations by June 2026, with production ramping up from 2027 onward.

• The quasi reorganization is expected to enhance funding capability, enable future dividend payments, and improve investor interest and share liquidity.

• Management plans to focus on business expansion, effective mining management, and environmentally friendly technology adoption.