Bumi Resources Books $52.1 Million Profit in First Half Despite Coal Price Drop
Main Takeaways
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JAKARTA, investortrust.id – PT Bumi Resources Tbk, or BUMI, Indonesia’s largest coal producer, posted a net profit of $52.1 million in the first half of 2025, down sharply from $134.9 million in the same period last year, as average coal prices slumped 19% to $61.3 per ton.
In a disclosure to the Indonesia Stock Exchange (IDX) on Friday, the company said the decline in average selling prices dragged down revenue by 20.4%, from $2.88 billion to $2.30 billion.
Gross profit also fell by 14.3% to $222.7 million, while operating profit declined 19.8% to $114.8 million. The company managed to maintain an operating margin of 5%. Net profit attributable to shareholders dropped 76% to $20.4 million from $84.9 million a year earlier.
Operationally, overburden removal fell 14% to 290.5 million bank cubic meters (bcm), from 337.6 million bcm in the first half of 2024. The company mined 35.9 million tons of coal, sold 34.8 million tons, and held 2.7 million tons in inventory.
These results were in line with BUMI’s full-year guidance. Management previously targeted coal sales between 76 and 78 million tons in 2025, with an average selling price of $60–62 per ton and production costs estimated at $44–46 per ton.
The largest contributor to coal sales volume was Kaltim Prima Coal (KPC), accounting for 24.6 million tons, followed by Arutmin Indonesia (AI) with 10.2 million tons.
Diversification Strategy Backed by Analysts
Yugo Ahmad Gifari, an analyst at Sucor Sekuritas, said in a recent note that BUMI’s strategy to diversify beyond thermal coal while maintaining resilient production levels made its stock an attractive prospect. Sucor maintained a “buy” recommendation on BUMI shares, with a target price of Rp160.
The brokerage noted that BUMI is undergoing a multi-year transformation to generate 50% of its EBITDA from non-coal businesses by 2030. This includes potential acquisitions in gold and alumina, as well as long-term investments in coal gasification and copper projects.
Despite the pivot, BUMI is expected to sustain its annual coal output at 80 million tons, backed by proven reserves of 940 million tons and resources totaling 4.5 billion tons.
Following its debt restructuring, BUMI now enjoys a healthy capital structure, with a debt-to-equity ratio of 0.5x, giving it ample room to finance inorganic growth. With minimal annual maintenance capex of $75–80 million, the company is well-positioned to execute its diversification strategy while enhancing shareholder returns.
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