PT Bumi Resources Tbk

For 9M 2025, Bumi reported production of 54.9 million tonnes, down from 57.3 million tonnes in 9M 2024, and realized coal prices of $60 versus $73 a year earlier. Sales were 54.5 million tonnes versus 55.8 million tonnes, FOB prices were down 20% at KPC and down 8% at Arutmin, and average selling prices fell from $73.7 to $60.4. Management said consolidated revenues were down 17%, operating income was down 22%, and last-12-month consolidated adjusted EBITDA was $277 million, with cash at $314 million. Guidance was left unchanged at 73 million to 75 million tonnes of sales, prices of $59 to $61, and costs around $42; management said Q4 prices could improve and inventory should be low by year-end.

Andrew Beckham focused on operational discipline in a softer coal price environment, highlighting lower strip ratios at KPC and Arutmin, lower fuel costs, and a better setup for early 2026 due to tight year-end stockpiles. His tone was cautious on coal prices but constructive on the near-term market, saying winter-season demand is helping prices move up and that Q4 could be better if that trend continues. He also emphasized that production is constrained by RKAB rules, not demand, and that the company is managing within that framework.

Andrew Beckham discussed the financials, saying Bumi’s revenues were up at the top line in part because of BRMS improvement, but net profit fell because of lower coal prices, write-offs in BRMS, and the absence of a 2024 deferred tax benefit of about $60 million to $70 million. He said consolidated revenues were down 17%, gross profit declined, operating income was down 22%, and adjusted EBITDA was $277 million over the last 12 months. He also pointed to a strong liquidity position with $314 million in cash, a current ratio of 1, and equity of $2.8 billion, while noting restricted funds and mine-closure deposits tied up a large part of cash. On funding, he said recent acquisitions were financed through the company’s rupiah bond program at around 8.5% to 9%, with no special covenants beyond normal Indonesian bond rules.

Analysts asked about 2026 coal production/RKAB, and management said it had already submitted plans but is waiting for the government’s review of national coal production levels. They said their submitted volume is slightly up versus 2025 because Arutmin may increase production, but they do not yet know the final outcome. Questions also focused on the EGM, where management said the main purpose was to recognize resignations of CIC directors and the CFO, plus Christopher Fong’s appointment as a director. On M&A and diversification, management said Bumi is actively transitioning beyond thermal coal, with Wolfram and Jubilee in Australia, bauxite agreements in process, and more acquisitions expected within 6 to 12 months; on funding, they said recent deals were financed via bonds rather than a broad covenant-heavy debt structure.