2012 Financial and operational highlights:
o Revenues of $1,531m up from $1,407m (ten months of trading) in 2011
o Underlying EBITDA of $365m (2011: $511m restated)
o Net debt (excluding restricted cash) of $514m (2011: $323m)
o Operational cash flow of $337m (2011: $460m restated)
o Non cash impairment of PT Berau ($815m) and write down of PT Bumi ($1.39bn)
o Production volumes up 8% to 21mt
o Production cost of sales of $37.8/tonne were 5% higher, due to an increase in hauling distances, fuel costs and stripping ratio
o Realised price (FOB) of $70.9/tonne, a decrease of 13% over 2011
Strong Q1 2013 performance:
o Significant increase in production: Q1 2013 coal production were 5.3mt; up 27% vs. Q1 2012
o Strong operating results showing:
Production costs declined by 7% to $36.6/t (Q1 2012: $39.2/t)
Stripping ratio reduced to 8.4bcm/t (Q1 2012: 10.6bcm/t)
Fuel costs fell to $8.4/t (Q1 2012: $10.6/t)
o Average selling price was $63.2, 19% below prior year (2012: $78.3/t)
Clear strategy to recover shareholder value:
Extensive review of the financial position of PT Berau completed:
o Expenditure of $152m in 2012 and $49m in 2011 identified with no clear business purpose
o Expenditures attributed to hauling roads, land compensation, consulting costs and goodwill
o Company to pursue all means available for the recovery of all expenditures
Further enhancement of controls across the Group:
o Improved controls and procedures being implemented at Berau
o New Berau CEO appointed and new management team installed
o Bumi plc CEO to join the board of Berau
Separation from PT Bumi and Bakrie Group:
o Escrow terms extended to 26 June 2013
o $50m of $278m in cash already in escrow
o The Company is preparing a circular to put the separation to a shareholder vote
The way forward:
o New independent chairman search well advanced - will oversee a smaller, revamped board
o Searches underway for CFO and Chief Mining Officer to be based in Jakarta
o First phase of independent benchmarking study completed to drive further operational efficiencies
o Capital structure review aims to reduce cost of debt
o Move to smaller London and Jakarta offices underway
Nick von Schirnding, Chief Executive Officer of Bumi plc said:
"The completion of the extensive review of the financial position of PT Berau marks the closing of an important chapter. We can now draw a line under the past and move on. We have taken decisive steps to change out key management and are implementing changes to further enhance our controls and governance framework. We are focusing on achieving separation from the Bakrie Group and PT Bumi and we have a clear priority to drive shareholder value. Following the separation from the Bakrie Group we will have the benefit of a strong balance sheet and be well placed to succeed as a leading coal producer focused on the growth markets of Asia.
Production figures for the first quarter of 2013 are a reminder of the huge potential for profitable growth at Berau. We have completed the first phase of an independent benchmarking study which shows that there are significant opportunities to cut costs and drive efficiencies. I am encouraged by the first quarter results which showed a significant increase in production year on year and a reduction in costs."
