PT Buma Internasional Grup (DOID) Q1 2024 earnings summary

Executive summary

• Revenue rose 4% YoY to US$426mn in 1Q24, mainly from mining services and equipment rental.

• Net loss widened to US$(19)mn, mainly due to a US$17mn forex loss and higher finance costs.

• Free cash flow reached US$11mn, and cash position stood at US$322mn; net debt/EBITDA at 1.65x, the lowest in a decade.

• Operations span Indonesia (69% of revenue) and Australia (31%), with long-term contracts supporting stability.

• Non-thermal coal contributed 23% of revenue, supporting the ESG roadmap to reduce thermal coal to under 50% by 2028.

Financial highlights

• Overburden removal and coal volumes both increased 1% YoY.

• Operating profit rose 12% YoY to US$16mn.

• Operating expenses decreased to US$21.6mn from US$23.8mn YoY.

• Finance costs rose to US$33.4mn, up from US$20.4mn YoY, mainly due to higher interest and redemption losses.

• Operating cash flow surged 73% YoY to US$61mn; capex rose 80% YoY to US$40mn, including growth capex.

Outlook and guidance

• FY24 revenue guidance: US$1,575–1,725mn; EBITDA: US$350–400mn; capex: US$150–190mn.

• Overburden removal guidance: 580–630 MBCM; coal: 75–80 MT.

• Management remains confident in meeting FY24 guidance and completing major capital projects.

• Focus on expanding commodity portfolio and geographic reach through acquisitions.