PT Buma Internasional Grup (DOID) Q2 2024 earnings summary

Executive summary

• Revenue remained stable year-over-year at US$855 million for 1H 2024, with EBITDA declining 9% to US$160 million and margin dropping to 21.5%.

• Net loss reached US$27 million, primarily due to forex losses and higher finance costs, compared to a net profit last year.

• Major acquisition of US anthracite mining assets for US$121.6 million in June 2024 supports diversification strategy.

• Free cash flow was negative US$47 million due to the acquisition; excluding this, FCF would be positive US$69 million.

• Cash and cash equivalents decreased to US$247 million from US$498 million at year-end 2023.

Financial highlights

• Gross profit for H1 2024 was US$73.86 million, down from US$96.62 million year-over-year.

• Operating cash flow increased 15% YoY to US$164 million.

• Finance costs rose to US$56.94 million, including a US$7.8 million loss on long-term liability redemption.

• Net debt rose to US$756 million; net debt/EBITDA improved to 1.90x, below the 2.00x target.

• Cash costs ex-fuel per bcm increased 7% YoY due to efficiency initiatives.

Outlook and guidance

• FY24 revenue guidance: US$1,575–1,725 million; EBITDA: US$350–400 million.

• FY24 overburden removal guidance: 580–630 MBCM; coal volume: 75–80 MT.

• FY24 capex guidance: US$150–190 million, including growth capex for production increase.

• The Group aims to reduce thermal coal revenue to below 50% of total revenue by 2028, leveraging the US anthracite acquisition.