Borneo Lumbung may grab IDR2.76 trillion revenue

JAKARTA: Indonesian coking coal producer, PT Borneo Lumbung Energi & Metal Tbk (BORN), is estimated to record US$305.25 million or IDR2.76 trillion of revenue last year.The indication is seen from the Borneos sales volume recorded last year that reached 1.65 million tons with the average sales price of US$185 per ton.In a morning note issued by PT Mandiri Sekuritas today after a meeting with Borneo management, the coal producer reported to produce 1.95 million tons last year.The revenue indication is relatively higher than the estimation made by CIMB Securities, which was IDR2.56 trillion last year.However, Borneos revenue projection is in fact lower that the Morgan Stanleys forecast of IDR2.96 trillion.In the research published by CIMB Niaga on January 5, Borneo was projected to book IDR2.56 trillion revenue and IDR217 billion net income in 2010.Morgan Stanley, in a release dated January 5, projected Borneos revenue in 2010 to reach IDR2.96 trillion while the net income will amount IDR361.1 billion.When confirmed, Borneo Energis Director Geroad Jusuf declined to comment on the revenue estimation. I can not comment on that matter yet.Mandiri Sekuritas stated that the Borneos management indicated to achieve the average coal sales price of US$240-US$275 per ton for the Q1/2010 delivery.Borneo exported coking coal to North Asia with China as the main destination. Borneo poses exclusive marketing three-year exclusive agreement with Glencore for supplying 2 million tons of coal with 4.5% fee.This year, Borneo expects to produce 3.8 million tons, of which 2 million ton has been contracted by a Chinese buyer, whose the price is set on quarterly basis.The company shall bolster its production capacity from currently 3.6 million tons to 5 million tons in the second half of 2011.The company's capital expenditure in 2011 is estimated to reach US$185 million where US$170 million of it shall be used to purchase heavy equipment. (T02/NOM)