9th Aug 2012 07:53
Bumi plc announces operating profit of $128 million
Highlights
- Group operating profit1increases to $128 million, from $62 million in H1 2011
- Underlying EBITDA (excluding associates) of $215 million (H1 2011: $148 million)
- Underlying loss2 of $117 million (H1 2011: $54 million profit) driven by a number of non-cash adjustments
- Group net debt3of $384 million (30 June 2011: $393 million)
- In March, PT Berau successfully issued a $500 million, 5 year bond at a fixed rate of 7.25% to refinance a $340 million loan facility and to part fund a major capital expenditure programme
Operational performance
- Coal mined at PT Berau: 9.6 million tonnes (H1 2011: 9.0 million tonnes); PT Bumi Resources: 32.7 million tonnes (H1 2011: 29.9 million tonnes)
- Very high levels of rainfall in first half impacts performance: PT Berau rainfall twice as high over H1 2011
- Higher contractor costs, fuel increases drive costs higher
- Lower than planned production limits ability to offset fixed cost overheads
- Average Free-On-Board (FOB) selling price for H1 of $76.6 per tonne (H1 2011: $74.6 per tonne) for PT Berauand $88.0 per tonne (H1 2011: $91.3 per tonne) for PT Bumi Resources
Volume expansions
- 2012 forecast volumes of coal mined:
PT Berau expected to mine around 20-22 million tonnes,from 20 million tonnes in 2011
PT Bumi expected to mine 75 million tonnes, from 66 million tonnes in 2011
Capital spend on track to fund expansions
Strategy
- A world class, FTSE premium listed, Indonesian thermal coal business
- One of the largest thermal coal expansions underway
- Benchmarking study: following completion of first stage review
- Lowering the Group's3 cost of capital
Nalin Rathod, chief executive of Bumi plc said,
"We recorded an operating profit for the first half of $128 million, more thandouble against the prior period. It was disappointing that severe levels ofrainfall in the first half impacted performance. While some of the shortfallwas made up in the second quarter, the lower production run rate impactedprofitability with limited ability to offset fixed cost overheads. Highervolumes in the second half, barring excessive rainfall, should ensure most ofthe shortfall is made up. I am pleased to report that production goals for2014areon target.Our financial performance was impacted by the loss we recorded at associatelevel, mainly due to the high interest payments and derivative loss at BumiResources.Regarding lowering the levels of debt at PT Bumi Resources, effortsare underway at Bumi Resources to monetise non-core assets. In delivering onour strategy, our priorities are very clear, namely: delivering on our majorgrowth expansion of thermal coal; optimising our asset base and lowering theGroup's cost of capital.The thermal coal price has fallen significantly over recent months, along withthe prices of most other metals and minerals, reflecting the challengingglobal economic conditions. This is clearly of concern - and if prolonged, isexpected to have a material impact on the level of profitability. We aretherefore accelerating our efforts at reducing costs and improvingefficiencies wherever we can."
Note: All production numbers are on a 100% basis.
1 Represents contribution from PT Berau, excluding the associate PT Bumi Resources and after purchase price allocation amortisation
2 Includes contributions from PT Berau and PT Bumi
3Group = Bumi plc and PT Berau
Financial information for the 30 June 2012 30 June 2011
six months ended 30 June 2012
US$ million, except per share amountsRevenue 770 478Operating profit5 128 62EBITDA1 106 146Cash flow from operations 146 105Loss before tax6 (38) (243)
Earnings attributable to owners of the parent6 (117) (308) Underlying (loss) / earnings2,6
(117) 54Earnings per share (US$):Basic earnings per share3 (0.49) (2.04)Underlying earnings per share4 (0.49) 0.36Capital expenditure 92 37Net Debt 384 393
Notes
1 EBITDA represents profit before: net finance items, net taxation, depreciation and amortisation. It is calculated as follows:
30 June 30 June 2012 2011US$ millionProfit before finance items and income tax 19 103Add: Depreciation and amortisation in 87 43
subsidiaries
EBITDA 106 146Add: costs associated with corporate - 43
transactions
Underlying EBITDA 106 189Share of loss/(income) of associate 109 (41)Underlying EBITDA (excluding associate) 215 148
2 Underlying earnings are calculated as follows:
30 June 30 June 2012 2011US$ million, except per share amountsEarnings6 (117) (308)Add: costs associated with corporate - 43
transactions
Add: movements on financial instruments at - 319fair value through profit and lossUnderlying (loss)/earnings (117) 54
3 Basic earnings per share is calculated as loss for the financial period divided by the weighted average number of ordinary shares in issue for the period.
4 Underlying earnings per share is calculated as underlying earnings divided by the weighted average number of ordinary shares in issue for the period.
5 Operating profit is after charging $49 million (H1 2011: $40 million) in respect of the unwind of fair value adjustments created as a result of the acquisition of PT Berau (84.7% at 30 June 2012, 75% at 30 June 2011).
6 After charging $5 million (H1 2011: $21 million) in respect ofthe unwind of fair value adjustments created as a result of the acquisition ofPT Berau (84.7% at 30 June 2012, 75% at 30 June 2011) and $2 million (H1:2011: $17 million) as a result of the acquisition of PT Bumi Resources (29.2%at 30 June 2012, 25% at 30 June 2011).EnquiriesBumi plc:Nick von SchirndingTel: +44 (0) 207 201 7507Conference call / Web castA results conference call for investors and analysts to discuss the half yearresults will be held at 9.00am BST on Thursday, 9 August 2012. The conferencecall telephone number is +44 (0)1296 311600, passcode 218 532.
For individuals unable to participate in the conference call, a recording of the call will be available to download from our website www.bumiplc.com.
Review of the six months ended 30 June 2012
Financial results
Bumi plc's financial results include its ownership of PT Berau Coal Energy ("Berau") and a 29.2% interest in PT Bumi Resources Tbk ("PT Bumi Resources"). Berau has been fully consolidated as a subsidiary and PT Bumi Resources has been reported using the equity accounting method.
Operating profit for the period was $128 million (H1 2011: $62 million), withan underlying loss of $117 million (H1 2011: $54 million profit). UnderlyingEBITDA (excluding associates) was $215 million (H1 2011: $148 million). Theshare of losses from PT Bumi Resources of $109 million (H1 2011: $41 millionprofit) reflects lower operating results, and includes a fair value loss of$38 million (H1 2011: $61 million fair value gain) on revaluation of optionsrelating to PT Bumi Resources's borrowings.Cash flow from operations has increased by $41 million from H1 2011 mainly dueto higher operating profits excluding depreciation ($110 million), partlyoffset by an increase in working capital ($38 million) and a greater amount ofdeferred stripping costs capitalised ($43 million).
Approximately 81% of total coal sales (on a gross revenue basis) went to exports, with around 19% to domestic Indonesian customers.
Approximately 18 million tonnes of Berau's coal production for 2012 has beencontracted and priced at an average of $70 per tonne and 75 million tonnes ofPT Bumi Resources' productionfor 2012 has been contracted and priced atbetween $80 - $85 per tonne.Production cost of sales for both Berau and PT Bumi Resources increased overthe first half. Cost pressures were mainly due to an increase in the price offuel as well as contractor costs. Berau's increase in production cost of saleswas anticipated given longer haulage distances and a higher stripping ratio.At KPC therewere higher fuel costs, higher contractor costs and higher cost ofmaterials (mainly for maintenance), which led to an increase in the reportedproduction cost of sales. Arutmin's production cost of sales rose on the backof higher contractor costs, partly due to higher fuel prices, as somecontractors bear the cost of fuel and pass it through the contractor rate andpartly due to an increase in haulage distance payments.Looking forward, thefalling price of fuel in the second quarter should lead to some easing of fuelcosts in the second half of the year.
Dividendsrelating to 2011 were received in August 2012 from PT Berau ($21 million) and PT Bumi Resources ($8 million).
Production Update 2012
Production levels for 2012 are forecast tobe between 20-22 million tonnes forBerau, against an original forecast for the year of 23 million tonnes, due tothe impact ofunusually high rainfall in the first half as well as contractorissues. PT Bumi Resources' coal mined is forecast to be 75 million tonnes, inline with previous guidance.
Industry leading growth - major expansion phase underway
Bumi plc has one of the strongest organic growth profiles in the industry. Ona combined basis, production levels of thermal coal from PT Berau and PT BumiResources are set to increase significantly in the near term. All approvedprojects are on schedule.At Berau, a number of projects are underway. This includes plans to constructa 42 kilometre overland conveyor and related power plant at Binungan, at anexpected cost of $300 million. The conveyor, one of the longest in the coalindustry, will be constructed over two phases. The expansion of Lati's coalhandling facilities and second barge-loading conveyor is expected to becompleted by 2013 and will increase capacity by 5 million tonnes,from 13 to 18million tonnes, at a projected cost of $75 million. The $35 million Sambaratastockpiling facility and new coal crusher are expected to be completed in2013. The $65 million Binungan crushing plant, stockpile and conveyor line isscheduled to be completed in 2014.PT Bumi Resources's expansion at its KPC operation is progressing well. Thesecond overland conveyor at KPC's Sangatta expansion was successfullyinstalled and commissioned in the first half of 2012 and should increasecapacity by 32 million tonnes per annum, at a cost of $135 million. The fullfacility, including expanded stockpile, is scheduled for completion in Q32012. The $100 million Melawan overland conveyor and crusher are expected tobe completed in Q4 2012. A three by 18MW power station is under constructionat KPC, and is expected to be commissioned by the end of 2013.At Arutmin, the $50 million Asam Asam overland conveyor and crushing plantwere 85% completed and are expected to be commissioned in the third quarter of2012. The $45 million West Mulia conveyor and crusher are 80% complete withcommissioning in the third quarter 2012. The West Mulia port was constructedat a cost of $30 million and was completed in the first half of 2012. Thecontinuous barge unloader being constructed at North Pulau Laut Coal Terminalat a cost of $45 million is 70% complete and is expected to be commissioned
inlate 2012.Benchmarking ReviewThe first phase of the benchmarking review has been completed.Berau Coal andArutmin operate an outsourced contract-mining model while KPC, in addition tocontract mining activity, also has its own in-house mining operations whichcontribute approximately 40% of KPC's total coal mined. The study analysed keyoperating metrics for in-house activity with those of all mining contractors,to identify areas of potential operational improvement. As a result of thisreview the relative performances of major contract miners, their rates,contractual terms, fuel usage and operational efficiency will be used toimprove the efficiency of contract mining as production is expanded.A detailed comparison of in-house mining at KPC against the top performingcontract miner was also completed. This review included a detailed comparisonof fleet make-up, truck/shovel ratios and utilization, operator attendancerates, operator training, shift-change analysis and maintenance and overhaulpractices. A number of areas of improvement have been identified to realiseoperational cost savings.
The biggest driver of costs is the stripping ratio and the overburden haul distance, which are a function of agreed mine plans. The study compared costs by pit and contractor on a distance-adjusted cost per material moved basis.
A review of other on-site overheads was also completed, which include processing and coal-chain infrastructure costs, barging and transhipment costs, and other site overheads. In the short term, these costs are increasing in advance of the ramp-up in capacity. Over the medium term, as production comes on line, these costs should decline on a per tonne of coal produced basis.
Outlook
The decline in the thermal coal price over the past few months has been drivenin the main by weaker demand in developed economies, higher exports from theUS as well as slowing Chinese growth. Inventory levels at key Chinese portsremain high and there are reports of some distressed cargoes of thermal coal.Although thermal coal prices have risen from their lows, the current thermalcoal price of around $85/tonne will significantly impact operating margins ifsustained for any extended period.Over the medium term the demand picture looks well supported for the Pacificregion, with growing demand for thermal coal from Indonesia forecast forChina, India as well as neighbouring areas. India in particular is expected toincrease its level of thermal coal imports over the next few years with amajor planned increase in electricity capacity addition. China's electricitydemand is also expected to grow significantly with thermal coal the majorbeneficiary.
Certain statements in this interim report are forward-looking. Although the group believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. Because these statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by these forward-looking statements. The group undertakes no obligation to update any forward-looking statements whether as a result of new information, future events or otherwise.
Business Unit Performance
The following information is derived from local management reports on a 100% mine level basis, for the 6 months ended 30 June 2012. The comparatives for the 6 months and 12 months ended 30 June 2011 and 31 December 2011, respectively, include pre-acquisition results.
PT Berau
Berau's assets are located in the northeastern part of Kalimantan and consist of three operating mines, namely Lati, Binungan and Sambarata.
Berau's operating performance was impacted by seasonal high level of rainfallin Kalimantan during the first quarter as well as contractor operating issues.Average monthly levels of rainfall for the first half of 2012 in the Berauregion were 358 mm/m against 172 mm/m in 2011. Total coal mined was 9.6million tonnes for the first half of 2012 compared to 9 million tonnes in thefirst half of 2011. Coal mined in the second quarterimproved and was 5.5million tonnes, some 32% higher compared with first quarter production of 4.1million tonnes.Berau's average selling price for the first half was $76.6 per tonne (H1 2011:$74.6 per tonne). Production cost of sales at Berau was $41.4 per tonne (H12011: $35.4 per tonne). The increase is mainly due to a planned increase inthe stripping ratio, greater haulage distances (between the coal mined and thecoal processing plant), higher fuel costs, and higher contractor costs. Theaverage stripping ratio for the period was 10.4 bcm per tonne compared to 9.5bcm per tonne for the first half of 2011.
Due to the high level of rainfall during the first half that significantly impacted Berau's production, it is likely that Berau will produce between 20-22 million tonnes, rather than the targeted 23 million tonnes for the year. The 2014 target of 30 million tonnes for 2014 remains on track.
In terms of sales by destination, 44% of sales went to China (including HongKong), 14% to Taiwan, 11% to India and 12% to South Korea, with the remaining19% sold domestically into Indonesia.PT Berau: Operating Data 30 June 30 June 31 Dec H1 12 v
H1
2012 2011 2011
11
Coal mined (millions of tonnes) 9.6 9.0 19.4
7%
Sales (millions of tonnes) 9.8 9.6 20.0
2%
FOB average selling price ($/t) 76.6 74.6 81.4 3% Production cost of sales ($/t)
41.4 35.4 38.0
22%
Stripping ratio (bcm/t)1 10.4 9.5 9.5
10%
1 Bank cubic metres (bcm) of overburden removed per tonne of coal mined.
PT Bumi Resources
PT Bumi Resources mined 32.7 million tonnes of coal in the first half of 2012, 9.2% more than the first half of 2011, despite higher rainfall.
PT Bumi Resources's average selling price for the period was $88 per tonne, 3%lower than the first half of 2011. Production cost of sales at PT BumiResources was $52.1 per tonne against $44.7 per tonne in the prior period.Higher fuel and contractor costs were the principal reasons for the increasein the cost of sales, partly offset by a lower stripping ratio. The strippingratio for Bumi Resources of 10.9 was 9% lower than the first half of 2011, thedecrease mainly due to Arutmin, where new mines (Kintap/West Mulia, Sarongga)and previously closed pits have now started/restarted operations.
In terms of sales by destination, 23% of coal sales went to Japan, 19% to China, 15% to India, 20% to the rest of Asia, 1% to Europe, and 19% domestically into Indonesia.
PT Bumi Resources: Operating Data 30 June 30 June 31 Dec H1 12 v H1
2012 2011 2011
11
Coal mined (millions of tonnes) 32.7 29.9 65.9 9% Sales (millions of tonnes)
32.3 29.3 63.4
10%
FOB average selling price ($/t) 88.0 91.3 93.3 (4%) Production cost of sales ($/t)
52.1 44.7 45.5
17%
Stripping ratio (bcm/t)1 10.9 12.0 11.5
(8%)
1 Bank cubic metres (bcm) of overburden removed per tonne of coal mined.
Kaltim Prima Coal (KPC)
The largest operation within Bumi Resources is Kaltim Prima Coal (KPC), whichoperates in East Kalimantan. KPC's two mining areas are Sangatta and Bengalon.The Sangatta mine is close to the port facilities at Tanjung Bara, which islinked to the mine by an overland conveyor. The Bengalon mine is also close tothe coast, being linked to its port facilities by a haul road.
KPC mined 18.0 million tonnes of coal in the first half, a slight decrease over the first half 2011. Coal mined in the second quarter was 9.5 million tonnes, representing a 10% increase over coal mined in the first quarter. Coal mined was lower than the first half 2011 mainly due to significantly higher rainfall and a contractor strike in late 2011, which was only resolved in February 2012.
KPC's average selling price for the first half was $95.7 per tonne ($96.8 per tonne for the prior period).
Production cost of salesin the first half at KPC were $58.3 per tonne against$52.3 per tonne in the prior period. The main reasons for the increase werehigher fuel costs, higher contractor costs and higher cost of materials(mainly for maintenance). The average stripping ratio for the period was 13.0bcm per tonne (H1 2011: 13.2 bcm per tonne).KPC: Operating Data 30 June 30 June 31 Dec H1 12 v H1 2012 2011 2011 11
Coal mined (millions of tonnes) 18.0 18.3 41.0 (4%) Sales (millions of tonnes)
18.3 18.6 40.5
(2%)
FOB average selling price ($/t) 95.7 96.8 98.6 (1%) Production cost of sales ($/t)
58.3 52.32 49.1
12%
Stripping ratio (bcm/t)1 13.0 13.2 12.1
2%
1 Bank cubic metres (bcm) of overburden removed per tonne of coal mined.
2Restated for change to Life-of-Mine stripping ratio.
Arutmin
Bumi Resources' second largest operation, Arutmin, operates in a concession area in the southeast of Kalimantan and has seven mines, all strategically located near Arutmin's port facility, North Pulau Laut Coal Terminal.
Arutmin mined 14.6 million tonnes of coal in the first half, 27% higher than the prior period, and its average selling price of $78.7 per tonne was 4% higher than the prior period.
Bituminous and sub-bituminous coal were both higher than the first half of2011, by 19% and 35% respectively. The new mines, Kintap (West Mulia) andSarongga, contributed 1.8 million tonnes of coal mined in the first half of2012. Asam Asam had a good performance with coal mined of 4.2 million tonnes,a 40% increase over the first half of 2011. Coal mined at Mulia was 1.1million tonnes lower than the prior period due to geotechnical failures at twopits. Remedial action is being taken to avoid future recurrences.Production cost of sales at Arutmin was $44.1 per tonne in the first half of2012, against $40.3 per tonne in the first half of 2011. The increase ismainly due to higher fuel costs and contractor rates, partly offset by a lowerstripping ratio. The higher contractor rates are partly due to higher fuelprices, as some contractors bear the cost of fuel and pass it through thecontractor rate and partly due to an increase in haulage distance payments.The average stripping ratio for the period was 8.4 bcm per tonne, a decreasefrom 10.2 bcm per tonne in the first half of 2011. The decrease in thestripping ratio was mainly due to the start of operations at new mines and therestarting of previously closed pits with lower stripping ratios.Arutmin: Operating Data 30 June 30 June 31 Dec H1 12 v H1 2012 2011 2011 11
Coal mined (millions of tonnes) 14.6 11.5 24.7 27% Sales (millions of tonnes)
13.9 10.5 22.8
32%
FOB average selling price ($/t) 78.7 81.5 83.8 (4%) Production cost of sales ($/t)
44.1 40.3 38.7
9%
Stripping ratio (bcm/t)1 8.4 10.2 10.2
(17%)
1 Bank cubic metres (bcm) of overburden removed per tonne of coal mined.
Bumi plc: key financials 6 months ended 6 months ended
(numbers are in US$ millions, unless 30 June 2012 30 June 2011 otherwise stated)
Revenue 770 478Operating profit 128 62(Loss)/Income from equity accounted units (109) 41Loss after tax (106) (296)Cash flow from operations 146 105Net debt 384 393Debtto total capital (gearing) 17.7% 16.5%Interest cover (excluding associates) 2.4x 1.5xPT Berau: key financials 6 months ended 6 months ended(numbers are in US$ millions, unless 30 June 2012 30 June 2011otherwise stated) Revenue 770 478Operating profit 176 119Profit after tax 9 31Net debt 396 394Debtto total capital (gearing) 63.1% 63.8%Interest cover 2.1x 4.3x
PT Bumi Resources: key financials 6 months ended 6 months ended (KPC and Arutmin are proportionally 30 June 2012 30 June 2011 consolidated)
(numbers are in US$ millions, unlessotherwise stated)Revenue 568 329Operating profit 5 42Profit after tax (111) 41Net debt 1,260 963Debt to total capital (gearing) 86.3% 77.8%Interest cover 0.7x 2.1xNote: Bumi plc held 29.2% of PT Bumi Resources at 30 June 2012 (30 June 2011:25%)Summary of key operating data 6 months 6 months 12 months ended ended ended 31 December 30 June 30 June 2011 2012 2011Berau
Coal mined (millions of tonnes) 9.6 9.0 19.4- Lati 4.9 5.1 10.8- Binungan 2.6 2.0 4.6- Sambarata 2.1 1.9 4.0Sales (millions of tonnes) 9.8 9.6 20.0FOB average selling price ($/t) 76.6 74.6 81.4Production cost of sales ($/t) 41.4 35.4 38.0Stripping ratio (bcm/t)1 10.4 9.5 9.5PT Bumi ResourcesCoal mined (millions of tonnes) 32.7 29.9 65.9Sales (millions of tonnes) 32.3 29.3 63.4FOB average selling price ($/t) 88.0 91.3 93.3Production cost of sales ($/t) 52.1 44.7 45.5Stripping ratio (bcm/t)1 10.9 12.0 11.5
KPC
Coal mined (millions of tonnes) 18.0 18.3 41.0- Sangatta 15.5 16.4 36.3- Bengalon 2.5 1.9 4.6Sales (millions of tonnes) 18.3 18.6 40.5FOB average selling price ($/t) 95.7 96.8 98.6Production cost of sales($/t) 58.3 52.3* 49.1Stripping ratio bcm/t)1 13.0 13.2 12.1
Arutmin
Coal mined (millions of tonnes) 14.6 11.5 24.7
- Senakin 3.1 2.4 4.8- Satui 2.7 1.9 4.3- Batulicin 1.3 1.6 3.7- Mulia 1.6 2.6 5.0- Kintap (West Mulia) 1.2 - -- Asam-Asam 4.2 3.0 6.7- Sarongga 0.6 - 0.3Sales (millions of tonnes) 13.9 10.5 22.8
FOB average selling price ($/t) 78.7 81.5 83.8Production cost of sales($/t) 44.1 40.3 38.7Stripping ratio bcm/t)1 8.4 10.2 10.2
1Bank cubic metres (bcm) of overburden removed per tonne of coal mined.
*Restated for change to Life-of-Mine stripping ratio.
Production Report for the Second Quarter ended 30 June 2012 (unaudited) Q1 Q2 Q3 Q4 Q1 Q2 Full Year Q2 H1 2011 2011 2011 2011 2012 2012 2011 2012 v 2011 2012 v 2011Coal minedBerau CoalLati mt 2.2 2.9 3.0 2.7 2.1 2.8 10.8 (4%) (8%)Binungan mt 1.0 1.1 1.1 1.4 1.2 1.4 4.6 31% 25%Sambarata mt 0.9 1.0 1.1 1.0 0.8 1.3 4.0 33% 8%Total mt 4.1 4.9 5.3 5.1 4.1 5.5 19.4 11% 3% Kaltim Prima CoalSangatta mt 7.5 8.9 10.5 9.4 7.3 8.0 36.3 (10%) (6%)Bengalon mt 0.9 1.0 1.5 1.2 1.0 1.5 4.6 43% 33%Total mt 8.3 10.0 12.0 10.7 8.4 9.5 41.0 (5%) (2%) ArutminSenakin mt 1.5 0.8 0.9 1.5 1.6 1.5 4.8 73% 32%Satui mt 0.9 1.0 1.0 1.3 1.6 1.0 4.3 1% 35%Batulicin mt 0.9 0.7 1.1 1.0 0.8 0.5 3.7 (26%) (20%)Mulia mt 1.4 1.2 1.2 1.1 1.0 0.5 5.0 (58%) (40%)Kintap (West Mulia) mt - - - 0.1 0.3 0.8 0.1 - -Asam Asam mt 1.3 1.7 1.5 2.1 1.9 2.3 6.6 35% 40%Sarongga mt - - - 0.3 0.2 0.4 0.3 - -Total mt 6.0 5.5 5.8 7.4 7.5 7.2 24.7 29% 27% Average realised pricesBerau Coal $/t 71.3 77.5 86.4 89.1 78.3 75.2 81.4 (3%) 3%Kaltim Prima Coal $/t 92.8 99.6 100.4 100.8 100.4 91.1 98.6 (9%) (1%)Arutmin $/t 77.1 85.2 88.0 83.9 82.9 74.6 83.8 (12%) (4%) Sales volumesBerau Coal mt 4.6 5.0 5.5 5.0 4.6 5.3 20.0 4% 2%Kaltim Prima Coal mt 9.1 9.5 10.8 11.0 9.0 9.3 40.5 (3%) (2%)Arutmin mt 4.8 5.7 5.6 6.6 6.8 7.1 22.8 23% 32%
Bumi plc's ownership interest is as follows. Berau Coal: 76.2%, Kaltim Prima Coal: 19.0%, Arutmin: 20.4%
Principal risks and uncertainties
Our Group is subject to a variety of risks and uncertainties which are theresult of not only the environment in which we operate but also of otherfactors over which we have little or no control. The principal risks anduncertainties facing the Group were set out in detail in the Business Reviewsection of the Annual Report 2011 on pages 28 and 29 and remain appropriate in2012. Key headline risks set out in the 2011 Annual Report (which is availableon our website: www.bumiplc.com) relate to the following:
- Coal price
- Project delivery
- Contractor reliance and performance
- Country risk
- Associates
- Health, Safety, Environment and Communities
- Safety- Environment- Communities- Employees- Business integrity- Shareholders- Financial risk
As highlighted in the Company's trading update issued on 30 July 2012, higher than normal levels of rainfall together with higher fuel costs impacted the Group's production and production costs, respectively for the first half (against H1 2011). Whilst these are operational risks which are continually assessed by management, given their impact on H1 results management will be considering any further actions that may be appropriate to manage and/or mitigate these risks.
Statement of Directors' responsibilities
The Directors confirm that these condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard 34, `Interim Financial Reporting', as adopted by the European Union and that the interim management report includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8, namely:
- an indication of important events that have occurred during the first six months and their impact on the condensed consolidated interim financial statements, and a description of the principal risks and uncertainties for the remaining six months of the financial year; and
- material related-party transactions in the first six months and any material changes in the related-party transactions described in the last annual report
The Directors of Bumi plc are listed in the Bumi plc Annual Report for 31December 2011 in the Governance section entitled Board of Directors from 26March 2012, with the exception of the following changes in the period: JamesCampbell and Badung Tariono retired on 14 June 2012, and Alexander Ramlie,Graham Holdaway and Jean-Marc Mizrahi were appointed on 14 June 2012. A listof current Directors is maintained on the Bumi plc website: www.bumiplc.com
On behalf of the Board on 9 August 2012.
Nalin Rathod
Chief Executive
Independent review report to Bumi plc
Introduction
We have been engaged by the Company to review the condensed consolidatedinterim financial statements in the half-yearly financial report of Bumi plcGroup for the six months ended 30 June 2012, which comprises the ConsolidatedIncome Statement, the Consolidated Statement of Comprehensive Income, theConsolidated Balance Sheet, the Consolidated Statement of Changes in Equity,the Consolidated Statement of Cash Flows and related notes to the condensedinterim financial statements. We have read the other information contained inthe half-yearly financial report and considered whether it contains anyapparent misstatements or material inconsistencies with the information in thecondensed consolidated interim financial statements.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.
As disclosed in note 2 of Bumi plc 2011 Consolidated Financial Statements, theannual financial statements of the Group are prepared in accordance with IFRSsas adopted by the European Union. The condensed consolidated interim financialstatements included in this half-yearly financial report are prepared inaccordance with International Accounting Standard 34, "Interim FinancialReporting", as adopted by the European Union.
Our responsibility
Our responsibility is to express to the Company a conclusion on the condensedconsolidated interim financial statements in the half-yearly financial reportbased on our review. This report, including the conclusion, has been preparedfor and only for the Company for the purpose of the Disclosure andTransparency Rules of the Financial Services Authority and for no otherpurpose. We do not, in producing this report, accept or assume responsibilityfor any other purpose or to any other person to whom this report is shown orinto whose hands it may come save where expressly agreed by our prior consentin writing.Scope of review
We conducted our review in accordance with International Standard on ReviewEngagements (UK and Ireland) 2410, `Review of Interim Financial InformationPerformed by the Independent Auditor of the Entity' issued by the AuditingPractices Board for use in the United Kingdom. A review of interim financialinformation consists of making enquiries, primarily of persons responsible forfinancial and accounting matters, and applying analytical and other reviewprocedures. A review is substantially less in scope than an audit conducted inaccordance with International Standards on Auditing (UK and Ireland) andconsequently does not enable us to obtain assurance that we would become awareof all significant matters that might be identified in an audit. Accordingly,we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the condensed consolidated interim financial statements in the half-yearly financial report for the six months ended 30 June 2012 are not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.
PricewaterhouseCoopers LLPChartered Accountants
1 Embankment Place, London, WC2N 6RH
9 August 2012
Notes
(i) The maintenance and integrity of the Bumi plc website is theresponsibility of the Directors; the work carried out by the auditors does notinvolve consideration of these matters and, accordingly, the auditors acceptno responsibility for any changes that may have occurred to the financialstatements since they were initially presented on the website.
(ii) Legislation in the United Kingdom governing the preparation and dissemination of financial information may differ from legislation in other jurisdictions.
Consolidated Income StatementFor the six months to 30 June 2012 6 months 6 months to 30 June to 30 June 2012 2011 Note $m $mRevenue 770 478Cost of sales (565) (317)Gross profit 205 161General and administrative expenses (51) (35)Distribution and marketing expenses (26) (21)Costs associated with corporate transactions - (43)Operating profit 128 62Share of (loss) / income of associate (109) 41Profit before finance items and income tax 19 103Finance income 9 15Finance costs (66) (42)Movement on financial instrumentsat fair value through profit or loss - (319)Loss before income tax (38) (243)Income tax expense 6 (68) (53)Loss for the period (106) (296)Profit / (Loss) attributable to:Owners of the parent (117) (308)Non-controlling interests 11 12 (106) (296) Loss per ordinary share $ $Basic 7 (0.49) (2.04)Diluted 7 (0.49) (2.04) Consolidated Statement of Comprehensive IncomeFor the six months to 30 June 2012 6 months 6 months to 30 June 2012 to 30 June 2011 $m $mLoss for the period (106) (296) Other comprehensive income
Share of other comprehensive income of associate 2 -Losses on revaluation of available-for-sale financial - (2)
asset
Income tax recognised in other comprehensive income - -Total comprehensive income for the period (104)
(298)
Total comprehensive income attributable to:Owners of the parent (115) (310)Non-controlling interests 11 12 (104) (298)Consolidated Balance SheetAs at 30 June 2012 30 June 31 December 2012 2011 Note $m $mNon-current assetsGoodwill 1,323 1,320
Exploration and evaluation assets
8 4Property, plant and equipment 3,036 3,039Investment in associates 9 1,915 2,022Total non-current assets 6,282 6,385 Current assetsInventories 33 30Trade and other receivables 574 495Cash and cash equivalents 590 608 1,197 1,133Assets of disposal group 20 -classified as held for sale 8Total current assets 1,217 1,133 Total assets 7,499 7,518 Current liabilitiesTrade and other payables 731 625Borrowings 13 85Current taxation payable 8 126 752 836Liabilities of disposal group 8 -classified as held for sale 8Total current liabilities 760 836 Non-current liabilitiesBorrowings 961 745Deferred tax liabilities 1,256 1,277Provisions 15 25Total non-current liabilities 2,232 2,047 Total liabilities 2,992 2,883 EquityOrdinary Shares 4 4Share premium 141 141Merger reserve 2,248 2,248Retained earnings 1,436 1,551Total attributable to equity 3,829 3,944holders of the parentNon-controlling interests 678 691Total equity 4,507 4,635Total equity and liabilities 7,499 7,518Consolidated statement of changes in equityFor the six months to 30 June 2012 Attributable to
equity holders of the parent
Share based Non- Ordinary Share payment Merger Retained controlling Total Shares premium reserve reserve earnings Total interest equity Note $m $m $m $m $m $m $m $mBalance at 1 January 2011 622 - 1 428 (108) 943 31 974Investment in associate 878 - - 1,032 - 1,910 - 1,910Acquisition of subsidiary 514 - - 604 - 1,118 866 1,984Reduction in NCI followingmandatory cash offer - - - - (8) (8) (206) (214)Share based payment reserve - - 1 - - 1 - 1Dividends paid to non-controllinginterests in subsidiaries - - - - - - (10) (10)Loss on revaluation of availablefor sale financial assets - - - - (2) (2) - (2)Total Comprehensive income - - -
(308) (308) 12 (296)Balance at 30 June 2011 2,014 - 2 2,064 (426) 3,654 693 4,347Investment in associate 136 141 - (1) - 276 - 276Capital reduction (2,146) - - - 2,146 - - -Exchange of Founder Shares - - - 185 (162) 23 (23) -Share based payment reserve - - (2) - - (2) - (2)Dividends paid to non-controllinginterests in subsidiaries - - - - - - (2) (2)Gain on revaluation of availablefor sale financial assets - - - - 2 2 - 2Total comprehensive income - - - - (9) (9) 23 14Balance at 31 December 2011 4 141 - 2,248 1,551 3,944 691 4,635Dividends paid to non-controllinginterests in subsidiaries - - - - - - (24) (24)Total comprehensive income - - - - (115) (115) 11 (104)Balance at 30 June 2012 4 141 - 2,248
1,436 3,829 678 4,507
Consolidated statement of cash flowsFor the six months to 30 June 2012 6 months 6 months to 30 June to 30 June 2012 2011 Note $m $mNet cash flows generated from operations 10 146 105Interest paid (35) (16)Tax paid (207) (145)Net cash flows used in operating activities
(96) (56)
Cash flows from investing activitiesInterest received 3 6Acquisition of subsidiary, net of cash acquired (4) 470Purchase of property, plant & equipment (53) (30)Capitalised exploration and evaluation expenditure (5) (2)Net cash (used in) / generated from investing activities
(59) 444
Cash flows before financing activities
(155) 388
Cash flows from financing activitiesPurchase of non-controlling interests
- (214)Proceeds from borrowings 494 -Repayment of borrowings (340) (30)Dividends paid to non-controlling interests in subsidiaries (20) (10)Net cash generated from /(used in) financing activities
134 (254)
Effect of foreign exchange rates 3 9Net (decrease)/increase in cash and cash equivalents (18) 143Opening cash and cash equivalents 608 324Closing cash and cash equivalents 590 4671. General information1.1. DefinitionBumi plc (`the Company') is the ultimate parent company of the Bumi plc groupof companies (`the Group'). It is incorporated, domiciled and registered inEngland and Wales as a public company limited by shares. The ordinary sharesof the Company are traded on the London Stock Exchange and its registeredoffice is at 2nd Floor, 4 Grosvenor Place, London SW1X 7HJ. The mainsubsidiary, PT Berau Coal Energy Tbk, (`PT Berau') is a coal mining group ofcompanies listed on the Indonesia Stock Exchange. The Company also holds aninvestment in an associate PT Bumi Resources Tbk (`PT Bumi') which is alsolisted on the Indonesian Stock Exchange and is also engaged in coal miningoperations.
2. Basis of preparation
The condensed consolidated interim financial statements for the six monthsended 30 June 2012 were authorised for issue in accordance with a resolutionof the Board of Directors on 8 August 2012. They do not comprise statutoryaccounts within the meaning of Section 434 of the Companies Act 2006. Thecondensed consolidated interim financial statements are unaudited but havebeen reviewed by the auditors, PricewaterhouseCoopers LLP, and their report isset out on page [x]. The audited financial statements for the year ended 31December 2011 were approved by the Board of Directors on 12 April 2012 andhave been filed with the Registrar of Companies. The report of the auditors onthose accounts was unqualified, did not contain an emphasis of matterparagraph and did not contain any statement under Section 498 of the CompaniesAct 2006.The condensed consolidated interim financial statements for the six monthsended 30 June 2012 have been prepared in accordance with the Disclosure andTransparency rules of the Financial Services Authority and with IAS 34,`Interim Financial Reporting', as adopted by the European Union. They shouldbe read in conjunction with the audited financial statements for the yearended 31 December 2011, which have been prepared in accordance with IFRSs asadopted by the European Union.
The condensed consolidated interim financial statements are presented in millions of United States Dollars ("$").
a) Critical accounting judgements and key sources of estimation uncertainty
The preparation of interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.
In preparing these condensed interim financial statements, the significantjudgements made by management in applying the Group's accounting policies andthe key sources of estimation uncertainty were the same as those that appliedto the consolidated financial statements for the year ended 31 December 2011.Certain assumptions have been modified in line with the changing economicenvironment.
b) Going concern
The Group meets its day to day working capital requirements through itsbanking facilities and senior notes. Global economic conditions remainuncertain and the Directors continue to monitor the situation especially theimpact of efforts to stimulate the Chinese and Indian economies, the on-goingcrisis in the Eurozone and the pace of the US economy. The Directors have, atthe time of approving the condensed consolidated interim financial statements,a reasonable expectation that the Group has adequate resources to continue inoperational existence for the foreseeable future. Thus, the Group continues toadopt the going concern basis of accounting in preparing the condensedconsolidated interim financial statements.
3. Accounting policies
The accounting policies adopted are consistent with those as described in the Bumi plc consolidated financial statements for the year ended 31 December 2011.
There are no new IFRSs or IFRICs that are effective for the first time for this interim period that would be expected to have a material impact on the Group.
4. Segmental analysis
In accordance with the provisions of IFRS 8 `Operating Segments', theoperating segments used to present segment information were identified on thebasis of internal reports used by the Bumi plc's Board of Directors toallocate resources to the segments and assess their performance. Bumi plc'sExecutive Board of Directors is the Group's "chief operating decision maker"within the meaning of IFRS 8.The Board of Directors considers the business from a product perspective andhas determined that the Group has one single reportable segment, being coalmining. Information on financial performance and net assets is presented inthe income statement and balance sheet and information on underlying earningsand underlying EBITDA is presented in note 5.
Activities of the Group are seasonal and adversely affected by rainfall and as a result the amounts reported for the six months to 30 June 2012 may not be indicative of amounts that would be reported for a full year. Rainfall can interfere with extracting activities leading to delays in production. The rainy season is from October to April.
5. Underlying earnings and EBITDA
Underlying earnings and underlying EBITDA exclude separate items. Separateitems are those items of financial performance that the Group believes shouldbe separately disclosed. Separate items include when applicable, impairment ofgoodwill and other assets, costs of acquiring and integrating acquisitions,fundamental restructuring of the business, profit or loss on disposal of abusiness or significant other asset, material claims and settlements andsignificant gains and losses on derivative financial instruments. 6 months to 6 months to 30 June 30 June 2012 2011Underlying earnings $m $mLoss attributable to owners of the parent (117) (308)Exclusions from underlying earnings:Movement on acquisition relatedfinancial instruments - 319Corporate transaction costs - 43Exclusions from Underlying earnings - 362Underlying (loss) / earnings (117) 54
EBITDA
Profit before finance items and income tax 19 103Depreciation and amortisation in subsidiaries 87 43EBITDA 106 146Corporate transaction costs - 43Underlying EBITDA 106 189Add back share of result from associate 109 (41)Underlying EBITDA excludingresult from associate 215 1486. Taxation
Tax on the profit for the period comprises both current and deferred tax aswell as adjustments in respect of prior periods. Tax is charged or credited tothe consolidated income statement and consolidated statement of comprehensiveincome, except when it relates to items charged or credited directly toequity, in which case the tax is also included directly within equity.Current tax is the expected tax payable on the taxable income for the period,using tax rates enacted, or substantively enacted, by the end of the reportingperiod.
Deferred tax liabilities are offset against deferred tax assets within the same taxable entity or qualifying local tax group where there is both the legal right and the intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Significant judgement is required in determining the Group's income taxliabilities. In arriving at the current and deferred tax liability the Grouphas taken account of tax issues that are subject to on-going discussions withthe relevant tax authorities. Calculations of these liabilities have beenbased on management's assessment of legal and professional advice, case lawand other relevant guidance. Where the expected tax outcome of these mattersis different from the amounts that were recorded initially, such differenceswill impact the current and deferred tax amounts in the period in which suchdetermination is made. 6 months to 30 June 6 months to 30 June 2012 2011 $m $mTax charged to the consolidatedincome statement in the period:Current taxUK Corporation Tax at 24.5% (2011: 26%)- Current period - -Overseas tax- Current period 88 69Deferred Tax (20) (16)
7. Earnings / (Loss) per share `EPS'
The Group is required to disclose basic and diluted EPS on the face of theconsolidated income statement. The Group has calculated underlying EPS as itbelieves that it is the most appropriate measure since it better reflects thebusiness's underlying earnings.Basic EPS for the six months to 30 June 2012 is calculated by dividing theloss attributable to the owners of the parent of $117 million by the weightedaverage number of ordinary shares in issue during the period of 241 million.Basic earnings per ordinary share for the 6 months to 30 June 2011 arecalculated on a similar basis.Underlying basic EPS from the Group's total operations for the six months to30 June 2012 is calculated by dividing the underlying loss for the periodattributable to the equity holders of the Company of $117 million by theweighted average number of ordinary shares in issue during the period of 241million shares. Underlying basic EPS for the 6 months to 30 June 2011 iscalculated on a similar basis.Diluted basic earnings per share does not include the 18 million share optionsoutstanding under the Company's share schemes at 30 June 2012, because doingso would decrease the loss per ordinary share. However, the 18 million shareoptions were taken into account when calculating underlying diluted earningsper share at 30 June 2011. 30 June 2012 30 June 2011 Earnings Shares EPS Earnings Shares EPS $m m $ $m m $Basic (117) 241 (0.49) (308) 151 (2.04)
Dilutive effect of share options - - - -
- -Diluted basic (117) 241 (0.49) (308) 151 (2.04) 30 June 2012 30 June 2011 Earnings Shares m EPS Earnings Shares m EPS $m $m $ $Basic (117) 241 (0.49) (308) 151 (2.04)Movement on financial - - - 319 - 2.11instruments at fair valuethrough profit and loss
Costs associated with corporate - - - 43 - 0.29transactionsUnderlying basic (117) 241 (0.49) 54 151 0.36Dilutive effect of share options - - - -
18 (0.04)Underlying diluted (117) 241 (0.49) 54 169 0.32
8. Non-current assets held for sale
The assets and liabilities related to PT Pelayaran Sanditya Perkasa Maritim (PSPM) have been presented as held for sale following the approval of the Group's management to sell the company in Indonesia.
9. Investment in associate
$mAt 1 January 2011 -Acquisition of 25% interest in PT Bumi 1,783Share of profit 41At 30 June 2011 1,8243.9% step up on 5 July 2011 2820.3% step up on 15 July 2011 24Share of loss (80)Share of other comprehensive income 2Dividends received (30)At 31 December 2011 2,022Share of loss (109)Share of other comprehensive income 2At 30 June 2012 1,915As at 30 June 2012, the market value of the Group's interest in PT Bumi, whichis listed on the Indonesia Stock Exchange, was $713m. The Group does notbelieve this value represents the fair value of the underlying business, asstock markets are subject to short term volatility and this market value doesnot reflect the premium attached to the holding of a significant influence.The Directors continue to monitor the value of the investment in PT Bumi withreference to discounted cash flows based on the mine plans. These mine plansare updated using third party consultants on a regular basis.
The Group's share of the results of its associate, and its aggregated assets (including goodwill) and liabilities as at 30 June 2012 are as follows:
Interest Assets Liabilities Revenue Loss held
Country of
incorporation $m $m $m $m % PT Bumi Indonesia 5,108 (3,138) 568 (109) 29.2
10. Consolidated cash flow analysis
Reconciliation of loss before tax to cash flows from operations
6 months to 6 months to 30 June 2012 30 June 2011 $m $mLoss before income tax (38) (243)Add back / (deduct):
Depreciation and amortisation 87 43Movement on financial instrumentsat fair value through profit or loss - 319Net finance costs 57 27Share of loss/(profit) from associate
109 (41)Foreign exchange gains inoperating costs (3) -Increase in inventories (3) (8)
Increase in operating receivables (79) (7)Increase in operating payables
76 47Decrease in provisions (10) (21)Deferred stripping1 (50) (7)Other items - (4)
Cash flows generated from operations 146 105
1 Deferred stripping in 2011 of $7 million was previously included within purchases of property, plant and equipment.
Reconciliation of net cash flow to movement in net (debt) / cash
31 December Cash Exchange 30 June 2011 flows adjustments 2012 $m $m $m $mCash 608 (21) 3 590Borrowings (830) (144) - (974)Total (debt / cash) (222) (165) 3 (384)On 13 March 2012, PT Berau issued fixed rate guaranteed senior notes of $500m,with a term of five years and a coupon rate of 7.25% payable semi-annually. PTBerau used the net proceeds to repay the balance outstanding on its bank loanand will use the remainder of the proceeds to fund capital expenditure andother operating expenses.
11. Contingent assets, liabilities and presentation of assets and liabilities
Contingent liabilities
The Group is subject to various claims in the normal course of business. These include but are not restricted to land claims. Occasionally local residents issue claims against the Group and the associate with regard to mining on areas of land where ownership is in dispute between the Group and local inhabitants. The majority of cases are resolved with no material liability assumed by the Group and the associate.
No contingent liabilities were secured on the assets of the Group at 30 June 2012 or 30 June 2011.
Other Specific Contingent Liabilities
Contractual mine service fee agreement claim
PT Bumi has an on-going dispute with a contractor regarding the contractual mining service fee and its escalation formula. The contractor is claiming the escalation formula no longer reflects the actual increase in its operating costs. The associate believes the contractor's rate is supported by other comparative mining contractors' rates.
Presentation of assets and liabilities
Offset of Coal Production Royalties with input VAT
Trade and other receivables include VAT recoverable of $355m (2011: $261m).This represents amounts claimed by PT Berau Coal from the Government ofIndonesia. This amount is part of an on-going dispute with the Governmentwhich resulted from a change in the VAT law in 2001 when coal became a VATexempt supply. This change meant that PT Berau Coal can no longer claimcredits for its input VAT on purchases. However, under the CCoW, PT Berau Coalis indemnified against Indonesian taxes not in effect at the time of signingof the CCoW. On this basis, PT Berau Coal claimed reimbursement for input VATpaid from 2001. The claims were rejected and PT Berau Coal began setting offthe VAT receivable against royalty payments due under the CCoW of $371m (2011:$281m). The VAT receivable and royalty payable amounts have been disclosedseparately on a gross basis within trade and other receivables and trade andother payables, respectively.
12. Commitments
At 30 June, the Group had the following outstanding capital commitments:
Capital commitment 2012 2011 $m $mContracted but not provided:Assets under construction 292 53 292 53
13. Related party transactions
During the periods ended 30 June, the Group entered into the following transactions in the ordinary course of business with related parties and entities related to them:
Nathaniel Rosan Indra Nathaniel Rothschild Total Rothschild Roeslani Bakrie and James Campbell 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 $m $m $m $m $m $m $m $m $m $mPurchase of goods - - - - (37.8) - - - (37.8) -Purchase of services - (4.9) (2.1) (0.3) - - (0.5) (2.0) (2.6) (7.2)Finance income - - 0.1 0.2 - - - - 0.1 0.2 - (4.9) (2.0) (0.1) (37.8) - (0.5) (2.0) (40.3) (7.0)At 30 June, the following balances were held with related parties: Nathaniel Rosan Indra Nathaniel Total Rothschild Roeslani Bakrie Rothschild and James Campbell 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 $m $m $m $m $m $m $m $m $m $mAssets
Cash and cash equivalents - - 1.7 9.3 - -
- - 1.7 9.3
Liabilities
Trade and other payables - - - - - - (0.2) (0.1) (0.2) (0.1)
- - 1.7 9.3 - - (0.2) (0.1) 1.5 9.2Transactions with DirectorsNathaniel Rothschild
The Group conducted transactions with entities related to Nathaniel Rothschild, the sole activity being the payment of business expenses.
Rosan Roeslani
The Group conducted transactions with entities related to Rosan Roeslani, the key activities being insurance services and the lease of office buildings.
PT Bank Pundi Indonesia Tbk is a bank related to Rosan Roeslani. Term deposits at the PT Bank Pundi Indonesia TbK have market interest rates.
Indra Bakrie
The Group conducted transactions with PT Petromine Energy Trading, a subsidiary of PT Bakrie and Brothers TbK, a listed entity on the Indonesia Stock Exchange, which is related to the Bakrie family. The sole activity is the supply of fuel.
Nathaniel Rothschild and James Campbell
The Group conducted transactions with an entity related to Nathaniel Rothschild and James Campbell, the sole activity being the supply of professional services. The agreement to provide professional services was terminated in 2011.
All transactions are considered by the Directors to be undertaken at standard market rates.
Transactions with the associate
During the period, the Group conducted transactions with PT Bumi Tbk, an associate company. The expense incurred during the period was $0.5m. At the period end, there was no balance receivable or payable.
XLONRelated Shares:
ARMS.L