PTBA - 1H23 earnings down 54% yoy

PTBA - 1H23 earnings down 54% yoy Bukit Asam (PTBA) 1H23 earnings dropped to IDR2.9 tn (-54% yoy) despite showing quarterly improvement of 43% qoq in 2Q23. The 1H23 figure represents 48% of consensus estimates. Lower ASP persist. ASP fell down 8% qoq due to global price normalization. Despite a robust production of 12.1 mn tons (+78% qoq) and an improved SR of 6.5x vs 7.1x in 1Q23, sales volumes experienced a slight decrease 2% qoq. These resulted in a -11% qoq revenue drop. We expect that lower ASP will likely to continue amidst narrowing gap on 2Q23 ASP vs ICI-4. Cool-off cost pressure. Lower 2Q23 costs (fuel -55% qoq, royalty -16% qoq, coal railway -3% qoq) brought down its cost by -13% qoq. Margins ameliorated. An improved JV's earning (+334% qoq) in 2Q23 contributed to a rising margin (NPM 19% vs 12% in 1Q23). (Source : Company)