PT BUMA International Group Tbk has reported its audited consolidated\nfinancial and operational results for the fiscal year ended 31 December\n2025 (FY2025). FY2025 performance was significantly impacted by\nunprecedented operational disruptions from adverse weather, as well as\nramp-down and completion of contracts in Indonesia and Australia.<\/p>\n
The performance results were also influenced by non-operational costs\n(non-underlying charges), including provisions for trade receivables and\nasset impairment in operations in Australia and the United States,\npartially offset by a fair value gain of US$41 million on the Group\u2019s\ninvestment in 29Metals.<\/p>\n
Despite these factors weighing on full-year performance, the Group\nrecorded consistent operational recovery throughout the year, supported\nby structural improvements in productivity and lower unit costs. The\nGroup also generated positive free cash flow, with 4Q25 recording the\nhighest quarterly free cash flow of the year. Additionally, the Group\nstrengthened its liquidity position thanks to ongoing support from\nbanking partners and bondholders throughout 2025, and entered 2026 with\na more balanced debt maturity profile.<\/p>\n
FY2025 PERFORMANCE<\/p>\n
Overburden removal volume fell 19% year-on-year (YoY) to 439 million\nbank cubic metres (MBCM), while coal production declined 6% to 84\nmillion tonnes (MT), reflecting disruptions in the first quarter,\nweather constraints, and lower contributions from sites undergoing\nramp-down and those that have completed operations.<\/p>\n
Revenue decreased 16% YoY to US$1.48 billion, primarily due to lower\nvolumes, while the average selling price (ASP) for mining contractors\nremained relatively stable (-1% YoY), supported by a higher proportion\nof rise-and-fall contracts. EBITDA fell to US$175 million with a 14%\nmargin, influenced by lower volumes, higher redundancy costs, and\nincreased fuel expenses. Excluding redundancy costs, EBITDA was recorded\nat US$207 million with a 17% margin.<\/p>\n
The Group recorded a net loss of US$128 million, driven by the\ndecline in EBITDA, provisions for trade receivables from ended contracts\nin Australia, and asset impairments in operations in Australia and the\nUnited States. These factors were partially offset by a fair value gain\nof US$41 million from the Group\u2019s investment in 29Metals, in line with\nthe recovery in its share price throughout the year, a foreign exchange\ngain of US$36 million (reversing from a US$19 million loss in FY24 to a\nUS$17 million gain in FY25), and the reversal of provisions for\nreceivables in Australia following a Queensland Supreme Court ruling in\nfavour of BUMA Australia, with financial settlement expected in\n2026.<\/p>\n
The Group booked positive free cash flow of US$8 million, compared to\nnegative US$60 million in FY2024. In 4Q25 alone, the Group recorded free\ncash flow of US$57 million, making it the highest quarterly free cash\nflow achievement of the year. Capital expenditure remained disciplined\nat US$179 million, relatively stable YoY, with balanced allocation\nbetween maintenance and growth needs.<\/p>\n
The Group\u2019s operational performance improved progressively throughout\nthe year, supported by stronger execution and cost discipline.\nStructural improvements at BUMA Indonesia drove consistent\nquarter-on-quarter increases, with overburden removal rising from 76\nMBCM in 1Q25 to 79 MBCM in 4Q25. This increase was supported by targeted\nimprovements in planning, more disciplined shift execution, maintenance\nimplementation, and resolution of operational bottlenecks. From January\n2025 to January 2026, equipment utilisation hours increased by 6%,\ndowntime decreased by 31%, non-productive hours fell by 17%, and cycle\ntime improved by 3%, resulting in lower unit costs, dropping from\nUS$2.22\/BCM in 1Q25 to US$1.83\/BCM in 4Q25.<\/p>\n
At the Group level, these improvements resulted in progressively\nstronger financial performance, with EBITDA rising from US$14 million in\n1Q25 to US$48 million in 4Q25, reflecting strong sequential improvement\nthroughout the year.<\/p>\n
\u201cFY2025 was a challenging year for the Group. The disruptions we\nfaced in the first quarter had a significant impact on production and\nrevenue, while also highlighting areas where our approach can be\nstrengthened. We responded quickly by tightening operational discipline,\nstrengthening cost controls and maintenance fundamentals, and taking\ndecisive steps to maintain liquidity and bolster the balance sheet.\nThese measures drove improvements in productivity, costs, and cash flow\nthroughout the year, providing a stronger foundation as we enter 2026,\u201d\nsaid BUMA International Group Director, Iwan Fuad Salim.<\/p>\n
LIQUIDITY AND BALANCE SHEET<\/p>\n
During FY2025, the Group completed several funding initiatives to\nstrengthen liquidity and extend its debt maturity profile. In February,\nPT Bank Central Asia Tbk joined PT Bank Negara Indonesia (Persero) Tbk\nand PT Bank Mandiri (Persero) Tbk in a US$1 billion syndicated facility,\nexpanding the Group\u2019s funding base. In March, the Group issued Sukuk\nIjarah worth Rp2 trillion (US$121.7 million), the largest single-issue\nA+-rated Sharia Corporate Ijarah Sukuk in Indonesia, followed by the\nissuance of BUMA 2025 Phase III Bonds worth Rp884 billion (US$53.8\nmillion) in October. In November, the Group early redeemed Senior Notes\nprior to maturity worth US$212 million, enhancing liquidity and capital\nstructure flexibility.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/amid-challenging-conditions-buma-international-group-shows-performance-recovery-in-fy2025-1774630281", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }