by Mandiri Securities
PTBA booked a 3Q11 profit of IDR722bn (-15% q-o-q) and 9M11 profit of IDR2,336bn (+68% y-o-y). The profit figure was lower than we estimated as sales volume came in lower than we projected.
Rising costs chip off margins. Revenue and gross profit for the quarter declined by 6% q-o-q and 11% q-o-q respectively, leading to lower margins. Rising production cost also took its toll on margins as average sales prices (ASPs) stabilized (-2% q-o-q).
Solid balance sheet a key strength. PTBA’s total cash balance of IDR5,997bn as at September 2011 accounts for 56.7% of the company’s total assets. This puts it in a net cash position.