* Bumi Resources swings to $632 million loss from profit
* Bumi Resources posted losses on derivatives of over $422
* Bumi Resources at centre of row between the Bakries, Nat
By Andjarsari Paramaditha
JAKARTA, Jan 3 Shares in PT Bumi Resources
, at the heart of a bitter dispute between Indonesia's
Bakrie family and British financier Nat Rothschild, dropped
almost 5 percent at one stage after the coal miner reported a
heavy nine-month net loss.
Bumi Resources, part-owned by the Bakrie Group and
Rothschild's joint venture Bumi Plc, has plunged 72
percent in Jakarta trading in the past year, weighed down partly
by concerns over corporate governance and boardroom battles.
Ties between the Bakries and Rothschild soured soon after
the London listing of Bumi Plc two years ago. The conflict came
to a head in September with news of allegations of wrongdoing
and a probe into operations including Bumi Resources.
Dealing yet another blow to Bumi Resources and its shares,
the firm posted on Wednesday a $632 million net loss in the nine
months to September compared to a net profit a year earlier, hit
by losses on derivatives of over $422 million.
"If we disregard the materially large loss on derivative
transactions, the adjusted 9M loss of $210.4 million is worse
than our expectation of a full-year loss of $166.7 million and
consensus expectation of a full-year profit of $24.6 million,"
UBS mining analyst Andreas Bokkenheuser said in a note.
Bumi Resources director and corporate secretary, Dileep
Srivastava, said the derivatives and foreign exchange losses
were paper losses.
"There's no cash impact at all," he told Reuters in a
telephone interview from Dubai. "These are all non-cash and
tax-neutral because we are adapting to new accounting principles
that we are adopting."
As of 0801 GMT, Bumi Resources shares were 4.84 percent
lower from the previous day's close at 590 rupiah, compared to a
high of 8,200 rupiah on June 30, 2008. They have been on a sharp
decline since reaching a peak in 2012 of just over 2,500 rupiah
at the end of last January.
Thursday's share performance by Asia's biggest exporter of
coal used in power stations was in stark contrast a record high
in the main market index.
HIGH DEBT LEVELS
Investors have also heavily discounted Bumi's shares against
a booming Indonesian stock market in the past three years
because of high debt levels.
"From a credit standpoint, we have been placing, and will
continue to place, more emphasis on the company's cash flow
generation capabilities, as the company repays its debt and
interest with the cash it generates," Standard & Poor's
Asia-Pacific associate director of corporate ratings Jean Xavier
Bumi Resources' cash flows since the beginning of 2012 have
not been directed affected by the loss, which is a non-cash
loss, Xavier said by email.
"The ability of Bumi Resources to generate more cash flows
in the coming quarters, from higher sales volumes and lower
costs, and the refinancing of the debt due in 2013 are the major
factors we are looking at," he said.
(Additional reporting by Fergus Jensen; Writing by Jonathan
Thatcher; Editing by Ryan Woo)