Jakarta – The revenues of state-owned mining holding company Indonesia Asahan Aluminium (Inalum) increased 17.38 percent year-on-year (yoy) to Rp 17.48 trillion (US$1.23 billion) in the first quarter of 2019, but its net profits dropped significantly, particularly as a result of higher financing costs.
Up to the end of March Inalum's net profits were recorded at Rp 287 billion, down from Rp 2.79 trillion in the same period, last year.
Quoting Inalum's financial report, kontan.co.id reported on Wednesday that the cost of revenue grew by 25.9 percent to Rp 13.64 trillion in the first quarter of 2019 from Rp 10.83 in the same period last year.
The highest increase was recorded in financing costs, which increased to Rp 1.34 trillion, compared with Rp 218.79 billion in the first quarter of 2018.
Bond interest rate payments were recorded at Rp 1.13 trillion, while loan interest and leasing costs were recorded at Rp 228.38 billion.As reported previously, Inalum has issued $4 billion in global bonds, as the company needed the funds to acquire a 40 percent stake in gold and copper miner PT Freeport Indonesia from the latter's parent company Freeport-McMoRan (FCX) on Nov. 15, 2018.The bonds are divided into four categories: $1 billion with a 3-year tenor and 5.23 percent coupon rate; $1.25 billion with a 5-year tenor, 5.71 percent coupon rate; $1 billion with a 10-year tenor, 6.53 percent coupon rate; and $750 million with a 30-year tenor, 6.7 percent coupon rate. (bbn)