Resources Prima's 3Q profits took a 99.4% nosedive to $9,000

Blame it on lackluster coal sales.

Resources Prima Group, a coal mining company with integrated operations in Indonesia including coal mining facilities, has reported a lower net profit attributable to equity holders of the Company of US$23,000 (S$33,000) for the nine months ended 30 September 2016 (9MFYE12/16) as compared to US$7.8m (S$11m) for the same period last year (9MFYE15).

For the three months ended 30 September 2016 (3QFYE12/16”), the Group reported a net profit attributable to equity holders of the Company of US$6,000 (S$9,000) as compared to a net profit of US$1.1m (S$1.6m) in the corresponding period a year ago (2QFYE12/15).

Executive Chairman and Chief Executive Officer, Mr. Agus Sugiono said, “Our earnings in 9MFYE12/16 and 3QFYE12/16 were impacted by lower gross margins as a result of a lower average selling price of coal and weaker coal sales revenue due to the unusually heavy rainfall in September. "

In 3QFYE12/16, the firm's average coal sales price decreased by 10.5% year-on-year to US$39.0 per tonne from US$43.6 per tonne in 2QFYE12/15.