Bumi plc may further delay 2012 results as it reviews Berau unit

Indonesian coal miner Bumi plc on Friday warned investors it may further delay the release of its 2012 results as it has been unable to verify some spending at its PT Berau Coal Energy unit.

Indonesian coal miner Bumi plc on Friday warned investors it may further delay the release of its 2012 results as it has been unable to verify some spending at its PT Berau Coal Energy unit.

The company, which has been at the centre of a dispute between co-founders Nathaniel Rothschild and Indonesia's Bakrie Group, said there was not sufficient evidence to support the capitalisation of certain expenditures which were estimated at about $56m last year.

In particular, it is looking at the accounting treatment of spending on roads and earth removal - normal activities in mining.

Bumi added it has also been unable to verify transactions relating to a number of landowner payments estimated at $38m.

"These adjustments will be reflected in the full year results together with any other items that may emerge from the ongoing balance sheet review," the group said in a statement.

"Given the level of further work that needs to be completed over the next few weeks there is a likelihood that the publication of final results will need to be further delayed."

Last month Bumi announced it was postponing the publication of its annual earnings to April 24th while it reviews the balance sheet of 85% owned Berau.

Bumi is working to separate from the Bakries after overcoming an attempt by Rotshchild to replace members of the board in his effort to take back control.

The Bakries have proposed exchanging their 23.8% of Bumi for 10.3% of Bumi Resources. Under the plan, Bumi would sell the remaining 18.9% of its Bumi Resources stake for $278m to the family.

It comes following long running company infighting between Rothschild and the Bakries as Bumi has been dragged through the dirt by weak coal prices and allegations of misuse and misappropriation of funds, which set off an internal investigation.

Shares fell 0.53% to 298.40p at 15:23 Friday.

Recommended

Three top-notch Asian stocks to buy
Share tips

Three top-notch Asian stocks to buy

Professional investors Adrian Lim and Pruksa Iamthongthong, managers of the Asia Dragon Trust, pick three of their favourite Asian stocks to buy now.
23 Sep 2022
Why you should short this broadband satellite company
Trading

Why you should short this broadband satellite company

With an ill-considered business plan, broadband satellite company AST SpaceMobile is doomed to failure, says Matthew Partridge. Here's how to short th…
23 Sep 2022
Share tips of the week – 23 September
Share tips

Share tips of the week – 23 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
23 Sep 2022
Momentum investing – and why price matters more than anything else
Investment strategy

Momentum investing – and why price matters more than anything else

The recent fashion for momentum investing, with investors piling into expensive growth stocks, is nothing new, says Merryn Somerset Webb. And the dang…
21 Sep 2022

Most Popular

Paypal, bitcoin, and the weaponisation of money
Bitcoin & crypto

Paypal, bitcoin, and the weaponisation of money

Recent events have shown how both business and governments can “weaponise” money and shut down dissent. What to do? Buy bitcoin, says Dominic Frisby.
22 Sep 2022
Why we should abolish stamp duty – the worst tax in Britain
Tax

Why we should abolish stamp duty – the worst tax in Britain

Stamp duty is Britain’s most horrible tax. We should forget cutting it and abolish it altogether, says Merryn Somerset Webb.
22 Sep 2022
What we know and what to expect from Kwasi Kwarteng's mini-Budget
Budget

What we know and what to expect from Kwasi Kwarteng's mini-Budget

New chancellor Kwasi Kwarteng is to deliver a “mini-Budget”. Nicole García Mérida explains what we can expect to see.
22 Sep 2022