Jakarta. Coal mining firm Bukit Asam (PTBA)'s stock is expected to continue its upward trend, in line with the plan for dividend payment from the 2022 results. 

The company is set to announce higher dividend payout during the annual shareholders' meeting on Thursday.

Market analyst Teguh Hidayat said PTBA is likely to announce dividends ranging from Rp 800 to Rp 1,100 per share at the upcoming meeting, corresponding to a dividend payout ratio (DPR) ranging from 73-100 percent.

He sad the dividend payment estimate takes into account five factors: Bukit Asam's dividend payment history, profit for the 2022 fiscal year, net operational cash flow, cash holdings of the company, and cash requirements for business expansion or debt repayment.

"Historically, PTBA has paid dividends around 70 to 80 percent of its profit. It even distributed the enitre profit as dividend last year. Therefore, there is a possibility that this year's dividend will also be 100 percent of the profit, amounting to Rp 1,094 per share for the 2022 fiscal year," wrote Teguh, who is a director at Avere Investama.

PTBA recorded a net cash flow of Rp 12.5 trillion, nearly the same amount to its profit last year.

"It's imporrant to check this cash flow statement because the company's net profit may not all be in the form of cash, while for dividend payment, the company needs to use cash," he said.

Furthermore, Teguh stated that PTBA's cash position reached Rp 16 trillion, equivalent to Rp 1,388 per share. With this cash position, PTBA has more than enough funds to pay dividends of Rp 1,000 per share.

He warned that Bukit Asam possibly needs cash to repay debts or for specific expansions. It was reported earlier that the company plans to acquire Pelabuhan Ratu Power Plant from state-owned electricity company PLN that will require cash payment. 

Bukit Asam has reported a record net profit of Rp 12.6 trillion, an increase of 59 percent on the Rp 7.9 trillion profit achieved a year earlier.

It has consistently distributed dividends in recent years, with the highest dividend record achieved in the 2021 financial performance. The dividend payout ratio reached almost 100 percent, amounting to Rp 7.9 trillion or Rp 688.51 per share. 

The lowest dividend was distributed in the 2020 financial performance, which was understandable considering the significant impact of the Covid-10 pandemic.