ABM suffers $113.7m net loss
Thursday, April 2 2015 - 01:54 AM WIB
IDX-listed integrated energy company PT ABM Investama Tbk (ABM) suffered a net loss of US$113.7 million last year due to the lingering downturn in global coal market.
The company said in a statement Wednesday that it generated revenue amounting to $723.6 million with $106.6 million in EBITDA. ?However, due to the non-cash adjustment of asset impairment and charge provisions, the company incurred a net loss of US$113.7 million in 2014,? it said, without providing 2013 comparative figures.
ABM Investama President Director Andi Djajanegara said that despite the lingering weak coal market, he is optimistic that in the long term, coal business fundamentals in Indonesia remain fairly promising, in line with government policies that encourage the development of coal-based power plants in the country.
In the global market, demand from India as one of the major markets for ABM Investama coal continued to rise in 2014, the company said.
The massive construction of coal-based power plants is believed to raise Indian coal demand in 2015. To optimize market opportunities, both domestic and export, ABM said it will continue to execute initiatives to new markets and strengthen business chains for greater efficiency.
Throughout 2014, ABM said the coal mining and contractor segments generated up to $416.3 million in revenue. Amid the difficult thermal coal market conditions, ABM subsidiary PT Reswara Minergi Hartama booked coal sales amounting to 5.91 million tons, or up 11.1 percent. Meanwhile, PT Cipta Kridatama (CK) managed to raise the stripping volume up to 102.54 million BCM in 2014, an increase of 15.2 percent from 2013. In addition, CK also began expanding its business to construction services.
The electrical services segment generated revenue totaling $269.1 million, in which the rent fee for engine and power generators contributed as much as $138.7 million. The amount of electricity generated from machine rental services for temporary power reached 5,019 million KWH in 2014, or 8.1 percent more than in 2013.
In line with growing energy needs in Indonesia, ABM said it will also focus its investments in the electricity business in the future, among others through a number of power plant construction initiatives. This endeavor will be conducted either through investment alone or joint investment with strategic partners.
Meanwhile, the logistics services and boat rental segment contributed as much as $89.6 million in revenue, with the remaining $40.8 million contributed from Site Services and Refabrication, it said.
Editing by Reiner Simanjuntak