Adaro 2013 net income drops by 40%
Tuesday, March 11 2014 - 01:28 AM WIB
Despite record production last year, IDX-listed coal giant PT Adaro Energy Tbk said that net income plunged by 40 percent year-on-year to US$229 million due to lower revenue driven by softer average selling price.
The company said in a statement Monday unveiling its 2013 performance that production last year was recorded at 52.3 million tons, up 11 percent from 47.2 million tons in the previous year. It added that fourth quarter production of 13.59 million tons was the company?s second highest quarterly production.
But the lingering downturn in the global coal market has weakened the prices of the commodity during the year. ?Coal prices continued to be under pressure in 2013, mainly due to an oversupply in the coal market and softer domestic prices in China,? the company said without unveiling the average selling price for its product.
The company said that amid such macro challenges, the company continued to improve cost efficiency and productivity. ?Our low-cost business model remained resilient and we were able to lower our cash cost and deliver robust cash flow through an improved focus on cost discipline and productivity,? Adaro said.
?We beat our FY13 coal cash cost (excluding royalty) target of US$35 to $38 per ton for FY13 posting coal cash cost of $34.86 per ton, down 11 percent due to cost reduction initiatives and lower than expected fuel prices,? Adaro said.
It added that the company?s liquidity condition remains solid with access to cash of approximately $1.1 billion, allowing it to weather the current cyclical downturn and continue to execute on its business model.
Adaro Operational Performance
| 2013 | 2012 | % Change | |
| Production Volume (Mt) | 52.3 | 47.2 | 11% |
| Sales Volume (Mt | 53.5 | 48.6 | 10% |
| Overburden Removal (Mbcm) | 294.9 | 331.5 | -11% |
Adaro Financial Performance
| (US$ Million, except otherwise stated) | 2013 | 2012 | % Change |
| Net Revenue | 3,285 | 3,722 | -12% |
| Cost of Revenue | (2,546) | (2,680) | -5% |
| Gross Profit | 739 | 1,043 | -29% |
| Operating Income | 534 | 836 | -36% |
| Net Income | 229 | 383 | -40% |
| Core Earnings | 284 | 440 | 36% |
| EBITDA | 822 | 1,101 | -25% |
| Operational EBITDA | 860 | 1,111 | -23% |
| Total Assets | 6,734 | 6,692 | 1% |
| Total Liabilities | 3,539 | 3,697 | -4% |
| Stockholders' Equity | 3,195 | 2,995 | 7% |
| Interest Bearing Debt | 2,221 | 2,445 | -9% |
| Cash | 681 | 500 | 36% |
| Net Debt | 1,540 | 1,945 | -21% |
| Capital Expenditure | 165 | 485 | -66% |
| Free Cash Flow | 568 | 235 | 141% |
| Basic Earnings Per Share (EPS) in US$ | 0.00723 | 0.01205 | -40% |
| Coal cash cost (ex. royalty) in US$ | 34.86 | 38.95 | -11% |
Editing by Reiner Simanjuntak