Adaro Energy increases production despite downturn
Friday, August 30 2013 - 02:38 AM WIB
IDX-listed coal mining firm PTAdaro Energy Tbk said it achieved record thermal coal production of 13.52 million tons (Mt) in the second quarter of this year, and increased production by 8 percent in the first half of 2013 to 24.94 Mt despite the current downturn in the global coal market.
The company said in a statement issued Thursday that during the period, Adaro decreased cost of revenue by 5.4 percent to US$1.23 billion and lowered cash cost (excluding royalty) by 7 percent year over year to $35.51 per ton.
Due to strong production and lower costs, Adaro recorded net income of $116 million. Adaro?s EBITDA margin was 26.2 percent, remaining among the best for Indonesian thermal coal producers, the company claimed.
?The balance sheet remained strong with net debt to EBITDA of 2.14x and access to nearly $1 billion of liquidity,? Adaro said.
Adaro Energy?s President Director and Chief Executive Officer, Garibaldi Thohir said: ?We are on track to achieve our 2013 targets and our long-term objective of creating maximum value from Indonesian coal. Mining operations at Adaro Indonesia continued to run well and delivered good results. Prolonged undisciplined supply growth following many years of investment has sustained lower global coal prices. However, prices for our low heat value coals were more resilient.?
| Summary of First Half 2013 Operational Performance | |||
| 1H 2013 | 1H 2012 | % Change | |
| Production Volume (Mt) | 24.94 | 23.01 | 8.4% |
| Sales Volume (Mt) | 25.00 | 23.69 | 5.5% |
| Overburden Removal (Mbcm) | 142.07 | 156.83 | -9.4% |
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Summary of First Half 2013 Financial Performance (US$ Million, Except Otherwise Stated) |
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| 1H 2013 | 1H 2012 | % Change | |
| Net Revenue | 1,579 | 1,931 | -18.2% |
| Cost of Revenue | (1,228) | (1,298) | -5.4% |
| Gross Profit | 351 | 634 | -44.6% |
| Operating Income | 276 | 551 | -50.0% |
| Net Income | 116 | 260 | -55.4% |
| EBITDA | 413 | 668 | -38.2% |
| Total Assets | 6,656 | 6,809 | -2.3% |
| Total Liabilities | 3,581 | 3,776 | -5.2% |
| Stockholders' Equity | 3,075 | 3,033 | 1.4% |
| Interest Bearing Debt | 2,346 | 2,525 | -7.1% |
| Cash and Cash Equivalents | 559 | 574 | -2.6% |
| Net Debt | 1,787 | 1,951 | -8.4% |
| Free Cash Flow (EBITDA - Capex) | 307 | 397 | -22.5% |
| Basic Earnings Per Share (EPS) in US$ | 0.00360 | 0.00813 | -55.7% |
| Summary of First Half 2013 Financial Ratios | |||
| 1H 2013 | 1H 2012 | % Change | |
| Gross Profit Margin (%) | 22.2% | 32.8% | -10.6% |
| Operating Margin (%) | 17.5% | 28.6% | -11.1% |
| EBITDA Margin (%) | 26.2% | 34.6% | -8.4% |
| Net Debt to Equity (x) | 0.58 | 0.64 | - |
| Net Debt to Last 12 Months EBITDA (x) | 2.14 | 1.30 | - |
| Cash from Operations to Capex (x) | 3.4 | 0.7 | - |
Editing by Reiner Simanjuntak