Adaro Q1 net income jumps 344%
Wednesday, April 30 2014 - 12:59 AM WIB
IDX-listed coal giant PT Adaro Energy Tbk reported Tuesday that net income in the first quarter of this year soared by 344 percent to US$131 million compared to the same period of last year due to higher sales volume and lower costs.
The company said in a statement that revenue increased by 14 percent to $845 million despite a 7 percent decline in average selling price.
Cost of revenue declined 1 percent to $599million while EBITDA increased 81 percent to $306 million, resulting in an EBITDA margin of 36 percent.
Adaro said that it lowered its coal cash cost (excluding royalty) by 24 percent to $29.82 per ton in the first quarter of 2014, mostly due to the seasonally lower strip ratio, although overburden volumes increased 10 percent, as well as lower freight and handling, lower fuel cost, and other cost reduction initiatives.
?We increased production volume 22 percent in 1Q14 to 14.0 Mt and sales volume by 23 percent to 13.9 Mt due to strong demand for our coal,? the statement said.
Adaro said coal volumes slightly exceeded the plan for the first quarter, while overburden volumes were 95 percent of the plan.
?Our net capital expenditure during 1Q14 decreased by 62 percent to $18 million due to delays. We are on track to achieve our capital expenditure guidance of $200 million to $250 million,? the company said, adding that it generated strong positive free cash flow of $84 million.
It added that the company?s capital structure improved as it reduced debt by 6 percent and increased cash position 48 percent to $828 million, resulting in net debt to last 12 months EBITDA of 1.48x and net debt to equity of 0.43x as of the end of the first quarter 2014.
?Our liquidity was strong with access to cash of approximately $1.2 billion, allowing us to weather the cyclical downturn and continue to execute on our business model,? Adaro concluded.
Operational Performance
| 1Q2014 | 1Q2013 | % Change | |
| Production Volume (Mt) | 14.0 | 11.4 | 22% |
| Sales Volume (Mt | 13.9 | 11.2 | 23% |
| Overburden Removal (Mbcm) | 68.2 | 62.3 | 10% |
Financial Performance
| (US$ Million, except otherwise stated) | 1Q2014 | 1Q2013* | % Change |
| Net Revenue | 845 | 741 | 14% |
| Cost of Revenue | (599) | (605) | -1% |
| Gross Profit | 245 | 136 | 81% |
| Operating Income | 242 | 99 | 144% |
| Net Income | 131 | 30 | 344% |
| Core Earnings | 137 | 43 | 221% |
| EBITDA | 306 | 169 | 81% |
| Operational EBITDA | 294 | 169 | 74% |
| Total Assets | 6,895 | 6,602 | 4% |
| Total Liabilities | 3,567 | 3,574 | 0% |
| Stockholders' Equity | 3,327 | 3,028 | 10% |
| Interest Bearing Debt | 2,247 | 2,391 | -6% |
| Cash | 828 | 558 | 48% |
| Net Debt | 1,419 | 1,833 | -23% |
| Capital Expenditure | 18 | 47 | -62% |
| Free Cash Flow | 84 | 157 | -46% |
| Basic Earnings Per Share (EPS) in US$ | 0.00401 | 0.00090 | 351% |
| Coal cash cost (ex. royalty) in US$ | 29.82 | 39.05 | -24% |
| *As restated due to implementation of ISAK 29, ?Stripping Costs in the Production Phase of a Surface Mining? | |||
Editing by Reiner Simanjuntak