Adaro reports lower output amid market downturn
Saturday, August 8 2015 - 02:51 AM WIB
IDX-listed coal giant PT Adaro Energy Tbk said that coal production in the first semester of this year fell by 7 percent to 25.88 million tons compared to the corresponding period of last year amid the lingering downturn in the global coal market due to a combination of strong supply and slower demand growth.
The company said in a second quarter report published Friday that production in the quarter of this year from its subsidiaries PT Adaro Indonesia (AI) and PT Semesta Centramas (SCM) declined by 8 percent to 12.72 million tons compared to the same second quarter of last year.
?We removed 74.24 million bank cubic meter (Mbcm) of overburden in the quarter, 9 percent lower than 2Q14 and in-line with our lower strip ratio target for 2015 of 5.33x. Blended strip ratio from the four pits was 5.84 for the quarter, and 5.27 for the first half of this year,? Adaro said in the report.
The company said it sold 13.15 million tons of coal in the second quarter, 9 percent lower compared to 2Q14. ?As part of our strategy to optimize our coal assets, we continued to sell more E4900, which accounted for 66 percent of our total sales during the quarter,? the company said. The sales of E4900 increased by 10 percent, while E5000 and E4000 decreased by 24 percent and 78 percent respectively, compared to 2Q14. ?The market condition was particularly tough for low CV coal as supply for 4,000 kcal/kg type coal was plentiful.?
Adaro said the coal market remains challenging in the near-term. ?We continued to improve our operational excellence and have implemented initiatives to increase productivity and lower cash costs. We continue to maintain a reliable supply of coal for our customers and have concluded the majority of our pricing negotiations for the year.?
The company said it further developed its non-coal mining businesses including mining services, logistics, and power. ?Our mining services and logistics business performed well, and we have made good progress on our power projects.? Coal mining, mining services and logistics, and power together form the three engines of growth for Adaro Energy.
| Units | 2Q15 | 1Q15 | 2Q15 vs. 1Q15 | 2Q14 | 2Q15 vs. 2Q14 | 1H15 | 1H14 | 1H15 vs. 1H14 | |
| Coal Production | Mt | 12.72 | 13.17 | -3% | 13.84 | -8% | 25.88 | 27.82 | -7% |
| AI - Tutupan | Mt | 10.68 | 10.43 | 2% | 10.80 | -1% | 21.11 | 21.53 | -2% |
| AI - Paringin | Mt | 1.37 | 1.47 | -7% | 1.52 | -10% | 2.84 | 2.96 | -4% |
| AI ? Wara | Mt | 0.52 | 0.88 | -41% | 1.44 | -64% | 1.40 | 3.25 | -57% |
| Semesta Centramas (SCM) | Mt | 0.15 | 0.38 | -61% | 0.08 | 88% | 0.53 | 0.08 | 569% |
| Sales Volume | Mt | 13.15 | 13.43 | -2% | 14.39 | -9% | 26.59 | 28.25 | -6% |
| AI - E5000 | Mt | 3.40 | 3.49 | -2% | 4.46 | -24% | 6.89 | 9.00 | -23% |
| AI - E4700 / E4900 | Mt | 8.69 | 8.60 | 1% | 7.89 | 10% | 17.29 | 15.33 | 13% |
| AI - E4000 | Mt | 0.37 | 0.96 | -61% | 1.71 | -78% | 1.33 | 3.59 | -63% |
| Balangan Coal | Mt | 0.17 | 0.39 | -56% | 0.06 | 183% | 0.56 | 0.06 | 828% |
| Coaltrade's 3rd party | Mt | 0.52 | - | 0.27 | 93% | 0.52 | 0.27 | 93% | |
| Overburden Removal | Mbcm | 74.24 | 62.10 | 20% | 81.31 | -9% | 136.35 | 149.53 | -9% |
| AI | Mbcm | 71.66 | 60.53 | 18% | 80.42 | -11% | 132.19 | 148.64 | -11% |
| Semesta Centramas (SCM) | Mbcm | 2.58 | 1.57 | 64% | 0.89 | 190% | 4.16 | 0.89 | 367% |
Editing by Reiner Simanjuntak