Adaro reports lower production
Saturday, October 31 2015 - 04:53 AM WIB
IDX-listed coal giant PT Adaro Energy Tbk said that coal production in the third quarter of this year (3Q15) slightly fell by 1 percent to 13.96 million tons compared to the corresponding period of last year amid lingering weak coal market.
?We produced 13.96 million tons (Mt) of coal from both PT Adaro Indonesia (AI) and PT Semesta Centramas (SCM) in 3Q15, 1 percent lower compared to the same period last year,? Adaro said in a statement Friday.
This brought total coal production for the first nine months of 2015 to 39.84 Mt, 5 percent lower compared to the same period in 2014 as the coal market remains challenging, the company said.
?Chronic oversupply in the market and tepid demand growth in major coal importing countries have put more pressure on coal prices,? Adaro said.
To maintain a healthy margin, the company said it revises its 2015 production guidance to 52?54 Mt from 54?56 Mt, more towards the lower end of the guidance, as challenging market condition persists, Adaro said
?We removed 76.72 million bank cubic meters (Mbcm) of overburden in the quarter, 17 percent lower than 3Q14 and in-line with our lower strip ratio target for 2015 of 5.33x,? the company said. The blended strip ratio from the four pits was 5.50x for the quarter, and 5.35x in the nine months period to end of September.
Adaro said it sold 14.61 Mt of coal in the quarter, a 3 percent increase from 3Q14. Sales of the company?s E4900 increased by 23 percent, while sales of E5000 and E4000 decreased by 13 percent and 49 percent respectively, compared to 3Q14.
Adaro said capital structure remained strong as it booked net debt to last 12 months Operational EBITDA of 1.18x and net debt to equity of 0.26x at the end of 9M15.
?We maintained strong liquidity with cash balance of US$785 million providing support to weather the current downturn,? the company said.
Adaro booked 16 percent lower revenue to $2,112 million due to 3 percent lower sales volume of 41.2 Mt and 14 percent lower ASP.
The company?s 9M15 Operational EBITDA, which excluded non-operational accounting items, decreased 19 percent to $568 million.
?We lowered our coal cash cost (excluding royalty) 13 percent to $28.61 per ton in 9M15, mainly due to a lower strip ratio, lower freight and handling costs, lower fuel costs, and other cost reduction initiatives,? the firm said.
The company said its 9M15 net income decreased 19 percent to $181 million. Core earnings, which exclude non-operational accounting items, declined 21 percent to $228 million. ?We generated positive free cash flow of US$356 million.?
| ? | Units | 3Q15 | 2Q15 | 3Q15 vs. 2Q15 | 3Q14 | 3Q15 vs. 3Q14 | 9M15 | 9M14 | 9M15 vs. 9M14 |
| Coal Production | Mt | 13.96 | 12.72 | 10% | 14.03 | -1% | 39.83 | 41.90 | -5% |
| AI - Tutupan | Mt | 11.35 | 10.68 | 6% | 10.61 | 7% | 32.46 | 32.15 | 1% |
| AI - Paringin | Mt | 1.49 | 1.37 | 9% | 1.70 | -12% | 4.32 | 4.66 | -7% |
| AI ? Wara | Mt | 0.79 | 0.52 | 51% | 1.25 | -37% | 2.19 | 4.50 | -51% |
| SCM | Mt | 0.33 | 0.15 | 119% | 0.47 | -30% | 0.86 | 0.59 | 47% |
| Sales Volume | Mt | 14.61 | 13.15 | 11% | 14.13 | 3% | 41.21 | 42.37 | -3% |
| AI - E5000 | Mt | 3.94 | 3.40 | 16% | 4.53 | -13% | 10.83 | 13.53 | -20% |
| AI - E4900 | Mt | 9.34 | 8.69 | 7% | 7.58 | 23% | 26.63 | 22.91 | 16% |
| AI - E4000 | Mt | 0.76 | 0.37 | 105% | 1.50 | -49% | 2.10 | 5.09 | -59% |
| Balangan Coal | Mt | 0.33 | 0.17 | 96% | 0.33 | 1% | 0.89 | 0.39 | 128% |
| Coaltrade's 3rd party | Mt | 0.24 | 0.52 | -54% | 0.19 | 26% | 0.76 | 0.45 | 69% |
| Overburden Removal | Mbcm | 76.72 | 74.24 | 3% | 92.15 | -17% | 213.07 | 241.68 | -12% |
| AI | Mbcm | 75.98 | 71.66 | 6% | 90.47 | -16% | 208.17 | 239.11 | -13% |
| SCM | Mbcm | 0.74 | 2.58 | -71% | 1.68 | -56% | 4.90 | 2.57 | 91% |
Editing by Reiner Simanjuntak