Adaro revises 2012 capex

By Ruli Setiawan

IDX-listed coal miner PT Adaro Energy Tbk., has revised its total capital expenditure allocated for this year with the largest reduction in spending will be for heavy equipments.

The company in its first half year's report to IDX said that this year's capex has been revised to US$400 to $500 million from the original target of US$650 to US$700 million

"The largest reduction in spending will be for heavy equipment as our current fleet provides us adequate capacity for our production target," the company said.

The company's consolidated auditor-reviewed financial statements for the first half ended June 30th said that its net revenue increased 9.1% to US$1,931 million as average selling price improved year over year.

The EBITDA grew 4.4% to US$667.5 million year-on-year and EBITDA margin remained robust at 34.6%.

It said that net income declined slightly, 3.0%, to US$260.1 million, while gross profit margin stayed relatively flat at approximately 33%.

Adaro Energy?s President Director, Garibaldi Thohir said, ?We are pleased with our first half results amid the difficult market conditions. We are not immune to cyclical downturns; however, we will not loose focus on our core business and will continue to improve our efficiency, reduce costs, and maintain a strong balance sheet. At times like this we need to get back to the basics."

"We remain on track to achieve our main goal of creating long-term sustainable value from Indonesian coal by building a better and more efficient Adaro Energy. ?

The report says the production and sales volumes for 1H12 were flat at 23.01 million tons and 23.69 Mt, respectively.

During the first half, Adaro produced 3.73 Mt of E4000 (Wara) coal, an increase of 47% over 1H11.

The company also revised down production target to 48 to 51 million tons from 50 to 53 million tons due to challenging market conditions.

Editing by Adianto P. Simamora