Adaro?s 9-month net profit doubles on higher sales volume, price

Coal mining group Adaro Energy Tbk said Friday consolidated net profit for the first nine months of 2008 increased 109% to Rp686 billion (US$ = Rp.12, 250) from the Rp329 billion for the first nine months of 2007.

The significant increase is mostly due to higher achieved selling prices of coal as well as increased production, the company said.

Adaro said that despite difficult weather conditions earlier in the year, production volume rose 6 percent to 28.7 million tonnes.

Sales volume, including 1.2 million tonnes of third-party coal trading, increased 9 percent to 30.9 million tonnes, Adaro said.

The increase in net income was also made possible by a relatively smaller 38% increase of cost of revenue.

Adaro Energy?s operating income, not affected by non-recurring expenses, rose 78% to Rp2, 719 billion. EBITDA increased 86% to Rp2,868 billion from Rp1,538 billion in 2007 and the EBITDA margin increased from 18% to 23%.

The company?s subsidiary PT.Adaro Indonesia, operates a huge coal mine in South Kalimantan. Apart from coal mining, the company also engaged in mining contracting, trading and coal terminal operations. (alex)