Adaro?s H1 net profit jumps 16 fold on higher selling price

IDX-listed energy firm PT Adaro Energy Tbk said Monday that its unaudited net profit for six-months period ended June 30, 2009, reached Rp 2.25 trillion (1US$ = Rp 10,050), a sixteen-fold jump from the same period in 2008 due to higher coal prices.

Adaro Energy?s consolidated net revenue increased by 64 percent to Rp 12.17 trillion in the first half of 2009. The increase in coal prices also benefits Coaltrade, the firm's trading arm, which along with Adaro Indonesia, the firm's coal mining arm, account for 94 percent of the consolidated net revenue, the company said.

Consolidated cost of revenue increased 26 percent to Rp 7.45 trillion. A large portion of the increase was driven by rising mining costs as a result of increased overburden removal activities, despite lower production volume.

Fuel remains a substantial cost, accounting for around 25 percent of the total. To cut fuel costs, Adaro Energy has taken over most of fuel procurement activities for the entire group, it added

The firm's total operating expenses increased 107 percent to Rp 513.6 billion in the first semester, driven by higher sales commissions, linked to higher sales revenues, as well as higher employee costs.

Adaro Energy is a holding company with subsidiaries including South Kalimantan-based coal miner PT Adaro Indonesia, coal terminal operator PT Indonesia Bulk Terminal, coal mining contractor PT Saptaindra Sejati and power plant operator PT Makmur Sejahtera Wisesa. (denny)