Adaro sets conservative coal output target

After registering a slight increase in coal production last year, IDX-listed coal giant PT Adaro Energy Tbk projected coal production this year at 54 million-56 million tons.

Last year, the company?s realized coal production was 54.04 million tons, a slight 4 percent increase from 51.79 million tons in the previous year. The relatively conservative coal output target this year comes amid declining trend in coal price in recent months as key market of China limited imports.

?Guidance for 2019 production is 54 million-56 million tons,? Adaro said in a statement on Monday, adding that stripping ratio is projected at 4.56x, down compared to 5.06x last year.

The company also said that operational EBITDA is projected at US$1 billion-$1.2 billion.

Adaro said that it plans capital expenditure of $450 million-$600 million for this year. No further details were provided.

Editing by Reiner Simanjuntak