Ancora expects to double earning on slightly increased total sales

Although with a slight increase in total sales, PT Ancora Indonesia Resources Tbk (OKAS) expects net profits will increase sharply this year following the operation of the company?s new ammonia nitrate factory.

Aulia M. Oemar, the company?s Finance Director said in Jakarta on Friday that sales were projected to increase only five percent to Rp 1.24 trillion this year from Rp 1.19 trillion last year. However, he said despite the slight increase in sales, earnings before interest, tax, appreciation and ammortization could double to US$20 million this year from $10 million last year.

Ancora is a diversified natural resource company involved in mining activities, mining explosive production and drilling and workover services in oil and gas sector. Its new ammonia nitrate factory began commercial operation in November, last year, with a capacity of 100,000 tons a year. The new factory is expected to increase production to 150,000 tons a year. Last year, Ancora produced 37,000 tons of ammonia nitrate.

Ancora is also seeking to acquire coal mines with reserves of between 25 million and 30 million tons. The company had recently reached an agreement to buy a coal mining company Raja Kutai Baru Makmur (RKBM). But the plan was cancelled because the coal mines owned by RKBM did not meet the criteria set by Ancora. (*)