ATPK Resources suffers Q1 loss

IDX-listed coal miner PT ATPK Resources Tbk suffered a Rp 1.9 billion loss in the first quarter (Q1) of this year compared to a net profit of Rp 25.64 billion in the same period of last year, Kontan reported on Wednesday.

This is despite a 16.33 percent increase in net revenue during the quarter to Rp 117.39 billion from Rp 100.91 billion in the corresponding quarter of last year.

Director Albert J. Bangun said that the increase in net sales was made possible as the company managed to raise coal sales volume by 14 percent to 388,491 tons from 340,529 tons.

However, increase in cost of sales, higher heavy equipment insurance cost, and foreign exchange loss undermined its profitability. Cost of sales in the first quarter of this year increased by 29.79 percent, while at the same time coal price dropped.

Albert said that company hopes to be able to maintain last year?s revenue and net profit of respectively Rp 672.65 billion and Rp 53.67 billion.

The company is also seeking to diversify to developing small-scale coal-fired power plants with capacity of 50 MW near one of its producing mines in East Kalimantan.

ATPK Resources through subsidiary PT Sarana Mandiri Utama operates a coal concession in Tana Tidung Regency, East Kalimantan, with estimated reserves of 3,458 million tons. (*)