Delta Dunia makes profit despite industry downturn

Despite the global coal industry downturn, IDX-listed coal mining services company PT Delta Dunia Makmur Tbk managed to deliver profit in the quarter ending September of this year, thanks to cost-saving and productivity measures.

Kontan reported Friday that the company managed to make a net profit of US$16.72 million in the first nine-month period of this year, from a net loss of $13.33 million in the same January-September period of last year.

Revenue in the nine-month period of this year declined by 15 percent to $458.97 million from $540.57 million in the corresponding period of last year. Fortunately, cost of revenue declined by 18.75 percent.

?For the past two years, we have been saving cost because the industry is still suffering. Our strategy is to maintain cash flow and reduce costs,? Delta Dunia Director Errinto Pardede told Kontan.

In addition, Delta Dunia has also managed to reduced debt by repaying some $149 million loan.

Meanwhile, overburden removal in the first nine months of this year declined by 7 percent to 210 million bank cubic meters compared to the corresponding period of last year. The over burden removal target for this year is 280 million bcm.

Coal getting during the January-September 2014 period fell by 5 percent to 23 million tons year-on-year. Full-year target has been set at 30-32 million tons.

?The decline in overburden removal and coal getting is in line with target because some contracts ended in 2013,? Errinto said.

Delta Dunia clients include coal mining firms Adaro, Berau Coal, Bayan, Kideco, and Multi Tambang Jaya. The company is seeking new contracts ahead. (*)