Delta Dunia reports lower revenue on weak coal market

IDX-listed mining services firm PT Delta Dunia Makmur Tbk saw revenue in the first-half of this year declined by more than 7 percent to US$320 million from $346.22 million in the same period of last year due to the lingering downturn in the global coal market, Investor Daily reported on Thursday.

The paper quoted company Corporate Secretary and Director Errinto Pardede as saying that overburden removal volume during the first semester of this year also fell by 7 percent to 138.9 million bank cubic meters from 149.5 million bcm in the same period of last year.

Meanwhile, coal production declined by 2.7 percent to 15.2 million tons, while coal hauling was relatively flat at 5-6 million tons, he said.

Errinto, however, said that despite the lingering weak coal prices and the slower first-half performance, the company was still optimistic to be able to meet full-year revenue target of $694 million. He did not disclose the net profit target.

Delta Dunia Finance Director Eddy Porwanto Poo said that the company was seeking to amend the terms of loans worth $750 million as part of financial efficiency strategy to cope with the current coal market downturn. He said that the company was seeking for lower interest rate, and extension of maturity period. (*)