Delta Dunia swings to profit
Thursday, June 16 2016 - 02:31 AM WIB
IDX-listed coal mining contractor PT Delta Dunia Makmur Tbk booked a net profit of US$3 million in the first quarter of this year, from a net loss of $10 million in the corresponding period of last year.
This was said by Delta Director Eddy Poerwanto on Wednesday. He said that revenue in the first quarter of this year increased to $127 million compared to $122 million in the first three months of last year.
He explained that the higher revenue was supported by a 6 percent increase in the over burden removal volume at 62.4 million bank cubic meters (bcm).
Meanwhile, coal production during the first quarter slightly declined to eight million tons.
Nevertheless, Delta managed to lower cash cost to $1.09 per bcm in the first quarter of this year from $1.16 per bcm in the corresponding period of last year. Eddy said that this is the result of the cost-cutting and efficiency measures launched by the company to help cope with the lingering drop in coal price.
Eddy said his company currently has contract on hand worth $1.6 billion, and is hoping to grab new contract this year. Its largest client so far is coal mining firm PT Berau Coal, which contributes up to 51 percent to Delta?s total revenue, followed by Kideco (17%), Kaltim Prima Coal (12%), Adaro (12%), and others (8%).
The company this year allocates between $80 million and $120 million for capital expenditure, compared to $46.33 million last year. This year?s capex will be used to among others acquire new equipment particularly when the company gets new contract this year. Eddy said that in the first quarter of this year, the company has used $3 million of the capex budget.
About 75 percent of the 2016 capex plan would be financed via internal funds, while the remainder from leasing companies. Delta has funding capacity of up to $120 million.
Editing by Reiner Simanjuntak