Delta Dunia swings to profit, targets higher revenue
Tuesday, March 21 2017 - 01:05 AM WIB
Delta Dunia said in a statement on Monday that it booked a net profit of US$37 million last year compared to a net loss of $8 million in 2015.
The company said it delivered overburden removal of 299.8 million bcm and coal of 35.1 million tons. Net revenue increased from US$566 million in 2015 to $611 million in 2016. EBITDA also improved from $186 million to $217 million in 2016 as the result of improvement in volume, productivity and various cost efficiency measures.
Cash flows generation continued to be very strong that the company generated free cash flows of $107 million after investment of $126 million in capital expenditure. Outstanding debt was reduced by a net of $73 million throughout 2016, resulting in net debt position of $497 million and net debt to EBITDA ratio of 2.3x.
As announced previously, Delta Dunia has signed several contracts with coal miners throughout 2016 consisting mostly of contract extensions to life of mine and some, with significant additional volume. Contracts signed included contract extension with PT Tadjahan Antang Mineral valued at $288 million, contract amendments with PT Berau Coal valued at $3 billion, with PT UPS Sidrap Bayu Energy valued at $4 million, contract extension with PT Adaro Indonesia valued at $428 million, and a new contract with PT Angsana Jaya Energi valued at $66 million. Total contract on hand with customers is approximately $5 billion.
?With the turnaround of the operations, existing contract on hand, much improved balance sheets position and the recovery of coal price; the management believes that this is an exciting time and the company looks forward to profitable growth in the future,? Delta Dunia said in the statement.
Meanwhile, Delta Dunia Finance Director Eddy Purwanto was quoted by Kontan as saying Tuesday that the company has set a target to increase revenue this year by 14.56-22.75 percent to $700 million-$750 million.
To help achieve the target, the company has allocated $120 million for capital expenditure this year among others to replace heavy equipment.
Editing by Reiner Simanjuntak