Garda Tujuh eyes US$117 million total sales this year

IDX-listed coal mining firm PT Garda Tujuh Buana Tbk (GTBO) has projected to book total production of about 3 million tons this year, a 130.77 percent increase from 1.3 million tons last year, Kontan business daily reported Thursday.

With the increase in the production, the company estimates the total sales would increase by 229 percent to US$117 million or about Rp 1.05 trillion from Rp 320 billion last year.

The production was far lower last year because the company only began commercial production in the second quarter.

GTBO chief commissioner Pardeep Dhir said that the projected sharp increase in the sales was not only caused by the sharp increase in the production estimate but also due to the projected increase in prices.

The company estimates coal price would increase by 26 percent to $39 per ton from $31 per ton last year.

With the sharp increase in total sales, GTBO expects earnings before interest, tax, depreciation and amortization (EBITDA) would reach $72 million or about Rp 648 billion, while the net profit is projected to reach between $50 million and $55 million or between Rp 450 billion and Rp 495 billion.

Last year, the company booked net profit of Rp 74 billion. (*)