Golden Energy 2012 output up 22%

By Romel S. Gurky

Despite the weak global coal market condition and rising trend in production cost, coal miner IDX-listed PT Golden Energy Mines Tbk said that production last year rose by 22 percent from 4.390 mmt in 2011 to 5.345 mmt in 2012.

Golden Energy, a unit of the well-diversified Sinar Mas Group, said in a statement Wednesday that sales volume increased by 35 percent from 5.689 mmt in 2011 to 7.687 mmt in 2012.

?This included trading volumes of 2.176 mmt (1.576 mmt in 2011). While the revenue recorded year-on-year growth by 38 percent to Rp 3,959 billion, the profit after tax declined from Rp 319 billion in 2011 to Rp 179 billion in 2012,? the company said in a statement on Wednesday.

Commenting on the performance of the company, Fuganto Widjaja, the President Director said, ?2012 was a challenging year for the industry as a whole and we were no exception. While the prices softened, the cost increases in our operations, solar price increase and a depreciating Rupiah compounded the business economics.?

?Our response at GEMS was to use this period to work on our housekeeping and improve on our efficiencies and capabilities. On the mining side, we invested in debottlenecking our logistics and infrastructure space,? he added.

?In terms of performance, we grow our production volumes by around 22 percent. Our trading volumes grew over 38 percent. Our profitability though took a hit with a PBT of 6 percent of revenue as against 15 percent year-on-year. The fact that we are practically debt free, has helped us better deal with the market situation and with a cash reserves of over Rp 951 billion, we are well prepared for capitalizing on growth as the market improves?.

Golden Energy is the holding company of 10 subsidiaries. Eight subsidiary companies are engaged in mining of thermal coal with calorie value ranging between 5200-6100 kcal / kg (adb). Mining project sites are all located entirely in Indonesia, scattered in Jambi, South Kalimantan and Central Kalimantan with total reserves of 688 mmt in a total area covering 38,165 hectares.

Editing by Reiner Simanjuntak