Golden Energy?s net profit surges 788%

PT Golden Energy Mines Tbk (GEMS), a coal mining firm owned by Sinar Mas Group, booked net profit of Rp 302 billion in 2011, a 788 percent increase from Rp 34 billion in the previous year on the back of the surge in the company?s coal production.

Golden Energy said its sales rose by 209 percent to Rp 2.86 trillion last year from Rp 927 billion in 2010 due to the sharp increase in its coal production, which rose by 149 percent to 4.39 million tons from 1.76 million tons in 2010.

?Year 2011 was a breakthrough in the company?s efforts to become a major coal producer in the Asia and Pacific,? the company?s president director Fuganto Widjaja said on Wednesday.

Golden Energy plans to use a larger part of the funds raised during the company?s initial public offering (IPO) in November, last year to improve infrastructure facilities and to further boost mining operations. The company raised about Rp 2.2 trillion during the IPO.

Golden Energy, through its subsidiaries, operates coal mines in Sumatera, Central Kalimantan, and South Kalimantan which have combined coal reserves of about 911.25 million tons. (*)