Indika continues to suffer loss

By Thomas Sembiring

IDX-listed energy company PT Indika Energy Tbk said that it continued to suffer loss in 2014 due to the lingering decline in global coal price. The company reported a net loss of US$25.58 million in 2014, after booking a $54 million loss in the previous year.

Director Azis Armand said on Wednesday that operating profit last year tumbled by 25.6 percent to $28.9 million from the level in the previous year despite a 28.5 percent increase in revenue to $1.11 billion. But cost of sales jumped by 41.6 percent last year to $948 million.

The company said that the higher revenue was primarily contributed by its oil and gas and mining services subsidiaries Tripatra and Petrosea, each accounting for more than 30 percent of the total revenue.

?The difficult coal market condition throughout 2014 continued to provide pressure on the company?s business operation,? said Azis. Indonesia?s coal price reference dropped by 27 percent last year.

Editing by Reiner Simanjuntak