Indika targets revenue to rise to US$1 billion this year

By Thomas Sembiring

Petromindo

IDX-listed integrated energy company PT Indika Energy Tbk projected revenue this year to increase by 25 percent to US$1 billion from $800 million last year on higher coal price.

Indika Finance Director Azis Armand said on Monday that coal price is expected to stabilize at $70-80 per ton this year, higher compared to last year?s average of $50, although price development will also depend on coal production in two large producing countries of China and Australia as Indonesia?s output this year is expected to only slightly increase.

Azis said that coal sales volume this year is targeted to reach 33 million tons, a slight increase from 32 million tons last year. The company hopes for additional 1 million tons coal output from coal mining subsidiary PT Multi Tambangjaya Utama, which operates mines in Barito Selatan and Barito Timur regencies, South Kalimantan Province. Much of the coal sales volume will be contributed by subsidiary PT Kideco Jaya Agung, which operates coal mines in East Kalimantan.

Azis said that the company plans to allocate about $80 million for capital expenditure this year, a sharp increase from $35 million allocated for last year. Part of the capex will be used to acquire new equipment and maintain existing equipment.

The expected higher revenue this year, however, will be much contributed by the company?s coal mining and oil and gas services subsidiary companies IDX-listed PT Petrosea Tbk and PT Tripatra. ?Petrosea obtained quite large contracts last year,? said Indika President Director Arsjad Rasjid.

Editing by Reiner Simanjuntak