ITM books highest net income in 5 years

By Er Audy Zandri

PT Indo Tambangraya Megah Tbk., a subsidiary of Thai based Banpu, managed to book US$546 million of net income in 2011, 168 percent higher than their recorded net income of US$204 million in the previous year.

The company stated it was the highest booked net income in five years since it was first listed as public company in the Indonesian Stock Exchange.

The higher net income resulted from a 45 percent increase in total revenue from US$1,645 million in 2010 to US$2,382 million in 2011, mainly driven by 11 percent increase in sales volume to 24.7 million tons in 2011 from 22.1 million tons in 2010 and 30 percent higher average selling price of US$97.1 per ton from US$74.9 per ton in 2010.

ITM's biggest market so far are China at 5.8 million tons and Japan at 4.1 million tons followed by India at 2.3 million tons. The company's most producing mine, controlled by PT Indominco Mandiri on 25,121 hectares of concession area, is known to produce 14.8 million tons of coal with 6,700 to 6,800 cv in 2011. In addition to Indominco, ITM's mining concessions include those owned by subsidiaries PT Trubaindo Coal Mining (23,650ha), PT Bharinto Ekatama (22,000ha), PT Kitadin (5,311ha) and PT Jorong Barutama Grestons (11,478ha), all located in East Kalimantan.

Higher revenue lifted ITM's earnings before interest and tax to US$707 million in 2011, up 95 percent from US$363 million in the previous year, though operating expenses gone up by 19 percent to US$185 million this year.

ITM's shareholders' general meeting today also appoints Pongsak Thongampai as new company president director, replacing Somyot Ruchirawat.

Editing by David Mustakim