ITM reports lower 2015 revenue

By Romel S. Gurky

Thai conglomerate Banpu Pcl said that its Indonesian coal unit, IDX-listed coal mining company PT Indo Tambangraya Megah Tbk (ITM) reported weaker financial performance last year due to the lingering coal industry downturn.

The company said in a statement Thursday that the Indonesia coal under ITM group recorded 18 percent lower sales revenue to the amount of US$1,639 million in 2015 compared to the previous year, deriving from sales volume of 28.16 million tons (3% lower) and an average selling price of $58.38 per ton (13% lower). Meanwhile, production declined last year to 27.98 million tons from 29.85 million tons in 2014.

The company explained that the actively adjusted mine plans to increase the efficiency and reduce cost led to the lower average stripping ratio to 8.65 times last year compared to 9.76 times in previous year. The rapid fall in global oil prices during the year also boded well for fuel cost, with diesel price falling by 48 percent to an average of $0.53 per liter.

ITM cost of goods sold therefore effectively reduced by 16 percent to $37.4 per ton. The gross profit margin maintained at a sound level of 35 percent compared to 34 percent in previous year.

For the fourth quarter (Q4) of 2015, sale volume of ITM was 7.3 million tons (5% QoQ) with ASP of $55.6 per ton, (-3% QoQ). Its cost of sale was at $35.9 per ton (-1 % QoQ) with average gross profit margin of 35 percent (37% in 3Q15).

Banpu runs its coal mining business in Indonesia through subsidiaries PT Indo Tambangraya Megah Tbk, which has five coal mine units including PT Indominco Mandiri, PT Trubaindo Coal Mining, PT. Bharinto Ekatama, PT. Kitadin and PT Jorong Barutama Greston.

Editing by Reiner Simanjuntak