ITMG?s net profit doubles on higher price, efficiency
Thursday, March 30 2017 - 02:13 AM WIB
IDX-listed coal mining firm PT Indonesia Tambangraya Megah Tbk (ITMG) saw its net profit last year doubled to US$131 million from $63 million despite lower sales volume.
ITMG Finance Director Yulius Kurniawan Gozali said on Wednesday that sales volume last year slightly fell to 26.7 million tons from 28.2 million tons in 2015.
He said that despite the lower sales volume, efficiency drive and higher coal price in the second-half of last year allowed the company to enjoy stronger net profit last year. ITMG saw its coal price increased from $49.9 per ton in the third quarter of 2016 to $59.8 per ton in the fourth quarter.
Yulius reiterated that the company plans to increase coal sales volume this year to 27 million tons from 26.7 million tons last year. He added that about 61 percent of the sales volume target has been contracted mostly with overseas buyers.
ITMG said in a presentation material on February 27 said that coal output this year is expected to be relatively flat at 25.5 million tons compared to 25.6 million tons last year.
The bulk of this year?s output will come from subsidiary PT Indominco Mandiri, which is expected to produce 15.3 million tons. Other subsidiaries including PT Trubaindo Coal Mining and PT Bharinto Ekatama will produce a combined 7.9 million tons, PT Kitadin and Tandung Mayang to produce a total of 1 million tons, and PT Jorong Barutama Greston 1.2 million tons.
ITMG has allocated capital expenditure worth $60.3 million this year.
Editing by Reiner Simanjuntak