Kideco?s revenue up 27.4% on higher coal price

By Romel S. Gurky

Petromindo

East Kalimantan coal mining company PT Kideco Jaya Agung, a subsidiary of IDX-listed integrated energy company PT Indika Energy Tbk, reported that revenue in the first semester of this year increased by 27.4 percent to US$808.7 million from $634.7 million in the corresponding six-month period of last year (6M16) due to higher average selling price (ASP).

Indika said in a statement on Wednesday that ASP increased 38.2 prcent from $36.8 million per ton in 6M16 to $50.9 million per ton in 6M17.

Sales volumes, however, declined 7.9 percent from 17.3 million tons to 15.9 million tons.

Cash cost including royalty increased from $31.2/Mt to $32.0/Mt in 6M17 mainly as a result of higher stripping ratio at 5.6x in 6M17 compared to 5.4x in 6M16 and higher royalty expenses.

Kideco?s net profit jumped significantly 232.3 percent from $45.6 million in 6M16 to $151.5 million in 6M17, Indika said.

According to Indika website, Kideco Jaya Agung, established in 1982, undertakes surface coal mining at a 50,921 hectare concession in Paser Regency, East Kalimantan Province, where it holds coal mining rights under a first-generation Coal Contract of Work (CCoW) until 2023. Kideco, which currently operates five open pit mining sites with estimated coal reserves and resources of 651 million tons and 1,376 million tons respectively, produces a range of sub-bituminous coal containing low levels of sulfur, ash and nitrogen, making it environmentally friendly for use in coal-fired power plants.

Editing by Reiner Simanjuntak