Lower selling price cuts Adaro's revenue in Q1
Tuesday, April 30 2013 - 05:59 AM WIB
IDX-listed PT Adaro Energy Tbk reported on Monday its net revenue decreased 19% year on year to US$740.6 million from $915.9 million due to lower selling prices for the first quarter ended March 31st, 2013.
Adaro's average selling price (ASP) in 1Q13 decreased 18% y-o-y as the weakness in global coal indices reflected in our pricing.
It said that the 1Q 13 net income declined 66% y-o-y to US$41.6 million from US$121.8 million.
The company's statement however said that the company was on track to reach EBITDA guidance for 2013 of US$850 million to US$1 billion.
Adaro Energy?s President Director, Garibaldi Thohir said, ?The current market condition is a healthy correction against undisciplined supply growth and we expect robust demand in the Asia-Pacific region for moderate and low-rank coal to continue in the medium term. Mining is a long-term business and our low cost business model will allow us to weather the bad times and remain on track to create long-term value from Indonesian coal.
?We recorded production growth of 4% y-o-y to 11.42 million tons (Mt) and sales volume stayed relatively flat y-o-y at 11.23 Mt. During the first quarter, coal production from Paringin surged 310% y-o-y to 0.9 Mt and Wara increased 7% y-o-y to 1.77 Mt, while Tutupan decreased 4% y-o-y to 8.75 Mt. We are on track to achieve our annual production guidance of 50 to 53 Mt for 2013. Our overburden removal decreased 11% y-o-y to 62.25 Mbcm as we decided to reduce our average planned strip ratio from 6.4x in 2012 to 5.75x in 2013.
The company said that its coal cash cost (excluding royalty) decreased 4% y-o-y to US$37.10 per ton.
Editing by Adianto P. Simamora