Petrosea re-positioning to mining service

Indonesia-listed firm PT Petrosea Tbk, a 98.55% owned by PT Indika Energy Tbk, is currently re-positioning its engineering & construction team to focus on mining and materials handling so that it may get more benefit from the expansion of the coal sector, Petrosea said on Friday in presentation material.

At the present, Petrosea has four major businesses, they are: mining and materials, Petrosea Offshore Base Supply (POSB), engineering & construction and coal mining.

The company?s engineering & construction division contributed only 3 percent to its 2010 total revenue of US$186.9. The largest contributor is the mining and mineral division, which accounted for 84% of the firm's total revenue. The remaining comes from POSB business.

?Petrosea is pre-eminent in contract mining, drawing upon a diverse and detailed track record of providing engineering and consulting skills to the resources sector. In 2010, mining services revenue increased by 15% on year to $157 million which is about 84% of total Petrosea revenue,? the company said.

The company also said that its net income from coal mining business jumped by $15.1 million in 2010 from $268,000 in 2009, primarily due to the first full year of operation of its 50% owned coal mining company PT Santan Batubara, which produced 2.0 million tonnes of coal last year versus nine-month production of 1.3 million tonnes in 2009.

?Demand across all business lines is at record levels. Looking ahead, coal and oil prices are expected to rise further and stay firm during the year,? it said.

The company?s net profit during 2010 jumped to $42.2 million from only $1.6 million in 2009. (denny)