Petrosea suffers lower H1 revenue, net profit

IDX-listed mining contractor PT Petrosea Tbk said that revenue in the first half (H1) of this year declined by 7 percent to US$169.1 million from $182.03 million in the corresponding period of last year amid the current downturn in the global coal market, Kontan reported on Wednesday.

The paper said that net profit in the first six months of this year plunged deeper by 75 percent to $2.68 million from $10.76 million in the same period of last year.

Company Corporate Secretary Meinar Kusumastuti said that the drop in revenue and net profit was attributed to the shrinking overburden removal volume during the period as coal miners revised downward production plant due to the lingering market downturn.

Overburden removal during the first half of this year declined to 70.3 million bank cubic meters from 71.1 million bcm in the same period of 2013.

Meinar said that in the first half of this year, Petrosea only managed to get one new client, PT Indonesia Pratama, a subsidiary of IDX-listed coal mining firm PT Bayan Resources.

Despite the weaker first half performance, Petrosea remains hopeful that revenue and net profit this year could still grow by 10 percent of last year?s figures of $360 million and $17 million, respectively. About 80 percent of the company?s revenue comes from mining services, with the remainders from logistics and EPC businesses. (*)