Release: Adaro Energy?s net income $268m in 1H 2011

Jakarta, August 15th 2011 ? PT Adaro Energy Tbk (IDX: ADRO) is pleased to announce that consolidated auditor-reviewed net income for the first-half ended June 30th 2011 rose two-fold to a record US$268 million. Our first-half basic earnings per share (EPS) increased 104% to US$0.0084.

The strong net income was bolstered by higher production volume combined with higher average selling price, despite an increase in the cost of revenue. Our net revenue increased 36% to US$1.8 billion, while cost of revenue increased at a lesser rate of 34% to US$1.2 billion. Adaro Energy?s President Director, Garibaldi Thohir said, ?We are delighted with our record first-half earnings, driven by the solid performance of our operations and higher realized prices. The outlook for coal remains robust. We remain on track to achieve our full year production target of 46-48 million tonnes and deliver a healthy EBITDA of US$1.1-1.3 billion.?

We had a record quarterly performance during the second quarter of 2011 due to the arrival of new and larger heavy equipment combined with our contractors? good performance. Our production and sales volume for 1H11 increased 5.5% and 10.4% to 22.81 million tonnes and 24.02 million tonnes, respectively, compared to 1H2010.

Our average selling price climbed 23% due to higher thermal coal prices. Meanwhile, our cash cost (excluding royalty) increased 23% to US$40 per tonne due to the higher planned strip ratio, longer overburden hauling distances and rising fuel costs.However, our EBITDA climbed 37% to a record US$626 million and we continue to maintain a healthy industry-topping EBITDA margin of 35%.

In addition to the higher production volume and average selling price, the increase in net income is also a result of a foreign exchange gain of US$13.2 million and no goodwill amortization, compared to the US$26.6 million amortization incurred during the same period of last year.

We continued to optimize our capital structure to sustain balance sheet strength and help our business grow, as measured by the improved gearing ratios of net debt to equity at 0.46x and net debt to EBITDA at 0.82x. Our liquidity remained strong with access to cash close to US$2 billion (including unutilized committed bank facilities). (end of edited release)