Samindo reports 54.4% jump in net profit despite coal downturn

By Thomas R. Sembiring

IDX-listed coal mining services company PT Samindo Resources Tbk said that net profit last year jumped by 54.4 percent to Rp 268 billion compared to the previous year?s level despite the lingering drop in coal prices.

Meanwhile, revenue increased by 23.15 percent to Rp 3.02 trillion.

Samindo Director Soemarno Witoro Soelarno attributed the solid financial performance among others to the company?s efficiency programs. ?Efficiency in the utilization of equipment has allowed us to survive and make profit,? he said on Tuesday.

The company has decided to distribute 34 percent of the net profit as dividend.

Meanwhile, Samindo President Director Lee Kang Hyoeb was quoted by Bisnis Indonesia as saying that the company, whose only client is coal giant PT Kideco Jaya Agung, aims to increase coal production this year to 12 million tons from 9.5 million tons.

As of the first quarter of this year, Samindo produced 2.8 million tons of coal, or 23.33 percent of full-year target. Meanwhile, overburden removal reached 13.4 million bcm, or a slight 1.8 percent increase from the same period of last year.

Elsewhere, Soemarno said that his company was eying the possibility of entering power plant business as part of diversification strategy. He added that Samindo is looking for a partner. Samindo allocates US$7.5 million for capital expenditure this year.

Editing by Reiner Simanjuntak