UT?s revenue declines by 9%
Friday, July 31 2015 - 01:53 AM WIB
IDX-listed heavy equipment and coal mining company PT United Tractors Tbk (UT) said that consolidated net revenue in the first half of this year declined by 9 percent compared to the corresponding period of last year due to lingering downturn in the coal sector and a delayed in the implementation of government infrastructure projects.
UT, which distributes Komatsu brand heavy equipment, said in a statement on Thursday that consolidated net revenue in the first six months of this year decreased to Rp24.95 trillion.
It, however, said that a favorable US dollar exchange rate had helped to slightly improve the company?s first-half net profit, which was recorded at Rp 3.41 trillion, a 4 percent increase compared to the corresponding period last year.
UT explained that construction machinery segment recorded a decrease in Komatsu sales volume by 38 percent to 1,375 units from 2,207 units. On the other hand, revenue of spare parts and heavy equipment maintenance services rose by 8 percent to Rp3.10 trillion. Overall, the construction machinery segment recorded revenue of Rp7.29 trillion or down 14 percent.
Mining contracting business segment, through subsidiary PT Pamapersada Nusantara (PAMA) recorded a 9 percent decrease in net revenue or down to Rp14.74 trillion, as coal production volume fell 9 percent to 51.6 million tons, with overburden removal down 8 percent to 372.3 million bcm.
Mining business segment recorded 18 percent lower coal sales volume at 2.81 million tons which led to an 18 percent decrease in revenue to Rp2.37 trillion.
As of June 2015, PAMA captured 47 percent of local market share based on net revenue (source: internal market research), UT said.
UT has a number of coal concessions operated by PT Prima Multi Mineral (PMM), PT Tuah Turangga Agung (TAA), PT Asmin Bara Bronang (Asmin) and PT Duta Nurcahya (DN).
The PMM and Asmin concessions are located in South Kalimantan and Central Kalimantan, while TTA and DN mines are located in Central Kalimantan.
Overall contribution to the consolidated net revenue was mostly attributable to mining contracting, which was 59 percent, followed by 29 percent from construction machinery, 10 percent from mining and 2 percent from construction contractor, UT said.
As of June 2015, construction machinery business segment recorded a decrease in Komatsu sales volume by 38 percent to 1,375 units, lower compared to the sales volume in 2014 of 2,207 units. ?The decrease remains due to the ongoing subdued market conditions and the delayed realization of most infrastructure projects. This condition was reflected in market volume of heavy equipment in Indonesia which was down from 5,546 units in 2014 to 3,659 units in 2015 (source: internal research),? UT explained.
UT said that until June 2015, Komatsu was able to maintain its market leader position in heavy equipment sector with the domestic market share of 38 percent (source: internal market research). ?Due to the sluggish mining activities, sales volume of other products were also dropped. UD Trucks fell from 94 units to 53 units, while Scania products declined from 242 units to 188 units.?
On the other hand, the amount of spare parts sales and heavy equipment maintenance services increased by 8 percent to Rp3.10 trillion, due to the need to maintain the life cycle of heavy equipment. Overall, total revenue of construction machinery business segment during first half 2015 recorded a decrease to Rp7.29 trillion, a fall of 14 percent compared to Rp8.44 trillion in the first half 2014.
Editing by Reiner Simanjuntak