Coal mining producer that is controlled by Banpu Plc Thailand, PT Indo Tambangraya Megah Tbk (ITMG), reached a 42.82% rise in net profit last year as a result of better operating performance and lower debt interest expense.
As of December 2009, Indo Tambang posted US$335.55 million or US$0.30 per share in net profit from a previous year of US$234.93 million or US$0.21 per share. Thanks to the rise of other income.
The company's debt interest expense fell sharply from US$4.93 million in 2008 to US$632,000 in 2009 whilst foreign exchange gain last year of US$4 million from a year before of forex loss of US$17.98 million.
ITMG's operating profit last year rose 28.18% from US$340.01 million in 2008 to US$435.82 million due to an increase of revenue.
For the period ended in December 2009, the company posted 13.64% in revenue increase from US$1.32 billion in 2008 to US$1.51 billion.
In return, Indo Tambang's operating margin increased from 25.81% in 2008 to 28.89% that signaled more profitability it could earn.
In February 2010, South Kalimantan Authority suspended operational of PT Jorong Barutama Greston, ITMG's coal mining subsidiary, due to delays in the issue of a renewed borrow and use permit for forestry areas used by Jorong Barutama.
Indo Tambang Group is in talks with South Kalimantan Authority, including Ministry of Energy and Mineral Resources, and Ministry of Forestry to resolve this issue.
Jorong Barutama sales revenue and net income in 2009 were US$111.14 million or 7.4% and US$7.37 million (2.22% of the Group revenue and net income in 2009 of US$1.51 billion and US$335.55 million
Jorong Barutama's total assets were US$91.59 million or 7.6% of the total assets of ITMG Group as of December 2009.