Parent company of coal miner PT Kideco Jaya Agung, PT Indika Energy Tbk (INDY), has determined to revise up its 2010 earning target by 13% from US$130 million to US$146.6 million, a 83% increase year on year on the back of some reasons.
In a research report published by PT Mandiri Sekuritas, it is because higher equity earnings due to higher coal production to some 32.3 million tons by year end on top of better average selling prices (ASP) (FY 2010F of US$54-US$55 per ton vs US$52.65 per ton in 2009).
A reliable source said 32.3 million tons of production is including contribution from PT Santan Batubara, owned by Indika's wholly owned subsidiary PT Petrosea Tbk (PTRO) and PT Harum Energy, controlled by conglomerate Kiki Barki.
"Kideco ASP is estimated US$54-US$55 per ton, while Santan's ASP could reach US$70 per ton this year," the source said. To read the remaining stories, please login.
Disclosure: No position at the stocks mentioned above.
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