Nov 3, 2010

Indika 9M net income up, operating falls

Energy services and resources PT Indika Energy Tbk (INDY) reports a 37.55% increase in net income, but income from operations steeply fell of 76.11% on rising expenses in the first 8 months of 2010.
Indika, as mentioned at the financial statement ended September 30 2010 submitted to Indonesia Stock Exchange (IDX), posted Rp775.66 billion net income in 9M 2010 from Rp563.93 billion in 9M 2009.
The surge was underpinned by income from assosiated companies worth Rp862.54 billion, especially coal miner PT Kideco Jaya Agung, experiencing a 48.62% rise in 9M 2010 from Rp580.35 billion in 9M 2009.
Indika has set a net profit target of US$146.6 million (Rp1.31 trillion), a 89.9% rise from 2009's consolidated of US$77.2 million, and US$479.4 million net revenue at the end of 2010, a 81.2% increase from the previous year of US$264.5 million.
At the operational line, Indika's income from operatings slashed 76.11% from Rp104.11 billion in 9M 2009 to Rp24.87 billion in 9M 2010, dragged down by a 85.69% expenses ballooning.
The largest contributor for the operating expenses was energy resources segment of Rp367.64 billion and energy services of Rp173.54 billion.
As a result, operating margin steeply plunged from 5.99% in 9M 2009 to 0.92% in 9M 2010.
Gross profit remained strong. Indika booked a 43.13% increase from Rp395.80 billion in 9M 2009 to Rp566.51 billion in 9M 2010.
Cost of goods sold surge 67.65% from Rp1.36 trillion to Rp2.28 trillion, while revenue also soared 63.22% from Rp1.74 trillion to Rp2.84 trillion. 

Disclosure: No position at the stock mentioned above.

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