Jun 2, 2011

Delta Dunia 1Q net profit rises 8%

PT Delta Dunia Makmur Tbk (DOID), parent of Indonesia's second largest coal mining contractor PT Bukit Makmur Mandiri Utama (BUMA), recorded a 8% increase in net profit in the first 3 months of this year on the back of higher revenue.
DOID posted Rp165 billion net profit in 1Q 2011 from Rp153 billion in 1Q 2010. Despite higher net profit, net margin slightly fell to 10.6% from 11.9%. EBITDA was Rp485 billion, a 7% higher than Rp453 billion. However, DOID's operating profit fell 23% to Rp230 billion from Rp176 billion as a result of higher operating expenses of 81% and cost of revenues which rose 27%.
The lower operating profit sent DOID's operating margin retreated 11.3% from 17.9%. DOID's revenue increased 21% to Rp1.55 trillion from Rp1.29 trillion.
BUMA performance
BUMA booked a 30% increase in net profit to Rp187 billion from Rp144 billion. However, operating profit slumped 17% to Rp207 billion from Rp248 billion as a result of a 57% and 28% increase in operating expenses and cost of revenue respectively.
Revenue grew 21% to Rp1.55 trillion from Rp1.29 trillion. The increase was driven by higher overburden production, longer hauling distances (about 20% YoY from the average of 1.84 km in 1Q 2010 to 2.21 km in 1Q 2011), and some contractual price increases.
BUMA's 1Q coal production slightly fell 2.4% to 7.8 million tons from 8 million tons. Overburden removal rose 23.2% to 75.3 million bank cubic meters (bcm) from 61.2 million bcm. Coal hauling dropped 31.2% to 2.2 million tons from 3.1 million tons. 
Delta Dunia is indirectly 40% owned by Texas Pacific Group, Government of Singapore's Investment Corporation, and China Investment Corporation through Northstar Tambang Persada Limited. Public holders own the remaining stake. 
Disclosure: No position at the stock mentioned above.
 
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