PT Delta Dunia Makmur Tbk (DOID) is indicated to post a weak earning in the second quarter of this year (2Q2011), mainly due to margin compression driven by a jump in depreciation cost, spare part-maintenance cost, and accounting changes in salary and bonus payment from cash basis into accrual basis. "In addition, there would be one-off refinancing cost of US$16 million-US$17 million," said a morning notes issued by PT Mandiri Sekuritas today.
Overall, it potentially reduces Mandiri Sekuritas's FY11 forecast operating margin by 2%-3% or equivalent to Rp130 billion-Rp200 billion earning, compared to the brokerage's previous FY11F net profit forecast of Rp454 billion.
Delta Dunia, parent of Indonesia's second largest coal mining contractor, is budgeting US$250 million capex with potential upgrade to US$280 million if certain projects are awarded. The capex was higher than US$200 million of realized capex last year and US$75 million in 2009.
On the operating side, overburden removal reached 155.7 million bank cubic meter in 1H11 or 43.3% of Mandiri Sekuritas's forecast.
DOID is now guiding 350 million bcm overburden removal, or 2.7% lower than previous number of 360 million bcm.
To achieve this target, the company needs to ramp up its overburden to 32 million-33 million bcm per month, versus 27 million-28 million bcm in May and June.