Aug 15, 2011

Adaro 1H profit up 104% on higher prices

Indonesia's second largest thermal coal miner PT Adaro Energy Tbk’s net income for the first-half of the year rose two-fold, thanks to higher production volume combined with higher average selling price. 
The company, in a press release published today, said its net income reached US$267.78 million or US$0.0084 a share from US$131.48 million or US$0.00411.
The strong net income was bolstered by higher production volume combined with higher average selling price, despite an increase in the cost of revenue. 
In addition to the higher production volume and average selling price, the increase in net income is also a result of a foreign exchange gain of US$13.2 million and no goodwill amortization, compared to the US$26.6 million amortization incurred during the same period of last year.
The company’s net revenue increased 36% to US$1.8 billion, while cost of revenue increased at a lesser rate of 34% to US$1.2 billion. 
Adaro Energy’s President Director Garibaldi Thohir said that the outlook for coal remains robust and the company remains on track to achieve our full year production target of 46 million tons-48 million tons. 
“We had a record quarterly performance during the second quarter of 2011 due to the arrival of new and larger heavy equipment combined with our contractors’ good performance,” said Thohir. 
Adaro’s production and sales volume for the first half of 2011 increased 5.5% and 10.4% to 22.81 million tons and 24.02 million tons, respectively, compared to a year earlier. 
The company’s average selling price climbed 23% due to higher thermal coal prices. Meanwhile, its cash cost excluding royalty increased 23% to US$40 per ton due to the higher planned strip ratio, longer overburden hauling distances and rising fuel costs. 
The ADRO-coded stock jumped 1.08%, or Rp25, to Rp2,350 at the closing session in Jakarta trading today.

Disclosure: No position at the stock mentioned above.

Print This Article

No comments: