PT Indo Tambangraya Megah Tbk. throughout the 2016 fiscal year has shown a strong performance. As for external drivers, the average coal price rebounded significantly in the second half of 2016, from USD 49.9 per ton in the third quarter to USD 59.8 per ton in the fourth quarter. The thermal coal price rise was the highest since 2013 due to restricted supply in China and the impact of bad weather on a global scale.
Internally, operations and logistics optimization throughout the year cut production costs, resulting in a higher EBIT by 8% at USD 209 million as well as higher net income by 107% at USD 131 million. As for revenue, the company recorded USD 1,367 million in total sales with an average coal selling price of USD 50.6 per ton while gross profit margin was booked at 24%.
By the end of 2016, Company total assets were at USD 1,210 million. The Company has total equity of USD 907 million and zero debt, and earning per share in this period was USD 0.12.
Throughout 2016, the Company produced 25.6 million tons of coal with a total sales volume of 26.7 million tons shipped to China (6.7 million tons), Japan (5.2 million tons), Indonesia (3.7 million tons), and India (2.8 million tons) along with customers in Europe, East Asia, the Pacific, and Southeast Asia.
For 2017, production is targeted at 25.5 million tons while our sales volume target has been set at 27 million tons, of which 61% has been sold.
The Company will continue to improve productivity by, for example, optimizing mine infrastructure and maximizing processes such as accelerating barging cycle time. ITM will endeavor to continue to stay ahead of leading market trends and remain flexible both in the short term and long term to maximize reserves value. The Company is executing several strategies to capture margins across the coal value chain, for example, using more internal contractors and applying improvement in fuel procurement and logistics in order to get the most possible efficient cost.
In addition, the Company is expanding its core business by investing in power business in order to capture opportunities from the growing electricity demand nationwide.