07 Mar 2012

ITM Records A Significant Increase In Net Income

The firm booked a net income of US$361million in the first nine months of 2011 compared to US$186 million in the same period last year. The higher net income resulted from a 37% increase in total revenue from US$1205 million at the end of third quarter 2010 to US$1649 million in the same period this year. The higher total revenue was mainly driven by a 7% increase in sales volume from 16.4 million tons at the end of third quarter last year to 17.6 million tons in the same period this year as well as by a 28% increase in average selling price, from US$73.9 per ton in the period of January to September 2010 to US$94.6 per ton in the same period of 2011.

The increase in total revenue could offset the higher production cost and fuel cost, resulting in higher EBIT (Earnings Before Interest and Tax) by 63% from US$298 million to US$487 million.

The sales volume until the end of the third quarter 2011 amounted to 17.6 million tons which consisted of sales to China (3.8 million tons), Japan (2 million tons), India (1 million tons), Italy (1.6 million tons), Indonesia (1.4 million tons) and other countries.

From January to September 2011, PT Indo Tambangraya Megah Tbk. produced 17.8 million tons of coal. The production volume is targeted to be 25 million tons this year. Out of this, Indominco Mandiri is expected to contribute 15 million tons; Trubaindo Coal Mine 7.3 million tons; Kitadin Embalut 1.0 million tons; and Jorong Barutama Greston 1.0 million tons.

Kitadin Tandung Mayang has commenced operation since September 2011 while Bharinto Ekatama is expected to produce output in the first semester of 2012. The target of production of each mine is 0.5 million tons and 0.2 million tons respectively.

The sales target for 2011 will be around 25 million tons. Up to the end of September 2011, all coal has been sold; 95% has been contracted with a fixed price, while 5% has been contracted using the coal global index as a price reference.

As of end of September 2011, total assets of the company amounted to US$1498 million. The Company booked a total equity of US$892 million and is in a zero debt position. An earning per share of US$0.32 was recorded in the end of September which rose by 100% from US$0.16 per share in the same period last year.