16 Nov 2018

Net Income Continue to Rise Resulted From Higher Selling Price

Coal price along the first nine months of 2018 tended to rise consistently resulted from growing global demand. Higher selling price has caused the company to enjoy a stronger financial performance during the period.

PT Indo Tambangraya Megah Tbk. (ITM) recorded an average selling price of USD 84.2 per ton in the first nine months of 2018, 20% higher than USD 70.3 per ton in the same period last year.

The company in the first nine months booked sales revenue of USD 1,415 million or 22% higher that it was in the same period last year, which was at USD 1,164 million.

Same as the first nine months last year, gross profit margin was recorded at 30% in the same period this year, while EBIT (Earning Before Tax and Interest) was booked at USD 321 million or 20% higher year on year. With such positive financial performance indicators, ITM in the first nine months recorded a net income of USD 197 million or 15% higher than it was in the same period last year. As for earning per share in this period was booked at 0.18.

By the end of September 2018, ITM total assets were valued at USD 1,473 million while total equity was USD 1,002 million. The company has maintained a net cash position of USD 351.3 million with zero debt.

The Company sold 16.1 million tons of coal in the first nine months. It was shipped to Japan (3.1 million tons), China (3.0 million tons), India (2.2 million tons), Indonesia (1.9 million tons), Philippines (1.7 million tons), Thailand (0.9 million tons and other countries in East, South, and Southeast Asia. Out of the sales volume target of 24.2 million tons for this year, 98% has been sold out.

Friendly weather along the period has enabled the company to boost output, resulted in an achieved production volume target. The company produced 15.7 million tons during the period in line with the 22.5 million tons target set for the year.

For 2018 the company is executing several strategies to make its position as energy company stronger. Firstly, maximizing long term value by increasing coal reserves both organically and inorganically as well as enhancing margin through operational excellence, improving productivity and enhancing business process.

Secondly, capturing margin along the value chain. The acquisition of PT GasEmas last year, for instance, has resulted in fuel cost reduction and created opportunity of additional margin from third parties.

In addition, the company has allocated capital expenditure worth USD 40 million for its subsidiary engaged in mining contractor, PT Tambang Raya Usaha Tama (TRUST), to expand its fleet. Other than that, the company has set a target for its subsidiary engaged in trade – that is, PT ITM Indonesia – to obtain sales contract of 2.5 million tons of coal.

Additionally, the company is actively evaluating new investment and acquisition opportunities in conventional and renewable energy.