Publicly listed firm,PT Adaro Energy Tbk(IDX: ADRO), is exploring a syndicated loan around US$400 million to refinances the debt will mature in this year, said the management yesterday. The new loans will have a five years of tenure.

According to the CFO, Luckman Lie, the company was able to maintain free cash flow amounted to $630 million and the ratio of net debt to EBITDA was 0.19 times and net debt to equity was 0.04 times. Beside refinances the debt, the coal miner also preparing new line of business, called Adaro Green Initiative.

President director, Garibaldi Thohir, said the forms of developing green initiatives included biomass, solar panels, and downstream coal into hydrogen. So far, the company has eight businesses namelyAdaro Mining, Adaro Services, Adaro Logistics, Adaro Power, Adaro Land, Adaro Water, Adaro Capital, and Adaro Foundation.

To support the planned, he explained, the miner prepared $300 million of funds. With these expansion, the operational EBITDA is targeting to reached $900 million. While, the coal production is targeted around 52 54 million tones (MT) of coal with a consolidated strip ratio of 4.8 times.

Last year,Adaroposted operating revenues of $2.53 billion, a 27 percent decreased from 2019 due to lower average selling price and sales volume.The miner recorded a 6 percent decreased in production volume to 54.53 MT of coal or slightly higher than the revised 54 MT of coal.

In detail, the unit,PT Adaro Indonesia produced 46.75 MT of coal in 2020, down 9 percent compared to2019. Then,total coal production of Balangan Coal Companies recorded at 4.58 MT of coal, fell by 8 percent in annual basis. Then, Adaro Metcoal Companies produced 1.88 MT of coal, rose by 72 percent from 2019.

While, Mustika Indah Permai 1.31 MT of coal andKestrel Coal Mine produced 5.66 MT of coal and sold 5.97 MT of coal or lowered 16 and 9 percent, respectively. Other unit,PT Saptaindra Sejaticoal production volume was also falling 16 percent to 41.48 MT of coal.

Adarohas announced the construct a new 400 megawatts coal-fired power plant in Aceh has resumed after being halted early last year because of the COVID-19 pandemic.The $600 million project is being developed by a consortium composed of China Datang Overseas Investment, PT PP Energy, and power services company, PT Sumberdaya Sewatama.

Its scheduled the project to be completed in late 2023 and begin commercial operations in 2024. The power plant is expected to consume at least 1.2 MT of coal per annum and 90 percent of which will be sourced from Kalimantan.

The management ofAdarosaid the construction was halted because of the pandemic. The project was originally scheduled for completion in 2021 but has been delayed by land issues and other legal constraints. The plant will operate as a base-load facility and to alleviate electricity shortages in the Aceh Jaya, West Aceh, Southwest Aceh, and Nagan Raya areas.

The project is part of the Indonesian government 35GW power generation program. It will operate as an independent power producer with a 25-year supply contract starting from its commercial operation date under a power purchase agreement between state power producer, PT Perusahaan Listrik Negara and the consortium partners.

Source:https://theinsiderstories.com/indonesia-adaro-energy-to-refinances-us-dollar-debt/