PT United Tractors Tbk. sees the opportunity for performance recovery this year to be supported by the rising trend in commodity prices, improved operations, and the potential for additional revenue from the energy business sector. United Tractors Corporate Secretary Sara K. Loebis said that the company hopes that there will be performance improvements this year in line with operational procedures that have been adjusted to the Covid-19 pandemic protocol so that it is expected to run normally again. “Hopefully this year there will also be an improvement in heavy equipment sales and at least coal production is expected to be stable,” said Sara to Bisnis, Thursday (25/2/2021).
In addition, the issuer coded UNTR shares also has the potential to get additional revenue from the energy business sector, along with the first unit of steam power plant (PLTU) with a capacity of 2×100 MW in Jepara, Central Java, which will start operating in the fourth quarter of 2021. However, Sara said that the business contribution is projected to still not contribute too much to all consolidated income. To note, the construction progress of the PLTU project worked on by one of the UNTR entities, PT Bhumi Jati Power (BJP), has reached 97 percent by the end of December 2020.
Meanwhile, BJP is a joint venture company between UNTR and Sumitomo Corporation and Kansai Electric Power Co Inc. UNTR owns 25 percent of BJP shares. Based on the company’s financial reports, UNTR will generate revenue of IDR 60.34 trillion in 2020. This realization has decreased by 28.52 percent compared to 2019’s acquisition of IDR 84.43 trillion.
The decline in income occurred in all UNTR business sectors. The largest decline was experienced by the construction industry sector, which shrank by 69.53 percent year on year (yoy) to IDR 1.2 trillion. In line with that, profit after tax attributable to owners of the parent entity also fell 46.9 percent to IDR 6 trillion compared to 2019’s acquisition of IDR 11.3 trillion.
Sara explained that the decline in profit and income was reflected in operational performance, such as a decrease in sales of heavy equipment, a decrease in coal production, and a decline in gold sales. “The decline in sales of heavy equipment and coal was due to weak coal prices last year, coupled with operational constraints due to the pandemic,” said Sara. However, UNTR seems more confident this year in line with the 2021 work guidance target which is better than last year’s realization. UNTR targets coal sales to increase to around 9 million to 9.5 million tons, heavy equipment sales to increase by around 1,700 units, gold sales to return to normal at around 340,000 oz, while mining contractor production is stable.