PT Adaro Minerals Indonesia Tbk (ADMR), a subsidiary of PT Adaro Energy Tbk (ADRO) in the coal mining sector, recorded a net profit during the first semester of 2022 of US$ 202 million or Rp 3 trillion (exchange rate of Rp 14,884 per US dollar) , up more than 480% from the same period the previous year which was only US$ 34.18 million. Adaro Minerals’ profit increase was supported by sales which skyrocketed from US$ 164.15 million to US$ 435.6 million.

Christian Ariano Rachmat, President Director and Chief Executive Officer of Adaro Minerals, said that the increase in the average selling price (ASP) and the increase in sales volume of Adaro Minerals boosted the company’s performance.

“Adaro Minerals enjoyed strong first half results as a listed company, supported by higher ASP and increased sales volume,” Christian said in his official statement, Monday (29/8/2022).

Christian said, Adaro Minerals continues to receive strong interest in hard cooking coal products , which resulted in a 9% growth in sales volume from January to June 2022. The strong coal price condition also boosted the company’s ASP in the first semester of 2022 by 143%.

He acknowledged that Adaro Minerals is on track to meet the company’s production guidance of 2.8-3.3 million metric tons (MT) by 2022. In addition, Christian continued, the company continues to support the transformation within the Adaro Group to achieve new milestones. in plans to lay the groundwork for an aluminum smelting plant in 2023, as the first project in the construction of the world’s largest green industrial area in North Kalimantan.

Adaro Minerals recorded a 7% increase in production volume to 1.53 million MT from 1.43 million MT over the same period last year. The company also posted a sales volume of 1.28 million MT in January-June 2022, up 9% compared to the first semester of 2021 at 1.17 MT.

Adaro Minerals’ disclosure report also stated that the cost of revenue (COGS) increased from US$ 102.37 million to US$ 148.24 million ( year-on-year ). Meanwhile, gross profit was US$ 287.42 million, up from US$ 61.78 million. The operating profit was US$ 272.72 million from US$ 50.6 million.

Meanwhile, Adaro Minerals’ total liabilities decreased from US$760.26 million to US$731.45 million ( year-on-year ). This consisted of total long-term liabilities which decreased from US$ 667.8 million to US$ 595 million. Meanwhile, short-term liabilities also decreased from US$ 92.43 million to US$ 136.36 million.

Adaro Minerals’ total assets as of the first semester of 2022 were recorded at US$ 1.14 billion, up from US$ 966.7 million. This consisted of current assets which increased from US$ 316.53 million to US$ 501.88 million. Meanwhile, non-current assets decreased from US$ 640.17 million to US$ 637.7 million.