United Tractors Print Income of IDR 33.2 Trillion, the Biggest in the Mining Contracting Segment

During the Public Expose LIVE 2020 presentation, Tuesday (25/8/2020), PT United Tractors Tbk (UNTR) during the first semester of 2020 posted a net income of IDR 33.2 trillion or a decrease of 23% compared to the first semester of 2019 of IDR 43. 3 trillion.

The Covid-19 pandemic and the decline in commodity prices, particularly coal, have affected all of the Company’s business segments.In line with the decline in net income, the Company’s net profit fell 28% to Rp4.1 trillion from the previous Rp5.7 trillion.

Each business segment, namely Construction Machinery, Mining Contracting, Coal Mining, Gold Mining and the Construction Industry respectively contributed 22%, 46%, 18%, 12% and 2% of the total consolidated net income.

Looking at the construction machinery business segment, Komatsu’s heavy equipment sales decreased by 56% to 853 units, or a decrease compared to sales of 1,917 units in the first half of 2019.

The fall in commodity prices and large-scale social restrictions resulted in reduced activity in all sectors of heavy equipment users which resulted in reduced demand for heavy equipment.

The Company’s revenue from sales of spare parts and equipment maintenance services also decreased by 25% to Rp3.3 trillion.Based on internal market research, Komatsu is still able to maintain its position as the market leader for heavy equipment, with a 33% domestic market share.

UD Trucks sales decreased from 302 units to 94 units, and sales of Scania products decreased from 291 units to 100 units.In total, net revenue from the construction machinery business segment decreased by 40% to Rp7.3 trillion compared to Rp12.1 trillion in the same period in 2019.

Meanwhile, the mining contractor business segment is operated by PT Pamapersada Nusantara (PAMA).As of June 2020, Mining Contractors posted net income of IDR 15.1 trillion or a 22% decrease from IDR 19.3 trillion in the same period in 2019. PAMA recorded a decrease in coal production volume by 8% from 60.8 million tonnes to 55, 9 million tonnes and the volume of overburden removal decreased by 10% from 469.2 million bcm to 420.3 million bcm.

Meanwhile, from other segments, namely gold mining, the business segment run by PT Agincourt Resources (PTAR) which operates the Martabe gold mine in South Tapanuli, North Sumatra, until June 2020, total sales of gold equivalent from Martabe were 186 thousand ounces, down 4% from 195 thousand ounces.

Martabe posted net income of IDR4.0 trillion, an increase of 11% from IDR3.6 trillion in the same period in 2019. Martabe’s average selling price of gold was USD1,498 per ounce, compared to USD1,315 per ounce in the same period last year. then.