High Coal Prices, Samindo (MYOH) Looking For New Projects

PT┬áSamindo Resources Tbk. (MYOH) is looking for a new contract when coal prices are currently high. ICE Newcastle Australia data shows coal prices reached US$422 per tonne on Tuesday (30/8/2022). Secretary of Samindo Resources Ahmad Zaki Natsir said the current high price of coal does not necessarily have an impact on mining service companies. This is because the increase in coal prices does not necessarily make producers increase volumes drastically, which causes the need for additional contractors to increase coal volumes. “The current reality is that large miners with production volume in 2022 are relatively conservative. However, we are still trying to find new project opportunities,” said Ahmad Zaki to Bisnis on Tuesday (30/8/2022).

MYOH is currently trying to get additional projects from current projects. These efforts are carried out by continuously providing maximum work results which will automatically increase MYOH’s bargaining power in the eyes of clients and the coal mining industry

Currently, MYOH is focusing on serving one existing client by trying to extend a contract that will expire in 2023. This contract extension, Ahmad Zaki said, is not related to the current high price of coal. “Our contracts with existing clients expire in 2023 and are currently in the process of being extended,” said Ahmad Zaki.

Based on the financial statements as of March 31, 2022, PT Kideco Jaya Agung is listed as the only customer with a transaction value of more than 10 percent of consolidated revenue. The income obtained from Kideco Jaya Agung reached US$31.17 million or around Rp.447.56 billion (exchange rate of Rp.14,357). Regarding this year’s production, Ahmad refers to the financial statements for the 2021 financial year. In the report, MYOH targets an overburden increase of 1.60 percent to 38 million bank cubic meters (bcm) from 37.38 million bcm in 2021. Meanwhile, MYOH’s coal production targets around 8.60 million tons. This figure is down 23.89 percent from MYOH coal production in 2021, which is 11.34 million tons.

Regarding revenue, MYOH projects revenues of US$ 155.71 million or equivalent to Rp. 2.22 trillion. This figure decreased by 3.08 percent from the achievement in 2021, which was US$160.66 million or equivalent to Rp. 2.29 trillion (exchange rate of Rp. 14,278). Meanwhile, for profit, MYOH has set a target of US$22.85 million (equivalent to Rp. 326.3 billion) or a decrease of 15.22 percent from 2021. The profit after tax obtained by MYOH in 2021 reaches US$26.95 million or equivalent to Rp. 384.88 billion.