A coal company owned by conglomerate Hary Tanoesoedibjo PT MNC Energy Investments Tbk. (IATA) recorded revenue growth of US$100.5 million or the equivalent of IDR 1.5 trillion (JISDOR exchange rate of IDR 15,092 per US dollar) in semester I/2023. However, IATA recorded a net profit weakening of 15.4 percent on an annual basis.
IATA Management reported on Tuesday (1/8/2023), IATA’s revenue grew 20.2 percent on an annual basis or year-on-year (yoy) from USU 83.6 million in semester I/2022.
On the other hand, IATA’s direct costs touched US$41.1 million in the first half of 2023, driven by shipping costs which soared by 15.6 percent yoy and diesel fuel prices which rose by 24.9 percent when compared to the end of June 2022 and 2023.
This increase in expenses is in line with the increase in IATA coal production. In addition, royalty fees to the government soared from 3 percent to 8 percent at the end of the first half of this year.
This had an impact on IATA’s net profit shrinking by 15.4 percent yoy to US$22.3 million or equivalent to Rp.336.5 billion, from US$26.3 million. IATA recorded EBITDA of US$28.6 million in H1/2023, equivalent to an EBITDA margin of 28.4 percent.
Management also reported that IATA’s total assets grew 20.9 percent to US$218.0 million in semester I/2023, compared to US$180.3 million at the end of 2022. IATA’s total liabilities and equity also recorded an increase of 11.3 respectively percent and 34.3 percent from full year 2022, to US$116.8 million and US$101.2 million in H1/2023.
Throughout semester I/2023, IATA has produced 2.1 million MT of coal, an increase of 14.2 percent yoy or an increase of 264,400 MT compared to production in semester I/2022. Meanwhile, from the sales side, IATA managed to market 2.3 million MT of coal in the first half of 2023, 29.2 percent higher than the achievement in the same period the previous year.
IATA will start production from the IUP owned by PT Arthaco Prima Energy (APE) in the fourth quarter of 2023. A number of preparations are being made by IATA to start operating the APE mine, such as signing a cooperation agreement with the owner of the Cultivation Rights at the APE mine, land acquisition, and construction of hauling roads and ports.
IATA is also accelerating the construction of the Barge Loading Conveyor at PT Putra Muba Coal’s IUP jetty which is targeted for completion in August 2023. IATA’s investment in the form of a conveyor with a capacity of 1,000 MT per hour will further increase the efficiency of loading time to barges.
For information, IATA manages 8 IUP-Production Operations in Musi Banyuasin, South Sumatra and is aggressively increasing production output to respond to the high demand for coal.
Based on the report of the Indonesian Mineral Reserves Committee (KCMI), currently IATA has coal reserves of 386.6 million MT. This total was obtained from only about 20 percent of the IATA mining area of 72,478 Ha. In addition, exploration activities are still being actively carried out in stages in the remaining 57,793 Ha mining area.
IATA believes that coal reserves will continue to increase in line with the exploration process which shows additional proven reserves, at least as much as 600 million MT for all IUPs.
“Apart from focusing on increasing coal production, IATA is actively adding sales contracts, looking for opportunities to acquire new mines, taking into account renewable energy prospects, and ensuring efficiency in every business activity for sustainable performance growth,” said management.
Image source >>> Business/Himawan L Nugraha