Indika Energy (INDY) Invests USD 104.9 Million in Non-Coal Ventures

Indika Energy (INDY) Serap Capex US$ 104,9 Juta, Mayoritas untuk Bisnis Non Batubara

During the first nine months of 2023, PT Indika Energy Tbk (INDY) realized a capital expenditure (capex) of USD 104.9 million by the end of the third quarter of 2023.

Azis Armand, Vice President Director and Group CEO of Indika Energy, stated that the majority of the capital expenditure is allocated for the development of mineral businesses, electric vehicles, and nature-based solutions.

Specifically, 77% of the capex absorption, totaling USD 81.2 million, is allocated for non-coal businesses, including Indika Minerals (especially the Awak Mas project) with USD 54.4 million. Additionally, capex for Ilectra Motor Group (IMG) amounts to USD 6.6 million, and Indika Nature is allocated USD 9.5 million.

INDY also utilized a capital expenditure of USD 22.8 million for the development of the coal business, including USD 13.2 million for Indika Indonesia Resources (IIR) and USD 9.6 million for Kideco Jaya Agung.

This aligns with Indika Energy’s commitment to continue the transition of the company’s business towards a low-carbon economy. “Sustainability will continue to be the main foundation in all our business and operational activities throughout 2023 and beyond,” explained Azis.

On September 22, 2023, INDY, through Indika Indonesia Resources (IIR) and Indika Capital Investments (ICI), signed a conditional sale and purchase agreement with PT Petrindo Jaya Kreasi Tbk (CUAN) regarding the plan to sell a 100% ownership stake in Multi Tambangjaya Utama (MUTU).

The transaction is expected to be completed upon fulfilling several preliminary conditions as stipulated in the conditional sale and purchase agreement, including the approval of the Ministry of Energy and Mineral Resources.

INDY reported a net profit of USD 93.83 million by the end of September 2023. INDY’s net profit declined by 72.26% compared to the same period last year, which reached USD 338.39 million.

This decline in net profit aligns with the decrease in INDY’s revenue. The coal mining company recorded revenue of USD 2.29 billion, a 26.65% decrease from the revenue by the end of the third quarter of 2022, which was USD 3.13 billion.

Image source >>> KONTAN/Dimas A Shadewo

Source >>>