JAKARTA (RAMBUENERGY.com)- PT Adaro Energy Tbk (IDX:ADRO), one of the country’s largest coal producers, maintained strong operations performance in the third quarter (July-September) despite an above average number of rainy days and higher rainfall volume.
“Despite that, we maintained strong operations performance and produced 13.47 Mt of coal from PT Adaro Indonesia, PT Semesta Centramas and PT Laskar Semesta Alam, 4% lower compared to the same period last year,” it said.
Overburden removal decreased by 17% to 63.55 million bank cubic meter (Mbcm), resulting in a blended strip ratio of 4.72x for 3Q16, consistent with our strip ratio guidance for 2016.
Up until 9M16, Adaro produced 39.33 Mt and sold 40.45 Mt of coal. Overburden removal in 9M16 was 174.78 Mbcm, resulting in blended strip ratio of 4.44x for 9M16 period.
“We are on track to achieve our 2016 production guidance of 52 – 54 Mt,” it said.
In the period, the company booked revenues of US$1.78 billion, down 16% from the same period last year due to a 14% lower average selling price and a slightly lower sales volume of 40 Mt.
In the nine months to September, Adaro showed “a strong cost efficiency and a solid balance sheet,” the company said.
Adaro Energy’s President Director and Chief Executive Officer, Mr. Garibaldi Thohir, said: “We are pleased with the recovery in the coal market as supply response continues and demand catches up with supply to support market movement towards rebalancing. We believe that Adaro is at the right time and at the right place to seize the momentum as we have grown our resources base and product portfolio.
“We are positive on the long term outlook for coal, especially in Indonesia and Southeast Asia region. Our solid results reflect the resiliency of our business model and sustained drive for efficiency and operational excellence.”
Followings are the 9M16 Financial and Operational Highlights against the same period in 2015:
– Net Revenues: US$1.78 billion vs US$2.11billion (-16%)
– Cost of Revenues: (US$1.31 million vs US$1.68 billion (-22%)
– Gross Profit : US$466 million vs US$437 million (7%)
– Operating income: US$382 million vs US$320 million (19%)
– Profit for the period: US$211 million vs US$181 million (17%)
– Core earnings: US$281 million vs US$228 million (23%)
– Operational EBITDA: US$625 million vs US$568 million (10%)
– Cash : US$964 million vs US$785 million (23%)
– Net debt : US$511 million vs US$891 million (43%)
– Free cash flow: US$352 million vs US$354 million (-1%)
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