INDONESIA’S second largest coal miner, PT Adaro Indonesia, expects to produce up to 54 million tonnes of coal this year, which is roughly equivalent to 2016 production of 52.6 million tonnes. The company is PT Adaro Energy’s core coal operating subsidiary, with other parent company activities including barging, shiploading, dredging, port services, marketing and power generation.
|Adaro has forecast similar production this year from its coal operations in Kalimantan.|
Adaro produces thermal coal from mining sites in Kalimantan Selata and its subsidiaries include PT Alam Tri Abadi and PT Saptaindra Sejati. The company’s coal is marketed under the brand name Envirocoal.
The 2016 production figure was within the guidance range and included 200,000 tonnes from Adaro MetCoal (AMC). Sales for 2016 increased slightly to 54.1 million tonnes but the average selling price declined 8% compared to the same period in 2015.
According to the company’s audited consolidated financial statements for 2016, the company booked US$2.524 billion of revenue in 2016, a 6% decline from the same period in 2015.
The financial statement further noted that the company’s cost of revenue decreased 14% to US$1.839 billion due to a lower strip ratio, continuous efforts to boost efficiency and lower than expected fuel prices.
Due to the lower revenue, the royalties to the Government of Indonesia that accounted for 14% of the total cost of revenue, fell 6% to US$259 million.
Core earnings rose 35% to US$398 million, reflecting the strength of after-tax earnings derived from the solid core business of the company. The consolidated financial statement further noted that, the company’s core earnings excluded among others US$91 million amortisation of mining properties, US$197 million gain on acquisition, US$110 million impairment of goodwill, and US$24 million impairment of mining properties.
Total assets increased by 9% to US$6.522 billion and current assets increased by 46% to US$1.593 billion, mainly due to a higher cash balance and trade receivables. Non-current assets increased by 1% to US$4.930 billion.