PT Adaro Energy, Indonesia second-largest coal producer, forecast that earnings before interest,
taxes, depreciation and amortization may more than double this year to as much as $1 billion on higher prices and production.
Output may rise as much as 17 percent to 45 million metric tons this year, compared with a 7 percent gain to 38.5 million tons in 2008, according to a statement today. Adaro has also
negotiated the price on 70 percent of 2009 contracts and expects the average selling price this year to be higher than in 2008.
The higher output and prices may help Adaro to buck the impact of the global recession, which has undermined commodity and energy prices. The demand for our specialty coal, Envirocoal, remains firm, President Director Garibaldi Thohir said in the statement, which was issued to the Indonesian stock exchange. However, due to the difficult economic times, we must continue to prudently manage our cash and cash flow.
The company may shorten the length of a proposed overland coal conveyer belt to preserve cash for debt payments and other investments, Adaro said. Still, the company retained a medium-
term target of increasing production to 80 million tons a year by 2013, it said.
Wednesday, February 4, 2009
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