Wednesday, March 31, 2010

Adaro raise IDR4.4 trillion net profit

PT Adaro Energy Tbk announce audited consolidated net profit for the year 2009 increased 392% to IDR4.4 trillion from IDR887 billion of the year 2008. Adaro Energy’s 2009 basic earnings per share (EPS) increased to Rp136.5.
The significant increase is attributed to higher average selling prices of coal as well as increased production, which increased revenue 49% to IDR26.9 trillion. Meanwhile, the cost of revenue increased at a lesser rate of 21%, boosting the gross margin from 27% in 2008 to 41% in 2009.
Adaro Energy’s Vice President Director, Mr. Ario Rachmat said, "We increased our sales volumes, which in combination with higher prices and by keeping costs increases to a minimum, grew our EBITDA 147% to a new high of IDR11 trillion. With cash flows and the financial structure in good shape, we are now concentrating on building our foundation for an even more competitive future.”
Adaro get benefit from the strong selling price realization, quarterly net profit reached a historical high of IDR1.27 trillion, in the third quarter of 2009. Adaro was able to deliver another year of growth, with full-year production and sales growing to 40.6 million tonnes (Mt) and 41.4 Mt respectively.
The positive 2009 performance reflects the company’s focus to ramp up production and sales at its coal mining subsidiary in the wake of the coal market’s demand recovery in the second half of the year. The commitment at all levels to drive production and sales resulted in sales volume rising to a record 12.4 Mt in the fourth quarter of 2009.
Combined with the higher average selling price (ASP) realization, due to the high coal price environment of 2008 when most prices for 2009 were set, the positive sales volume
growth in 2009 resulted in revenues increasing 49% to IDR26.9 trillion.
The year was also notable for the company was able to complete the long planned total integration of the coal supply chain from pit to port. The benefits of the May 2009 acquisition of barging and shiploading Orchard Maritime Logistics Pte Ltd were evident in the lower freight and handling charges.
Lower fuel prices combined with a generally stable cost environment in 2009 offset the increase to costs due to a higher stripping ratio. Adaro Energy’s operating margin widened to 37% and operating profit rose 136% to IDR9.9 trillion, as the increase in revenue outpaced cost increases.
The company’s balance sheet strengthened considerably in 2009, with net gearing further falling to 26% at the end of December 2009. The stronger capital structure was made possible by strong cash flows and earnings generation during the year. Adaro Energy will continue to implement a strategy of continuously optimizing the capital structure and cost of capital, as well as maintaining good liquidity.
As the company moves into 2010, the focus will be on growing production and marketing the new coal product Envirocoal-Wara, executing the current development projects to further improve the efficiency of the coal supply chain and seeking acquisition and investment opportunities in worldclass deposits of Indonesian coal.

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