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Coal firm PT Adaro targets 30% rise in revenue
The country’s second largest coal producer, PT Adaro, aims to increase its revenue by 30 percent this year because of higher sales and prices,, the company official says
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The country’s second largest coal producer, PT Adaro, aims to increase its revenue by 30 percent this year because of higher sales and prices,, the company official says.
Company revenue is targeted to jump to US$2.08 billion this year from a forecast of $1.6 billion.
“We are optimistic that the (30 percent) target is achievable,” Adaro president director Boy Garibaldi Thohir said on Monday, adding that this is backed by the fact that the firm has already secured 90 percent of its targeted sales contracts for this year with local and
foreign buyers.
Company sales volume will reach 45 million tons this year, from 38.5 million tons in 2008, Boy said. But he did not mention the production volume.
The selling price will be higher,, between $52 and $65 a ton, up from $39 per ton last year, he added.
However Boy refused to mention the net profit targets for 2008 and 2009 as the company was still in the process of calculating them.
Boy also mentioned that the company would allocate 30 percent of its production to the local market, (in line with new regulations) while the rest would go to the export market.
The Indonesia Coal Producers Association (APBI) has forecast that 20 percent of total national coal production this year will be allocated to the domestic market, equal to about 60 million tons.
During 2008 the domestic market accounted for 50 million tons out of 250 million tons of coal produced, said APBI chairman Bob Kamandanu, who is also the president director of Berau Coal, the country’s fifth largest coal producer.
Speaking on behalf of Berau Coal,, Bob said that the company would produce up to 15 million tons in 2009, higher than the 13.5 million tons produced last year.
He forecast that the company will reach $1 billion in revenue and $200 million in net profits this year.
The company’s 2008 revenue and net profit stood respectively at $640 million and $90 million.
The company has decided to cut its capital expenditure for expansion and infrastructure spending down to $27 million from an originally proposed $40 million, citing bad market conditions as the reason.
