Economy in brief: ITMG’s surging costs hurt profit
The Jakarta Post
JAKARTA: Publicly listed coal miner PT Indo Tambangraya Megah (ITMG) saw increasing costs cut into its profits booked in the first nine months of the year, although it posted higher revenues on the back of higher sales volume.
ITMG reaped US$1.78 billion in revenue during the January–September period of the year, increasing by about 8 percent compared
to $1.65 billion in the same period last year. Increases in revenue were supported by sales of 19 million metric tons coal during the first nine months of the year, which was an 8 percent increase compared to 17.55 million metric tons in the same period last year, the company’s financial reports show.
However, the company also reported a 14.9 percent increase in cost of goods sold, rising to $1.2 billion by the end of the third quarter of the year compared to $1.04 billion in the same period last year.
Surging costs were the main contributor to ITMG’s slow growth in net profits, rising by 1.5 percent to $366.63 million as of the third quarter of the year, compared to $361.21 million in the same period last year.
Shares in ITMG fell by 1.68 percent to Rp 40,900 apiece on Monday’s closing from Rp 41,600 last Friday.
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