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Golden Energy see profit doubling, coal market rebalancing
Publicly listed coal mining firm Golden Energy Mines is upbeat it can double net profits in 2016 to US$4 million as the company has managed to reduce costs and booked more sales.
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Golden Energy Mines president director Fuganto Widjaja (center) and the board of directors take journalists' questions at a press conference after the company's annual general meeting in Jakarta on June 10. (thejakartapost.com/Sepsha Dewi R.)
Publicly listed coal mining firm Golden Energy Mines is upbeat it can double net profits in 2016 to US$4 million as the company has managed to reduce costs and booked more sales.
Sluggish coal prices had put pressure on Golden Energy’s performance last year, with net profit slumping by 80.7 percent to $2.1 million. Indonesian coal exports to China, the largest coal importer from the country, plunged by 30 percent to 204 million tons in 2015, while exports to India dropped by 15 percent to 132 million tons.
Golden Energy president director Fuganto Widjaja said the company had secured more than 70 percent of its sales target this year. He saw coal supply and demand in balance this year, unlike the coal oversupply amid low demand that squeezed the industry in 2015.
“We have locked the selling price, and if the coal price does not change much, we are optimistic to reach the target,” he said after the annual general meeting (AGM) in Jakarta on Friday.
The firm targets production of 8.6 million tons and sales of 10.7 million tons in 2016. The company plans capital expenditure of $1.5 million to maintain its infrastructure this year. “State-owned electricity company PLN expects coal demand of 82 million tons this year,” Fuganto said.
Despite the weakening performance in 2015, Golden Energy shareholders agreed at the AGM to pay out $1.5 million in dividends, equaling 75 percent of the 2015 net income. (sha/ags)
