Adaro Energy expands logistics business
The Jakarta Post
Coal miner PT Adaro Energy is currently diversifying its logistics business beyond transporting coal as it plans to transport other commodities, such as natural gas, in an effort to stabilize its businesses.
Adaro recorded that 97.96 percent of its revenue in the first quarter came from sales from coal and mining services, said Adaro finance director David Tendian in Jakarta on Tuesday.
He said the company currently planned to earn similar amounts of revenue from its three main business arms: coal, logistics and electricity.
"The logistics business can be a balancer when the revenue from coal drops," David said during a public expose at the Indonesia Stock Exchange (IDX) in Jakarta on Tuesday.
“During the weak coal business period between 2012 and 2016, our logistics revenues contributed 50 percent to our revenue,” he said, adding that the energy business, however, was still being developed.
Read also: Adaro to diversify business in long term
Adaro has two electricity plant projects -- 2x1,000 megawatt (MW) power plant Bhimasena Power in Central Java and 2x1,000 MW plant Tanjung Power in South Kalimantan -- with investments of $4.2 billion and $545 billion, respectively.
As of July, the construction progress of Bhimasena reached 27 percent, while the construction of Tanjung reached 67 percent. "We are actively seeking opportunities in the electricity sector, not only coal-based but also gas-based and renewable resources," David said. (bbn)
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