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Coal giant Indika Energy’s net loss widens to $117.5m in 2020
The coal producer has attributed its net loss in 2020 to low global coal prices and demand, primarily as an impact of COVID-19 lockdown policies in countries around the world.
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Backhoes and other heavy equipment operate the Binungan open-pit coal mine belonging to PT Berau Coal in East Kalimantan, as seen in this undated file photograph. (JP/Indra Harsaputra) (JP/Indra Harsaputra )
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T Indika Energy, one of Indonesia’s top coal companies by output through its subsidiary PT Kideco Jaya Agung, saw its full-year net loss widen 6.5 percent to $117.5 million amid low coal prices in 2020, one of the worst among its peers in the industry.
The publicly listed company’s 2020 financial report shows that revenue fell 25.4 percent year-on-year (yoy) to $2.1 billion, led by lower coal sales at home and abroad, to outpace a 22.61 percent reduction in cost of goods sold (COGS) to $1.8 billion.
The company released a statement on Tuesday that its coal sales volume dipped 5.4 percent to 33 million tons last year, compounding the impact on its revenue from global coal prices that fell 16.1 percent yoy to average $37.8 per ton.
“This challenging situation motivated us to become more adaptable and agile in finding business opportunities to make the company sustainable,” Indika chief executive Azis Armand said in the statement.
On March 5, Indika formed renewable energy joint venture PT Empat Mitra Indika Tenaga Surya (EMITS) with Indian solar energy company Fourth Partner Energy.
In contrast, publicly listed coal giants PT Adaro Energy, state-owned PT Bukit Asam and PT Golden Energy Mines all booked net profits in 2020 according to their annual reports, although the former two recorded significant declines in net profit from 2019.
Adaro and Bukit Asam saw their net profits plunge respectively 63.64 percent yoy to $146.93 million and 41.16 percent yoy to Rp 2.38 trillion. Golden Energy Mines, on the other hand, saw its net profit spike 43 percent yoy to $93.93 million.
