PT Indo Tambangraya Megah Tbk (IDX: ITMG), an Indonesia-based coal mining company, forecasts its coal production to be slightly lower this year as compared to last year.
ITMG Director of Investor Relations Yulius Kurniawan Gozali stated that the company has refrained from boosting its production due to the ample supply of the commodity available in the market.
“The production target for 2020 is still in the finalization stage,” Yulius said.
In 2019, the company had set its coal production target at 23.6 million tons (MnT) with sales of 26.5 MnT.
Yulius explained that the slowing growth of the global economy as a result of trade war would eventually hurt demand for coal. Furthermore, the Chinese import regulations on coal would affect demand. However, he continued saying that export demand is still relatively stable despite a decline in coal prices.
ITMG coal sales as of the third quarter yesterday were dominated by exports to Southeast Asian nations, India and Pakistan worth USD 530.94 million, followed by Taiwan, China, Hong Kong and Korea worth USD 328.95 million.
The company’s revenue fell 7.8 percent year-on-year to USD 1.3 billion in the first nine months last year while its net profit declined 49.2 percent year-on-year to USD 101.2 million.
ITMG is planning to maintain its existing export market share while continuing to explore new potential markets in developing countries such as Vietnam, Bangladesh, and Myanmar.
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