PT ABM Investama (IDX ABMM), a mid size Indonesian coal producer, has announced its plan to produce 15 MnT of coal in CY20, which would translate into a 36% increase Y-o-Y from this year’s coal production, Kontan reported citing Adrian Erlangga, director of the company.
The company had earlier made a forecast to produce 11 MnT coal in CY19, of which 8.5 MnT coal has been produced in the first nine month, recording an increase of 19.7% Y-o-Y.
Erlangga said that the company is poised to produce more coal next year and in the coming years amid fluctuating coal prices.
He said with the long-term coal production, the company would have more time to better prepare its facilities to attain the rising target.
“With increasing production target, we will be able to provide necessary facilities,” Erlangga said without elaborating the company’s target over the next five years.
He also emphasized that the fluctuating price of coal in the global market was ‘hard to control.” Despite that, AMB Investama would continue to boost coal production.
The average of Indonesian benchmark coal price (HBA) has declined to USD 77.89/MT this year compared with USD 98.96/MT last year, according to data from Kontan newspaper.
The company reported last months that its revenue fell 23.7% Y-o-Y to USD 443.41 Million in the first nine months this year from USD 581.5 Million in the same period a year ago. Further, its net profit fell 62.6% Y-o-Y to USD 11.29 Million this year from USD 30.42 Million a year ago
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