ABM Investama Tbk PT (ABMM.JK) – an Indonesia-based integrated coal mining company – announced a 20 percent year-on-year production growth to 6 million tonnes (MnT) in the first half of the year, up from around 5 MnT in the corresponding period a year ago, Kontan newspaper reported citing Adrian Erlangga, president director of the company.
The company has set sights on producing as much as 13 MnT of coal this year, which’s 23% more than its last year’s production.
ABM Investama reportedly has three coal mining concession areas covering a total area of 7,714 hectares of land in the Kalimantan island of Borneo. Further, the company’s coal reserves amounted to 410 MnT as of 2018, comprising of low and medium calorific-value coal grades ranging from 3,400 to 4,200 kcal/kg GAR.
ABMM sells coal to the domestic market as well as overseas export markets including India and Japan.
Unfortunately, however, the current increase in production is not in line with the company’s financial performance.
Even as production increased, both its revenue and net profit fell in the first six months of this year, mainly due to the persistent decline of coal prices in the global markets. Its revenue declined by almost 24% annually to USD 286.48 million in the first six months of this year, compared to USD 376.80 million in the year-ago period.
Simultaneously, the company’s net profit came down by 65.7% to USD 5.23 million during first half this year from USD 15.27 million in 2018.
Erlangga also stated that the average coal price of ABM investama in the first six months of this year was 25 percent lower than the price recorded in the first six months of last year.
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