Harum Energy Tbk PT (IDX: HRUM), an Indonesia-based thermal coal producer, has announced its coal production target for this year at between 4 and 4.5 million tonnes (MnT), which’s slightly lower than the company’s production target in the range of 4 to 5 MnT in 2019, Kontan newspaper reported on Monday.
Last year, HRUM’s coal production was just over 4 million tons. In comparison, the company produced only 4.6 MnT of coal in 2018, the newspaper reported citing Ray Antonio Gunara, President Director of the company as saying.
Unstable prices coupled with global uncertainty were the main reasons for the company to set a lower production target.
Nevertheless, with improving efficiency and prudent cost control, the company is optimistic that it can meet this year’s coal production target.
HRUM mostly sells its coal to India, Bangladesh, South Korea, Taiwan and Japan. Gunara said that countries like India, Bangladesh and Vietnam are in the process of building more power plants, suggesting that more coal would be needed in the near future.
The company has yet to announce its financial and operational results for 2019. But as per indications, the company raked in USD 189.09 million in revenue from selling coal to export markets in the first nine months of last year. That compares with total revenue of USD 200.3 million for the January-Sepetember period last year.
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