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Facility maintenance caused DEWA's gross profit to decline

19 December 2018 02:10 PM  Company: PT. Darma Henwa Tbk[DEWA]
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JAKARTA. The gross profit of PT Darma Henwa Tbk (DEWA) dropped by 41.23% from US$ 11.24 million in the period of January-September 2017 to US$ 6.61 in the same period this year.

Faisal Firdaus, President Director of DEWA, admitted that this decline was a part of the agenda to improve mining operational facilities. "In 2018, we focused on equipment maintenance. Most of the equipment have been scheduled for repairs this year, " said Firdaus in Jakarta this afternoon (19/12).

DEWA considered that it was necessary to carry out the maintenance of mining operational equipment this year, even though it required substantial costs. "We need big costs for the financing (of the maintenance)," explained Firdaus. He added that the volume of coal production could increase after the company optimized the production equipment.

This year, DEWA allocated US$ 30 million as a budget for the maintenance of production equipment, while in the previous year, the budget was only US$ 17 million. Firdaus claimed that overburden this year increased by 18.5% after maintenance of production equipment had been done. "This means that a lot of coal is exposed to be mined," said Firdaus.

DEWA's coal production volume until the end of this year is projected to grow by 5.5% from 12.8 million Metric Ton (MT) to 13.5 million MT. (KR/AR)

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