JAKARTA - Mining company PT Adaro Energy Tbk (ADRO) noted a 17.36% decrease in net profit, from US$ 118.80 million in Q1 2019 to US$ 98.18 million in Q1 2020.
The company also noted 11.34% decrease in revenue, down from US$ 846.48 million in Q1 2019 to US$ 750.47 million in Q1 2020. While cost of revenue also weakened by 5.10%, from US$ 581.75 million in Q1 2019 to US$ 552.07 million in Q1 2020, the amount could not support the decrease in revenue resulting in a 25.06% decline in gross profit, from US$ 264.73 million in Q1 2019 to US$ 198.40 million in Q1 2020.
Management commented that the revenue decline was inevitable, as coal prices went down 17%, and demand weakened due to Covid-19 regional lockdowns in Indonesia. Although, production increased 5% (YoY) to 14.41 million tonne and sales volume went up 8% (YoY) to 14.39 million tonne.
The company further noted a 35.94% decrease in operational income, down from US$ 199.36 million in Q1 2019 to US$ 127.70 million in Q1 2020 due to the increase in the sum of operating and other costs. Ultimately, the company booked a significant decrease in income tax expenses, 68.62%, from US$ 86.35 million in Q1 2019 to US$ 27.09 million in Q1 2020 retarding the decline in net profit in Q1 2020. (ARM/AC)