JAKARTA - PT Darma Henwa Tbk (DEWA) reported significant profitability growth in the first quarter of 2021 following a successful implementation of three main strategies, which are, (i) reducing operating cost through efficient maintenance program, (ii) global sourcing, and (iii) increasing DEWA’s own-fleet production capacity.
DEWA’s revenue decreased slightly by 10.0% to USD 73.8 Mn (vs USD 82.0 Mn in Q1’20), due to discontinuation of uneconomical subcontracted work at Bengalon coal project in mid-2020, the underlying margins saw significant growth.
Total volume of material moved by DEWA using its own equipment increased by 26.4% to 16.3 Mn bcm (vs 12.9 Mn bcm in Q1’20). While the volumes done by DEWA sub-contractor fell sharply to 11.0 Mn bcm (vs 22.7 Mn bcm in Q1’20).
Although there was a loss of USD 1.5 Mn due to IDR appreciation (vs gain of USD 9.4 Mn in Q1’20). This is a notional non-cash loss resulting from currency translation from IDR to USD. The loss on foreign exchange impacted the reported operating profit of USD 3.9 Mn (vs USD 6.65 Mn in Q1’20). Financial charges decreased by 16.1% to USD 2.4 Mn (vs USD 2.9 Mn in Q1’20) with a corresponding reduction in the financial liabilities as the company continued to make scheduled payments to the banks and lease financiers during the entire period of pandemic and continue to do so.
As a result, DEWA’s net profit increased by 26.9% to USD 0.88 Mn (vs USD 0.69 Mn in Q1’20).