JAKARTA - PT Adaro Energy Tbk (ADRO) recorded increased profitability on the back of favorable coal market conditions and achieved solid operational EBITDA of US$635 million, up 36% year-on-year (y-o-y). AE maintains a solid operational EBITDA margin of 41% and continues to focus on operational excellence to ensure target achievement and good performance.
President Director and Chief Executive Officer, Garibaldi Thohir, said: “Tight supply in the coal market is driving gains and underpinning high coal prices during this reporting period. Due to supply constraints, the main coal supplying countries are unable to meet the high demand due to the economic recovery associated with the pandemic conditions. Coal prices reached their highest point in recent years and thus enabled AE to record good profitability in this period. AE generated satisfactory operating EBITDA of US$635 million and core profit of US$330 million, up 36% and 45% y-o-y, respectively, reflecting the quality of its earnings. Despite improving market conditions, AE will continue to maintain its discipline and focus on operational excellence and efficiency along its vertically integrated coal supply chain.”
AE recorded operating revenues of US$1,563 million in 1H21, a 15% increase from 1H20, mainly due to a 25% y-o-y increase in average selling price (ASP). The supply constraint underpins rising global coal prices which means higher ASP for AE. The higher-than-expected volume of rainfall and the number of hours of rain in May and June affected mining operations in 1H21, resulting in coal production in 1H21 being 26.49 million tonnes, or 3% lower yoy and coal sales in 1H21 recorded 25.78 million tons,
The company plans to pursue overburden removal activity in drier weather quarters to achieve its guideline stripping ratio of 4.8x by 2021. (LM)