PT Harum Energy Tbk (HRUM) is aiming to increase the performance of the nickel business line. Harum Energy's main director, Ray Antonio Gunara, said that his party is targeting an increase in the financial performance of the coal and nickel business lines. "The contribution from the nickel sector to the Company's net profit is expected to increase significantly in 2023, when compared to the previous year," said Ray to Kontan, Monday (20/2).
Ray continued, the contribution from the nickel sector will be supported by PT Infei Metal Industry (IMI)'s first smelter, which has been operating since April last year. This year the smelter is targeted to operate at full capacity so as to contribute to HRUM's performance this year. Another contribution will be supported by HRUM's investment in the second smelter at PT Westrong Metal Industry which is targeted to operate commercially in the fourth quarter of 2023. "The smelter's annual production capacity is twice as large as the IMI smelter," said Ray. From the coal side, HRUM targets production to reach 5 million tons this year.
Ray explained, coal still has good prospects this year. Even though a price correction is predicted, Ray confirmed that this year's price will still be relatively high compared to the average for the past 5 years. In addition, it is believed that domestic and export market demand will help maintain coal price movements this year. Meanwhile, regarding the nickel business line, Ray revealed, nickel has the potential as a raw material for various other derivative products that have high economic value. "The company is optimistic about the prospects for the nickel industry and hopes that global demand for nickel can grow rapidly in the future," said Ray.
In order to smoothen this year's business plan, HRUM has allocated capital expenditure (capex) of US$ 52 million. Most of the capital expenditure will be used for the development of infrastructure and production facilities for the nickel mining area. While partly for the addition of coal mining properties, purchase of vehicles, purchase of heavy equipment to the maintenance of tugboats and barges. HRUM posted a net profit of US$ 237.43 million as of the third quarter of 2022.
When compared to the net profit of the same period last year, HRUM's net profit skyrocketed 532.54%. HRUM's net profit for the January-September 2021 period was only US$ 37.53 million. Thus, HRUM's basic earnings per share also increased to US$ 0.01844 from the previous US$ 0.00297. Meanwhile, the increase in HRUM's net profit was in line with the increase in revenue. As of the end of September 2022, HRUM posted revenue of US$ 702.79 million. This realization shot up 241.91% of realized revenue in the same period in 2021 which was only US$ 205.54 million.
