PT Adaro Energy Indonesia Tbk (ADRO) is preparing a strategy to spur performance in semester II/2024. 

Head of Corporate Communication of Adaro Energy Indonesia Febriati Nadira explained that coal prices in the second semester of 2024 will move following the cycle and will always fluctuate. 

“We will remain focused on everything we can control such as operational control to ensure the achievement of company targets and cost efficiency,” Nadira said, Friday (19/7/2024). 

Nadira said operational excellence and cost efficiency are things that concern ADRO. In addition, he said, ADRO also continues to develop and diversify its business to increase contributions from the non-thermal coal sector by continuing to play an active role in mineral and renewable energy projects.

“Adaro remains confident that the fundamentals of the coal and energy sector in the long term remain strong, especially with the support of development activities in Asian countries,” Nadira said. 

President Director of Adaro Energy Indonesia Garibaldi 'Boy' Thohir previously explained that his party saw lower coal selling prices this year compared to last year. However, Boy said, he views ADRO's performance as relatively better compared to other coal companies.

“Our performance is relatively okay compared to others because we are efficient, reliable, we continue to do efficiency. Because in my opinion, no one can predict the selling price. As long as we can be the most efficient producer, we can compete,” Boy Thohir told Bisnis in Jakarta, Tuesday (25/6/2024). 

Nadira said ADRO was optimistic about the future prospects of the Adaro Group and its desire to diversify revenue sources.

As a national energy provider company, according to Nadira, Adaro wants to play an important role in supporting Indonesia's economic transformation, including taking opportunities to support the green economy. 

Through the Adaro Minerals pillar, Adaro continues to support government programs and participate in mineral downstreaming programs and green economy development in Indonesia by committing to build an aluminum smelter in North Kalimantan province.

Meanwhile, through the Adaro Green pillar, Adaro continues to play an active role in renewable energy projects for downstream or mineral processing and actively participates in tenders for various renewable power plants. 

Previously, Mirae Asset Sekuritas analyst Rizkia Darmawan explained that the current price for coal commodities is not as good as last year. 
However, this is quite in line with market expectations that coal prices are not as high as last year due to different situations.

“Last year there was supply chain disruption and more intense geopolitical tension, so this year we do not expect the price to be better than last year,” said Darma. 
Darma estimates that coal prices will move in the range of USD 101-USF150 per ton. According to him, the volatility in coal prices that has occurred to date is still in line with Mirae Asset Sekuritas' expectations.

On the demand side, Darma sees that demand from India and China, which are facing summer, is still quite stable for now. Darma estimates that this will prop up coal prices going forward. 

With these catalysts, Darma estimates that there will be an improvement in the performance and financial statements of coal issuers for the second quarter of 2024.