Mining Directory

PT Adaro Energy Indonesia Tbk (ADRO) has prepared a strategy to secure the need for heavy equipment in the company's operations.   ADRO's Head of Corporate Communication , Febriati Nadira said, ADRO performs regular heavy equipment upgrades and manages operations strategically to optimize the use of heavy equipment and increase operating productivity.

This step is one of ADRO's strategies in securing the need for heavy equipment to support the company's operational activities. "As we did in 2021, we managed to maintain a 93% physical availability rate for the equipment, above standard operational parameters," said Nadira to Kontan.co.id (27/5).

A little information, currently the demand for heavy equipment is high. This is illustrated, for example, by the disparity between the national production figures for heavy equipment and the existing demand. In an interview with Kontan.co.id some time ago, the General Chair of the Indonesian Heavy Equipment Industry Association (Hinabi), Jamalludin revealed that the national demand for heavy equipment in Indonesia is around 17,000 units per year. Meanwhile, domestic production is at the level of 10,000 units per year. 

"Meanwhile, there is currently no additional production capacity considering the significant fluctuation (demand) for heavy equipment," he said. This year, ADRO targets a production target of 58 million - 60 million tons of coal with a stripping ratio of 4.1x in 2022. With this target, ADRO targets income before interest, taxes, depreciation, and amortization aka Earning Before Interest, Taxes, Depreciation, and Operational amortization (EBITDA) of US$ 1.9 billion – US$ 2.2 billion.

During the first quarter of this year, ADRO's total coal production volume has reached 12.15 million tons, down 6% compared to the realization in the first quarter of 2021. Meanwhile, ADRO's coal sales volume reached 12.20 million tons in the first quarter of 2022, down 3% compared to the realization in the first quarter of 2021.

Despite recording a decrease in volume, ADRO's turnover grew to double digits in the first three months of this year. Citing the company's interim financial report, ADRO's operating income in the first quarter of 2022 reached US$ 1.22 billion in the first quarter of 2022. This number increased 76.98 percent compared to ADRO's realized operating income in the first quarter of 2021 which amounted to US$ 691.97 million.

In line with rising revenues, profit for the period attributable to owners of the parent entity, aka ADRI's net profit, skyrocketed 457.61 percent year-on-year (yoy) from US$ 71.74 million in the first quarter of 2021 to US$ 400.07 million in the first quarter of 2022.

Source: https://industri.kontan.co.id/news/jaga-kinerja-begini-strategi-adaro-energy-adro-amankan-kebutuhan-alat-berat