Mining Directory

PT Indika Energy Tbk ( INDY ) is targeting coal production of 32.8 million tons throughout 2023. The majority of this coal production comes from PT Kideco Jaya Agung (Kideco). "In 2023, the coal production target is 32.8 million tonnes, of which 31 million tonnes will come from Kideco and 1.8 million tonnes from Multi Tambangjaya Utama (MUTU)," said Indika Energy's Head of Corporate Communication , Ricky Fernando to Kontan. co.id, Friday (20/1).

According to Kontan.co.id's previous records, Indika Energy has set a coal production volume in 2022 of 34 million tonnes. This means that when compared to the target in 2023 there is a decrease in coal production volume of 3.52% year on year (yoy).  Citing the results of financial reports until the end of September 2022, INDY recorded revenue growing by 57.2% yoy to US$ 3.13 billion driven by higher coal prices with the average ICI-4 benchmark increasing to US$ 84.6/ tons or higher 51.1% yoy.

Kideco's revenue grew by 49.1% yoy to US$ 2.21 billion at the end of September 2022 driven by a higher average selling price, which rose 55.4% yoy to US$ 84.2/ton.  At the end of September 2022 Kideco sold 26.3 metric tons of coal by volume, down 4.1% yoy. However, INDY's management stated that, despite the decline, this realization was still in line with the 2022 production target of 34 million tons with 72% volume for exports and 28% for the domestic market.

In the 9 month period of 2022, Indika Resources revenue increased 113.3% yoy to US$ 628.4 million driven by higher average selling price (ASP) at Multi Tambangjaya Utama (MUTU) and coal trading . On the other hand, coal trading volume is also higher.  In detail, MUTU's revenue rose 119.0% yoy to US$ 231.1 million, due to an increase in ASP of 129.9% yoy to US$ 193.3/ton, with sales volume of 1.2 million tonnes of coal. This realization decreased by 4.9% due to the export ban in January 2022 and several other challenges experienced in transportation.

Coal trading revenue at the end of September 2022 jumped 110.0% yoy to US$ 397.3 million, supported by an increase in ASP of 58.5% yoy to US$ 75.3/ton and 32.4% increase in annual volume to 5.2 million tonnes. The gross profit rose 109.1% yoy to US$ 1.08 billion and the consolidated gross profit margin increased to 34.7% from 26.1% in the same period last year, mainly driven by higher coal prices. Operating income jumped 120.1% yoy to US$ 935.3 million and operating margin increased to 29.8% from 21.3%.  Through this increase in revenue, INDY posted profit attributable to company owners of US$ 338.4 million from a net loss of US$ 6.0 million at the end of September 2021. 

Source: https://industri.kontan.co.id/news/indika-energy-indy-bidik-produksi-batubara-328-juta-ton-pada-2023