PT Adaro Energy Indonesia Tbk. (ADRO) has recorded a capital expenditure (capex) absorption of USD 473 million or approximately IDR 7.32 trillion (based on the Jisdor exchange rate on September 30, 2023, of IDR 15,487 per USD) for the first 9 months of 2023.
Wrote By ADRO Management that the capital expenditure absorption increased by 71% compared to the same period the previous year, amounting to USD 277 million.
"The capital expenditure during this period was mainly utilized for the purchase and replacement of heavy equipment and vessels, initial investments in aluminum smelters and their supporting facilities, and infrastructure investments," wrote the management, as quoted on Monday (November 6, 2023).
The purchase and replacement of heavy equipment and vessels contributed to a 21% increase in ADRO's fixed assets by the end of the first 9 months of 2023, amounting to USD 1.667 million. These fixed assets account for 16% of the total assets.
ADRO's aluminum smelter will be operated by PT Kalimantan Aluminium Industry (KAI), which has selected all main contractors for the construction and installation of the smelter.
KAI has completed land clearing for permanent accommodations, coastal jetty breakwater, and the construction of supporting facilities, earthworks, and continued construction of other infrastructure-related facilities.
Adaro also reported a 35% increase in net cash outflow from financing activities in the first 9 months of 2023, reaching USD 1.058 billion, mainly due to increased dividend payments. As known, ADRO distributed a cash dividend of USD 1.0 billion to shareholders for the 2022 fiscal year.
As of the first 9 months of 2023, ADRO and its subsidiaries (Adaro Group) achieved a sales volume of 49.12 million tons, representing an 11% increase from the same period in 2022. This accomplishment aligns with the FY23 sales volume target set at 62–64 million tons.
Similarly, the production volume increased by 12% to 50.73 million tons in the first 9 months of 2023, while the overburden stripping volume rose by 25% to 217.43 million cubic meters in the same period. The stripping ratio stood at 4.29x, reflecting a 12% increase from the first 9 months of 2022 and in line with the set target of 4.2x for the full year 2023.
Image source: ADRO
Source: www.market.bisnis.com/Adaro Energy ADRO Serap Capex Rp73 Triliun Kuartal III2023
