PT Adaro Energy Indonesia Tbk (ADRO) issued a capital expenditure (capex) budget worth USD 648 million or equivalent to IDR 10 trillion throughout 2023 (exchange rate of IDR 15,439 per USD).
The amount increased 53% year-on-year (yoy) compared to the previous year's capex fund of USD 424 million.
"ADRO's capital expenditure in FY23 rose 53% to USD 648 million from USD 424 million in the previous year, exceeding 2023 guidance," said management in a statement on Friday (1/3/2024).
The capital budget goes towards the purchase and replacement of heavy equipment and barges. The management also spent funds for the initial investment in the aluminum smelter, supporting facilities, and investment in infrastructure.
The decline in coal exports is a challenge for ADRO throughout 2023 because the absorption of black gold sales abroad only absorbed USD 5.28 billion from the original USD 6.94 billion.
The decline contributed to a 19.5% yoy decline in ADRO's operating income to USD 6.51 billion from USD 8.10 billion.
After cutting production costs to royalties, ADRO's net profit remained at USD 1.64 billion, equivalent to IDR 25.34 trillion. This acquisition fell 34.16% year-on-year (yoy) compared to USD 2.49 billion in 2022.
Image source: Liputan6 / Doc. PT. Adaro Energy Tbk.
Source: https://emitennews.com/news/realisasi-capex-adaro-adro-naik-53-persen-jadi-rp10-triliun-di-2023
