PT Delta Dunia Makmur Tbk (DOID) recorded an increase in revenue and net profit performance throughout 2023. DOID recorded a net profit of USD 36.01 million or equivalent to IDR 560.8 billion (BI Jisdor exchange rate of IDR 15,576 per US dollar).
In its financial report, DOID recorded revenue of USD 1.83 billion, or equivalent to IDR 28.5 trillion in 2023. This revenue increased 18% compared to USD 1.55 billion in 2022. DOID's management revealed that this was its highest revenue on record.
Furthermore, DOID revealed that throughout 2023, Delta Dunia Group showed record-breaking performance in terms of overburden removal, revenue, and EBITDA, exceeding the targets set by the Group for the year.
This success was largely driven by record overburden removal, which increased by 14% YoY, and production volumes in Indonesia up 10% YoY and Australia up 28% YoY. This was supported by a significant increase from successfully securing some contracts, including BMA's (BHP and Mitsubishi Alliance) Saraji and Burton mines in Australia.
Management also explained that DOID's satisfactory performance was driven by the success of obtaining several new contracts, achieving record overburden removal, active cost management strategies, and increased diversification into metallurgical coal, which now accounts for 19% of revenue.
The increase in DOID's revenue also contributed to the increase in DOID's net profit. DOID's net profit rose 26% in 2023 to USD 36.01 million, equivalent to IDR 560.8 billion in 2023, from USD 28.6 million in 2022.
Delta Dunia Group Director Dian Andyasuri said the strategic transformation of the company's product mix is a response to the global shift towards a low-carbon economy. According to Dian, DOID is currently adapting to the decline in demand for thermal coal.
"We are capitalizing on the strong demand for metallurgical coal, which continues to be an important ingredient for steel production," Dian said in an official statement on Thursday (14/3/2024).
The planned transition is a cornerstone of DOID's diversification strategy, which has yielded substantial results. Metallurgical and infrastructure coal now represents 19% of DOID's revenue and sets DOID on course to reduce its reliance on thermal coal to 50% by 2028.
"This progress reflects our commitment to sustainable performance and strategic growth," he said.
By the end of 2023, DOID also recorded operating cash flow that increased 91% YoY to reach USD 376 million, resulting in a strong cash position of USD 543 million to support DOID's business and drive future growth through acquisitions.
Concurrently, DOID has also undertaken strategic initiatives to reduce its debt exposure. On March 5, 2024, DOID announced the implementation of a bond tender offer and consent solicitation to all holders of DOID's 7.75% Senior Notes issued in 2025 to purchase in cash the remaining outstanding balance.
As for 2023, DOID's capital expenditure (capex) decreased by 20% YoY to USD 121 million. This decrease was due to the successful completion of several projects in Indonesia, per the 2023 target of USD 105 million to USD 145 million.
"Maintaining tight control over capital expenditure remains a priority for the group," he said.
Image source: Bisnis.com / DOID
Source: https://market.bisnis.com/read/20240314/192/1749164/delta-dunia-doid-cetak-laba-bersih-rp5608-miliar-sepanjang-2023
