United Tractors recently released its consolidated financial statements for up to the fourth quarter of 2024.
The report showed that the company had recorded a net revenue of IDR 134.4 trillion (approximately USD 8.1 million), up by 5 percent compared to IDR 128.6 trillion in the same period of 2023. The revenue came from several sectors, including IDR 58 trillion in mining contracting, up by 8 percent compared to the same period the previous year. United Tractors also posted IDR 37.3 trillion of revenue in construction machinery or about 2 percent higher. Revenue in thermal and metallurgical coal mining had dropped 15 percent to IDR 26 trillion due to the lower average coal price. United Tractors also posted Rp 9.9 trillion in gold and other mineral mining, which grew a whopping 90 percent.
In the fourth quarter of 2023, the group entered the nickel business and was in the process of developing the asset.
In 2024, United Tractors’ net profit was down by 5 percent from IDR 20.6 trillion to IDR 19.5 trillion. The company attributed the decline to the lower gross profit in the thermal and metallurgical coal mining business. as well as increased interest expense.
Construction Machinery Segment
This segment recorded a decrease in Komatsu sales volume by 16 percent to 4,420 units due to lower sales from the mining, construction, and forestry sectors. Based on internal market research, Komatsu’s market share was 26 percent. Komatsu maintains its position as a market leader in the mining sector.
Sales volume of Scania mainly from trucks decreased from 715 units to 436 units and UD Trucks sales decreased from 272 units to 234 units primarily due to lower demand in the mining sector.
Revenue from spare parts and maintenance services slightly increased by 1 percent to IDR 11.6 trillion.
In total, the construction machinery segment recorded a 2 percent increase in net revenue of IDR 37.3 trillion mainly due to product mix and higher revenue from spare parts and services.
Mining Contracting Segment
The company operates its mining contracting segment through Pamapersada Nusantara (PAMA) and its subsidiary Kalimantan Prima Persada (KPP Mining).
PAMA and KPP Mining (PAMA Group) provide mining services to mine concession owners, by assisting them with coal and other mineral production and overburden removal.
Until the fourth quarter of 2024, PAMA Group recorded increased overburden removal by 5 percent to 1,217 million bcm and increased coal production for its clients by 15 percent to 148 million tons, with an average stripping ratio of 8.2x.
Thermal and Metallurgical Coal Mining Segment
The company’s thermal and metallurgical coal mining business segment is operated by Tuah Turangga Agung (Turangga Resources).
In 2024, Turangga Resources’ coal mine reported a coal sales volume of 10.2 million tons, including 3.2 million tons of metallurgical coal. Total coal sales volume including third party coal was 13.1 million tons, 11 percent higher compared to last year.
Coal mining segment saw a 15 percent decrease in net revenue to Rp 26 trillion due to the decline in the average selling price of coal.
Gold and Other Mineral Mining Segment
The gold and other mineral mining segment reported that its revenue had grown by 90 percent to Rp 9.9 trillion. Increased average gold selling price had caused the revenue to soar.
Gold Mining
Agincourt Resources (PTAR) and Sumbawa Jutaraya (SJR) operate the company's gold mining business. This segment saw a total gold sales equivalent of 232,000 ounces, up by 32 percent year-on-year.
PTAR operates a Martabe gold mine located in South Tapanuli, North Sumatra. Martabe reported 230,000 ounces of gold sales equivalent, 31 percent higher than last year.
SJR operates a gold mine concession in Sumbawa Island, West Nusa Tenggara. SJR reported 1,800 ounces of gold sales equivalent as it has just started gold sales by the fourth quarter of 2024.
Nickel Business
Stargate Pasific Resources (SPR) operates a nickel mine which is located in Southeast Sulawesi.
SPR reported 1,975,000 wet metric tons (wmt) of nickel ore sales in 2024, comprising 1,282,000 wmt of limonite and 693,000 wmt of saprolite.
About 19.99-percent-owned Nickel Industries Limited (NIC) is an integrated nickel mining and processing company with major assets located in Indonesia.
The company recognized equity income from NIC for the 12-month period from the last quarter of 2023 up to the first nine months of 2024. NIC’s RKEF operations reported 34,400 tonnes of nickel metal sold in the last quarter of 2023 and 96,300 tonnes in the nine months of 2024.
