Coal Company Record Positive Performance in the First Quarter of 2024

LISTED COMPANY - JAKARTA. Several coal issuers have reported stellar production performance in the first quarter of 2024. The coal production of these black gold issuers has increased compared to the same period in the previous year.

Niko Chandra, Corporate Secretary of PT Bukit Asam Tbk (PTBA), stated that the company's coal production reached 7.3 million tons in the first three months of this year.

"This represents a 7% year-on-year (YoY) growth compared to the same period in 2023, which was 6.8 million tons. This increase in production coincides with a 10% increase in coal sales volume to 9.7 million tons," Niko told Kontan on Thursday (2/5).

Niko explained that the positive results in the first quarter of 2024 have boosted the company's optimism to pursue its production target for this year. For 2024, PTBA is aiming for a coal production of 41.3 million tons.

"The company will optimize various efforts to achieve the set target. We are planning by considering the latest market developments and anticipating various dynamic factors," Niko continued.

Regarding the expansion plan for this year, PTBA is still conducting studies from various aspects. Especially from the technical, legal, and financial aspects, and in line with the company's business strategy.

Meanwhile, PT Bumi Resources Tbk (BUMI) also recorded an increase in production performance. BUMI's Director and Corporate Secretary Dileep Srivastava stated that the company's production and sales performance increased during the first quarter of 2024.

In the first quarter of 2024, BUMI recorded a production of 19.5 million tons, a 21% increase from the same period in the previous year, which was 16.1 million tons. This achievement consists of PT Kaltim Prima Coal (KPC)'s production of 14.5 million tons and PT Arutmin Indonesia's 5.1 million tons.

BUMI's coal sales in the first quarter of 2024 reached 18.4 million tons, a 19% YoY growth compared to the first quarter of 2023, which was 14.4 million tons.

"This year's production guide is in the range of 80 million tons to 82 million tons. For this year, the capital expenditure allocation is around US$ 80 million to US$ 100 million," Dileep told Kontan on Wednesday (1/5).

An increase in production was also recorded by PT Adaro Energy Indonesia Tbk (ADRO) for the first quarter of 2024.

In a report by Kontan, ADRO's President Director, and Chief Executive Officer Garibaldi "Boy" Thohir revealed that operationally, the volume of coal production and sales increased in the first quarter of 2024.

The production volume of ADRO and its subsidiaries (Adaro Group) reached 18.07 million tons, while the sales volume was 16.48 million tons.

The volume of coal production and sales reflects an increase of approximately 15% and 5% respectively compared to the first quarter of 2023.

However, the increase in operational performance was accompanied by a 24% decrease in the average selling price (ASP), in line with the decline in coal prices.

"Amid global uncertainty and weakening prices, we maintain our commitment to cost efficiency. Furthermore, the overall balance sheet and financial position remain healthy, providing flexibility at this time," Boy Thohir revealed in a written statement received by Kontan.co.id on Wednesday (1/5).