Indonesian coal miner Adaro Q2 net falls 73 pct

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31 Aug 2010

PT Adaro Energy, Indonesia's biggest coal miner by market value, saw second quarter net profit fall 73 percent because of lower coal prices and a stronger rupiah. The company, which aims to expand its production in the world's top exporter of thermal coal by 13 percent this year, said it still expected to meet analysts' forecasts for the full year as it saw higher coal prices in the second half of 2010.
"We expect our average sales price will be higher in the second half of 2010 and, weather permitting, we'll satisfy market expectation for full year 2010," said Garibaldi Thohir, Adaro's president director, in a statement on Monday.
Adaro has said that it expects production to rise to 45-46 million tonnes in 2010, from 40.6 million last year, but unusually heavy rains so far this year hurt revenues in the second quarter for Adaro and hampered output at other miners.
Adaro, which started to report results in U.S. dollars as well as rupiah this year, reported a net profit of 1.15 trillion rupiah or $125 million in the first six months. That compared with net profit of 2.25 trillion rupiah or $203 million in the year-ago period.
The company's business is mostly conducted in U.S. dollars, but the rupiah IDR= strengthened 11 percent by end-June 2010 from a year earlier.
Second quarter net profit fell to 292 billion rupiah, from 1.1 trillion rupiah a year ago, according to Reuters calculations based on published first quarter figures.
"While our H1 2010 production and sales grew from the lower base of H1 2009, unseasonably heavy rains in Q2 2010 have affected our overall revenues and net profit," said Thohir.
The company did not provide the average selling price but said that it dipped 10 percent in the first half of the year from a year ago.
Analysts forecast full-year net profit of 4.02 trillion rupiah ($446.1 million), according to the consensus in Thomson Reuters I/B/E/S.
First half revenue rose 12 percent to $1.3 billion, from $1.17 billion a year ago.
The firm produced 21.62 million tonnes in the first half and reported sales volume of 21.75 million tonnes, up 22 percent, Adaro has said previously.
Adaro shares rose 15 percent in the first half, in line with the broader market .JKSE that was up 16 percent in the same period, and outperforming the 22 percent slide in shares of rival Bumi Resources.
Adaro's shares closed down 0.5 percent at 1,980 rupiah on Monday before the company released its results, while the overall market was down 0.17 percent.

Source: Reuters