Toba Bara sets capex of US$60-65M in 2017, Q1 sales down 1.4%

JAKARTA (TheInsiderStories) – PT Toba Bara Sejahtra Tbk (IDX:TOBA), a coal producer,  said it has set aside capital expenditure (Capex) for 2017 at US$60-65 million, of which 85-90 percent will be allocated for the engineering, procurement and construction (EPC) phase of the power project, with the balance for the mining business, i.e. land acquisition, and infrastructure/heavy equipment.

The company, through its subsidiary PT Gorontalo Listrik Perdana (GLP), secured a coal-fired power plant project (CFPP) with capacity of 2×50 megawatts (MW) (Sulbagut-1) located in the Gorontalo Province, Sulawesi. The signing of the Power Purchase Agreement (PPA) with the state utility PLN was held on Jul. 14, 2016, following the company’s participation in PLN’s open tender process through the Independent Power Producer (IPP) scheme.

The Sulbagut-1 project, with PPA term of 25 years and project value estimated at US$ 170 – US$ 220 million, will be developed by a consortium under GLP, which is 80 percent owned by the company, with the remaining 20 percent each owned by the other consortium member Shanghai Electric Power Construction Co. Ltd.

In the first quarter Toba Bara booked sales of US$62.7 million in the first quarter of 2017, slightly lower by 1.4 percent compared to the same period last year. The coal sales volume was lower in the quarter, however the average selling price (ASP) was higher at US$57.2 per ton from US$46.8 per ton, hence its sales revenues only edged down slightly.

The company booked net profit for the period of US$ 10.2 million in the first quarter, surged 96.2 percent y-o-y from the previous year of US$5.2 million.

The company produced 1.1 million tons of coal in the quarter, fell 26.7 percent from the same period last year of 1.5 million tons. “This was primarily due to the relatively strong seasonal wet weather conditions impacting the operational activity during the first quarter period,” the company said in a report to the Indonesian Stock Exchange.  (*)