Indo Tambangraya Megah Tbk (IDX: ITMG) shares final dividend  US$35.5 million, equal to 90 percent of last year' net profit of $38 million - Photo by the Company

JAKARTA (TheInsiderStories) – Coal miner, PT Indo Tambangraya Megah Tbk (IDX: ITMG) shares final dividend  US$35.5 million, equal to 90 percent of last year’ net profit of $38 million, the management announced today. In November 2020, the company has distributed interim dividend amounted to $22.8 million and the remaining around Rp167 per share will be distributed on April 29, 2021.

For this year, the company targets to produce up to 19.9 million tones (MT) of coal from a year ago 18.4 MT of coal. During 2020, the issuer recorded a sales volume of 21.2 MT of coal with an average selling price $53.5 a MT of coal from last year $64.6 a MT of coal.

The weakening selling price has lowered the net income of Indo Tambangraya from $1.72 billion to $1.18 billion while the gross profit margin decreased from 19 percent to 17 percent on an annual basis. While, the net profit fell by 70 percent to $38 million from a year ago $127 million.

Out of the sales volume target up to 22.9 MT of coal set for this year, the company has secured 56 percent of sales contracts. Throughout 2020, the miner has sold 21.2 MT of coal in which were exported to China (4.7 MT of coal), Japan (4.5 MT of coal), Indonesia (3.8 MT of coal), Philippines (2.0 MT of coal), Thailand (1.3 MT of coal), and other countries in East and Southeast Asia.

In 2020, the Indo Tambangraya has acquired PT Graha Panca Karsa (GPK) to bring more versatility with low calories and low sulphur product type. The coal producer also commenced its solar power plant operation at Indominco site, with the largest smart microgrid technology in Indonesia.

Integrated with other energy sources generated by coal and diesel fuel, this solar power plant produces electricity for Bontang Port operations while reducing carbon emissions. The company has also handed over 7,540 hectare of rehabilitated watershed area to the government, fulfilling its environmental obligations as a good and responsible coal miner.

For the planned, Indo Tambangraya will use the capital expenditures has prepared US$50 million in this year. According to the president director, Mulianto, the price of coal continues to declined while the demand for the commodities such as gold was rising.

He said, the issuer continues to adapt the global economic uncertainty in order to maintain a decent performance. On the other side, coal supply has been increasing faster than the demand has, making global coal price continue weaker.

He continued, to cope the global economic uncertainty this year and beyond, Indo Tambangraya will focus on several aspects like cost efficiency initiative, business expansion, and leveraging infrastructure network to create business opportunities outside coal operation. The miner produces thermal coal with several types of good quality, so that it is able to meet its large and diverse customers in Asia.

Written by Editorial Staff, Email: theinsiderstories@gmail.com