PT Petrosea Tbk (IDX: PTRO) and its subsidiary PT Karya Bhumi Lestari have signed a mining service agreement with estimating contract values of Rp2.7 trillion (US$186.21 million) - Photo by the Company

JAKARTA (TheInsiderStories) – Publicly listed firm, PT Petrosea Tbk (IDX: PTRO) and its subsidiary PT Karya Bhumi Lestari have signed a mining service agreement with estimating values of Rp2.7 trillion (US$186.21 million), said the management yesterday. The project received from two private companies, PT Kartika Selabumi Mining and PT Palm Mas Asri, located in Kutai Kartanegara, East Kalimantan.

The mining contractor estimated the production target from the mines around 78.28 million bank cubic meters of overburden volume and 3.95 million tones of coal with duration seven years until 2027. In this year, to support the company’ business expansion prepared capital expenditure around $100 million.

Most of funds, said the director, Romi Novan Indrawan, will be used for its unit, PT Kideco Jaya Agung. The parent, PT Indika Energy Tbk (IDX: INDY) together with its wholly owned subsidiary, PT Indika Inti Corpindo, has completed the purchased of a 45 percent shares of Kideco for $517.5 million from South Korean firm, Samtan Co., Ltd., and PT Muji Inti Utama.

Now, the group hold 91.0 percent stake at the third largest coal miner under first generation coal contract of work with concession area in East Kalimantan. While, Samtan retains a nine percent. President director of the coal miner, Arsjad Rasjid, said the company plans to diversify its business outside the coal mining business to escalate the group financial performances.

Currently, the miner has signed an agreement with state-owned energy firm PT Pertamina and coal producer, PT Adaro Energy Tbk (IDX: ADRO), to develop coal gasification into Dimethyl Ether. Indika also plans to develop solar energy with an investment of $500 million in the next five years.

The company has established a joint venture company, PT Empat Mitra Indika Tenaga Surya (EMITS) with a solar power company from India, Fourth Partner Energy to provides integrated solar power solutions in Indonesia. EMITS will operates more than 550 megawatts of solar power plants in India and a number of other countries.

The mining company also has established PT Electra Mobility Indonesia (EMI), an electric motorcycle parts and accessories producer, the management announced yesterday. The new entity managed by the mining firm and its wholly owned subsidiary, PT Indika Energy Infrastructure. Both parties has prepared an investment Rp40 billion for the new unit. In EMI, the coal miner hold 99.99 percent shares and the remaining belongs to Indika Energy Infrastructure.

In 2020, Petrosea posted a net profit of $31.18 million, up 3.53 percent from $31.18 million in the previous year. However, the revenues fell 28.5 percent to $340.65 million from 2019 which reached of $476.44 million.The company also increased its cash position to $133.95 million, a 59.12 percent increase compared to the previous year.

“Thanks to the success of Project Minerva, we have been able to increase our operational excellence and financial performance during this difficult year, as well as maintain a very healthy cash position to support Company operations,” said Hanifa Indradjaya, president director of Petrosea, on March.

Indika is an integrated energy group listed on Indonesia Stock Exchange, with a market capitalization of around Rp4.8 trillion ($340.42 million) as of Oct. 9. Its principal investment, Kideco, is one of Indonesia’ largest domestic coal producers.

And, Petrosea was established in 1972 and engaged in mining contract services, engineering and project management as well as oil and gas services. While, the parent is an Indonesian integrated energy group listed on Indonesia Stock Exchange. Karya Bhumi Lestari is a 100 percent owned by the company.

US$1: Rp14,500

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