JAKARTA (TheInsiderStories) - Indonesian miner, PT Petrosea Tbk (IDX: PTRO) prepared capital expenditure of around US$100 million in 2021 to support the mining service, said the director. Most of funds, said Romi Novan Indrawan, will be used for the unit, PT Kideco Jaya Agung, including maintaining the production volume at the mines.
Kideco is also part of the PT Indika Energy Tbk (IDX: INDY) group. In 2017, the coal producer together with its wholly owned subsidiary, PT Indika Inti Corpindo completed the purchased of a 45 percent interest in Kideco for $517.5 million from South Korean firm, Samtan Co., Ltd., and PT Muji Inti Utama.
Indika now hol 91.0 percent stake at Kideco, the third largest coal miner under first generation coal contract of work with concession area in East Kalimantan. While, Samtan retains a nine percent. The acquisition of Kideco is an important step for the group.
On March 23, 2020, Petrosea signed a Front-End Engineering Design service agreement for the Awak Mas gold mine project worth $11.45 million for a period of 40 weeks from the date of the contract. As of October of this year, the miner has obtained a contract in hand which will be worked on for around $812 million.
In the first half of this year, the producer‘ net profit grew 17.62 percent to $9.06 million from a year ago of $7.71 million. The revenues was $175.9 million or down 26.11 percent from last year’ $238.08 million.
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.
In this week, the issuer just signed an agreement with state-owned energy firm PT Pertamina and other coal producer, PT Adaro Energy Tbk (IDX: ADRO), to develop coal gasification into Dimethyl Ether. President director of Indika, Arsjad Rasjid, said the company also plans to diversify its business outside the coal mining business.
In order to support earnings, the miner has taken steps to reduce operating cash costs at its 91 percent-owned coal mining subsidiary, PT Kideco Jaya Agung, to $32.3 per ton in the first half of 2020 from $35.6 per ton in previous year. Its contract mining subsidiary PT Petrosea Tbk (IDX: PTRO) and the engineering subsidiary PT Tripatra Multi Energi, are also seeking new contracts to boost their contract order books which have been declining in recent years.
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.
US$1: Rp14,100
Written by Editorial Staff, Email: theinsiderstories@gmail.com
