Back to announcement
20230808_ADRO_Laporan Informasi dan Fakta Material_31359349_lamp2.pdf
Other Text extracted ADROSource file signed link, expires in 15 minutes
Extracted text 10
Page 1
PT ADARO ENERGY INDONESIA TBK (IDX: ADRO) 1H23 ACTIVITIES
REPORT
President Director and Chief Executive Officer, Mr. Garibaldi Thohir commented:
“Our achievements in 1H23 put us on track to reach the company’s 2023 targets and
sustainable business growth in the long-term. Despite market fluctuations, demand for our
products remained strong – emphasizing Adaro’s reputation as a reliable partner to our
customers. Furthermore, the financial close for our aluminum smelter and related ancillary
facilities is a milestone in our business expansion to minerals processing.”
“We strive to reach the optimum balance between shareholder returns and business
expansion. This quarter we extended our share buyback program, whilst demonstrating
our commitment to dividends.”
1H23/2Q23 HIGHLIGHTS
• Production volume of ADRO and its subsidiaries (Adaro Group) reached 33.41 Mt in H123,
corresponding to a 19% increase from 1H22. Sales volume in the period of 32.62 Mt was
19% higher than in 1H22. We are tracking our FY23 sales volume target of 62 – 64 Mt.
• Sales of metallurgical coal through subsidiary PT Adaro Minerals Indonesia Tbk (ADMR)
were up by 42% to 1.82 Mt in 1H23. ADMR is maintaining its sales volume target of 3.8 –
4.3 Mt in FY23.
• Overburden removal reached 129.83 Mbcm in 1H23, 27% higher than in 1H22. Our strip
ratio reached 3.89x, 7% higher than in 1H22 and in line with our target of 4.2x for FY23.
• Indonesia remains our largest market, accounting for approximately 25% of our thermal
coal sales in 1H23. While quarterly sales to the domestic market may fluctuate, our annual
volume-based contracts keep us on target to contribute more than 25% of sales to the
domestic market.
• We achieved financial close for our aluminum smelter and related ancillary facilities in May
2023, securing a total of $1.585 billion and Rp 2.5 trillion.
1
Page 2
Historical Quarterly Production Volume (Mt)
Historical Quarterly Sales Volume (Mt)
20.0
16.7 17.2 16.9
15.5 15.1 15.4 15.9 15.3 15.7
14.5 14.4
15.0 13.4 13.6 13.4
12.9 12.7 12.6 13.2 13.1 12.7 12.2
10.9
10.0
5.0
-
Historical Quarterly Overburden Removal Volume and Strip Ratio
2
Page 3
SUMMARY OF 1H23 OPERATIONS
ADARO GROUP SALES BY DESTINATION IN 1H23
Thermal Coal Sales
India
11%
Indonesia
25%
Northeast Asia
19%
China
23%
Southeast Asia
23%
3
Page 4
Sales of ADMR’S Metallurgical Coal (for steelmaking)
Korea
8%
Indonesia
10%
Japan
35%
China
20%
India
28%
ADARO ENERGY PILLAR
1. MINING
PT Adaro Indonesia (AI)
• AI’s production volume in 1H23 reached 24.98 Mt, 9% higher than in 1H22. Sales
volume in the period reached 28.86 Mt, 14% higher than in 1H22.
• Total overburden removal from AI’s three pits reached 102.00 Mbcm, up 19% from
1H22, resulting in a strip ratio of 4.08x in 1H23.
2Q23 vs. 2Q23 vs. 1H23 vs.
Units 2Q23 1Q23 2Q22 1H23 1H22
1Q23 2Q22 1H22
Overburden Removal Mbcm 57.02 44.98 27% 44.53 28% 102.00 85.38 19%
Production Volume Mt 13.17 11.81 12% 13.06 1% 24.98 22.88 9%
Sales Volume Mt 14.79 14.06 5% 14.23 4% 28.86 25.27 14%
Balangan Coal Companies (BCC)
• Balangan Coal Companies produced 4.04 Mt of coal in 1H23, 61% higher than in
1H22. Total overburden removal of 14.54 Mbcm was 22% higher from 1H22, this
resulted in a strip ratio of 3.59x in 1H23.
4
Page 5
2Q23 vs. 2Q23 vs. 1H23 vs.
Units 2Q23 1Q23 2Q22 1H23 1H22
1Q23 2Q22 1H22
Overburden Removal Mbcm 8.27 6.27 32% 6.52 27% 14.54 11.92 22%
Production Volume Mt 2.15 1.89 14% 1.36 58% 4.04 2.51 61%
PT Mustika Indah Permai (MIP)
• MIP recorded a 67% increase in production volume vs 1H22, reaching 1.84 Mt. 1H23
sales volume reached 1.95Mt, an increase of 107% vs 1H22.
• Overburden removal volume in 1H23 of 5.75 Mbcm was 360% higher than in 1H22.
MIP’s overburden removal increased on the back of increased physical availability of
heavy equipment and higher heavy equipment utilization supported by good weather
condition. Strip ratio in 1H23 increased to 3.12x.
• MIP continues to grow its market share in the region, and during the quarter MIP added
Malaysia as one of its customers. China was its largest export destination in the period,
followed by The Philippines and India.
2Q23 vs. 2Q23 vs. 1H23 vs.
Units 2Q23 1Q23 2Q22 1H23 1H22
1Q23 2Q22 1H22
Overburden Removal Mbcm 3.84 1.91 101% 0.76 407% 5.75 1.25 359%
Production Volume Mt 1.08 0.77 40% 0.53 104% 1.84 1.11 68%
Sales Volume Mt 1.14 0.81 41% 0.37 211% 1.95 0.94 108%
Kestrel Coal Mine (Kestrel)
• In 1H23, Kestrel recorded saleable coal production volume of 2.52 Mt, 21% lower than
in 1H22. Kestrel’s sales volume in 1H23 were 2.24 Mt, 29% decline from 1H22.
• The saleable production during 1H23 was less than forecast due to lower processing
capacity as a result of high clay or dilution content in stocks being processed in the
plant. This condition affected 1H23 performance and may result in FY saleable
production being slightly lower than initially forecasted.
• Kestrel’s sales destinations are dominated by customers in major Asian markets.
Japan was Kestrel’s largest sales destination in 1H23 followed by India and Korea.
Adaro Capital Ltd (48%), a subsidiary of ADRO, and EMR Capital Ltd (52%) own 80%
of interest in Kestrel.
2Q23 vs. 2Q23 vs. 1H23 vs.
Units 2Q23 1Q23 2Q22 1H23 1H22
1Q23 2Q22 1H22
Saleable Production Mt 1.57 0.96 64% 1.42 11% 2.52 3.19 -21%
Sales Volume Mt 1.59 0.65 143% 1.53 4% 2.24 3.18 -29%
5
Page 6
2. SERVICES
PT Saptaindra Sejati (SIS)
• In 1H23, SIS’s overburden removal volume increased 18% y-o-y to 100.04 Mbcm.
SIS’s production volume in 1H23 reached 31.12 Mt, a 16% increase from in 1H22 –
in-line with Adaro Group’s higher production output.
• Despite wet weather, SIS produced higher volume mainly from its sister companies in
Adaro Group.
2Q23 vs. 2Q23 vs. 1H23 vs.
Units 2Q23 1Q23 2Q22 1H23 1H22
1Q23 2Q22 1H22
Overburden Removal Mbcm 55.49 44.55 25% 44.45 25% 100.04 84.55 18%
Production Mt 16.32 14.80 10% 15.24 7% 31.12 26.85 16%
3. LOGISTICS
PT Maritim Barito Perkasa (MBP)
• MBP’s barging volume in 1H23 increased by 21% to 31.51 Mt compared to 1H22. The
volume from the Adaro Group constituted almost the entire portion of MBP’s total
barging volume in 1H23.
• MBP continues to execute its plan to increase capacity to support the Adaro Group’s
higher sales target in 2023. Recently, the construction of the barge-to-barge transfer
facility for ADMR’s hard coking coal in North Kelanis has been completed.
2Q23 vs. 2Q23 vs. 1H23 vs.
Units 2Q23 1Q23 2Q22 1H23 1H22
1Q23 2Q22 1H22
Coal barging Mt 16.51 15.00 10% 14.74 12% 31.51 25.96 21%
4. POWER
• Our power plants booked a solid performance in 2Q23. After the planned outage in
1Q23, the availability factor for PT Makmur Sejahtera Wisesa (MSW) reached 99.99%,
averaging 80% up until June 2023. The availability factor for PT Tanjung Power
Indonesia (TPI) was 99.26% in 2Q23, reaching 94.3% for YTD up to June 2023.
Meanwhile, the availability factor for PT Bhimasena Power Indonesia (BPI) was
87.66% during the quarter, as BPI unit 1 has been undergoing planned outage from
June until August 2023, bringing its availability factor to 87.22% for YTD up to June
2023.
• MSW’s Solar PV in Kelanis produced 207.5 MWh in 2Q23, reaching 395.26 MWh for
1H23. Other carbon emission reduction initiatives include the continuation of biomass
co-firing at MSW in 2Q23, which equals a 715 Ton CO2e (1.79%) reduction of CO2
equivalent, reaching 1,393 Ton CO2e (1.73%) for 1H23. PT Adaro Power and PT
Adaro Clean Energy Indonesia (ACEI) continue to support the Group’s green
initiatives.
6
Page 7
5. WATER
• In 2Q23, PT Drupadi Tirta Intan, PT Adaro Tirta Mentaya, PT Adaro Tirta Gresik, and
PT Dumai Tirta Persada continued to support the Indonesian government in its goal
to increase distribution of clean water. Its water treatment businesses have been able
to maintain operational and financial performance in line with projections.
• Meanwhile, development is ongoing for three other projects around Indonesia: the
non-revenue water (NRW) project in Bandung with the installation of water meters by
PT Adaro Tirta Wening in the designated District Meter Zones / Areas, the construction
of a 200 lps water treatment plant in Bekasi by PT Grenex Tirta Mandiri and the signing
of Effective Date Minute with the regional water utility company of Medan, Perumda
Tirtanadi.
• In the mine water business, PT Adaro Tirta Sarana’s slurry and dewatering pump
operations continued to be expanded to support the Adaro Group’s mining activities.
PT Adaro Tirta Sarana has also built a 5-lps WTP in the area of PT Kalimantan
Industrial Park Indonesia (KIPI) to support the smelter construction. The WTP has
been operating since June 16th, 2023. In the same area, Adaro Water was in the pre-
construction stage for 2x100 lps WTP expected to be ready by Q1 2024.
ADARO MINERALS PILLAR
PT Adaro Minerals Indonesia Tbk (IDX: ADMR)
• ADMR’s production volume in 1H23 reached 2.54 million tonnes (Mt), a 66% increase
over the period, with sales reaching 1.82 Mt, 42% higher than in 1H22. Production and
sales increased in-line with the higher sales target for FY23. All production and sales in
the period came from PT Maruwai Coal, which produces hard coking coal with ultra-low
ash, low phosphorus and high vitrinite content.
• Overburden removal volume reached 7.55 Mbcm in 1H23, 116% higher than in 1H22,
leading to a 1H23 strip ratio of 2.97x, 30% increase from 1H22. The good performance
from our contractor and supportive weather conditions drove the higher overburden
removal volume in the period.
• In 1H23, ADMR sold the majority of its coal to the export market with Japan as its largest
sales destination. ADMR plans to expand its customer base by tapping into other key
markets in the region. The positive feedback from customers and the increasing interest
for its coal is expected to drive market expansion for ADMR’s coal in 2023 with a sales
volume target of 3.8 to 4.3 Mt in FY23.
7
Page 8
2Q23 vs. 2Q23 vs. 1H23 vs.
Units 2Q23 1Q23 2Q22 1H23 1H22
1Q23 2Q22 1H22
Overburden Removal Mbcm 4.25 3.30 29% 2.02 110% 7.55 3.50 116%
Production Volume Mt 1.32 1.22 8% 0.91 45% 2.54 1.53 66%
Sales Volume Mt 0.97 0.85 14% 0.69 41% 1.82 1.28 42%
PT Kalimantan Aluminium Industry (KAI)
• In May 2023, KAI – a subsidiary of ADMR, was able to secure financing for the
development of its aluminum smelter project with the capacity of 500,000 tons per annum
located in the industrial park being developed by PT Kalimantan Industrial Park Indonesia,
in North Kalimantan, Indonesia.
• In 2Q23, KAI completed the land preparation, earthworks, and construction of a temporary
jetty. KAI continues to work on the construction of a temporary camp and other
infrastructure facilities.
ADARO GREEN PILLAR
• The Adaro Green pillar is set up to accommodate our aspiration to build a bigger and
greener Adaro by seizing opportunities in Indonesia’s green economy. Through ACEI, the
Adaro Group is undergoing feasibility studies to develop multiple renewable sources of
energy.
• Post groundbreaking in 1Q23, pre-construction activities of PT Kayan Hydropower
Nusantara, which will provide green electricity to the North Kalimantan industrial park, are
progressing, with COD planned for 2030.
• In May 2023, PT Adaro Power with Total Eren S.A. (Total Eren) and PT Pembangkitan
Jawa Bali Investasi (PJBI) signed a Power Purchase Agreement (PPA) with PT PLN
(Persero) for the 70 MW Tanah Laut Wind Farm with Battery Energy Storage (BESS) 10
MW/MWh in Tanah Laut, South Kalimantan (Tanah Laut Wind Farm). The realization of
Tanah Laut Wind Farm is also expected to support the renewable energy mix target and
contribute to reduce CO2 emission by 220,000 tons per year. Tanah Laut Wind Farm will
be the first wind power plant in Kalimantan, and the third in Indonesia. Adaro Group looks
forward to developing more green projects with experienced and reputable partners.
• ACEI through its subsidiary PT Adaro Sarana Energi Terbarukan (ASET), is reducing
some of the diesel generators used at PT Maruwai Coal with a 4MW mini-hydro power
plant. The project is now tendering for EPC contractor and turbine manufacturer. ASET is
also conducting technical study in preparation to develop a hybrid of solar PV and battery
storage to reduce the diesel consumption at Kelanis coal terminal. ASET will continue
developing renewable projects within Adaro Group to demonstrate the commitment to
transform to green.
8
Page 9
HEALTH, SAFETY AND ENVIRONMENT (HSE)
In 1H23, we experienced six lost-time injuries (LTI) throughout Adaro Group’s operations. We
recorded a lost-time injury frequency rate (LTIFR) of 0.10 in 1H23, and severity rate (SR) of 2.35,
with total man-hours worked in 1H23 of 60,548,562.
CORPORATE ACTIVITIES AND AWARD
May 2023:
• PT Adaro Energy Indonesia Tbk (ADRO) held its Annual General Meeting of Shareholders
(AGMS) on May 11th 2023. Six agendas were discussed at the AGMS, which were the
approval of the Company’s Annual Report and ratification of the Company’s Consolidated
Financial Statement for the fiscal year of 2022, approval for the appropriation of the
Company’s net income for the fiscal year of 2022, approval for the appointment of the
public accounting firm to audit the Company’s Consolidated Financial Statements for the
fiscal year of 2023, approval for the determination of the honorarium or salary and other
benefits for the members of the Company’s Board of Commissioners and Board of
Directors for the fiscal year of 2023, approval for the reappointment of the Company’s
Board of Commissioners and Board of Directors, and approval for the share buyback by
the Company.
• PT Adaro Power, together with Total Eren and PT Pembangkitan Jawa Bali Investasi
(PJBI), signed Power Purchase Agreement with PT PLN (Persero) for the Tanah Laut 70
MW Wind Farm with Battery Energy Storage System (BESS) 10 MW/10 MWh.
• PT Adaro Energy Indonesia Tbk (ADRO) was one of the eight companies rated by CNBC
Indonesia Research with Best Green Business rating during the Green Economic Forum.
June 2023:
• PT Adaro Energy Indonesia Tbk (ADRO) received an award from Tempo and IDN
Financials during “Issuers Appreciation Night – Launching of the Tempo-IDNFinancials 52
Index”. ADRO is one of the issuers with trusted track record in the capital market that are
included in the Tempo IDN Financials 52 Index in 4 categories, namely Main Index, High
Dividend, High Growth and High Market Capitalization.
###
These materials have been prepared by PT Adaro Energy Indonesia Tbk (the “Company”) and have not been
independently verified. No representation or warranty, expressed or implied, is made and no reliance should be placed
on the accuracy, fairness or completeness of the information presented or contained in these materials. The Company
or any of its affiliates, advisers or representatives accepts no liability whatsoever for any loss howsoever arising from
any information presented or contained in these materials. The information presented or contained in these materials
is subject to change without notice and its accuracy is not guaranteed.
These materials contain statements that constitute forward-looking statements. These statements include descriptions
regarding the intent, belief or current expectations of the Company or its officers with respect to the consolidated results
of operations and financial condition of the Company. These statements can be recognized by the use of words such
as “expects,” “plan,” “will,” “estimates,” “projects,” “intends,” or words of similar meaning. Such forward-looking
statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ
9
Page 10
from those in the forward-looking statements as a result of various factors and assumptions. The Company has no
obligation and does not undertake to revise forward-looking statements to reflect future events or circumstances.
These materials are for information purposes only and do not constitute or form part of an offer, solicitation or invitation
of any offer to buy or subscribe for any securities of the Company, in any jurisdiction, nor should it or any part of it form
the basis of, or be relied upon in any connection with, any contract, commitment or investment decision whatsoever.
Any decision to purchase or subscribe for any securities of the Company should be made after seeking appropriate
professional advice.
For further information please contact:
Investors
Thomas Coombes | Thomas.Coombes@adaro.com
Media
Febriati Nadira | Febriati.Nadira@adaro.com
10
Names mentioned 0 people and organisations named in the text · linked when the evidence is strong
The name pass has not read this document yet.
Extraction attempts how the parser did, and what it refused
Nothing structured was extracted from this document — the attempts below say why.
No extraction attempted yet.