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PT ADARO ANDALAN INDONESIA TBK (IDX: AADI) FY24 EARNINGS
NEWS RELEASE
Jakarta, March 4, 2025 – PT Adaro Andalan Indonesia Tbk (“AAI”, IDX: “AADI”) today released
its consolidated financial performance for the fiscal year ending December 31, 2024 to IDX/FSA.
President Director and Chief Executive Officer, Mr. Julius Aslan commented:
“We are pleased to report another year of outstanding performance, with higher
achievements of overburden removal, production and sales volumes. The lower
operational EBITDA we recorded in FY24 was mainly due to the weaker global coal prices,
a condition beyond our control, as coal is a cyclical commodity. However, our solid track
record of navigating through the coal cycle has been a testament of our resilience and
expertise in this sector.”
Highlights
• AAI booked core earnings of $1,044 million in FY24 and operational EBITDA of $1,315 million.
We generated solid operational EBITDA margin of 25%.
• We recorded a 7% increase in sales volume to 68.06 Mt (consisting of 65.85 Mt of thermal
coal and 2.21 Mt of metallurgical coal sales), surpassing our thermal coal sales volume target
of 61 – 62 Mt. However, as coal prices weakened, our revenue declined by 10% to $5,320
million due to a 17% lower average selling price (ASP).
• In line with our investment plans, capex increased 36% to $370 million. Capex spending was
mainly for investment in PT Kaltara Power Indonesia (KPI), barges at PT Adaro Logistics and
its subsidiaries, and supporting infrastructure at our supply chain.
PT ADARO ANDALAN INDONESIA TBK FY25 GUIDANCE
Sales volume: 65 Mt to 67 Mt of thermal coal.
Strip ratio: 4.3x, flat y-o-y from FY24.
Capital expenditure: $250 million to $300 million.
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Financial Performance
($ Millions, except otherwise stated) FY24 FY23 % Change
Revenue 5,320 5,915 -10%
Cost of revenue (3,854) (4,187) -8%
Gross profit 1,466 1,729 -15%
Operating income 1,481 1,391 6%
Core earnings(1) 1,044 1,325 -21%
Operational EBITDA(2) 1,315 1,618 -19%
Total assets 5,993 7,063 -15%
Total liabilities 2,629 2,272 16%
Total equity 3,363 4,790 -30%
Interest bearing debt 1,481 949 56%
Cash and cash equivalents 1,519 2,534 -40%
Net debt (cash)(3) (90) (1,634) -94%
Capital expenditure(4) 370 272 36%
Free cash flow(5) 816 1,419 -42%
Basic earnings per share (EPS) in $ 0.1713 0.1632 5%
Financial Ratios
FY24 FY23 % Change
Gross profit margin (%) 28% 29% -1%
Operating margin (%) 28% 24% 4%
Operational EBITDA margin (%) 25% 27% -2%
Net debt (Cash) to equity (x) (0.03) (0.34) -92%
Net debt (Cash) to last 12 months operational EBITDA (x) (0.07) (1.01) -93%
Cash from operations to capex (x) 3.24 2.19 48%
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Profit for the period, excluding non-operational items net of tax (amortization of mining properties, prior year tax assessment,
allowance for uncollectible receivables, reversal of allowance for Government charges, gain from sales of ADMR, and loss on dilution
of investment)
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EBITDA excluding prior year tax assessment, allowance for uncollectible receivables, gain from sales of ADMR, reversal of allowance
for government charges, and loss on dilution of investment.
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After deduction of cash and cash equivalent and current portion of other investments.
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Capex spending defined as: purchase of fixed assets – proceed from disposal of fixed assets + payment for addition of mining
properties + payment for addition of intangible asset.
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Operational EBITDA – taxes – changes in trade receivables, inventories, and trade payables – capital expenditure.
Operating Segment
Segment Revenue Net Profit
($ Millions) FY24 FY23 % Change FY24 FY23 % Change
Coal mining & trading 5,109 5,732 -11% 815 1,091 -25%
Logistics 572 523 9% 248 245 1%
Others 64 61 4% 218 -91 -340%
Elimination (424) (402) 6% 46 40 13%
Total 5,320 5,915 -10% 1,327 1,286 3%
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FINANCIAL PERFORMANCE ANALYSIS FOR THE FULL YEAR 2024
Revenue, Average Selling Price and Production
We booked solid revenue of $5,320 million in FY24, a 10% decrease compared to FY23, even
though AAI achieved record production and sales which were 8% and 7% higher at 65.82 Mt and
68.06 Mt respectively, surpassing sales volume target of 61-62 Mt. This increment in operational
results was offset by a 17% decline in the average selling price (ASP).
Cost of Revenue
Cost of revenues declined by 8% y-o-y to $3,854 million, mainly due to decreased royalty
expenses for PT Adaro Indonesia (AI) compared to a year ago period due to decline in ASP. We
recorded a 7% increase in overburden removal to 286.01 Mbcm, and a strip ratio of 4.35x, in line
with the increased mining costs by 3%.
Our total fuel consumption and fuel costs increased by 11% and 6% in FY24 due to higher
production volume. Coal cash cost per tonne (excluding royalty) in FY24 decreased by 8% from
FY23.
Operating Expenses
Operating expenses in FY24 relatively stable at $316 million as compared to $312 million at FY23.
Royalties to the Government and Income Tax Expense
Royalties to the Government declined 22% to $1,020 million from $1,308 million, while income
tax expense also decreased 22% to $213 million from $274 million.
Operational EBITDA, Core Earnings and Net Profit
AAI’s operational EBITDA declined by 19% y-o-y to $1,315 million while core earnings was $1,044
million for FY24, on the back of lower ASP. Our operational EBITDA margin in FY24 remained
healthy at 25%. We exclude the one-time gain of $323 million from the proceeds of sales in ADMR
from our operational EBITDA and core earnings calculations. As a result, these metrics reflect the
true performance of our operations. Net profit for the period is $1,327 million.
Total Assets
Total assets at the end of FY24 declined by 15% to $5,993 million compared with $7,063 million
at the end of FY23. Our cash balance at the end of FY24 also decreased by 40% to $1,519 million.
Cash and cash equivalents represented 25% of our total assets.
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Current assets at the end of FY24 declined by 32% to $2,214 million compared to $3,270 million
at end of FY23. Non-current assets at the end of FY24 were slightly lower from the year ago
period at $3,779 million due to decreased investments in associates and JV and decreased non-
current loan to related party.
Fixed Assets
Fixed assets as at the end of FY24 of $975 million were 83% higher than at the end of FY23 as
we increased capex spending during the period mainly for investment in KPI, purchases of barges
and supporting infrastructure of our supply chain. Fixed assets accounted for 16% of total assets.
Mining Properties
At the end of FY24, our mining properties were 5% lower y-o-y at $416 million, due to regular
amortization. Mining properties accounted for 7% of total assets.
Total Liabilities
Total liabilities at the end of FY24 were $2,629 million, an increase of 16% compared to the same
period last year. Current liabilities decreased by 51% y-o-y to $873 million mainly due to
decreased dividend payable and senior notes. Non-current liabilities increased by 270% y-o-y to
$1,756 million due to increased bank loan and increased loans from related parties. Interest
bearing debts increased by 56% y-oy to $1,481 million
Liquidity
The company’s cash balance at the end of FY24 declined by 40% to $1,519 million from $2,534
million y-o-y. AAI also had access to $738 million in undrawn committed loan facilities from various
outstanding loans at FY24.
Equity
At the end of FY24, shareholder’s equity stood at $3,363 million, representing a decrease of 30%
y-o-y, mainly due to decreased unappropriated retained earnings.
Cash Flows from Operating Activities
In FY24, AAI’s cash flows from operating activities increased by 101% to $1,199 million from $595
million y-o-y driven by lower payments of royalties and income tax, which were offset by lower
receipts from customers. We paid $256 million in corporate and final income tax.
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Cash Flows from Investing Activities
The company reported $198 million in net cash flows from in investing activities, mainly driven by
cash receipts from proceeds from sales of ADMR and receipts from repayment of loans given to
related parties.
Capital Expenditure
Capital expenditure in FY24 increased by 36% to $370 million from $272 million in the year ago
period. The capital expenditure spending in the period as mainly for investment in KPI, barges
and supporting infrastructure at our supply chain.
Cash Flows from Financing Activities
Net cash outflow from financing activities in FY24 increased by 75% to $2,390 million, mainly due
to higher dividend payment and payment to Senior Notes, offset by higher receipts of bank loans.
The company distributed $2,972 million as cash dividend.
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PT ADARO ANDALAN INDONESIA TBK (IDX: AADI) FY24 ACTIVITIES
REPORT
FY24 OPERATIONAL HIGHLIGHTS
• AAI recorded production volume of 65.82 million tonnes (Mt) in FY24, corresponding to an 8%
increase from FY23. Sales volume for the period was 68.06 Mt (consisting of 65.85 Mt of
thermal coal sales and 2.21 Mt of metallurgical coal sales) or 7% higher than FY23. This is a
record-breaking achievement for AAI, supported by volume growth at all of its operational
mining subsidiaries.
• Overburden removal volume increased by 7% y-o-y to 286.01 million bank cubic meter (Mbcm)
in FY24, resulting in the strip ratio of 4.35x, or 1% lower than FY23.
SUMMARY OF FY24 OPERATIONS
4Q24 vs. 4Q24 vs. FY24 vs.
Units 4Q24 3Q24 4Q23 FY24 FY23
3Q24 4Q23 FY23
Production Volume Mt 15.08 17.99 -16% 14.04 7% 65.82 60.77 8%
AI Mt 11.64 13.47 -14% 11.13 5% 50.80 48.60 5%
Balangan Coal Companies Mt 2.09 2.49 -16% 1.73 21% 9.02 8.02 13%
MIP Mt 1.35 2.03 -34% 1.18 14% 6.00 4.15 44%
Sales Volume Mt 16.59 18.15 -9% 15.75 5% 68.06 63.40 7%
Overburden Removal Mbcm 68.22 86.58 -21% 64.03 7% 286.01 267.65 7%
AI Mbcm 52.70 68.08 -23% 50.80 4% 227.40 219.39 4%
Balangan Coal Companies Mbcm 10.50 11.77 -11% 9.97 5% 41.74 35.25 18%
MIP Mbcm 5.03 6.73 -25% 3.27 54% 16.87 13.02 30%
Strip Ratio x 4.52 4.81 -6% 4.57 -1% 4.35 4.40 -1%
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Historical Production Volume (Mt) and Strip Ratio (SR)
THE ADARO GROUP’S SALES BY DESTINATION IN FY24
Others
India 2%
11%
Indonesia
25%
China
16%
Northeast Asia
23%
Southeast Asia
23%
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MINING BUSINESS
PT Adaro Indonesia (AI)
• In FY24, AI recorded production volume of 50.80 Mt and sales volume of 59.50 Mt, or increased
5% and 4% y-o-y, respectively. Meanwhile, total overburden removal increased by 4% to
227.40 Mbcm from 219.39 Mbcm in FY23, resulting in a strip ratio of 4.48x or a slight decline
from 4.51x in FY23.
4Q24 vs. 4Q24 vs. FY24 vs.
Units 4Q24 3Q24 4Q23 FY24 FY23
3Q24 4Q23 FY23
Overburden Removal Mbcm 52.70 68.08 -23% 50.80 4% 227.40 219.39 4%
Production Volume Mt 11.64 13.47 -14% 11.13 5% 50.80 48.60 5%
Sales Volume Mt 14.10 15.84 -11% 14.20 -1% 59.50 57.35 4%
Balangan Coal Companies (BCC)
• Balangan Coal Companies consist of PT Semesta Centramas, PT Paramitha Cipta Sarana
and PT Laskar Semesta Alam. BCC’s production volume in FY24 totaled 9.02 Mt, 13% higher
than in FY23. Total overburden removal of 41.74 Mbcm was 18% higher than in FY23, leading
to a strip ratio of 4.63x in FY24.
4Q24
4Q24 vs. FY24 vs.
Units 4Q24 3Q24 4Q23 vs. FY24 FY23
3Q24 FY23
4Q23
Overburden Removal Mbcm 10.50 11.77 -11% 9.97 5% 41.74 35.25 18%
Production Volume Mt 2.09 2.49 -16% 1.73 21% 9.02 8.02 13%
PT Mustika Indah Permai (MIP)
• MIP recorded production volume of 6.00 Mt in FY24, or 44% higher y-o-y, with sales volume
of 6.35 Mt, 58% higher than in FY23.
• MIP’s overburden removal volume in FY24 of 16.87 Mbcm was 30% higher than in FY23, while
its FY24 strip ratio declined 10% to 2.81x.
• MIP’s sales destination in FY24 was dominated by the export market, led by India and China.
4Q24 vs. 4Q24 vs. FY24 vs.
Units 4Q24 3Q24 4Q23 FY24 FY23
3Q24 4Q23 FY23
Overburden Removal Mbcm 5.03 6.73 -25% 3.27 54% 16.87 13.02 30%
Production Volume Mt 1.35 2.03 -34% 1.18 14% 6.00 4.15 44%
Sales Volume Mt 1.80 1.70 6% 0.97 86% 6.35 4.01 58%
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Kestrel Mine (Kestrel)
• In FY24, Kestrel recorded saleable coal production volume of 4,35 Mt, 22% lower compared
to FY23. Kestrel’s sales volume in FY24 was 4.47 Mt, or 20% lower than in FY23.
• Kestrel’s sales destinations consist of customers in major Asian markets. Japan was Kestrel’s
largest sales destination in FY24 followed by India and South Korea.
4Q24 vs. 4Q24 vs. FY24 vs.
Units 4Q24 3Q24 4Q23 FY24 FY23
3Q24 4Q23 FY23
Saleable Production Mt 0.41 1.62 -75% 1.41 -71% 4.35 5.57 -22%
Sales Volume Mt 0.97 1.20 -20% 1.55 -38% 4.47 5.56 -20%
LOGISTICS BUSINESS
PT Maritim Barito Perkasa (MBP)
• MBP’s barging volume in FY24 increased by 10% to 70.10 Mt compared to FY23. The Adaro
Group’s volume constituted almost the entire portion of MBP’s total barging volume in the
period, and the rest comes from the Alamtri Group’s volume.
4Q24 vs. 4Q24 vs. FY24 vs.
Units 4Q24 3Q24 4Q23 FY24 FY23
3Q24 4Q23 FY23
Barging Volume Mt 17.42 18.06 -4% 15.83 10% 70.10 63.53 10%
WATER BUSINESS
• In the water treatment business, Adaro Water, through its subsidiaries, operates four water
treatment plants (WTP) with a total capacity of 1,470 liters per second. During the fourth
quarter, the WTP project in Bekasi commenced operations with an initial capacity of 70 liters
per second in November 2024 and will gradually increase to its full capacity of 200 liters per
second. Our two other projects, namely the WTPs in North Sumatra and North Kalimantan, are
expected to begin commissioning in the first quarter of 2025.
• During FY24, PT Adaro Wamco Prima slurry volume decreased 4.1% compared to FY23, while
PT Adaro Tirta Sarana increased its dewatering volume by 63.1% compared to FY23.
• PT Adaro Tirta Wening (ATW) in the non-revenue water business has established the water
distribution networks in 72 District Meter Areas (DMAs) out of the total 72 target areas, while
continuing to identify and repair water leakages, produce smart water meters, and replace
customer water meters, ensuring efficient water usage.
HEALTH, SAFETY AND ENVIRONMENT (HSE)
We recorded four lost-time injuries (LTI) and two fatal incidents throughout the Adaro Group’s
operations in FY24, resulting in lost-time injury frequency rate (LTIFR) of 0.05 and severity rate
(SR) of 107.43 out of 112,980,518 man-hours. We deeply regret these incidents and have
conducted thorough investigations on them to prevent the recurrence of such incidents or other
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similar incidents in the future. Our safety protocols will be continuously reviewed and updated
alongside stricter implementation of the Adaro Zero Accident Mindset (AZAM) throughout all
subsidiaries to improve the safety culture and hence safety performance across the Adaro Group.
CORPORATE ACTIVITIES AND AWARD
October 2024
• In celebration of its 32nd anniversary, Adaro Group held its CSR program “Adaro Hidupkan
Hati” by distributing 27,400 food packages to underprivileged communities across the
provinces where the Adaro Group operates.
• PT Adaro Indonesia (AI) received the 2024 Subroto Award as the Most Innovative
Community Development category (PPM) from the Ministry of Energy and Mineral Resources
(ESDM). AI won the award through its positive contributions to the communities around its
operational area, in particular the Taman Wisata Menanti Laburan (TWML) program in
Tabalong Regency, South Kalimantan. The program focuses on social innovation
development, by promoting eco sport concept.
• AI received the Stevie Awards in the 2024 International Business Awards for its Corporate
Social Responsibility Program of the Year – in Asia, Australia and New Zealand category, for
its work in the Bakut Island conservation initiative: Fostering the Paradise of Proboscis
Monkeys.
November 2024
• AI and MIP received awards for Best Community Development and Empowerment
Performance in the Mining and Coal Sector (TAMASYA Awards) for these categories:
o AI: Best Booth Category at Minerba Expo
o MIP: Medium Scale Mining Business
• PT Semesta Centramas (SCM) received Gold Awards at the Indonesia Corporate Awards
(ICA) and Indonesia Sustainable Development Awards (ISDA) 2024, organised by the
Corporate Forum for Community Development. From ISDA, SCM won the Gold Award for its
Stunting Management Award. SCM also won the Gold Award from ICA for its program in
improving public health through the development of the village Integrated Health Post
(Posyandu).
December 2024
• PT Adaro Andalan Indonesia Tbk (AAI) was listed on 5 December 2024, after a successful
IPO that raised Rp4.3 trillion for listing 10% of the company’s shares.
###
These materials have been prepared by PT Adaro Andalan Indonesia Tbk (the “Company”, “AAI”, “AADI”) 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
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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
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
Melissa Hermawan | melissa.hermawan@adaro.com
Media
Ray Aryaputra | ray.aryaputra@adaro.com
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Names mentioned 14 people and organisations named in the text · linked when the evidence is strong
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PT Adaro Logistics
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PT Semesta Centramas
p.8 ×2
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PT Paramitha Cipta Sarana
p.8
unresolved
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PT Laskar Semesta Alam. BCC’s
p.8
unresolved
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PT Mustika Indah Permai
p.8
unresolved
org
PT Maritim Barito Perkasa
p.9
unresolved
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PT Adaro Wamco Prima
p.9
unresolved
org
PT Adaro Tirta Sarana
p.9
unresolved
org
PT Adaro Tirta Wening
p.9
unresolved
org
Ministry of Energy and Mineral Resources
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