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20240430_ADRO_Laporan Informasi dan Fakta Material_31632781_lamp2.pdf
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PT ADARO ENERGY INDONESIA TBK (IDX: ADRO) 1Q24 EARNINGS
NEWS RELEASE
Jakarta, April 30, 2024 – PT Adaro Energy Indonesia Tbk (“AEI”, IDX: “ADRO”) today released
its consolidated financial statements for the three months period ending March 31, 2024 to
IDX/FSA.
President Director and Chief Executive Officer, Mr. Garibaldi Thohir commented:
“Amidst global uncertainties and a declining price environment, we remain steadfast in
our commitment to cost efficiency gains. Furthermore, our balance sheet and overall
financial position remain in good health, providing us with flexibility during this time.”
“Our operations started the year well, and our investments into new verticals are
progressing in line with our guidance previously set forth.”
Highlights
• AEI booked core earnings of $440 million in 1Q24 and operational EBITDA of $604 million.
• We generated a solid operational EBITDA margin of 42%.
• We recorded a 5% increase in sales volume to 16.48 Mt. Despite this, our revenue declined
by 22% due to a 24% lower average selling price (ASP).
• In line with our investment plans, capex increased 56% to $206 million. Capex spending was
mainly for investment into heavy equipment, barges and supporting infrastructure at our
supply chain. We have also commenced our investment into our aluminum smelter and its
ancillary facilities.
• AEI’s balance sheet remains healthy with a net cash position of $1.75 billion as at end of
1Q24.
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Financial Performance
($ Millions, except otherwise stated) 1Q24 1Q23 % Change
Revenue 1,443 1,839 -22%
Cost of revenue (815) (1,075) -24%
Gross profit 628 763 -18%
Operating income 514 625 -18%
Core earnings(1) 440 538 -18%
Operational EBITDA(2) 604 726 -17%
Total assets 10,466 9,826 7%
Total liabilities 2,672 2,776 -4%
Total equity 7,794 7,050 11%
Interest-bearing debt 1,469 1,519 -3%
Cash and cash equivalents 3,164 3,011 5%
Net debt (cash)(3) (1,753) (1,578) 11%
Capital expenditure(4) 206 132 56%
Free cash flow(5) 285 522 -45%
Basic earnings per share (EPS) in $ 0.01247 0.01478 -16%
Financial Ratios
1Q24 1Q23 % Change
Gross profit margin (%) 44% 42% 2%
Operating margin (%) 36% 34% 2%
Operational EBITDA margin (%) 42% 40% 2%
Net debt (Cash) to equity (x) Net cash Net cash -
Net debt (Cash) to last 12 months operational EBITDA (x) Net cash Net cash -
Cash from operations to capex (x) 2.50 (3.01) -183%
1
Profit for the period, excluding non-operational items net of tax (amortization of mining properties, prior year tax assessment, and
allowance for uncollectible receivables)
2
EBITDA excluding prior year tax assessment and allowance for uncollectible receivables.
3
After deduction of cash and cash equivalent and current portion of other investments.
4
Capex spending defined as: purchase of fixed assets – proceed from disposal of fixed assets + payment for addition of mining
properties + addition of lease liabilities
5
Operational EBITDA – taxes – changes in trade receivables, inventories, and trade payables – capital expenditure excluding lease
liabilities.
Operating Segment
Segment Revenue Net Profit
($ Millions) 1Q24 1Q23 % Change 1Q24 1Q23 % Change
Coal mining & trading 1,420 1,793 -21% 372 461 -19%
Mining services 224 220 2% 13 (8) -257%
Others 176 156 12% 47 75 -37%
Elimination (377) (330) 14% (6) (2) 228%
Total 1,443 1,839 -22% 426 526 -19%
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FINANCIAL PERFORMANCE ANALYSIS FOR 1Q24
Revenue, Average Selling Price and Production
We generated solid revenue of $1,443 million in 1Q24, a 22% decrease compared to 1Q23. AEI’s
production and sales volume in 1Q23 reached 18.07 Mt and 16.48 Mt, 15% and 5% increase over
1Q23. This increment in operational results balanced the 24% decline in the average selling price
(ASP) as coal prices continued to decline.
Cost of Revenue
The cost of revenues declined by 24% y-o-y to $815 million, mainly due to lower royalty expenses
compared to a year ago period on the back of lower ASP and lower HBA prices. Mining costs
increased 10% driven by higher volume. We recorded a 17% increase in overburden removal to
66.21 Mbcm, and a strip ratio of 3.66x, 2% higher than in 1Q23. Total fuel consumption increased
by 21%, in line with volume growth. Coal cash cost per tonne (excluding royalty) in 1Q24 was
22% lower y-o-y.
Operating Expenses
Operating expenses in 1Q24 declined by 25% y-o-y to $108 million due to the 39% decline in
non-tax state revenue for central government (4%) and local government (6%).
Royalties to the Government and Income Tax Expense
In line with the lower HBA prices and ASP, royalties to the Government declined 38% to $302
million from $486 million, while income tax expenses decreased 22% to $106 million from $136
million.
Operational EBITDA and Core Earnings
AEI’s operational EBITDA declined by 17% y-o-y to $604 million and core earnings declined by
18% to $440 million for 1Q24, on the back of lower ASP. Our operational EBITDA margin in FY23
remained healthy at 42%. Net profit for the period of $426 million already accounted for the non-
tax state revenue (PNBP) for central government (4% portion) and local government (6% portion).
Total Assets
Total assets at the end of 1Q24 increased by 7% to $10,466 million compared with $9,826 million
at the end of 1Q23. Our cash balance at the end of 1Q24 increased by 5% to $3,164 million. Cash
and cash equivalents represented 30% of our total assets.
Current assets at the end of 1Q24 declined by 3% to $4,149 million compared to $4,291 million
at end of 1Q23. Non-current assets at the end of 1Q24 were 14% higher from the year ago period
at $6,317 million due to increases in fixed asset.
Fixed Assets
Fixed assets as at the end of 1Q24 of $1,885 million were 25% higher than at the end of 1Q23 as
our capital expenditure spending increased. Capex was spent mainly for purchases of heavy
equipment, barges, infrastructure, and investment in aluminum smelter and its ancillary facilities.
Fixed assets accounted for 18% of total assets.
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Mining Properties
At the end of 1Q24, our mining properties were 4% lower y-o-y at $987 million, due to regular
amortization. Mining properties accounted for 9% of total assets.
Total Liabilities
Total liabilities at the end of 1Q24 were $2,672 million, 4% lower compared to the same period
last year. Current liabilities increased by 69% y-o-y to $1,701 million mainly from the
reclassification of AI’s senior notes as current liabilities because it is maturing in October 2024.
Non-current liabilities decreased by 45% y-o-y to $971 million due to voluntary repayment of AI’s
bank loan in 4Q23 of $196 million.
Debt Management and Liquidity
AEI’s cash balance at the end of 1Q24 increased by 5% to $3,164 million from $3,011 million y-
o-y. AEI also had access to $58 million in other investments and a total of $1,763 million in
undrawn committed loan facilities from various outstanding loans at 1Q24, increasing total liquidity
to $4,985 million at the end of 1Q24. Interest bearing debts declined by 3% y-oy to $1,469 million.
Equity
At the end of 1Q24, total equity stood at $7,794 million, representing an increase of 11% y-o-y
driven by higher retained earnings.
Cash Flows from Operating Activities
Cash flows from operating activities in 1Q24 was $489 million, a significant increase y-o-y on the
back of lower payment of corporate income tax. Receipts from customers declined 21% on the
back of lower ASP as coal prices declined.
Cash Flows from Investing Activities and Capital Expenditure
The company reported $205 million in net cash outflows used in investing activities, 78% higher
compared to 1Q23, mainly driven by the 55% increase in purchase of fixed assets to $201 million
as the company continues to execute its investment plan.
Capital expenditure in 1Q24 increased by 56% to $206 million from $132 million in the year ago
period. Capital expenditure spending in the period was mainly for purchases and replacement of
heavy equipment and barges, investment in the aluminum smelter and its ancillary facilities, and
investment in infrastructure.
Cash Flows from Financing Activities
Net cash outflow from financing activities in 1Q24 declined 26% to $417 million. We paid $400
million in interim dividend in January 2024.
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PT ADARO ENERGY INDONESIA TBK (IDX: ADRO) 1Q24 ACTIVITIES
REPORT
1Q24 OPERATIONAL HIGHLIGHTS
• Production volume of PT Adaro Energy Indonesia Tbk and its subsidiaries (the Adaro
Group) reached 18.07 Mt in 1Q24, corresponding to a 15% increase from 1Q23. Sales
volume for the period of 16.48 Mt was 5% higher than 1Q23.
• Sales of metallurgical coal through subsidiary PT Adaro Minerals Indonesia Tbk (ADMR)
increased by 24% to 1.05 Mt in 1Q24. We continue to build market recognition for the
Enviromet product, and it has been well received by both domestic and seaborne market.
• Overburden removal reached 66.21 Mbcm in 1Q24, 17% higher than in 1Q23. Our strip
ratio reached 3.66x, 2% higher than in 1Q23.
• KAI focused on completion of soil improvement, piling works, and foundation works in its
aluminium smelter area. It has completed the heavy cargo berthing and the first phase of
dredging in jetty area. Moreover, KAI has also completed the earthwork in the dormitory
area.
SUMMARY OF 1Q24 OPERATIONS – CONSOLIDATED AEI NUMBERS
1Q24 vs.
Units 1Q24 4Q23 1Q24 vs. 4Q23 1Q23
1Q23
Production Volume Mt 18.07 15.13 19% 15.70 15%
AI Mt 13.21 11.13 19% 11.81 12%
Balangan Coal Companies Mt 2.16 1.69 28% 1.90 14%
MIP Mt 1.14 1.18 -3% 0.77 48%
AMI Mt 1.56 1.13 38% 1.22 27%
Sales Volume Mt 16.48 16.59 -1% 15.72 5%
Thermal - Medium CV Mt 10.77 10.72 0% 11.03 -2%
Thermal - < 4500 GAR Mt 4.66 4.41 6% 3.84 21%
Met Coal Mt 1.05 1.45 -28% 0.85 24%
Overburden Removal Mbcm 66.21 68.92 -4% 56.37 17%
AI Mbcm 49.50 50.80 -3% 44.98 10%
Balangan Coal Companies Mbcm 9.66 9.97 -3% 6.27 54%
MIP Mbcm 1.71 3.27 -48% 1.83 -7%
AMI Mbcm 5.34 4.89 9% 3.30 62%
Strip Ratio x 3.66 4.56 -20% 3.59 2%
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Historical Quarterly Production Volume (Mt)
20.0 18.1
17.417.5 17.717.3
18.0
15.7 15.9 15.7
16.0 14.915.1 14.7 15.2
Production Volume (Mt)
13.8 13.914.4 13.813.4 13.613.213.1
14.0 13.1 12.9 12.9
12.1
12.0 11.0
10.0
8.0
6.0
4.0
2.0
-
Historical Quarterly Sales Volume (Mt)
20.0
18.0 16.7 17.2 16.9 16.5 16.6 16.5
15.5 15.1 15.4 15.9 15.3 15.7
16.0 14.5 14.4
13.4 13.6 13.4 13.2 13.1 12.7
14.0 12.9 12.7
Sales Volume (Mt)
12.6 12.2
12.0 10.9
10.0
8.0
6.0
4.0
2.0
-
Historical Quarterly Overburden Removal Volume and Strip Ratio
150.0 5.5 6.0
5.3 5.3
4.9 5.1
OB Removal Volume (Mbcm)
4.6 4.5 4.5 4.5 4.6 4.5 5.0
120.0 4.4
4.1 4.2 4.1 4.0 4.1 4.1
3.7 3.5 3.6 3.7 4.0
3.5 3.5 3.4 87.6
90.0 81.3 82.5
71.5 73.4
69.0 69.2 66.0 68.9 66.2 3.0
61.5 62.1 62.7 62.1
54.0 57.7 57.8 53.9 56.5
60.0 49.8 53.2 49.1 52.5 45.9 48.2
2.0
30.0
1.0
- -
1Q18
2Q18
3Q18
4Q18
1Q19
2Q19
3Q19
4Q19
1Q20
2Q20
3Q20
4Q20
1Q21
2Q21
3Q21
4Q21
1Q22
2Q22
3Q22
4Q22
1Q23
2Q23
3Q23
4Q23
1Q24
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THE ADARO GROUP’S SALES BY DESTINATION IN 1Q24
Others
India 1%
12%
Indonesia
27%
China
15%
Southeast Asia
18% Northeast Asia
27%
ADARO ENERGY PILLAR
1. MINING
PT Adaro Indonesia (AI)
• AI’s production volume in 1Q24 reached 13.21 Mt, 12% higher than in 1Q23. Sales
volume in the period reached 14.05 Mt, flat y-o-y. Total overburden removal from AI
reached 49.50 Mbcm, 10% increase from 1Q23, resulting in a strip ratio of 3.75x in
1Q24.
1Q24 vs.
Units 1Q24 4Q23 1Q24 vs. 4Q23 1Q23
1Q23
Overburden Removal Mbcm 49.50 50.80 -3% 44.98 10%
Production Volume Mt 13.21 11.13 19% 11.81 12%
Sales Volume Mt 14.05 14.17 -1% 14.06 0%
Balangan Coal Companies (BCC)
• Balangan Coal Companies produced 2.16 Mt of coal in 1Q24, 14% higher than in
1Q23. Total overburden removal of 9.66 Mbcm was 54% higher than in 1Q23 and
resulted in a strip ratio of 4.46x in 1Q24.
1Q24 vs.
Units 1Q24 4Q23 1Q24 vs. 4Q23 1Q23
1Q23
Overburden Removal Mbcm 9.66 9.97 -3% 6.27 54%
Production Volume Mt 2.16 1.69 28% 1.90 14%
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PT Mustika Indah Permai (MIP)
• MIP recorded 48% higher production volume in 1Q24 of 1.14 Mt. 1Q24 sales volume
reached 1.39 Mt, 71% increase from 1Q23.
• Overburden removal volume in 1Q24 of 1.71 Mbcm was 7% lower than in 1Q23, and
1Q24 strip ratio declined 37% to 1.50x.
• India was MIP’s largest sales destination during the year. MIP sold 28% of its volume
to the domestic market in 1Q24.
1Q24 vs.
Units 1Q24 4Q23 1Q24 vs. 4Q23 1Q23
1Q23
Overburden Removal Mbcm 1.71 3.27 -48% 1.83 -7%
Production Volume Mt 1.14 1.18 -3% 0.77 48%
Sales Volume Mt 1.39 0.97 43% 0.81 71%
Kestrel Mine (Kestrel)
• In 1Q24, Kestrel recorded saleable coal production volume of 0.82 Mt, and sales
volume of 0.75 Mt, 31% and 34% lower than in 1Q23, respectively.
• Kestrel’s sales destinations consist of customers in major Asian markets. Japan was
Kestrel’s largest sales destination in 1Q24 followed by India and Korea.
1Q24 vs.
Units 1Q24 4Q23 1Q24 vs. 4Q23 1Q23
1Q23
Saleable Production Mt 0.82 1.41 -42% 1.19 -31%
Sales Volume Mt 0.75 1.55 -52% 1.14 -34%
2. SERVICES
PT Saptaindra Sejati (SIS)
• In 1Q24, SIS’s overburden removal volume declined 3% y-o-y to 43.38 Mbcm, while
production volume increased 11% y-o-y to 16.42 Mt.
1Q24 vs.
Units 1Q24 4Q23 1Q24 vs. 4Q23 1Q23
1Q23
Overburden Removal Mbcm 43.38 56.24 -23% 44.55 -3%
Production Volume Mt 16.42 14.04 17% 14.80 11%
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3. LOGISTICS
PT Maritim Barito Perkasa (MBP)
• MBP’s barging volume in 1Q24 increased by 11% to 16.62 Mt compared to 1Q23. The
Adaro Group’s volume constituted almost the entire portion of MBP’s total barging
volume in the period.
1Q24 vs.
Units 1Q24 4Q23 1Q24 vs. 4Q23 1Q23
1Q23
Barging Volume Mt 16.62 15.83 5% 15.00 11%
4. POWER
Our power plants continue to have solid performance in 1Q24. PT Makmur Sejahtera
Wisesa’s (MSW) actual availability factor (AF) was 99.9% and PT Tanjung Power
Indonesia’s (TPI) AF was 84.16% in 1Q24, while the availability factor for PT Bhimasena
Power Indonesia was 97.11% during the quarter.
Adaro Power and PT Adaro Clean Energy Indonesia (ACEI) continue to support the
Group’s green initiatives. MSW’s Solar PV in Kelanis produced 212.53 MWh in the first
quarter, which is used to power the Group’s operation. Other carbon emission reduction
initiatives include the continuation of biomass co-firing at MSW in 1Q24 which equals to
2,081.64 ton CO2e reduction of CO2 equivalent.
5. WATER
Led by PT Adaro Tirta Mandiri (ATM), Adaro Water continuously records good operational
and financial performance in its three lines of business: clean water treatment, mine mud
and mine water treatment (through slurry management and dewatering), and non-revenue
water management.
Adaro Water’s projects had been progressing as planned, with the following achievements
up to the end of 1Q24:
1) Water Treatment Plant (WTP) of 200-lps capacity in Bekasi, West Java: has begun
the commissioning process with PERUMDA.
2) WTP of 500-lps capacity in Medan, North Sumatra: construction had reached 50.04%,
with commissioning and CoD targeted in December 2024.
3) PT Adaro Tirta Sarana (ATS), a subsidiary of ATM, has been supplying clean water to
PT Kalimantan Industrial Park Indonesia (KIPI) and is currently constructing a WTP of
200-lps total capacity in North Kalimantan – the 1st phase (100 lps) is targeted to start
operations in June 2024.
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ADARO MINERALS PILLAR
PT Adaro Minerals Indonesia Tbk (IDX: ADMR)
• ADMR’s metallurgical coal production volume in 1Q24 reached 1.56 Mt, a 27% increase
over 1Q23, with sales reaching 1.05 Mt, 24% higher than in 1Q23.
• Overburden removal volume reached 5.34 Mbcm in 1Q24, 62% higher than in 1Q23,
leading to a strip ratio of 3.43x, a 27% increase from 1Q23. The significant increase in
overburden removal volume y-o-y is due to the expansion of PT Maruwai Coal’s mining
area and the restart of operations from PT Lahai Coal. Solid contractor performance and
supportive weather also support the operation performance in 1Q24.
• In 1Q24, ADMR sold the majority of its metallurgical coal to the export market with Japan
as its largest sales destination.
1Q24 vs.
Units 1Q24 4Q23 1Q24 vs. 4Q23 1Q23
1Q23
Overburden Removal Mbcm 5.34 4.89 9% 3.30 62%
Maruwai Mbcm 4.27 3.02 42% 3.30 30%
Lahai Mbcm 1.07 1.87 -43% - -
Production Volume Mt 1.56 1.13 38% 1.22 27%
Maruwai Mt 1.45 0.93 56% 1.22 18%
Lahai Mt 0.11 0.20 -45% - -
Sales Volume Mt 1.05 1.45 -28% 0.85 24%
Maruwai Mt 0.96 1.25 -23% 0.85 13%
Lahai Mt 0.09 0.20 -55% - -
PT Kalimantan Aluminium Industry (KAI)
• In 1Q24, KAI focused on completion of soil improvement, piling works, and foundation
works in the aluminium smelter area. KAI has completed the heavy cargo berthing and the
first phase of dredging in jetty area. Moreover, KAI has also completed the earthwork in
the dormitory area.
ADARO GREEN PILLAR
• The Adaro Green pillar was set up to accommodate our aspiration to build a bigger and
greener Adaro by seizing opportunities in Indonesia’s green economy. Through PT Adaro
Clean Energy Indonesia (ACEI) and its subsidiaries, the Adaro Group is undergoing feasibility
studies to develop multiple renewable sources of energy.
• PT Adaro Sarana Energi Terbarukan (ASET), a subsidiary of ACEI, plans to reduce the diesel
consumption used at the Adaro Group’s operation and will continue developing renewable
projects within the Adaro Group to demonstrate the Group’s commitment to green
transformation.
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HEALTH, SAFETY AND ENVIRONMENT (HSE)
In 1Q24, we experienced two lost-time injuries (LTI) throughout Adaro Group’s operations. In
1Q24 we recorded a lost-time injury frequency rate (LTIFR) of 0.05 and severity rate (SR) of 0.61.
Total man-hours worked in the 1Q24 period was 37,835,079, representing a 27% increase from
29,567.209 in 1Q23. We continue the implementation of Adaro Zero Accident Mindset (AZAM)
throughout the Adaro Group to improve the safety culture and hence safety performance across
the Adaro Group.
CORPORATE ACTIVITIES AND AWARD
January 2024
• The Energy and Mining Editor Society awarded PT Adaro Energy Indonesia Tbk (AEI) and
PT Adaro Minerals Indonesia Tbk with a total of 3 awards in recognition of the roles of
company’s leaders in advancing the energy and mineral resources sector in Indonesia, in
their respective professional capacity. The awardees were: Best CEO in Coal Mining for
PT Adaro Energy Indonesia Tbk, Best Corporate Secretary for PT Adaro Minerals
Indonesia Tbk, and Best Spokesperson for PT Adaro Energy Indonesia Tbk.
• AEI received 3 awards at the Best Stock Award 2024, organised by investortrust.id media
and in collaboration with Infovesta Utama. AEI received 1st rank in Best Stock Award in
the Energy Sector Category for big cap company, 2nd rank in the Highest Dividend Yield
category for big cap company, and 1st rank in the Most Consistent Dividend Yield category
for big cap company.
February 2024
• AEI received an award at the Nusantara TV Sustainability Communications Award under
the Most Sustainable Communication Company in Energy and Mining Sector category.
###
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These materials have been prepared by PT Adaro Energy Indonesia Tbk (the “Company”, “AEI”, “ADRO”) 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
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
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Names mentioned 19 people and organisations named in the text · linked when the evidence is strong
unresolved
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PT Mustika Indah Permai
p.8
unresolved
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PT Saptaindra Sejati
p.8
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PT Maritim Barito Perkasa
p.9
unresolved
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PT Makmur Sejahtera Wisesa’s
p.9
unresolved
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PT Tanjung Power Indonesia’s
p.9
unresolved
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PT Bhimasena Power Indonesia
p.9
unresolved
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PT Adaro Tirta Mandiri
p.9
unresolved
org
PT Adaro Tirta Sarana
p.9
unresolved
org
PT Kalimantan Industrial Park Indonesia
p.9
unresolved
org
PT Maruwai Coal’s
p.10
unresolved
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PT Lahai Coal. Solid
p.10
unresolved
org
PT Adaro Sarana Energi Terbarukan
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