One of the largest coal mining companies in Indonesia, PT Adaro Energy Tbk, recorded a poor performance in the first semester of 2020. Among other things, there was a decrease in net profit by 47.7 percent (year-on-year) during the first semester of 2020 to US $ 155.09 million. Even though in the same period 2019, the mining sector corporation was able to reap US $ 296.85 million.
Adaro Energy President Director Garibaldi Thohir said the impact of the pandemic has also hit the company’s business this year. “We cannot deny that Adaro’s performance in the first half of 2020 was not immune from the impact of the decline in coal demand that occurred due to the Covid-19 outbreak,” he said in an official statement quoted on Friday, August 28, 2020.
For information, the decline in Adaro Energy’s net profit could not be separated from the 23 percent drop in operating revenues to US $ 1.36 billion. This situation was also influenced by a decrease in the average selling price of coal by 18 percent.
The minutes also disclosed that the production of the business issuer coded ADRO shares fell 4 percent to 27.29 million tons. On this basis, the company then revised its business plan with a projection of a maximum production of 54 million tonnes throughout 2020.
Even so, the Adaro boss remains optimistic that the company’s business will revive along with the economic recovery in the new normal.
“Although we still have to face this challenge in the future, we still believe that the fundamentals of the coal and energy sector will remain solid in the long term, especially because of the support of development activities in Asian countries,” he said.
To achieve this, Garibaldi and his staff will carry out a number of corporate health strategies.
“We continue to maximize our efforts to continue to focus on the operational excellence of the company’s core business, improve operating efficiency and productivity, maintain cash, and maintain a solid financial position amidst difficult situations that impact most of the business world,” he said.
