Jakarta, March 31, 2015 - Amid the persistent pressure faced by the coal business in 2014, PT ABM Investama Tbk (ticker code: ABMM), a national integrated energy company, managed to maintain positive operational performance. Over the past year, ABM generated revenue amounting to US$723.6 million with US$106.6 million in EBITDA. However, due to the non-cash adjustment of asset impairment and charge provisions, the Company incurred a net loss of US$113.7 million in 2014.
ABM Investama President Director Andi Djajanegara said that an oversupply in the global thermal coal market had led to a decline in coal prices in 2014. The slowdown in China’s economic growth also contributed to weaker global thermal coal prices.
However, Andi is optimistic that in the long term, coal business fundamentals in Indonesia remain fairly promising, in line with government policies that encourage the development of coal-based power plants in the country. In addition, the government will begin the construction of a 35,000 MW power project, the majority of which will use coal energy.
In the global market, demand from India as one of the major markets for ABM Investama coal continued to rise in 2014. The massive construction of coal-based power plants is believed to raise Indian coal demand in 2015. To optimize market opportunities, both domestic and export, ABM will continue to execute initiatives to new markets and strengthen business chains for greater efficiency.
"We believe that the future of Indonesian coal remains fairly good. To face market challenges, ABM will continue to uphold operational excellence, maintain cash and develop its business, particularly by strengthening synergies across the company’s business lines. Management has strong commitment to continue improving the value of the company in order to provide optimum added value to any and all shareholders and stakeholders of the company," said Andi in Jakarta.
Throughout 2014, the coal mining and contractor segments generated up to US$416.3 million in revenue. Amid the difficult thermal coal market conditions, ABM subsidiary PT Reswara Minergi Hartama booked coal sales amounting to 5.91 million tons, or up 11.1%. Meanwhile, PT Cipta Kridatama (CK) managed to raise the stripping volume up to 102.54 million BCM in 2014, an increase of 15.2% from 2013. In addition, CK also began expanding its business to construction services.
The electrical services segment generated revenue totaling US$269.1 million, in which the rent fee for engine and power generators contributed as much as US$138.7 million to the figure. The amount of electricity generated from machine rental services for temporary power reached 5,019 million KWH in 2014, or 8.1% more than in 2013. In line with growing energy needs in Indonesia, ABM group will also focus its investments in the electricity business in the future, among others through a number of power plant construction initiatives. This endeavor will be conducted either through investment alone or joint investment with strategic partners.
Meanwhile, the logistics services and boat rental segment contributed as much as US$89.6 million in revenue, with the remaining US$40.8 million contributed from Site Services and Refabrication.