Optimizing Coal Price Increase, ABM Investama to Ramp Up Production
Jakarta, May 10, 2017 | PT ABM Investama Tbk (Ticker code; ABMM) will continue to sustain its business growth momentum by optimizing the coal price recovery through production increase and operating efficiency improvement. The strategy has been proven to be effective in strengthening the company’s performance in 2016 through to this year.
ABM Investama Managing Director Andi Djajanegara said that coal recovery, after hitting the lowest point in 5 years, had become the main catalyst in bolstering the company’s performance last year. “Recovery of coal prices and the efficiency strategy that we have undertaken since 2014 became the key of the improvement of ABM’s fundamentals in 2016. We will be ramping up coal production, thus, an increase in demand in major countries like China and India can be optimized,” explained Andi after ABM Investama’s Annual General Meeting of Shareholders in Jakarta, Wednesday, (10/5).
Throughout 2016, ABM’s total coal production reached 6.4 million tons/year and will continue to be increased up to 9 million tons/year in 2017, marketed in China, India and domestically.
In 2016, ABM Investama posted a revenue of US$ 590.7 million with an EBITDA of US$ 166.0 million – up 23.1% compared to 2015. Within this period, the company successfully posted US$ 12.6 million in net profit, an improvement from 2015 when ABM recorded US$ 38.1 million in net losses. Throughout 2016, ABM was also able to refinance its debts and curtail its obligations up to US$ 110 million.
ABM Investama CFO Adrian Erlangga added that aside from improving its coal business capacities, ABM’s focus in 2017 is to continue strengthening its balance sheet by reducing debts and increasing asset utilization and productivity.
In line with ABM’s long-term strategy to balance its portfolio, the company will also reinforce its non-coal businesses such as the power sector and logistics services.
“The logistics sector will be one of ABM’s business development priorities in the future. The growing population and increasingly dynamic economic activities provide a highly lucrative opportunity for the logistics services in Indonesia,” said Adrian.
To support the company’s strategy, today, PT ABM Investama Tbk’s Annual General Meeting of Shareholders decided that 2016 profits will be used to fortify the company’s capital.