On November 28, 2023, in Jakarta
PT United Tractors Tbk (“the Company” or “UT”) conducted an online Public Expose as part of the Public Expose Live 2023 event organized by the Indonesia Stock Exchange (IDX). The Company presented its business development initiatives, financial performance in the third quarter of 2023, operational performance up to October 2023, Environmental, Social, and Governance (ESG) programs, and corporate social responsibility. The event was attended by the Company’s Board of Directors, including Frans Kesuma, Edhie Sarwono, Idot Supriadi, Iwan Hadiantoro, Loudy Irwanto Ellias, Widjaja Kartika, and Sara K. Loebis, Corporate Secretary.
“In addition to the Company’s business achievements, we pay greater attention to UT’s diversification strategy to realize sustainable business. This includes expanding the Company’s portfolio through the strategic acquisition of minority shares in Nickel Industries Limited to build an integrated nickel business strategy and investing in PT Supreme Energy Sriwijaya, aligning with the Company’s commitment to continuously develop green energy business as part of the UT Group’s Sustainability Aspiration in 2030,” said Frans Kesuma, President Director of UT.
In line with the sustainability goals of the parent company United Tractors, Astra International, the Company has defined 10 Sustainability Aspirations as a guide for all UT personnel to make a more significant and positive contribution to the environment, the nation’s future, and society. The Company’s sustainability aspirations reflect UT’s commitment to contributing to the nation’s growth through good corporate governance, sustainable business practices, and responsibility. The Company adopts cutting-edge and environmentally friendly technology in its products, services, and business processes to create sustainable value.
Company’s Financial Performance
During the third quarter of 2023, the Company recorded a net revenue of IDR 97.6 trillion, an increase of 7% from IDR 91.5 trillion in the same period in 2022. Meanwhile, the Company’s gross profit increased by 2% from IDR 25.3 trillion to IDR 25.7 trillion. However, the Company’s net profit decreased by 3% to IDR 15.3 trillion from IDR 15.9 trillion due to increased financial costs and foreign exchange losses.
Each business segment, namely Mining Contractor, Construction Machinery, Coal Mining, Gold Mining, Construction Industry, and Energy, contributed 40%, 29%, 25%, 4%, 2%, and less than 1% to the total consolidated net revenue.
Construction Machinery Business Segment
As of October 2023, the Construction Machinery business segment reported an 8% decline in sales of Komatsu heavy equipment to 4,692 units compared to the previous year’s 5,087 units. This decline was attributed to reduced demand from the construction and plantation sectors. According to internal market research, Komatsu leads the heavy equipment market with a 30% market share. Due to supply constraints, Scania’s sales increased from 182 units to 633 units, while UD Trucks’ product sales decreased from 376 units to 257 units.
Up to the third quarter of 2023, the Company’s revenue from selling spare parts and heavy equipment maintenance services increased by 18% to IDR 8.9 trillion. Net revenue from the Construction Machinery segment increased by 5% to IDR 28.7 trillion compared to the same period in 2022.
Mining Contracting Business Segment
The Mining Contracting business segment is operated by PT Pamapersada Nusantara (PAMA). As of September 2023, the Mining Contractor recorded a net revenue of IDR 39.1 trillion, an 18% increase from IDR 33.2 trillion. Until October 2023, PAMA recorded a 17% increase in coal production volume from 94 million tons to 110 million tons, and overburden removal volume increased by 25% from 775 million bcm to 968 million bcm, with an average stripping ratio of 8.8x, up from 8.2x.
Coal Mining Business Segment
The Coal Mining business segment is operated by PT Tuah Turangga Agung (TTA). As of October 2023, total coal sales reached 9.2 million tons, including 2.0 million tons of metallurgical coal, an 8% increase compared to the same period in 2022. Until the third quarter of 2023, the net revenue of the Coal Mining segment decreased by 2% to IDR 24.0 trillion from IDR 24.4 trillion in the same period in 2022 due to a decrease in the average selling price of coal.
Gold Mining Business Segment
The Gold Mining business segment is operated by PT Agincourt Resources (PTAR), which operates the Martabe gold mine in North Sumatra. As of October 2023, total gold equivalent sales from Martabe reached 157 thousand ounces, a 35% decrease compared to the same period in 2022, which was 240 thousand ounces. Until the third quarter of 2023, the net revenue of the Gold Mining segment decreased by 26% from IDR 5.8 trillion to IDR 4.3 trillion.
Construction Industry Business Segment
The Construction Industry business segment is operated by PT Acset Indonusa Tbk (ACSET). As of September 2023, the Construction Industry recorded a net revenue of IDR 1.5 trillion, compared to IDR 729 billion in the same period in 2022. ACSET recorded a net loss of IDR 151 billion, a decrease from IDR 227 billion in the same period last year.
Energy Business Segment
In line with the business development strategy in the environmentally friendly energy sector, the Company has designated New and Renewable Energy as one of its transition strategies. The Company’s energy business is run through its wholly-owned subsidiary, PT Energia Prima Nusantara (EPN). Until October 2023, EPN has installed 13 MWp of Rooftop Solar PV in the UT and Astra groups.
EPN is currently building a Mini Hydro Power Plant (PLTM) called PLTM Besai Kemu in Lampung, Sumatra, with a capacity of 7 MW, which is expected to be operational by the end of 2023. Additionally, EPN is targeting several mini-hydro power plant projects in Sumatra with a total potential capacity of more than 20 MW.
In August 2022, the Company invested in PT Arkora Hydro Tbk (Arkora) with a 31.49% ownership stake. Arkora operates two PLTMs, namely PLTM Cikopo 2 in West Java with a capacity of 7.4 MW and PLTM Tomasa with a total of 10 MW in Central Sulawesi. Arkora is also building two other PLTMs, namely PLTM Koro Yaentu with a capacity of 10 MW and PLTM Kukusan 2 with a capacity of 5.4 MW, expected to be operational in 2024 and 2025, respectively. After the operation of these two PLTMs, Arkora will have a total installed capacity of 33 MW.
The Company plans to develop other renewable energy projects such as geothermal and waste-to-energy. These projects align with the Company’s strategy to enhance competence in various renewable energy potentials, aiming to achieve a sustainable portfolio business.
Significant Event
On August 7, 2023, the Company, through its wholly-owned subsidiary, PT Energia Prima Nusantara (EPN), signed an agreement to acquire a stake of 40.476% in newly issued shares by PT Supreme Energy Sriwijaya (SES) with a total transaction value of USD 42.3 million. SES holds a 25.2% stake in PT Supreme Energy Rantau Dedap (SERD), which holds a geothermal permit with a 2 x 49 MW capacity and is operational in South Sumatra. The completion of this transaction will be effective subject to the fulfillment of several preliminary conditions.
On September 21, 2023, the Company, through its wholly-owned subsidiary, PT Danusa Tambang Nusantara (DTN), announced the completion of the acquisition of a 19.99% ownership stake in Nickel Industries Limited (NIC) with a total transaction value of AUD 942.7 million. NIC, a company listed on the Australian Securities Exchange, is engaged in integrated nickel mining and processing with primary assets in Indonesia.
Corporate Sustainability Aspirations
As a company that prioritizes sustainability practices and Environmental, Social, and Governance (ESG) implementation in its business processes, UT has launched the 2030 Sustainability Aspirations, which includes the Group’s commitment to transition into a more sustainable and resilient business that positively impacts climate, business, and society.
UT’s sustainability aspirations are contained in 10 initiatives, namely Reducing Greenhouse Gas Emissions, Energy Management, Water Management, Solid Waste Management, Diversity, Equality, and Inclusivity in Employees, Employee Health and Safety, Community Development, Business Model Resilience, Diversity and Inclusiveness of the Board of Directors and Good Corporate Governance.
UT and its principals have launched new products to meet the needs and enhance customer satisfaction across various sectors. These include the Komatsu PC71-7, a 7-ton class Hydraulic Excavator that offers more efficient fuel consumption and maintenance costs. Additionally, the Bomag BW212D-5SL, the latest generation single drum roller for the 11-ton type, is designed to provide optimal soil compaction and is environmentally friendly as it complies with B35 fuel. The Scania New Bus Generation consists of Scania K360CB-4X2, K410CB-4X2, K410CB-6X24, and K450CB-6X24, representing premium category buses with facilities and various features that are best in class. These features include the Opticruise transmission, Electronic Braking System (EBS), Anti-lock Braking System (ABS), Electronic Stability Program (ESP), Hill Hold, and Overturn Protection.
As one of the Company’s contributions to achieving sustainable development targets (SDGs), the Company consistently implements Social Responsibility programs engaged in education, health, environment, community economic empowerment, and disaster emergency response.
United Tractors’ Overview
PT United Tractors Tbk (UT), known as Indonesia’s largest heavy equipment distributor, has been established since 1972. UT operates in five business pillars: Construction Machinery, Mining Contracting, Mining, Construction Industry, and Energy. The company also actively works towards achieving Sustainable Development Goals (SDGs) and promoting sustainability.
ESG United Tractors
As a world-class heavy equipment, mining, and energy company with more than 50 years of experience in Indonesia, UT is committed to presenting a sustainable future for Indonesia through the effective application of ESG principles by paying attention to the environment, having a good impact on society, and upholding good corporate governance. good corporate governance at all levels of its business operations and optimizing its competencies, expertise, and strategic assets to bring added value to all stakeholders and the Indonesian people.
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For more information, please contact:
Sara K. Loebis Head of Corporate Governance and Sustainability Division PT United Tractors Tbk Email : ir@unitedtractors.com and corcom@unitedtractors.com Address : Jl. Raya Bekasi Km.22 Cakung, Jakarta Timur 13910 Telp. : (62-21) 3511961, Fax : (62-21) 3441413 Medsos : IG (@unitedtractorsofficial & @ceritadi.ut) Website: www.unitedtractors.com LinkedIn: PT United Tractors Tbk |