August 29, 2024 – Jakarta
Today, PT United Tractors Tbk (“the Company” or “UT”) presented its Public Expose online as part of the Public Expose Live 2024 series organized by the Indonesia Stock Exchange (IDX). The Company shared its business development initiatives, financial performance for the first half of 2024, operational performance through July 2024, environmental, social, and governance (ESG) programs, and corporate social responsibility initiatives. The event was attended by the Company’s Board of Directors, including Iwan Hadiantoro, Edhie Sarwono, Idot Supriadi, Vilihati Surya, Loudy Irwanto Ellias, Widjaja Kartika, and Sara K. Loebis, Corporate Secretary.
“In addition to the Company’s business achievements, we are placing greater emphasis on UT’s business diversification strategy to realize sustainable business practices. Over the past five years, UT has focused on two mineral sectors: nickel and gold. Moving forward, the Company will continue to explore other mineral opportunities and the renewable energy sector. The strategy we are currently implementing has been quite successful, as we acquired minority shares in Nickel Industries Limited to build an integrated nickel business strategy and investment in PT Supreme Energy Sriwijaya. This aligns with the Company’s efforts to support the government’s energy transition in Indonesia,” said UT Director Iwan Hadiantoro.
The Company has five business segments. The first segment is Construction Machinery, which is engaged in the distribution of heavy equipment and after-sales services. The second segment is Mining Contracting, managed by PT Pamapersada Nusantara. The third segment is Mining, consisting of Coal Mining under the holding Company PT Tuah Turangga Agung, Gold Mining through PT Agincourt Resources and PT Sumbawa Jutaraya, and Nickel Business managed by PT Stargate Pacific Resources and investment in Nickel Industries Limited (NIC). The fourth segment is the construction industry, managed by PT Acset Indonusa Tbk, and the fifth is the energy sector, which PT Energia Prima Nusantara manages.
Financial Performance of the Company
As of the first half of 2024, the Company’s consolidated net revenue reached IDR 64.5 trillion, down by 6% compared to the same period in 2023, due to a decline in the performance of the Construction Machinery and Coal Mining segments. The decrease in revenue, coupled with higher financial costs and foreign exchange losses, led to a 15% decline in net profit to IDR 9.5 trillion from IDR 11.2 trillion in the first half of 2023.
Construction Machinery Business Segment
As of July 2024, Komatsu heavy equipment sales volume reached 2,515 units, a decrease of 29% compared to 3,551 units in the same period last year. This decline was due to reduced demand from the Mining, construction, and forestry sectors. Of the total sales, 63% were absorbed by the mining sector, 14% by the plantation sector, 13% by the construction sector, and 10% by the forestry sector. UD Trucks products decreased by 47% from 195 units to 103 units, while Scania sales decreased by 56% from 526 units to 229 units due to reduced demand, especially in the mining sector. For after-sales services, revenue from spare parts sales and equipment maintenance services decreased by 10% to IDR 5.4 trillion in the first half of 2024.
Mining Contracting Business Segment
As of July 2024, PAMA recorded an 18% increase in coal production volume from 71 million tons to 84 million tons and a 12% increase in overburden removal volume from 625 million bcm to 699 million bcm, with an average stripping ratio of 8.4 times.
Coal Mining Business Segment
As of July 2024, PT Tuah Turangga Agung had sold 8.5 million tons of coal, including 2.0 million tons of metallurgical coal, an increase of 17% compared to last year.
Gold Mining Business Segment
Gold equivalent sales from PT Agincourt Resources reached 128 thousand ounces as of July 2024, up 2% from 126 thousand ounces in the same period last year.
Nickel Mining Business Segment
Nickel ore sales from PT Stargate Pacific Resources reached 1 million wet metric tons (wmt) as of July 2024, consisting of 496 thousand wmt of saprolite and 602 thousand wmt of limonite. In addition, the investment in Nickel Industries Limited in September 2023, with a 19.99% shareholding, reported sales of 32,759 tons of nickel metal in the first quarter and 32,273 tons of nickel metal in the second quarter of 2024.
Construction Industry Business Segment
This segment, managed by ACSET, recorded net revenue of IDR 1.1 trillion as of June 2024, up 39% from IDR 798 billion in the same period last year. In the first half of 2024, it recorded a net loss of IDR 136 billion.
Energy Business Segment
The Company currently operates run-of-river Hydroelectric Power Plants (PLTA), namely the Kalipelus Mini Hydroelectric Power Plant (PLTM) – 0.5 MW in Central Java and the Besai Kemu Mini Hydroelectric Power Plant – 7 MW in Lampung, which began operating in January 2024.
The Company also holds a 31.49% stake in PT Arkora Hydro Tbk (Arkora). Arkora owns and develops run-of-river PLTAs. Currently, Arkora operates two PLTAs with a total capacity of 17.4 MW, and two PLTAs are under construction with a total capacity of 15.4 MW. Once all these PLTAs are operational, Arkora will have a total installed capacity of 32.8 MW.
Through PT Energia Prima Nusantara, cumulatively from 2018 to July 2024, the Company has installed Rooftop Solar PV totaling 17.5 MWp, with 1.9 MWp currently in the installation process.
The Company, through EPN, has invested in PT Supreme Energy Rantau Dedap (SERD) with a total direct and indirect shareholding of 32.7% since March 2024. SERD operates a South Sumatra geothermal project with a 2 x 49 MW capacity.
Important Events
On January 3, 2024, the Company, through PT Energia Prima Nusantara (EPN), subscribed to 49.6% of the new shares issued by PT Supreme Energy Sriwijaya (SES) worth USD 51.9 million. SES holds a 25.2% stake in PT Supreme Energy Rantau Dedap (SERD), which operates a geothermal project in South Sumatra with a 2 x 49 MW capacity.
On March 15, 2024, the Company, through EPN, purchased a 20.2% stake owned by Merit Power Holdings B.V. and Inpex Geothermal Ltd. in SERD for USD 80.7 million. After this transaction, the Company’s total direct and indirect shareholding in SERD through EPN became 32.7%.
Corporate Social Responsibility (CSR) Activities
As part of the Company’s contribution to achieving sustainable development goals (SDGs), the Company consistently implements Corporate Social Responsibility programs in education, health, environment, community economic empowerment, and disaster emergency response.
United Tractors’ Overview
PT United Tractors Tbk (UT), established in 1972, is Indonesia’s largest heavy equipment distributor. The company operates in five business areas: Construction Machinery, Mining Contracting, Mining, Construction Industry, and Energy. UT is committed to promoting sustainability and achieving the Sustainable Development Goals (SDGs).
ESG United Tractors
As a world-class heavy equipment, mining, and energy company, UT has been operating in Indonesia for over 51 years. The company is committed to creating a sustainable future for Indonesia by effectively applying ESG principles. UT aims to pay attention to the environment, positively impact society, and uphold good corporate governance at all levels of its business operations. The company also strives to optimize 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.unitedtractors) Website: www.unitedtractors.com LinkedIn: PT United Tractors Tbk |