Jakarta, 29th April 2024 – Today PT United Tractors Tbk (“the Company”) released its consolidated financial statements for the first quarter of 2024. The Company recorded net revenue of Rp32.4 trillion, decreased by 7% compared to Rp34.9 trillion in the same period last year due to lower performance by Construction Machinery and Coal Mining segment. The decrease in revenue, combined with higher finance costs and foreign exchange losses resulted in a decrease in net profit by 15% to Rp4.5 trillion from Rp5.3 trillion in the first quarter of 2023.
Construction Machinery Segment
The Construction Machinery segment recorded a decrease in Komatsu sales volume by 37% to 1,126 units from 1,791 units. Based on internal market research, Komatsu leads the heavy equipment market with a 29% market share. Revenue from spare parts and maintenance services decreased by 11% to Rp2.6 trillion from Rp3.0 trillion.
Sales volume of Scania decreased from 218 units to 87 units and UD Trucks sales decreased from 89 units to 32 units due to lower demand mainly in mining sector. In total, the Construction Machinery segment recorded net revenue of Rp8.3 trillion or decreased by 22% compared to Rp10.6 trillion in the same period of 2023.
Mining Contracting Segment
The Company operates its Mining Contracting segment through PT Pamapersada Nusantara (PAMA). Until March 2024, PAMA recorded net revenue of Rp13.3 trillion, up by 14% from Rp11.7 trillion. PAMA recorded 21% increase in coal production from 27 million tons to 32 million tons and 17% increase in overburden removal volume from 245 million bcm to 286 million bcm, with an average stripping ratio of 8.9x, decreased from 9.2x.
Coal Mining Segment
The Company’s coal mining business segment is operated by PT Tuah Turangga Agung (TTA). Until March 2024, TTA recorded total coal sales volume of 4.0 million tons (including 0.8 million tons of metallurgical coal), 33% increase compared to first quarter 2023. Coal Mining segment recorded 21% decrease in net revenue to Rp8.3 trillion from Rp10.5 trillion due to the decline in average coal selling price.
Gold and Other Mineral Mining Segment
The Gold and Other Mineral Mining segment recorded 8% higher revenue to Rp1.8 trillion, largely due to increased average gold selling price by 14% (from US$1,896 per ounce to US$2,165 per ounce).
Gold Mining
The Company’s gold mining subsidiary, PT Agincourt Resources (PTAR) operates Martabe gold mine which is located in North Sumatra. Until March 2024, total sales volume of gold equivalent from Martabe was 49 thousand ounces, lower by 16% compared to 59 thousand ounces last year, as the government had just approved the annual mining work and budget plan (Rencana Kerja dan Anggaran Biaya/ RKAB) at the end of first quarter 2024. Gold sales is expected to be normalized in the upcoming quarter.
Nickel Mining
The Company’s nickel mining business comprises majority-owned PT Stargate Pasific Resources (SPR), which was newly acquired in December 2023, and 19.99%-owned Nickel Industries Limited (NIC), which was acquired in September 2023.
SPR operates nickel mine which is located in North Konawe, Southeast Sulawesi. SPR reported 383 thousand wet metric ton (wmt) of nickel ore sales in the first quarter of 2024, comprising 203 thousand wmt of saprolite and 180 thousand wmt of limonite.
NIC is an integrated nickel mining and processing company with major assets located in Indonesia. The Company books equity income from NIC in arrears, owing to the timing of NIC’s results announcements. NIC reported 34 thousand tonnes of nickel metal sold in the final quarter of 2023, comprising 29 thousand tonnes nickel metal in NPI and 5 thousand tonnes in nickel matte. For further detail information about NIC, please visit its website: www.nickelindustries.com/
Construction Industry Segment
The Construction Industry segment is represented by PT Acset Indonusa Tbk (ACSET). Until March 2024, Construction Industry reported net revenue of Rp535 billion, up by 55% compared to Rp345 billion in first quarter 2023. ACSET recorded higher net loss of Rp42 billion, compared to Rp30 billion in the same period last year.
Energy Segment
In line with the Company’s business development strategy, the Company has determined renewable energy business as one of its transition strategies. The Company’s energy business is conducted through its wholly owned subsidiary, PT Energia Prima Nusantara (EPN). As of March 2024, EPN completed the installation of 1.9 megawatt peak (MWp) rooftop solar photovoltaic (PV), bringing the cumulative installed Rooftop Solar PV from 2018 until the first quarter of 2024 to 17 MWp.
EPN is currently operating two mini hydro power plants, PLTM Kalipelus with the capacity of 0.5 MW and PLTM Besai Kemu in Lampung, Sumatra with the capacity of 7 MW which began commercial operation in January 2024.
In August 2022, the Company invested in PT Arkora Hydro Tbk (Arkora) with 31.49% shareholding. Currently, Arkora operates two mini hydro power plants, PLTM Cikopo 2 in West Java with the capacity of 7.4 MW, and PLTM Tomasa in Central Sulawesi with the capacity of 10 MW. Arkora is currently developing another two mini hydro power plants, PLTM Koro Yaentu with the capacity of 10 MW and PLTM Kukusan 2 with the capacity of 5.4 MW, both are expected to start operation in 2024 and 2025. When the operation of these two projects starts, Arkora will own operating power plants with total capacity of 33 MW. In December 2023, Arkora signed a Power Purchase Agreement with PLN for the development of 10 MW Tomini minihydro power plant project located in South Sulawesi.
United Tractors actively conducts studies and reviews of other types of renewable energy, such as geothermal, solar, and waste-to-energy projects. These projects are consistent with UT’s strategy to increase its competence in various renewable energy potentials to achieve a sustainable business portfolio.
Event Highlights
On 3rd January 2024, the Company through PT Energia Prima Nusantara (EPN) completed a transaction to subscribe for 49.6% of shares in PT Supreme Energy Sriwijaya (SES) for USD51.9 million. SES is a 25.2% shareholder of PT Supreme Energy Rantau Dedap (SERD), which owns an operating geothermal project in South Sumatera with an existing capacity of 2 x 49 MW.
On 15th March 2024, the Company through EPN subscribed 20.2% share of SERD for USD80.7 million. Following this transaction, the EPN’s total direct and indirect shareholding in SERD is 32.7%.
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For more information, please contact: Corporate Secretary: Sara Loebis |