30th July 2024 – Jakarta
Today PT United Tractors Tbk (“the Company”) released its consolidated financial statements for the first half of 2024. The Company recorded net revenue of Rp64.5 trillion, decreased by 6% compared to Rp68.7 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 Rp9.5 trillion from Rp11.2 trillion in the first half of 2023.
Construction Machinery Segment
The Construction Machinery segment recorded a decrease in Komatsu sales volume by 32% to 2,147 units from 3,145 units. Based on internal market research, Komatsu leads the heavy equipment market with a 28% market share. Revenue from spare parts and maintenance services decreased by 10% to Rp5.4 trillion from Rp6.0 trillion.
Sales volume of Scania decreased from 449 units to 182 units and UD Trucks sales decreased from 170 units to 82 units due to lower demand mainly in mining sector. In total, the Construction Machinery segment recorded net revenue of Rp15.6 trillion or decreased by 23% compared to Rp20.3 trillion in the same period of 2023.
Mining Contracting Segment
The Company’s Mining Contracting segment is carried out by PT Pamapersada Nusantara (PAMA). PAMA provides mining services to mine concession owners, by assisting them with coal production and overburden removal. Subsidiary of PAMA that also provides services in mining is PT Kalimantan Prima Persada (KPP).
Until June 2024, PAMA recorded revenue of Rp27.9 trillion, up by 15% from Rp24.3 trillion that was recorded in the same period 2023. PAMA recorded increased overburden removal by 13% from 521 to 590 million bcm and increased coal production for its clients by 18% from 59 million tons to 70 million tons with an average strip ratio of 8.5x, decreased from 8.8x.
Coal Mining Segment
The Company’s coal mining business segment is operated by PT Tuah Turangga Agung (TTA).
Until June 2024, TTA recorded coal sales volume of 7.5 million tons (including 1.6 million tons of metallurgical coal), 17% higher compared to the same period last year. Coal Mining segment recorded 23% decrease in revenue to Rp15.5 trillion from Rp20.1 trillion due to the decline in average coal selling price.
Gold and Other Mineral Mining Segment
The Gold and Other Mineral Mining segment recorded 37% higher revenue to Rp4.4 trillion, largely due to increased average gold selling price by 17% (from US$1,935 per ounce to US$2,260 per ounce).
Gold Mining
The Company’s gold mining business is operated by PT Agincourt Resources (PTAR) and PT Sumbawa Jutaraya (SJR). PTAR operates Martabe gold mine which is located in North Sumatra. Until June 2024, gold sales equivalent was 110 thousand ounces, slightly increased compared to last year. SJR operates gold mine concession in Sumbawa Island, West Nusa Tenggara which has started production by the end of the first half 2024 and is expected to record gold sales starting in the second half of 2024.
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 967,000 wet metric tonnes (wmt) of nickel ore sales in the first half of 2024, comprising 421,000 wmt of saprolite and 546,000 wmt of limonite. NIC is an integrated nickel mining and processing company with major assets located in Indonesia. NIC reported 34,427 tonnes of nickel metal sold in the last quarter of 2023 and 32,759 tons of nickel metal sold in the first quarter of 2024. 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 June 2024, Construction Industry reported net revenue of Rp1.1 trillion, up by 39% compared to Rp798 billion in first half of 2024. ACSET recorded higher net loss of Rp136 billion, compared to Rp55 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 June 2024, EPN completed the installation of 2.2 megawatt peak (MWp) rooftop solar photovoltaic (PV), bringing the cumulative installed Rooftop Solar PV from 2018 until the first half of 2024 to 17.2 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 mini hydro power plant project located in South Sulawesi.
In March 2024, the Company increased its ownership in PT Supreme Energy Rantau Dedap (SERD) to 32.7% direct and indirect shareholding. SERD owns an operating geothermal project in South Sumatera with an existing capacity of 2 x 49 MW that has been operating since the end of 2021.
United Tractors actively conducts studies and reviews of other types of sizeable renewable energy, such as hydro, solar PV, and geothermal projects. These projects are consistent with UT’s strategy to increase its competence in various renewable energy potentials to achieve a sustainable business portfolio.
For further information, please contact the following:
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Corporate Secretary |
: Sara Loebis |
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Address |
: Jl. Raya Bekasi Km.22 Cakung, Jakarta Timur 13910 |
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Phone |
: (62-21) 24579999, Fax: (62-21) 4600655 |