United Tractors Recorded Net Income of Rp6.0 Trillion for 2020

25 February 2021 – Jakarta

Today, PT United Tractors Tbk (“the Company”) has released its consolidated financial for the year ended 2020. The COVID-19 pandemic and weakening coal price have severely impacted the Company’s overall performance. The Company recorded consolidated revenue of Rp60.3 trillion, down 29% from Rp84.4 trillion in 2019. In line with the decrease in revenue, the Company’s net profit was down 47% to Rp6.0 trillion compared to Rp11.3 trillion.

Overall, to the Company’s consolidated net revenue, Mining Contracting segment contributed 48%, followed by 22% from Construction Machinery, 16% from Coal Mining, 12% from Gold Mining and 2% from Construction Industry.

Construction Machinery Segment
Construction Machinery segment recorded a decrease in Komatsu sales volume by 47% to 1,564 units from 2,926 units in the same period last year. The decline in commodity prices and activity in all sectors delivered severe impacts to heavy equipment demand. Along with the decline in heavy equipment sales, revenue of spare parts and maintenance services decreased by 34% to Rp6.0 trillion. Based on internal market research, Komatsu maintained its position as market leader with 29% market share.

Sales volume of UD Trucks was down from 420 units to 224 units, as well as Scania products decrease from 432 units to 217 units. In total, Construction Machinery segment recorded a decrease in revenue by 41% to Rp13.4 trillion from Rp22.6 trillion in 2019.

Mining Contracting Segment
The Company operates its Mining Contracting segment through PT Pamapersada Nusantara (PAMA). In 2020, Mining Contracting recorded net revenue of Rp29.2 trillion, down by 26% from Rp39.3 trillion in 2019. PAMA recorded 13% decrease in coal production from 131.2 million tons to 114.6 million tons, and 17% decrease in overburden removal volume, from 988.9 million bcm to 825.0 million bcm.

Coal Mining Segment
The Company’s coal mine segment was operated by PT Tuah Turangga Agung (TTA). Until December 2020, TTA recorded total coal sales volume of 9.3 million tons including 1.9 million tons of coking coal, or increased 9% compared to 8.5 million tons in 2019. Despite the increased volume, Coal Mining revenue was decreased by 11% to Rp9.5 trillion due to lower average coal selling price.

Gold Mining Segment
The Company’s gold mine segment was operated by PT Agincourt Resources (PTAR). PT Agincourt Resources operates Martabe gold mine located in South Tapanuli, North Sumatra. In 2020, the total sales volume of gold equivalent from Martabe was recorded at 320 thousand ounces, down 22% compared to 410 thousand ounces last year. Gold Mining segment recorded net revenue of Rp7.0 trillion or down 12% from Rp7.9 trillion. The average realized selling price for gold after hedging was USD1,465 per ounce, compared to USD1,369 per ounce in 2019.

Construction Industry Segment
The Construction Industry segment was represented by PT Acset Indonusa Tbk (ACSET). In 2020, Construction Industry reported net revenue of Rp1.2 trillion compared to Rp3.9 trillion in 2019. ACSET recorded a net loss of
Rp1.3 trillion, mainly due to the slowdown of several ongoing projects and reduced new project opportunities due to COVID-19 pandemic.

Energy Segment
PT Bhumi Jati Power (BJP) whose 25% shares are owned by the Company is currently in the construction process of 2×1,000 MW thermal power plant in Jepara, Central Java. Until December 2020, the construction progress has reached 97%. BJP is a joint venture between a subsidiary of the Company, Sumitomo Corporation, and Kansai Electric Power Co. Inc.

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