Tuesday, February 27, 2018
PT United Tractors Tbk (“the Company”) closed the year of 2017 with consolidated net revenue of Rp64.6 trillion, or increased by 42% from Rp45.5 trillion in 2016, driven by improved performance in all business segment. Overall, to the Company’s consolidated net revenue, Mining Contracting segment contributed 46%, followed by Construction Machinery with 38%, Mining with 11%, and Construction Industry with 5% contribution.
In line with the revenue, the Company’s net profit increased by 48% to Rp7.4 trillion compared to Rp5.0 trillion in 2016, mainly due to higher operational volumes and better profit margins.
Construction Machinery Segment
Construction Machinery recorded an increase in Komatsu sales volume by 74% from a total of 2,181 units in 2016 to 3,788 units. Such increase was due to sales increase particularly from mining and plantation sectors. Komatsu managed to maintain its position as market leader with 35% market share (according to internal market research). Sales volume of UT’s other distributed brands, such as UD Trucks was increased from 361 units to 700 units, and Scania products sales was increased from 532 units to 1,116 units.
In line with the growth of unit sales, spare parts and maintenance services also recorded an increase in revenue by 22% to Rp7.1 trillion due to the growing need of customers to maintain and improve the life cycle of their equipment fleets. In total, Construction Machinery business line recorded an increase in revenue by 69% to Rp24.7 trillion, compared to Rp14.6 trillion in 2016.
Mining Contracting Segment
The Company operates its Mining Contracting segment through PT Pamapersada Nusantara (PAMA). In 2017, PAMA recorded 23% increase in net revenue to Rp29.6 trillion, with total coal production volume up by 3% from 109.2 million tons to 112.6 million tons, while overburden removal volume was up 14% from 701.5 million bcm to 800.8 million bcm.
Mining Segment
The Company’s Mining segment was operated by PT Tuah Turangga Agung. Total coal sales volume in 2017 decreased by 8% to 6.3 million tons, due to lower volume in coal trading business. However, the revenue was increased by 40% to Rp7.2 trillion, due to significantly higher average coal selling price.
Construction Industry Segment
The Construction Industry segment was represented by PT Acset Indonusa Tbk (ACSET). By the end of December 2017, ACSET booked revenue of Rp3.0 trillion, compared to Rp1.8 trillion in 2016. In line with revenue increase, net profit rose by 126% from Rp68 billion in 2016 to Rp154 billion.
In 2017, ACSET was awarded new contracts with total project valuation of Rp8.4 trillion, compared to Rp3.8 trillion in 2016. New notable contracts in 2017 are mostly infrastructure projects, including Jakarta-Cikampek II Elevated Toll Road, Bakauheni-Sidomulyo Toll Road, JORR II Kunciran-Serpong Toll Road, and Light Rail Transit (LRT) Cawang – Dukuh Atas.
In March 2017, 25%-owned PT Bhumi Jati Power (BJP) has completed its project financing agreement with lenders (financial close). BJP will develop and operate 2×1,000 MW thermal power plant in Jepara, Central Java. Until the end of 2017, the progress of development has reached 12% and scheduled to start commercial operation in 2021. BJP is a joint venture between a subsidiary of the Company, Sumitomo Corporation and Kansai Electric Power Co. Inc.
In March 2017, the Company through its subsidiary Tuah Turangga Agung has completed the acquisition of 80.1% ownership in PT Suprabari Mapanindo Mineral (SMM), a coking coal concession in Central Kalimantan. SMM has started its commercial production by the end of 2017.