(EnergyAsia, November 7 2012, Wednesday) — Weighed down by slower demand in China, Indonesia’s Adaro Energy said its coal production fell 4% for the first nine months of this year, causing net revenue to fall 5.8%.

Indonesia’s second biggest coal miner said it produced 33.9 million tonnes during the period compared to 35.3 million tonnes a year ago while sales plunged 9.5% to 34.7 million tonnes from 38.3 million tonnes as customers declined to lift optional volumes provided for in their purchase contracts.

“Our net revenue decreased 5.8% year over year to US$2,755 million from US$2,925 million due to decreased sales volumes from difficult market conditions. Our net income also declined to US$346.5 million,” said the company.

With China’s demand not expected to recover for the rest of the year, Adaro Energy said it expects its production to be at the bottom end of its revised 2012 production guidance of 48 million to 51 million tonnes.

Its President, Garibaldi Thohir, said:

“Market conditions remain challenging but our focus on operational excellence and our low cost business model allow us to weather these cycles and remain profitable. The long-term fundamental growth story of Indonesia and all of ASEAN remains intact and we will continue to build a great company to fuel the region’s energy needs.

“We need not to be distracted by short-term volatility but stay committed to our core operations and our goal of delivering value from Indonesian coal.”