(EnergyAsia, November 8 2011, Tuesday) — Indonesian coal miner PT Adaro Energy Tbk said its net income for the nine months ended September 30 2011 surged 96.5% to a record US$376 million.
 
Its net revenue increased 48% year over year (y-o-y) to US$2.9 billion while gross profit margins improved to 34.4% from 31.8% over the same period.

The Jakarta-listed company attributed the strong performance to its increased production volume, higher selling price of its coal output and cost discipline.

Adaro said third quarter production reached record levels on account of favourable weather conditions, the arrival of new and larger sized heavy equipment and the performance of its contractors.

Its nine-month production rose 10.8% to 35.28 million tonnes while sales volume surged 18.4% to 38.33 million tonnes.

Adaro reported that the average selling price of its coal climbed 25% year-on-year.

“Our EBITDA climbed 49% to a record US$1 billion and we continued to maintain a robust EBITDA margin of 35.8%. We are on-track to reach our full-year EBITDA projection of US$1.1 to US$1.3 billion,” it said.

Adaro Energy’s President Garibaldi Thohir said:

“Our record nine month performance demonstrates our commitment to our core operations. We delivered strong production growth, while maintaining our robust profit margins. 

We will continue to focus on growing organically while also looking to the future with our strategic acquisitions.  We remain on track to reach our full year production target of 46-48 million tonnes and our profitability goals.”

On August 19, Adaro acquired a 75% stake in PT Mustika Indah Permai (MIP) for US$222.5 million for a greenfield coal project in South Sumatra.

Adaro said a portion of its revolving credit facility was used to finance this transaction, increasing its net debt to equity to 0.61 times and net debt to EBITDA to 1.01 times. The company said its liquidity remains strong with access to cash of more than US$1.4 billion (including US$850 million of unutilised committed bank facilities).