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Wednesday, 03 May 17
MALAYSIA SEEMS AS BIGGEST ADARO COAL IMPORTER IN Q1' 17
Coal ExcavatorCOALspot.com: In 1Q17, 30% of Adaro's sales went to Indonesia, the data from unaudited consolidated financial statement shows.

Malaysia came second (15%), as the country increased its coal-fired power generation capacity. Adaro’s sales to India and China declined to 5% and 2%, respectively, due to priority allocation to Adaro’s premium customer, including domestic market, the company said in its latest financial statement. Adaro’s sales to Korea, Japan, Hong Kong and Taiwan were reported at 13%, 12%, 6%and 6% respectively.

PT Adaro Energy Tbk, the Indonesia's one of the largest coal producers operational EBITDA increased 44% to US$276 million in 1Q, 2017.

According to Company's unaudited consolidated financial statements for the first three months of 2017, the company's Core businesses’ after-tax earnings, increased 63% year-on-year to US$132 million and the company also maintained a strong liquidity of US$1,193 million, as Adaro Energy (AE) generated strong cash flow providing flexibility and support against the changing dynamics in the coal market.

“We remain cautiously optimistic with the dynamics in the coal market. Amidst the volatile condition, we continue to promote operational excellence and focus on efficiency and productivity across our three pillars of growth. We generated a solid Operational EBITDA and maintained a strong liquidity, ensuring business sustainability. Adaro Energy’s good start to the year demonstrated the strength of our vertically integrated business model and we are well positioned for the challenges and opportunities that lie ahead”, said Adaro Energy’s President Director and Chief Executive Officer, Mr Garibaldi Thohir.

The company's average selling price of coal increased in 1Q by 39% compared to the same period last year as coal market conditions improved this year. In 1Q17, the company said, it booked US$727 million of revenue, a 24% increase from the same period last year. The company's coal production in 1Q17 totalled 11.86 Mt. The company is also planning to produce 52-54 Mt of coal in 2017.

Due to the higher revenue, the company has paid US$75 million (up 26% YoY) as royalties to the Government of Indonesia in 1Q.  The royalties to the Government of Indonesia that accounted for 15% of the total cost of revenue.


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