Jakarta, CNBC Indonesia – The issuer of coal mining, PT Indo Tambang Raya Megah Tbk (ITMG) estimates that the price of coal until the end of 2021 will remain high. This is expected to have a positive impact on ITMG’s revenue and net profit.
Director of ITMG, Jusnan Ruslan, said that last July the price of coal continued to increase and was approaching the level of US$ 100/ton. Then, the price of coal again increased to US$ 110/ton in August.
“We expect September to be higher than August. In Q3, prices will be above 3 digits,” said Jusnan, in a virtual public expose on the IDX, Tuesday (7/9/2021).
The Company estimates that global demand for coal prices will continue to be strong throughout this year, this is due to the stimulus and continuation of trade arising from the economic recovery. In addition, the ban on Australian coal by China was also a factor that lifted coal prices.
With this price increase, Director of ITMG, Mulianto, believes that the company’s financial performance will be better than the previous period.
“We estimate that Q3 performance will be better than Q2,” said Mulianto, on the same occasion.
He also emphasized that in the next 5 to 10 years projection, ITMG will still focus on the new coal mining business as the company’s core business.
“Coal will be our core in 5-10 years. We will see what is our strong point,” he said.
For information, in the first 6-month period, ITMG posted a net profit of US$ 118 million or equivalent to Rp 1.71 trillion (exchange rate of Rp. 14,500/US$).
This net profit increased significantly to 312% from the same period the previous year where the net profit obtained by the company was recorded at US$ 29 million or equivalent to Rp 420.5 billion.
During the first half of 2021, the company recorded an average coal price of US$ 74.7 per ton, up 34 percent from US$ 55.7 per ton in the first 6 months of last year.
Total coal sales volume reached 9.0 million tons, with net sales of US$ 676.30 million (Rp 9.81 trillion). Revenue during the first semester increased by 3.68% from the previous US$ 652.63 million (Rp 9.46 trillion).
The new sales markets for ITMG coal include China (2.7 million tons), Indonesia (1.7 million tons), Japan (1.4 million tons), the Philippines (0.7 million tons), Thailand (0.7 million tons). ), and other countries in East and Southeast Asia.
Coal has indeed become one of the shining commodities this year. In the last month, coal prices shot up 4.12%. Meanwhile, since the end of 2020 (year-to-date), the increase has reached 14.1%.
Data from Refinitiv noted that last weekend, the price of coal touched US$ 178.75/ton. This is a record high, at least since 2008.
Meanwhile, on Monday (6/9/2021) trading on the ICE Newcastle (Australia) market, the price was recorded at the level of US$ 178.35/ton, a slight decrease of 0.22% compared to last week’s position.