3Q13 Activities Report and 9M13 Financial Statements Released

October 31, 2013, 2:59 pm | Admin

Dear Capital Market Participant,

We have today lodged the following announcements to the Indonesia Stock Exchange:
1) 9M13 Financial Statements and Notes
2) Financial Press Release
3) 3Q13 Quarterly Activities Report

All of our announcements are now available from the home page of our website at www.adaro.com.

Below is an excerpt from our 9M13 Financial Press Release:


Solid 9M13 Financial Results Despite Macro Headwinds; We Remained on Track

Maintained Strong Capital Structure to Weather Uncertainty

  • We recorded 9M13 net revenue of US$2,435 million and cost of revenue of US$1,875 million with EBITDA of US$626 million and an EBITDA margin of 26%. We revised down our EBITDA guidance for 2013 to US$750 million to US$900 million, from US$850 million to US$1 billion, due to a prolonged period of weak global coal prices.
  • We lowered our coal cash cost (excluding royalty) by 9% to US$34.68 per tonne in 9M13 due to cost reduction initiatives and lower than expected fuel prices. Our guidance for coal cash cost (excluding royalty) for 2013 remains US$35 to US$38 per tonne.
  • Our 9M13 net income decreased by 47% to US$183 million as the reduction in the coal cash cost was not enough to offset the decline in the average selling price.

    Robust Demand Continued to Fuel Strong Operational Performance

  • Our production volume grew 14% to 38.67 million tonnes (Mt) and sales volume grew by 13% to 39.11 Mt. We are on track to achieve our production volume guidance of 50 to 53 Mt for 2013.
  • Our 9M13 capital expenditure decreased 71% to US$120 million. We achieved a record quarter of coal production in 3Q13 of 13.73 Mt without any expenditure for heavy equipment at Adaro Indonesia.
  • Our 9M13 free cash flow increased 60% to US$439 million due to strong cash flow from operating activities and lower capital expenditure.
  • Our 9M13 liquidity remained robust with access to cash of around US$1 billion, allowing us to weather the current cyclical downturn and continue to execute on our business model. We worked diligently to preserve our cash, reduce risks and extend the maturity profiles of our borrowings.
  • Due to prudent debt management, we held net debt to last twelve months EBITDA of 2.10x and net debt to equity of 0.54x as at the end of 9M13.
  • We shall continue to declare a regular cash dividend every year.

Please do not hesitate to contact us should you need any further information.

Kind regards,

Last modified on February 1, 2017, 3:03 pm | 1361