(MENAFNEditorial)
JAKARTA May 13 2015 – The falling performance of PT Indo Tambangraya Megah Tbk. (ITMG) a coal company in the first three months of 2015 has cut the company’s margin up to more than half of the margin realization in 2014.
The company’s net margin dropped from 19.09% in QI/2014 into only 8.83% as per March 2015 while the gross margin fell from 25825 into 23.14%.
This was caused by the company’s shrinking revenue at 15.06% from US$50359 million to US$4277 million (year-on-year). Meanwhile the net profit dropped by 60.69% from US$3779 million to US$96.15 million.
In fact the company’s cost of goods sold and operating expense has improved. The cost of goods sold shrank by 11.99% from US$37351 million to US$3287 million. Meanwhile the operating expense decreased by 7.21% to US$3971 million.
In QI/2015 the company’s net margin was lower than the net margin in QIV/2014 at 10.36% (quarter-to-quarter).
However the company’s gross margin is still above the projection. This year ITMG maintains the gross margin at around 19%-20% slightly below the gross margin in 2014 at around 21%.
Previously ITMG Director Edward Manurung said the lower performance and margin in 2014 was caused by the pressure on the company’s average selling price (ASP) which reached US$671 per ton or lower than the position in the previous year at US$749 per ton.
In order to maintain the performance the company expects to maintain the price at around US$58-US$60 per ton. With the sales target of 30 million tons ITMG could earn US$174 billion-US$18 billion.
“We will keep performing the efficiencies” said Edward. The efficiencies are performed through lowering of stripping ratio contract renegotiation with suppliers and constant fee for mine contractor service.
The larger sales target compared to the realization in 2014 at 29 million tons was made based on the company’s projection that the demand from India would increase and even surpass China. Read more..
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