President Director of the company Garibaldi ‘Boy’ Thohir told reporters after the company’s annual shareholders meeting on Monday that the company now revised down the company’s EBITDA to US$1.1-US$1.3 billion from previously US$1.3-US$1.5 billion.
“We comply with the government’s regulation on DMO, in which coal price sold to the domestic market is set at a maximum of US$70 per ton,” he said. The DMO price is far lower than the international coal market price which is now hovering at around US$100 per ton.
The company also revised up its production target to 54-56 million tons, from 52-54 million tons set earlier. The higher production was made to compensate the lower-than-market coal price sold to domestic market.
On Monday, the company’s shareholders meeting also approved to distribute dividend of US$250 million, up 150% from 2016 financial results dividend.
In 2017, the company’s net profit reached US$536.44 million, up 57.4% from US$334.6 million in 2016.
The 2017 net profit increase was in line with a rise in sales, which increased 29% to US$3.2 billion from US$2.5 billion a year earlier. (*)