United Tractors’ Net Profit for the First Half of 2017 is IDR 3.4 trillion

United Tractors’ Net Profit for the First Half of 2017 is IDR 3.4 trillion

Thursday, July 27, 2017

PT United Tractors Tbk (“the Company”) booked a net income of Rp29.4 trillion during the first half of 2017, an increase of 30% over the same period in 2016. This increase in net income was mainly due to an increase in sales volume of heavy equipment, coal production and overburden removal, as well as the average selling price of coal. Each business unit, namely: Construction Machinery, Mining, Mining, and Construction Industries respectively contributed 38%, 45%, 13% and 4% to the total consolidated net income.

In line with improved operational performance accompanied by better revenue margins, the Company recorded a net profit during the first half of 2017 reaching Rp3.4 trillion, an increase of 85% when compared to net profit in the first half of 2016 amounting to Rp1.9 trillion.

Construction Machinery Business Segment

The Construction Machinery business segment recorded an increase in sales of Komatsu heavy equipment by 69% to 1,751 units, compared to 1,036 units in the first half of 2016. The increase in sales of heavy equipment was mainly driven by increased sales in the mining sector. Of the total sales of heavy equipment, 51% is absorbed by the mining sector, 22% is absorbed by the construction sector, 14% is absorbed by the plantation sector, and the remaining 13% is absorbed by the forestry sector. Komatsu was able to maintain its position as a heavy equipment market leader, with a domestic market share of 37% (based on internal market research). Sales of other brand products, namely UD Trucks, increased from 217 units to 276 units, while sales of Scania trucks and buses increased from 246 units to 553 units. On the other hand, sales of spare parts and heavy equipment maintenance services increased by 16% to Rp3.2 trillion. In total, net revenue from the Construction Machinery business segment recorded an increase of 63% to Rp11.2 trillion.

Mining Contracting Business Segment

The Mining Contracting business sector operated by PT Pamapersada Nusantara (PAMA) recorded a 15% increase in net income to Rp13.3 trillion. PAMA recorded an increase in coal production volume from 50.2 million tons to 52.0 million tons, while the volume of overburden removal increased from 341.1 million bcm to 360.4 million bcm.

Mining Business Segment

Mining business is run by PT Tuah Turangga Agung. Total coal sales up to the first half of 2017 reached 3.6 million tons, down by 18% from 4.5 million tons in the same period in 2016. The decline in coal sales was due to a decrease in volume from the coal trading business. However, the increase in the average selling price of coal made the Mining business unit revenue record a 24% increase in net income to Rp4.0 trillion.

Construction Industry Business Segment

The Construction Industry business is run through PT Acset Indonusa Tbk (ACSET). Up to the first semester of 2017, ACSET posted a net income of IDR1.0 trillion, an increase of 8% from the previous IDR944 billion in the same period in 2016. Meanwhile, net profit increased by 95% to IDR64 billion. The value of new contracts obtained up to June 2017 reached IDR 7.1 trillion compared to IDR 2.4 trillion in the same period in 2016. Significant increase in new contracts was obtained from several strategic contracts in the infrastructure sector, including the Jakarta-Layang Toll Road contract Cikampek II, Bakauheni-Sidomulyo Toll Road, and JORR II Toll Road Kunciran-Serpong Section.

In March 2017, Bhumi Jati Power (BJP), which is 25% owned by a subsidiary of the Company, reached an agreement regarding a project funding agreement with creditors (financial closing). BJP will develop and operate a 2×1,000 MW steam power plant in Jepara, Central Java. At present, the BOT (build, operate and transfer) project is under construction and is expected to begin commercial operations in 2021. Bhumi Jati Power is a joint venture between a subsidiary of the Company, Sumitomo Corporation and Kansai Electric Power Co. Inc.

In March 2017, the Company through its subsidiary PT Tuah Turangga Agung, completed the acquisition of 80.1% ownership of PT Suprabari Mapanindo Mineral, a coking coal company (high calorie coal which is commonly used as a mixture in steel smelting) located in Central Kalimantan . The concession is currently in the process of supporting infrastructure development and is expected to start production at the end of 2017.

United Tractors’ Net Profit for the First Half of 2017 is IDR 3.4 trillion

Construction of Tanjung Jati B Coal-fired Power Plant Units 5 & 6 Expansion Project (2,000 MW) Commences

Tuesday, April 04, 2017

PT Bhumi Jati Power (“BJP”) has satisfied the required conditions precedent for the project financing of the Tanjung Jati B coal-fired power plant Units 5 & 6 Expansion Project or also called Pembangkit Listrik Tenaga Uap (PLTU) Jawa-4 (“Project”) and commenced construction work on the Project on March 31, 2017. BJP is owned by Sumitomo Corporation, The Kansai Electric Power Co., Inc., and PT United Tractors Tbk, through wholly-owned subsidiaries, respectively Sumi  Energy Ventures LLC, KP Power Development B.V. , and PT Unitra Persada Energia.

This BOT (Build, Operate and Transfer) Project will cost approximately US$4.2 billion, and the project cost mainly funded with the loan  from the Japan Bank for International Cooperation (JBIC) and a syndication of seven commercial banks: Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corporation, The Bank of Tokyo-Mitsubishi UFJ, Ltd., Sumitomo Mitsui Trust Bank, Limited, Mitsubishi UFJ Trust and Banking Corporation, The Norinchukin Bank, and Singapore’s Oversea-Chinese Banking Corporation Limited covered by NEXI Overseas Investment Insurance.

BJP will build two new units of a high efficiency ultra-supercritical coal-fired power plant (generation capacity of 2,000 MW) that introduces efficient and environmentally friendly technology in an area adjacent to the existing Tanjung Jati B coal-fired power plant (Units 1-4), located in Jepara Regency, Central Java. The power plant will supply electricity over a period of 25 years to Indonesian power utility company PT PLN (Persero), following the completion of plant construction.

The project is scheduled to achieve commercial operation in 2021 and positioned as a part of 35,000MW power plants construction program promoted by Indonesian government.

Profile of PT Bhumi Jati Power (“BJP”)

BJP is a joint venture company established for the purpose of development and operation of the Project. PT Unitra Persada Energia holds 25% shares, Sumi Energy Ventures LLC holds 50% shares, and KP Power Development B.V. holds 25% shares in BJP.

United Tractors’ Net Profit for the First Half of 2017 is IDR 3.4 trillion

United Tractors Recorded Consolidated Net Revenue of Rp 45.5 Trillion for 2016

Monday, February 27, 2017

PT United Tractors Tbk (“the Company”) today announced its consolidated financial statements for the financial year 2016. In the report, the Company recorded consolidated net revenue during 2016  decreased by 8% to Rp45.5 trillion compared to Rp49.3 trillion in 2015. The decrease was mainly driven by lower production volume and revenue from Mining Contracting business unit. Contribution in total revenue per business segment was mostly from Mining Contracting segment, that is 53%, followed by 32% from Construction Machinery, 11% from Mining, and 4% from Construction Industry.

Meanwhile, the Company recorded net income of Rp5.0 trillion in 2016, up 30% compared to Rp3.9 trillion in 2015 due to the absence of impairment loss on the carrying value of its coal mining properties which affected in 2015. Excluding the impact of non-cash impairment loss, the 2016 net income would have been 22% lower than 2015 (2015: Rp6.4 trillion).

Construction Machinery Segment

Construction Machinery segment recorded an increase in Komatsu sales volume by 3% to 2,181 units from 2,124 units in 2015. Higher sales volume of heavy equipment originated from construction and mining sectors. Komatsu remains the market leader in heavy equipment market in Indonesia, with market share at 32% (according to internal market research). On the other hand, the revenue of spare parts sales and maintenance services decreased by 5% to Rp5.8 trillion. Overall, total revenue of Construction Machinery segment during 2016 increased to Rp14.6 trillion or rose 7%.

Mining Contracting Segment

The Company operates its Mining Contracting segment through PT Pamapersada Nusantara (“PAMA”) which recorded a 21% decrease in net revenue of Rp24.0 trillion compared to Rp30.5 trillion in 2015. This result was primarily driven by lower overburden removal by 8% from 766.6 million bcm to 701.5 million bcm, while coal production was amounted to 109.2 million tons, relatively the same as last year.

Mining Segment

The Company’s Mining segment was operated by PT Tuah Turangga Agung. Total coal sales volume in 2016 increased by 48% to 6.8 million tons, driven by increased production capacity and better weather condition. In line with increasing coal sales volume, revenue of Mining business was also increased by 34% to Rp5.1 trillion from Rp3.8 trillion.

Construction Industry Segment

The Construction Industry segment was represented by PT Acset Indonusa Tbk (ACSET). In  2016, ACSET posted an increase in net revenue from Rp1.4 trillion to Rp1.8 trillion, with net income increased by 63% to Rp68.3 billion. ACSET has successfully obtained new contracts worth of Rp3.8 trillion in 2016 compared to Rp 3.1 trillion in 2015.