Thursday, July 26, 2018
PT United Tractors Tbk (“the Company”) posted a net income of Rp38.9 trillion during the first half of 2018, an increase of 32% compared to Rp29.4 trillion in the same period in 2017. This increase in net income was driven by improved performance from all lines Company’s business. Each business unit, namely: Construction Machinery, Mining, Mining, and Construction Industries respectively contributed 36%, 45%, 15% and 4% to the total consolidated net income.
Improved operational performance and higher revenue margins led to an increase in the Company’s net profit to grow by 60% to reach Rp.5.5 trillion compared to net profit in the same period in 2017 amounting to Rp3.4 trillion.
Construction Machinery Business Segment
In the first half of 2018, the Construction Machinery business segment recorded an increase in sales of Komatsu heavy equipment by 37% to 2,400 units, compared to 1,751 units in the same period in 2017. The increase in sales of heavy equipment was mainly driven by increased sales in the mining, plantation, and construction. Komatsu was able to maintain its position as heavy equipment market leader, with a domestic market share of 36% (source: internal market research). Sales of other brand products, UD Trucks, increased from 276 units to 417 units, while sales of Scania products slightly fell from 553 units to 533 units.
Increased sales of heavy equipment and customer needs to extend the life cycle of heavy equipment led to an increase in sales of heavy equipment spare parts and maintenance services by 35% to Rp4.4 trillion. In total, net revenue from the Construction Machinery business segment increased by 24% to Rp13.9 trillion.
Mining Contracting Business Segment
Mining Contracting business is operated by PT Pamapersada Nusantara (PAMA). During the first semester of 2018, PAMA posted a 32% increase in net income to Rp17.4 trillion. PAMA recorded an increase in coal production volume from 52.3 million tons to 56.6 million tons, while the volume of overburden removal increased from 360.9 million bcm to 444.9 million bcm.
Mining Business Segment
Mining business is run by PT Tuah Turangga Agung. Total coal sales up to June 2018 reached 4.4 million tons, an increase of 22% from 3.6 million tons in the same period in 2017. Increased coal sales volume and a significant increase in average coal selling prices make Mining business unit revenue increased by 51% to Rp6.0 trillion.
Construction Industry Business Segment
The Construction Industry business is run through PT Acset Indonusa Tbk (ACSET). As of the first semester of 2018, ACSET posted a net income of Rp1.7 trillion from the previous Rp1.0 trillion in the same period in 2017. Meanwhile, net income increased by 14% to Rp73 billion. The value of new contracts obtained up to June 2018 reached Rp300 billion.
Energy Business Segment
Bhumi Jati Power (BJP), which is 25% owned by a subsidiary, will develop and operate a 2×1,000 MW steam power plant in Jepara, Central Java. As of June 2018, the project development progress has reached 28.5% and is scheduled to start commercial operations in 2021. BJP is a joint venture between a subsidiary of the Company, Sumitomo Corporation and Kansai Electric Power Co. Inc.