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April 3, 2012

ABM Targets 50% Revenue Growth in 2012

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PT ABM Investama Tbk. (IDX: ABMM), an integrated energy company focusing on resources, services and infrastructure, is targeting its revenues to grow 50% in 2012 from the previous year, due to strong sales among ABM subsidiaries.

PT Reswara Minergi Hartama (Reswara), one of ABM’s subsidiaries, has commenced optimal operations in its coal mining in South Kalimantan, in line with the port’s full operation at this location. Additionally, ABM will ensure coal mining infrastructure development in Aceh to be completed in the second half of 2013; therefore, it can fully operate to support the company's coal production.

Both of these mines have total coal reserves of around 221 million tons. Reswara’s coal productions that are categorized as low ash and low sulfur currently fetch high demand from both domestic and international power plant companies, including India, China, Thailand and the Philippines.

“Reswara’s success story in securing a long term contract with main buyers is proof that the company succeeded in supporting ABM operations,” said PT ABM Investama Tbk President Director Andi Djajanegara during a media briefing in Jakarta (4/3).

In the first quarter of 2012, Reswara closed a deal from 2 million tons of coal sales with Subham Corporation Pvt. Ltd, India, through its subsidiary PT Tunas Inti Abadi (TIA).

ABM’s exponential growth is also supported by PT Cipta Kridatama (CK), the subsidiary that provides integrated mining contractor services from pit to port, which has contributed to company’s strong sales.  

CK’s contribution to the company’s consolidated sales in 2011 had reached Rp 2.955 trillion or 44% of ABM consolidated sales. ABM is targeting 20% growth on CK’s overburden in 2012. Today, CK provides services to eight coal producers in ten different mining locations.

ABM’s subsidiary in the power service provider, PT Sumberdaya Sewatama (Sewatama), is leader in the market that controls a 42% market share of temporary power. In addition, Sewatama has provided a 934 MW power, to meet huge electricity demand in Indonesia. In addition, Sewatama owns a minority share in Meppogen, an Independent Power Producer (IPP) project. As of December 2011, Sewatama successfully posted sales of Rp 1.006 trillion.

“For the next four years, ABM is targeting an average revenue growth of 25%. This target is underpinned by the strong development of its subsidiaries in sales volume, selling price and profit margins in all segments, these includes coal sales, mining contractor service, electrical services provider, integrated logistics, and engineering services,” said Andi.

To support the plan, ABM has allocated US$335 million for its 2012 capital index. This fund is generated from the 2011 Initial Public Offering (IPO) and several loans.


2011 Performance

ABM recorded a net profit increase of 226% or Rp415.74 billion in FY2011. This net profit achievement is triple the FY2010 achievement of Rp 127.32 billion. The surge in profit growth is supported by a 47.70% increase in revenue or Rp 6.63 trillion in FY2011, compared to the achievement in the same period in 2010 that amounted to Rp 4.49 trillion.

This achievement was a result of significant profit margin growth, which increased to 6.27% in December 2011 compared to 2.84% in December 2010.

ABM Cash and Cash equivalent grew 285.34% in 2011 or Rp 1.67 trillion compared to the 2010 achievement of Rp 433.04 billion. ABM Asset position in December 2011 significantly increased 102% to Rp 9.88 trillion compared to Rp 4.89 trillion in December 2010.

"The subsidiary’s performance consolidation and higher contribution from the coal mining segment has strengthened the operational profit margin growth and the company’s net profit margin at a profitable level," said ABM Finance Director Willy Adipradhana.

"Corporate Debt Ratio, such as Debt to Equity Ratio, is recorded 2.27 times as per December 2011, while Debt Ratio is 0.69 times. The low debt ratio and strong reputation of Tiara Marga Trakindo group as the holding company provides ABM the flexibility in securing funding options, which encourages the company’s business expansion in the future."