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ABM Pays 25 Percent Dividend from 2012 Net Profit


Jakarta, May 30, 2013 – PT ABM Investama (IDX: “ABMM”), an integrated energy company, today holds its Annual General Meeting of Shareholders (AGMS) for the 2012 fiscal year. During the AGMS, the company secured approval for the Annual Report 2012 including the company’s Activity Report, Supervisory Report of the Board of Commissioners and Validation of Financial Statements for the company for the year 2012. The company has also determined the use of net profit for the fiscal year through dividends, with shareholders permitting the company to pay dividend of 25 percent or more than US$3.4 million.

ABM President Director Andi Djajanegara explained, “Amid this challenging period for the industry, as a company that has received continuous support from our stakeholders, particularly investors, we feel very satisfied for being able to carry out our commitment to pay the dividends. Today, shareholders have agreed to pay 25 percent from the net profit as dividend and the rest as retained earning.”

ABM recorded positive operational performance in 2012, supported by the operational performance of its subsidiaries. Although net income had dwindled to US$13.64 million, the synergy of the subsidiaries’ performances had driven sales and revenue, raising gross profit to US$172.6 million. Consolidated revenue grew 17.7 percent to US$886.97 million compared to only US$753.83 million in 2011, proving the success of the company’s integration.

“Pressure in the coal industry created a chain reaction and in terms of mining caused the price of coal to drop while on the contractor side, caused higher operational costs and financial burden that led to lower net profit for ABM,” expressed Andi.

“In addition to the dividends, to support sustainability and maintain positive operational performance, the allocation of the net profit has been calculated to the fund company, for investment, expansion and operational purposes in 2013.

Below are the short summaries on the performances of ABM subsidiaries:

Contract Mining and Coal Mining Segment

The segment of coal mining and contract mining business had mainly contributed to the company’s revenue. Both units were able to meet the production and sales target operationally; however, with a drastic fall in the price of coal, the contract mining and coal mining segment recorded US$536 million in revenue in 2012. The number has shown a growth of 21.6 percent compared to year 2011 which is US$441 million.

In closing 2012, revenue from the coal mining and contract mining businesses were both up 21.6 percent and contributed as much as 60.4 percent to ABM’s total consolidated revenue.

  • PT Cipta Kridatama recorded a growth of 10 percent from 2011 by executing overburden removal as much as 130 million BCM. The rental service augmented 12.3 percent, which is calculated based on the produced coal capacity. The 10.6 million tons in 2011 were up to 11.9 million tons in 2012.
  • PT Reswara Minergi Hartama recorded production and coal sales as much as 4.66 million tons. Productivity of the subsidiary surged 115 percent from 2011 to 2.16 million tons. Production is projected to increase along with the mining settlement plan in Aceh by the end of 2013. Results of the mining will be mainly allocated to meet the market demand quota in India and domestically such as PLN and cement factories.
  • PT Media Djaya Bersama (MDB) a subsidiary of Reswara will be managing Aceh’s mining concession, with an area of 4,629 ha and reserves as much as 169 million tons of coal. Mining is located 12 km from the port, benefitting MDB in distributing coal to domestic and international markets. Mining is projected able to produce 15 million tons per year.

Power Solutions, Integrated Logistics and Engineering Services Sector

  • PT Sumberdaya Sewatama (Sewatama), PT Cipta Krida Bahari (CKB), and PT Sanggar Sarana Baja (SSB) operate in the services business by respectively providing power solution service, integrated logistics and engineering services. ABM recorded US$284 million in revenue in 2012, up 13.3 percent compared to 2011 (US$251 million).

The revenue of the services business contributed as much as 27.9 percent to ABM’s consolidated revenue in 2012.

PT Sumberdaya Sewatama, a subsidiary engaged in the service segment, particularly integrated electricity provider, recorded installed power capacity of 1,010 MW, growing 8.1 percent from 2011 (934 MW).
Manufacturing Segment

The manufacturing business in ABM Group is run by the SSB Manufacturing division and Transportation division. The segment recorded US$66 million in revenue in 2012, up 7.4 percent compared to 2011 (US$61 million) and contributed 11.7 percent or up to US$66 million to ABM’s total consolidated revenue in 2012.

“In entering 2013, ABM has prepared capital expenditure amounting to US$275 million, comprising investment and operational capital for ABM and its subsidiaries to support the company’s business growth. Moving forward, the company is committed to boost production capacity and ensure efficiency to improve the margin profile of our business,” concluded Andi.