JAKARTA - PT Adaro Energy Indonesia Tbk (ADRO) is allocating capital expenditure (capex) of USD 600 to 700 million in 2024. In 2023, it only budgeted USD 648.3 million for its capex.

In the Public Expose report quoted today (1/3), the capex will be invested in several projects located in the industrial area in North Kalimantan. This year, the company is projecting to reach sales volume of 65 to 67 million tons, consisting of 61 to 62 million tons of thermal coals and 4.9 to 5.4 million tons of metallurgical coals from  PT Adaro Minerals Indonesia Tbk (ADMR).

In 2023, the capex realisation shifted 53% higher from 2022 capex realisation of USD 424 million. Capex was allocated to purchase and replace heavy equipment and barges. In addition, it was also channelled as preliminary investment in aluminium smelting facility in North Kalimantan, along with supporting facilities and infrastructures.

Throughout 2023, the company reported net profit of USD 1.86 million, down 34.51% from USD 2.83 million seen in the same period in 2022. Operating profit was also dragged down 50% to USD 2.15 million from USD 4.30 million, as revenue was corrected 20% to USD 6.51 million from USD 8.10 million. (LK/ZH)