JAKARTA – PT Golden Energy Mines Tbk (GEMS), a coal mining and trading company, reported a year-on-year (yoy) decline in revenue by 6.8% to USD 2.7 billion in 2024, down from USD 2.9 billion in 2023.

Despite this, according to the 2024 Public Expose material, GEMS recorded a 10% yoy increase in coal production, reaching 50.7 million tonnes, up from 46.1 million tonnes in the previous year. Sales volumes also increased by 11% yoy, from 46.9 million tonnes to 51.9 million tonnes.

However, with an 8.8% yoy efficiency in cost of goods sold to USD 1.6 billion, GEMS’ gross profit only decreased by 3.6% yoy, from USD 1.2 billion to USD 1.1 billion. This allowed the company to improve its gross profit margin from 39.5% to 40.8%.

In a disclosure today (4/3), GEMS also reported a 14.5% yoy decline in EBITDA to USD 632 million. At the bottom line, net profit dropped by 8.6% yoy in 2024 to USD 473.8 million, down from USD 518.4 million the previous year.

GEMS operates with a total concession area of 66,204 hectares in various locations across Sumatra and Kalimantan, with coal reserves amounting to 0.90 billion tonnes.

It's worth noting that 63% of GEMS' sales in 2024 were dominated by exports, down from 67% in 2023. As an exporter, GEMS may be affected by the new Coal Reference Price (HPB) regulation—effective per March 1, 2025—which requires the company to use HPB as a reference price for both export and non-DMO domestic sales.

As previously reported by IDNFinancials.com, analysts from CGS International Sekuritas Indonesia believe that while this policy could support selling prices, it poses a risk of market share loss for exporters. (ZH)