JAKARTA – PT Adaro Andalan Indonesia Tbk (AADI) managed to record net profit growth of 6.14% year-on-year (yoy) in 2024, reaching USD 1.21 billion, or approximately IDR 19.56 trillion (exchange rate at IDR 16,157 per US dollar), despite experiencing a decline in revenue.

In fact, AADI's operating revenue dropped by 10.07% yoy from USD 5.92 billion to USD 5.32 billion.

However, AADI’s sales volume actually increased by 7% yoy to 68.06 million tonnes. “This consisted of sales of 65.85 million tonnes of thermal coal and 2.21 million tonnes of metallurgical coal,” explained the management further.

In an official statement on the Indonesia Stock Exchange (IDX) yesterday (4/3), AADI’s management admitted that this decline was due to the average selling price (ASP) of coal falling by 17%.

Despite the decline, the company was still able to boost operating profit by 6.46% yoy to USD 1.48 billion, thanks to a surge in other income reaching USD 330.77 million. This was mainly contributed by divestment in associated entities amounting to USD 322.94 million.

Meanwhile, AADI’s operational EBITDA declined by 18.63% yoy to USD 1.315 billion. However, the operational EBITDA margin in FY24 only fell by 2%, remaining healthy at the 25% level.

Julius Aslan, President Director & Chief Executive Officer of AADI, emphasised that the weakening of global coal prices is an external factor beyond their control.

“Our solid track record in navigating the coal cycle is a testament to our resilience and expertise in this sector,” he said in an official statement on Wednesday (5/3). (EF/KR/ZH)