Samindo Resources (MYOH) focuses on using capex to buy heavy equipment

JAKARTA. PT Samindo Resources Tbk (MYOH) has allocated US $ 17.8 million for capital expenditure (capex) this year. This figure is up 27.3% compared to last year's capex budget of around US $ 13.98 million.

MYOH Investor Relations Ahmad Zaki said, until the first semester of 2019 MYOH capex had been absorbed 50% and was used to purchase 10 units of dump trucks.

Furthermore, Zaki said that this year all capex will be used to purchase heavy equipment. This is not separated from MYOH's goal to boost production and support coal transportation activities. "The purchase of heavy equipment is used to boost production," Zaki said when contacted by, Monday (7/10).

This year, the issuer of coal mining service providers is targeting to dredge 10.7 million tons of coal. Until August 2019, MYOH production has reached 7.8 million tons, up 1.6% from the previous year.

While the volume of overburden removal has reached 35.8 million bank cubic meters (bcm), up 2.59% compared to the same period in 2018.

To note, in the first half of 2019 MYOH performance is arguably quite good. MYOH's revenue rose 8.1% to US $ 120.87 million. While MYOH posted a net profit of US $ 11.28 million, down 14.5%.

MYOH began to try his luck to enter the Independent Power Producer (IPP) segment. MYOH took part in the tender for two solar power plant (PLTS) projects in Bali, but in the end resigned because it was not according to specifications.

In addition, MYOH also participated in the tender for the East Kalimantan PLTU 6 IPP project in 2017 and participated in three PLTS tenders in Sumatra in 2018. However, good fortune still did not side with MYOH at that time.

MYOH did not rule out the possibility to take part in the latest tender for the procurement of Steam Power Plants (PLTU) and PLTS. Finally, Zaki said that MYOH's revenue will still be supported by coal mining services.