Samindo Resources Prepares USD17.7 Million Capital Expenditures

JAKARTA - PT Samindo Resources Tbk (MYOH) this year has allocated a capital expenditure of USD17.7 million to support the company's performance. Of this amount, USD14.5 million was for the purchase of 10 dump trucks and USD3.2 million for the purchase of truck heads and vessels.

"The source of funds for capital expenditure comes from internal cash. Of the 10 dump trucks we allocated this year, five of them have arrived. The remaining five in April or May. Thus, our total fleet of dump trucks is 143 units, said Samaki Resources Nakiir's Head of Investor Relations in Jakarta, yesterday. He added, this year Samindo is optimistic that it can record positive performance as experienced in 2018.

Last year, the national-scale integrated coal mining service provider posted revenues of USD241.1 million, up 28.2% compared to 2017, which was recorded at USD188.07 million. While the cost of good sold (COGS) rose from USD160 million to USD190 million.

The gross profit rose 83.2% from USD27.39 million to USD50.2 million. While MYOH's operating profit grew 13.2% to USD 41.551 million. "The company's EBITDA also rose 68.6% from USD42.86 million to USD55.41 million so that the current year's profit reached USD30.93 million or an increase of 151.3% compared to 2017 of USD12.3 million," Zaki said.

According to Zaki, the driving factor for Samindo's increase in financial performance in 2018 was thanks to the efficiency carried out since the beginning of the year. Several factors were successfully suppressed, namely operational costs and organizational restructuring in the work environment.

Samindo Independent Director, Ahmad Saleh said, for this year the company projects better performance in line with the increase in production targets.

He said, for production work, MYOH targets overburden removal to reach 58.1 million tons, up from last year's 54.6 million tons. "Coal production and transportation this year is projected to be the same as last year, namely 10 million tons and 29 million tons," he said.

Last year, the performance of Samindo Resources was supported by PT SIMS Jaya Kaltim, a subsidiary of Samindo in the overburden removal sector and coal getting, contributing 70 percent to the parent company's net income. The remaining 30% comes from PT Transindo Murni Perkasa, PT Samindo Utama Kaltim, and PT Mintec Abadi.