Samindo Resources Records Profit of Rp301 Billion until Quarter III-2018

PT Samindo Resources Tbk (MYOH) throughout the period of January - September 2018 posted a net profit of USD21.52 million or around Rp301.39 billion (the average rate in nine months was Rp14,000).

That profit rose 148.8% compared to the same period last year of USD8.65 million. The increase in profit of the integrated coal mining service provider was triggered by an increase in revenue in all of the company's operational activities by 31.4% from USD133.29 million to USD175.2 million.

"The increase in the volume of overburden and the volume of coal hauling are the main factors driving the increase in revenues from both activities," said Samindo Resources Head of Investor Relations Ahmad Zaki Natsir in Jakarta.

According to him, Samindo's success in boosting productivity and simultaneously managing cost efficiency is the main factor that drives the company's profitability up to the third / 2018 quarter. Initially, said Zaki, Samindo targets to be able to record a net profit throughout 2018 of USD17 million.

"At present our achievements have exceeded the target, and we believe the end of 2018 will close it with good results," he said.

Samindo Resources Independent Director Ahmad Saleh added, in terms of operational performance, Samindo also showed a positive trend.

For example, over burden removal, which reached 39.5 million bank cubic meters (bcm) rose from 35.5 million bcm in the same period of 2017. While coal hauling hauling also rose from 19.9 million tons to 21.3 million tons.

"Coal getting is realized at 6.8 million tons, lower than the third quarter 2017 of 7.5 million tons. This is because of the excess of stockpile at the Kideco mine, "Saleh said.

In terms of costs, according to Zaki, various efficiency programs that have been promoted since the beginning of 2018 have proven successful in holding down the cost of production.

This indication can be seen from the increase in cost of production which was lower than the increase in income. During January - September 2018 the cost of good sold (COGS) amounted to USD138.2 million, up 18.9% from USD116.25 million year on year. "Of the four components of production costs, only material costs have increased significantly. The efficiency program with a focus on reducing the cost of fuel (fuel oil) is quite successful in holding back the rate of rising fuel costs, "he said.