Working Contracts Increase, Samindo Resource Targets USD255 Million Revenue

In 2018, PT Samindo Resources Tbk (MYOH) is targeting revenues of USD255 million. The target is up 36% compared to the realization in 2017 which reached USD188, 1 million. Expectations of the increase will be supported by the increase of coal mining contracts handled by the company.

"The increase in coal mining volume targeted by clients will be the main factor driving the company's revenue growth in 2018," said Samindo Investor Relations Manager Ahmad Zaky Natsir in Jakarta.

As in the agreement signed by the company with PT Kideco Jaya Agung, all of Kideco's coal mining subsidiaries will be handled by Samindo starting this year. The Company is responsible for providing four services for Kideco, namely overburden removal, coal getting, coal hauling, and exploration drilling.

The addition of the company's work contracts, according to him, indicates an opportunity to increase the revenue of all business segments of the company in 2018. Positive performance boosts are also expected to come from coal mining contracts from the Bayan group. In the Bayan group's mine, the company has started mining since mid-2017.

According to him, Bayan imposes a two-fold increase for coal getting volume this year, compared to last year's 51.5 million bcm actual result. "We see 2018 to be a turning point, after two years the client withholds the production level. All clients have set the increase in coal production volume this year, "he said.

In addition to support for growth in overburden removal and coal getting contract, he explained that the company will get a positive contribution from the outlook for better coal sale price this year. "The indication is seen from the stable coal price in 2017 and predicted to continue this year," he said.

The issuer of this coal mine allocates this year's capital expenditure of USD13.8 million or soared 343% compared to last year. The capex budget cap is not one of the Company's preparations in response to the increase of target charged by clients in 2018, "As has been "The Company's production target of rock climbed 13%, while the Company's coal production increased by 10%," Zaky said.

He explained that most of the company's capex funds will be allocated for the purchase of heavy equipment in the activity of overburden removal and coal production. Several heavy equipment targeted by the Company include dump trucks, excavators, cranes, and pumps. The Company currently has two active contracts for the two activities, namely contract with PT Kideco Jaya Agung and contract with Gunung Bayan Pratama Coal.