economy

In The First Semester Of 2024, United Tractors Recorded A Net Profit Of Rp9.5 Trillion

United Tractors Tbk ("the Company") today announced its consolidated financial report until the first semester of 2024. The Company recorded a net income of Rp64.5 trillion, a decrease of 6% from Rp68.7 trillion in the same period last year, due to the decline in performance from the Construction Machinery and Coal Mining segments. The decrease in revenue, coupled with higher financial costs and exchange rate losses, resulted in a 15% decrease in the Company's net profit to Rp9.5 trillion from Rp11.2 trillion in the first semester of 2023.

Construction Machinery Segment

The Construction Machinery segment recorded a 32% decrease in Komatsu heavy equipment sales to 2,147 units compared to 3,145 units last year. Based on internal market research, Komatsu leads the heavy equipment sales market share at 28%. The Company's revenue from spare parts sales and heavy equipment maintenance services decreased by 10% to Rp5.4 trillion from Rp6.0 trillion.

Scania sales decreased from 449 units to 182 units, and UD Trucks product sales decreased from 170 units to 82 units due to decreased demand, especially in the mining sector. Overall, the Construction Machinery business unit's revenue decreased by 23% to Rp15.6 trillion compared to Rp20.3 trillion in the same period in 2023.

Mining Contractor Business Segment

The Company's mining contractor business unit is operated by PT Pamapersada Nusantara (PAMA). PAMA provides mining services to mining concession owners, assisting them in coal production and earthwork. PAMA's subsidiary that also provides services in the mining sector is PT Kalimantan Prima Persada (KPP).

Until June 2024, PAMA recorded a net income of Rp27.9 trillion, up 15% from Rp24.3 trillion in the same period in 2023. PAMA noted a 13% increase in overburden removal work volume from 521 million bcm to 590 million bcm and an 18% increase in coal production volume for its clients from 59 million tons to 70 million tons, with an average stripping ratio of 8.5x down from 8.8x.

Coal Mining Business Segment

The Coal Mining Business Segment is operated by PT Tuah Turangga Agung (TTA). Until June 2024, total coal sales reached 7.5 million tons (including 1.6 million tons of coking coal), a 17% increase compared to the first semester of 2023. The net income of the Coal Mining Business Segment decreased by 23% compared to the same period in 2023 from Rp20.1 trillion to Rp15.5 trillion due to the decrease in the average selling price of coal.

Gold Mining and Other Mineral Business Segment

The Gold Mining and Other Mineral Business Segment recorded a 37% increase in revenue to Rp4.4 trillion, mostly due to a 17% increase in the average gold selling price (from USD1,935 per ounce to USD2,260 per ounce).

Gold Mining

The Gold Mining Business Segment is operated by PT Agincourt Resources (PTAR) and PT Sumbawa Jutaraya (SJR). PTAR operates the Martabe gold mine in North Sumatra. Until June 2024, total gold equivalent sales were 110 thousand ounces, slightly higher than last year. SJR operates gold mining concessions on Sumbawa Island, West Nusa Tenggara, which began production at the end of the first semester of 2024 and is expected to start recording gold sales in the second semester of 2024.

Nickel Mining

The Company's nickel mining business segment consists of PT Stargate Pasific Resources (SPR), which was recently acquired with a majority ownership in December 2023, and Nickel Industries Limited (NIC).

Tag: Komatsu PAMA Tuah Turangga Agung United Tractors