By Romel S. Gurky
IDX-listed mining and heavy equipment company PT United Tractors Tbk (IDX:UNTR) recorded a net profit of Rp5.3 trillion in the first quarter (Q1) of 2022, increased 23 percent from the same period last year of Rp4.3 trillion.
The rise was bolstered by the rise of revenues to Rp34.9 trillion compared to Rp28.0 trillion in the same quarter of last year at Rp28.0 trillion, or up by 25 percent.
In terms of business segment, the heavy equipment sales under the Construction Machinery segment recorded an increase in Komatsu sales volume by 6 percent to 1,791 units from 1,694 units a year earlier.
Sales of spare parts and maintenance services increased by 24 percent YoY to Rp3.0 trillion. Overall, the Construction Machinery segment recorded revenue of Rp10.6 trillion or increased by 10 percent YoY.
The Mining Contracting segment recorded net revenue of Rp11.7 trillion, up 38 percent with 27 million tons of coal production and 246 million bcm of overburden removal. The Coal Mining segment posted revenue of Rp10.5 trillion, up 39 percent from Rp7.6 trillion, and recorded a slight increase in coal sales at 3.0 million tons.
The Gold Mining segment recorded revenue of Rp1.7 trillion, which decreased by 14 percent, with gold sales volume achieved 59 thousand ounces. The Construction Industry recorded revenue of Rp345 billion, down by 26%. The energy segment recorded revenue of Rp4 billion.
Mining Contracting contributed 33 percent to the company’s consolidated net revenue, followed by 31 percent from Construction Machinery, 30 percent from Coal Mining, 5 percent from Gold Mining, 1 percent from Construction Industry, and less than 1 percent from Energy.
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Segment Sales
Construction Machinery
Until March 2023, Komatsu’s sales volume increased by 6 percent to 1,791 units from 1,694 units. Based on internal market research, Komatsu leads the heavy equipment market with a 32 percent market share. Revenue from spare parts and maintenance services also increased by 24 percent to Rp3.0 trillion.
The sales volume of Scania products increased from 62 units to 218 units, while UD Trucks decreased from 127 units to 89 units due to limited supply availability. In total, the Construction Machinery segment recorded net revenue of Rp10.6 trillion or increased by 10 percent compared to last year
Mining Contracting
UT’s Mining Contracting segment is carried out by PT Pamapersada Nusantara (PAMA), a subsidiary of PAMA that also provides services in mining firm PT Kalimantan Prima Persada (KPP).
As of March 2023, PAMA recorded net revenue of Rp11.7 trillion, up by 38 percent from Rp8.5 trillion. PAMA recorded coal production increased by 12% from 24 million tons to 27 million tons, and overburden removal increased by 19% from 207 to 246 million bcm, with an average strip ratio of 9.2x, increased from 8.7x.
Coal Mining
The Company’s coal mining business segment is operated by PT Tuah Turangga Agung (TTA). TTA operates two thermal coal mines: PT Asmin Bara Bronang (ABB) and PT Telen Orbit Prima (TOP), and one metallurgical coal mine: PT Suprabari Mapanindo Mineral (SMM).
As of March 2023, TTA recorded a total coal sales volume of 3.0 million tons (Mt), which slightly increased compared to last year. The coal sales volume consists of 698 thousand tons of metallurgical coal from SMM, 1.6 million tons from ABB and TOP, and 646 thousand tons from the coal trading business. The Coal Mining segment recorded a 39 percent increase in net revenue to Rp10.5 trillion from Rp7.6 trillion due to a higher average coal selling price.
Gold Mining
The Company’s gold mining business is operated by PT Agincourt Resources (PTAR). PTAR operates the Martabe gold mine which is located in North Sumatra.
Until March 2023, the total sales volume of gold equivalent from Martabe was 59 thousand ounces, lower by 21% compared to 74 thousand ounces last year. The decline in gold sales this year is to allow the company to focus on long-term plans and improve the sustainability of the mine. The Gold Mining segment recorded net revenue of Rp1.7 trillion, decreased by 14% from Rp2.0 trillion. The average selling price for gold was US$1,896 per ounce, which increased by 1% compared to US$1,871 per ounce in the first quarter of 2022.
Construction Industry
The Construction Industry segment is carried out by PT Acset Indonusa Tbk (ACSET). As of March 2023, Construction Industry reported net revenue of Rp345 billion, compared to Rp274 billion in the first quarter of 2022. ACSET recorded a net loss of Rp30 billion, increased from Rp25 billion in the same period last year.
Editing by Roffie Kurniawan
