ADRO – Records a decline in 9M23’ profit to USD1.21 bn

ADRO – Records a decline in 9M23’ profit to USD1.21 bn The coal mining giant, Adaro Energy Indonesia (ADRO), reported a decrease in both revenue and profit for 9M23. ADRO's net profit reports a 36.31% yoy decrease, amounted to USD1.21 bn (approximately IDR19.36 tn; current exchange rate of IDR15,885 per USD). The decline in profit aligns with a drop in revenue, as ADRO achieved total revenues of USD4.98 bn (-15.73% yoy). Despite production and coal sales increasing by 12% and 11%, respectively, reaching 50.73 mn tons and 49.12 mn tons, lower average selling prices (ASP) by 25%, higher royalty fees, increased mining and processing costs, higher fuel expenses, and greater royalties paid to the government contributed to the earnings decline. ADRO's capital expenditure (capex) also rose by 71% yoy to USD473 mn, funding heavy equipment and vessel purchases, early investments in aluminum smelters, and infrastructure development. These factors combined to exert pressure on ADRO's profits. (Source: Kontan)