Adaro Energy's net profit soars 611% YoY to $1.3b in H1 2022

Thanks to higher average selling prices.

Indonesia’s Adaro Energy posted a 611% year-on-year (YoY) increase in net profit in the first half of 2022 to $1.3b on the back of rising revenues mainly due to higher average selling prices (ASP).

In a statement, Adaro said its ASP rose 117% YoY, and its production jumped 6% YoY to 28 metric tonnes (mt) during the period. The rise in a production led to an increase in coal sales by 7% YoY to 27.5mt.

“The first half of 2022 was a stellar semester for pricing that drove our revenues to historically high levels,” said Adaro Energy President Director and CEO Garibaldi Thohir.

“This was driven by a confluence of issues occurring in a short period of time, from unpredictable weather that led to increased demand for our products to supply challenges remaining in place due to heavy equipment procurement and inclement weather at mine sites globally,” he said, adding that the geopolitical risks in Europe had the “most prolific impact.”

READ MORE: Coal companies’ cash balance could fund Indonesia’s green transition

Revenue in coal mining and trading rose 132% YoY to around $3.5b, whilst its mining services rose 24% YoY to $386m.

The company’s underlying core earnings increased by 338% YoY to around $1.4b, whilst its operational earnings before interest, taxes, depreciation and amortisation grew by 269% YoY to $2.3b.

Thohir said the company’s revenues, EBITDA and net profit reached all-time highs for the first half since its public listing 14 years ago.

“The outsized earnings will help us to financially support our Group’s transformation over the coming years as we invest heavily in renewables, the buildout of the world’s largest green industrial park and further diversify away from thermal coal,” Thohir said.