First Semester of 2020, DEWA's Revenue Continues to Grow

First Semester of 2020, DEWA's Revenue Continues to Grow

Jakarta, November 6, 2020 - PT Darma Henwa Tbk (DEWA) continues to record positive operational performance amidst the challenges of the Covid-19 pandemic, economic downturn and falling coal prices. In the first semester of 2020, DEWA posted revenues of US $ 169.11 million. This figure grew 30.51% compared to US $ 129.58 million in the same period the previous year.

This revenue was contributed by the coal sector which is the focus of the Company's business at this time. All mines managed by the Company recorded an increase in revenue.

Revenue from PT Kaltim Prima Coal's Bengalon coal mine project in East Kalimantan rose 36.30% from US $ 92.34 million to US $ 125.86 million. Then, revenue from the Asam Asam coal mine project in South Kalimantan owned by PT Arutmin Indonesia grew 5.84% from US $ 32.35 million to the position of US $ 34.24 million. Finally, revenue from the Satui coal mine project in South Kalimantan, owned by PT Cakrawala Langit Sejahtera, increased significantly by 87.43 percent from US $ 4.26 million to US $ 7.99 million.

Meanwhile, DEWA's performance in the non-coal sector has begun to show achievements with an increase in its portfolio. In the first semester of 2020, DEWA received income from infrastructure work, gold mining and processing, as well as land preparation projects for industrial estates.

From this revenue achievement, DEWA also pocketed a profit of US $ 1.05 million during January-June 2020. This shows an improvement compared to the US $ 1.57 million loss experienced by DEWA in the same period last year.

Simultaneously, bank debt and finance lease debt decreased due to a number of payments made to creditors. With this, DEWA's Debt to Equity Ratio (DER) has also decreased from 0.49x at the end of 2019 to 0.44x in the first half of 2020.

Furthermore, DEWA's equity at the end of June 2020 rose 14.66% to the position of US $ 268.60 million. The Company's assets also increased by 5.70% from US $ 549.52 million at the end of 2019 to US $ 580.83 million in the first half of this year.

"DEWA's improving fundamentals are reflected in the improving financial condition in the first semester of 2020. With better operational performance as the Company's productivity increases in the mine, it is hoped that DEWA's financial condition will be better in the future, "said DEWA Chief Investor Relations and Corporate Secretary Mukson Arif Rosyidi.

Acceleration of Increase in Coal Production

DEWA also succeeded in maintaining the increase in coal production (coal delivery), despite a number of obstacles it faced. Until the end of the third quarter of 2020, DEWA recorded coal production of 12.77 million tons, up 11.61% compared to 11.44 million tons at the end of the third quarter of 2019.

Coal production at the Bengalon coal mine in East Kalimantan contributed the largest portion, namely 54.84% of DEWA's total coal production. Meanwhile, overburden removal from the Bengalon coal mine contributed 70.17 percent to the Company's total overburden removal.

From January to September 2020, DEWA's total overburden removal reached 86.03 million bcm. This figure is an increase of 4.02% compared to 82.70 million bcm in the same period in 2019.

"Due to weather constraints in all locations where the Company's project works have resulted in muddy and slippery road conditions, DEWA is still able to maintain a fairly good performance growth," said Mukson.

He added that the increase in overburden removal and coal production was supported by improved equipment performance with high availability of equipment, successful equipment repair, better equipment utilization. In addition, the mining sequences were better executed.