MNC Energy Investments, This Coal Company Owned by Conglomerate Hary Tanoesoedibjo Earns a Profit of IDR 578.75 Billion in 2022

Illustration. (Photo: Unsplash)

JAKARTA - A coal company owned by conglomerate Hary Tanoesoedibo, PT MNC Energy Investments Tbk. (IATA) recorded a positive performance throughout 2022. The company's profits and revenues were recorded to be able to grow significantly.

In the company's financial report, quoted on Monday, April 17, IATA recorded a net profit attributable to the shareholders of the parent entity of USD 38.95 million or around IDR 578.75 billion (exchange rate: IDR 14,854 per US dollar). This net profit has skyrocketed 1,388 percent year-on-year (yoy) compared to 2021 which only posted US$2.61 million.

IATA's profit growth was supported by an increase in revenue of 142.74 percent yoy to USD 192.06 million or around IDR 2.85 trillion, compared to the previous year of USD 79.12 million.

IATA President Director Henry Suparman said the company's impressive achievements throughout 2022 were driven by a strategic decision to shift the company's business focus to becoming an investment company, especially in the energy sector.

"We are optimistic that IATA is on the right track and will pass 2023 with even better performance by continuing to increase production output, expand new business opportunities, and take a number of strategic steps, both organically and inorganically in the coal and energy industry," he said. "Henry said in an official statement.

As for 2022, IATA will produce 4.2 million MT of coal. The company is targeting a total production of 7 million MT this year, an increase of more than 65 percent. Assuming a coal price of 50 US dollars per MT, this will generate revenue of 350 million US dollars.

As revenue increases, the company's direct costs also increase by 66.72 percent to US$68.71 million in 2022, compared to the previous year of USD 41.21 million. As a result, the company's gross profit also shot up 225.4 percent yoy to USD 123.34 million compared to 2021's USD 37.9 million.

Based on the balance sheet, IATA's total assets in 2022 are worth USD 180.28 million or around IDR 2.67 trillion. These assets grew 80.38 percent yoy compared to the previous year's USD 99.94 million.

Meanwhile, the company's liabilities rose to USD 104.93 million in 2022, compared to the previous year's USD 75.35 million. Equity also rose to USD 75.35 million compared to USD 26.58 million in 2021.

So far, IATA already has coal reserves of 343 billion MT, only around 20 percent of the total mining area of ​​72.478 Ha. In other words, 58.673 Ha are still in the exploration process, where IATA believes proven reserves will continue to grow, reaching at least 600 million MT for all IUPs.