RMKE Ensures World Oil Price Increase Doesn't Affect Coal Sales

JAKARTA - PT RMK Energy Tbk (RMKE) has prepared a strategy to deal with an increase in world oil prices.

RMKE Finance Director Vincent Saputra explained that the company's revenue came from coal sales and transportation services.

According to him, in terms of coal sales, it is not affected by the increase in oil prices, but in terms of transportation services, oil increases will be affected.

"Coal sales are not too affected by the significant increase in oil prices," he said at an online press conference, Thursday, November 2.

For this reason, he said, RMKE has included this in the counter clause, which if there is an increase in fuel prices, the price adjustment will be borne by service users.

"In our contract clause, we have a fuel adjustment, which if oil prices go up beyond a certain number, we will pass through this fuel adjustment to customers. Likewise, if for example, oil prices drop quite a lot, automatically at our service prices there will also be discounts," explained Vincent.

With this strategy, Vincent revealed that the RMKE service margin is running stable.

He also said that the Company's performance until September 30, 2023, still emphasized that the company is a competent company in the integrated coal logistics services sector with profit margins derived from the coal sales segment and sales segment of 41.7 percent and 14.4 percent, respectively, until September 2023.

"We believe this trend will continue with the contribution of greater profits from the coal service segment, such as the Company's performance in the previous period," said Vincent.

Even though it is in the midst of normalization of coal prices, continued Vincent, RMKE can still score operational and financial performance that continues to grow and on average it has reached 64 percent of the 2023 target.

"Management still sees a much better outlook in the last quarter of this year with more favorable weather, uncertain geopolitical conditions at the moment, winter at the end of the year and coal prices that tend to be stable," he concluded.