United Tractors Generated IDR 6 Trillion Profit Throughout 2020

JAKARTA - PT. United Tractors Tbk. (UT) announced that the company managed to collect a net profit of IDR 6 trillion throughout 2020. However, this score decreased by 47 percent compared to the 2019 period which was recorded at IDR 11.3 trillion.

Quoting this midweek UT press release, the company that focuses on providing heavy equipment said the COVID-19 pandemic has had a significant impact on company performance.

"The decline in coal prices in the pandemic era has affected the company's overall performance," said the issuer with the ticker code (UNTR).

Furthermore, net income is said to be worth IDR 60.3 trillion or a decrease of 29 percent from the previous IDR 84.4 trillion in 2019.

Each business segment, namely, construction machinery, mining contractors, coal mining, gold mining, and the construction industry respectively contributed 22 percent, 48 percent, 16 percent, 12 percent, and 2 percent of total consolidated net income.

In detail, here are six reviews of the company's main business conducted by United Tractors:

Construction Machinery

This segment recorded a 47 percent decline in sales of Komatsu heavy equipment to 1,564 units, compared to the same period last year of 2,926 units. Lower commodity prices and reduced activity in all sectors of heavy equipment users have resulted in lower demand for heavy equipment.

Sales of UD Trucks decreased from 420 units to 224 units and sales of Scania products fell from 432 units to 217 units. In total, net income from the Construction Machinery business segment decreased by 41 percent to IDR 13.4 trillion compared to IDR 22.6 trillion in 2019.

Mining Contractors

This business segment is operated by PT. Pamapersada Nusantara (PAMA). In 2020, mining contractors posted a net income of IDR 29.2 trillion or a decrease of 26 percent from IDR 39.3 trillion in 2019.

Coal Mining

The coal mining business segment is run by PT. Tuah Turangga Agung (TTA). As of December 2020, total coal sales reached 9.3 million tons, including 1.9 million tons of coking coal, or an increase of 9 percent when compared to 2019 of 8.5 million tons.

However, revenue from the coal mining business segment decreased by 11 percent to IDR 9.5 trillion due to a decrease in the average selling price of coal.

Gold Mine

This segment is concentrated in the Martabe gold mine operation area in South Tapanuli, North Sumatra. In 2020, total sales of the gold equivalent from Martabe reached 320 thousand ounces, down 22 percent compared to last year's 410 thousand ounces.

The Gold Mining business segment posted a net income of IDR 7.0 trillion or a decrease of 12 percent from IDR 7.9 trillion.

Construction Industry

The construction industry business segment is run by PT. Acset Indonusa Tbk (ACSET). In 2020, the construction industry posted a net income of IDR 1.2 trillion, from IDR 3.9 trillion in 2019.

Uniquely, ACSET posted a net loss of IDR 1.3 trillion due to the slowdown in work on several ongoing projects and reduced opportunities for obtaining new contracts due to the impact of the COVID-19 pandemic.

Energy

PT. Bhumi Jati Power (BJP), which is 25 percent owned by the company's subsidiary, is currently building a steam power plant with a capacity of 2x1,000 MW in Jepara, Central Java.

As of December 2020, the progress of the construction of this project has reached 97 percent. BJP is a joint venture company between the Company's subsidiary, Sumitomo Corporation, and Kansai Electric Power Co Inc.