Golden Energy Mines, This Coal Company Owned By Conglomerate Eka Tjipta Widjaja Makes IDR 1.32 Trillion Profits In 2020

JAKARTA - PT. Golden Energy Mines Tbk (GEMS) has successfully recorded a positive 2020 fiscal year performance. This coal company from the Sinar Mas Group has experienced improved performance in terms of net profit.

Quoted from the financial statements of the company owned by the late conglomerate Eka Tjipta Widjaja, on Sunday, March 14, the management of Golden Energy Mines earned revenues of USD 1.06 billion. This achievement decreased 4.16 percent year on year (YoY) compared to the revenue of 1.11 billion US dollars in 2019.

The reason for the decline in revenue is in line with weaker sales of companies abroad. In 2020, GEMS export sales decreased to USD 633.39 million from USD 754.76 million previously.

Meanwhile, domestic sales are experiencing good news. GEMS domestic sales reached 428.01 million US dollars compared to 352.7 million US dollars in 2019.

The company also succeeded in reducing the cost of goods sold to 682.31 million US dollars from the previous 746.01 million US dollars. Gross profit in 2020 also increased to USD 379.09 million from USD 361.46 million in 2019.

As a result, profit for the year attributable to owners of the parent entity reached USD 93.93 million in 2020. The net profit was up 43.61 percent YoY compared to USD 65.41 million in 2019.

GEMS uses the exchange rate per December 2020 valued at IDR 14,103.37 per US dollar. Thus, the company achieved revenue of IDR 14.96 trillion and a net profit of IDR 1.32 trillion in 2020.

For information, GEMS shares have been suspended by the IDX since January 31, 2018, due to not meeting the provisions for free float shares or public share ownership of 7.5 percent.

However, the management of this mining company is trying to fulfill this requirement by exercising pre-emptive rights (HMETD) or a rights issue to increase the share of public ownership and gain working capital. The corporate action is targeted to be completed by the end of March 2021.

Corporate Secretary of Golden Energy Mines, Sudin, said that the company held a rights issue to comply with the IDX's minimum free float limit of 7.5 percent. Currently, the share of public shares in GEMS is recorded at only 3 percent.

As a result of not complying with Provision V.1 of the Exchange Regulation No. IA, GEMS shares have been suspended by the IDX for more than 24 months. Sudin said that the company is still processing the licensing for the corporate action at the Financial Services Authority. GEMS has received the second response from the Financial Service Authority (OJK).

According to him, GEMS has secured the approval of shareholders to issue new shares of as much as 10 percent or the equivalent of 588.23 billion shares of the issued and fully paid-up capital in the rights issue.