Harum Energy, Coal Mining Company Owned By Conglomerate Kiki Barki Raises Revenue Of IDR 2.9 Trillion And Profit Of IDR 536 Billion

Illustration. (Photo: Unsplash)

JAKARTA - PT Harum Energy Tbk (HRUM) recorded a positive performance throughout the January-September 2021 period. The coal mining company owned by the conglomerate Kiki Barki was able to record profit and revenue growth in the third quarter of this year.

In Harum Energy's financial report published on the Indonesia Stock Exchange (IDX) website, quoted on Thursday, November 4, the company's net profit was recorded at US$37.53 million (around Rp536 billion), up 45.84 percent from net profit in the same period. last year amounted to 25.74 million US dollars.

The increase in HRUM's net profit coincided with the company's soaring revenue. As of the end of the third quarter of 2021, Harum Energy posted revenues of US$ 205.54 million (approximately Rp. 2.9 trillion) or an increase of 50.9 percent from revenue at the end of the third quarter of 2020 of US$ 136.14 million.

In detail, HRUM's revenue consists of revenue from contracts with customers, namely coal sales to the export market worth US$194.93 million. Harum Energy also pocketed rental income, namely heavy equipment rentals worth 4.48 million US dollars, road haulage rentals worth 3.55 million US dollars, and time, freight and voyage charter rentals worth 2.58 million US dollars.

A number of Harum Energy's expenses also increased. The cost of revenue and direct expenses rose 5.1 percent to US$103.74 million from the previous US$98.73 million. HRUM's selling expenses also rose 23.89 percent to 11.43 million US dollars.

Likewise, general and administrative expenses also increased from the original 17.35 million US dollars to 18.87 million US dollars at the end of the third quarter of 2021.

Harum Energy's total assets were recorded at US$692.81 million as of the end of September 2021, up 38.9 percent from US$498.70 million as of December 31, 2020.

The increase in total assets of more than 20 percent was mainly due to the additional investment in the nickel smelter company PT Infei Metal Industry through its subsidiary, PT Tanito Harum Nickel, which amounted to US$68.6 million in February 2021 and US$41.16 million in July. 2021.

In addition, the increase in assets also occurred as HRUM increased its investment in PT Nickel Mines Limited (NIC) by 138.7 million US dollars due to changes in investment records.

In this case, the investment in NIC is accounted for using the equity method and recognized as an associate as Harum Energy acquired significant influence over NIC in May 2021.

In addition, the reason for the swelling of Harum Energy's assets is related to the decline in financial investment of US$ 100.5 million or 99.7 percent from the position of December 31, 2020 due to the change in the recording of investment in the NIC above.