Soaring 150.9 Percent, RMKO Earns IDR 16.2 Billion Profit

Illustration (Photo: Doc. Antara)

JAKARTA - PT Royaltama Mulia Konthorindo Tbk (RMKO IJ) recorded a significant increase in net profit in the first 6 months of 2023.

RMKO, which has just been listed on the Indonesia Stock Exchange (IDX), managed to earn IDR 16.2 billion or shot up by 150.9 percent.

The company's Director of Operations, William Saputra, added that the company also managed to record operating revenues of IDR 134.4 billion, an increase of 113.9 percent year on year (yoy).

"The growth in operating income comes from the revenue growth of the mining service segment and the rental of heavy equipment, each of which contributed 76 percent and 24 percent," he told the media, Monday, August 21.

He detailed, based on the financial statements in-house in June 2023, the company recorded operating income from the mining service segment of IDR 102.2 billion, an increase of 121.1 percent yoy.

The increase in revenue was supported by an increase in the volume of OB removal which increased by 56.6 percent yoy to 1.4 million Bcm. In addition to the increase in OB removal, the number of coal production and loading of the Train Loading System (TLS) also increased by 45.7 percent yoy and 40.2 percent yoy, respectively.

"In addition, the company also managed to record operating income from the mining heavy equipment rental service segment of Rp32.2 billion or an increase of 94.1 percent yoy.

Furthermore, William added, if the company also optimizes costs with the efficiency of fuel use in its operational activities.

"As of the June 2023 period, the company has used 624,500 liters of fuel, an increase of 16.9 percent yoy in line with the growth in the volume of train cargo with TLS," explained William.

However, he said, the company could reduce the ratio of fuel use per MT coal loaded with TLS from 1.18 liters per MT last year to 0.98 liters per MT this year or 16.6 percent yoy more efficiently.

Meanwhile, the company's assets grew by 88.7 percent in June 2023 due to increased mining heavy equipment assets, most of which were financed from funding activities.

"This caused the company's liabilities to increase by 164.6 percent in the same period to Rp303.6 billion," continued WIlliam.

To ensure business continuity with the implementation of good governance, William added that the company seeks to maintain a financial ratio in accordance with credit provisions.

As of June 2023, the company has met all the provisions of the credit financial ratio with the company's DER and EBITDA ratios reaching 2.3 times and 9.8 times, respectively.

In addition, along with the increase in operating net profit, the company's capital also increased by 13.9 percent in the same period.

"The company's operational performance in the first half of this year is still growing well amid the challenges of price normalization and unfavorable weather. On average, the company has achieved approximately 40 percent of its operational target in 2023 in the first half of this year," concluded William.