Bad Weather Caused RMK Energy's First Quarter Profit To Drop To IDR 37.7 Billion

Illustration (Photo: Doc. ANTARA)

JAKARTA - PT RMK Energy Tbk (RMKE) managed to record a net operating profit of IDR 37.7 billion in the first quarter of 2024.

This number was recorded to have fallen due to bad weather in South Sumatra.

"The very high rainfall reduces mining production around operational areas, resulting in a decrease in sales volume and coal services," said the Director of Operations of the Company, William Saputra, Friday, June 7.

William said the sales and coal services segment contributed 48.3 percent and 51.7 percent of RMKE's total operating profit, respectively.

The service segment is still a supporter of positive performance in 1Q 2024. Along with net profit, RMKE posted operating revenues of IDR 585.9 billion or decreased by 23.1 percent yoy due to extreme weather.

Until March 2024, the Company dismantled the cargo of 768 train series with a volume of 1.9 million MT of coal and contained 215 barges with a volume of 1.6 million MT of coal.

In the sales segment, RMKE managed to sell 760,000 MT of coal on 1Q 2024, or an increase of 5.7 percent yoy.

The sales volume of coal came from in-house mines and third parties who contributed 18.6 percent and 81.4 percent, respectively.

The company seeks to increase coal sales volume from third parties to reduce the negative impact of the decline in in-house mining production due to bad weather and falling coal prices.

William explained that the impact of bad weather is quite significant in influencing operational performance, but this condition is temporary because in the second quarter of this year the weather is increasingly friendly and the volume of the service segment has increased significantly in May 2024 and is the highest during the period of 2024.

"The increase in operational performance in May this year is an excellent indication for the Company's performance at the end of the first half of this year. With the weather conditions starting to improve, we are increasingly optimistic to optimize good performance this year," William said.