Adaro Energy, Coal Company Owned By Boy Thohir Conglomerate This Will Distribute Dividends Of IDR 2.1 Trillion

Illustration. (Photo: Doc. Antara)

JAKARTA - The coal mining company, PT Adaro Energy Tbk will distribute dividends to its shareholders worth USD 146.8 million or around IDR 2.1 trillion for the 2020 financial year. This has been decided in the company's annual general meeting of shareholders (AGMS). ADRO shares which was held on Monday, April 26 yesterday.

Adaro Energy's President Director and Chief Executive Officer (CEO), Garibaldi (Boy) Thohir, said that his company will continue to maintain its commitment to provide shareholder returns by distributing cash dividends on a regular basis.

"The cash dividend distributed reached USD 146.8 million for the 2020 financial year", said Boy Thohir in his official statement, quoted on Tuesday, April 27.

Adaro's dividend is equivalent to 99 percent of the company's total net profit in 2020, which reached USD 147 million. The remaining profit of around USD 110.800 will be allocated as retained earnings.

Meanwhile, ADRO's dividend payout ratio (DPR) for the 2020 financial year is much higher than that of the company's DPR in the last two years. Even so, the number of dividends distributed was smaller than last year's dividends.

Adaro's profit in 2020 fell 63.8 percent to only USD 147 million compared to 2019's gain of USD 404.19 million. In the previous year, Adaro distributed cash dividends of USD 250 million or 62 percent of net profit to shareholders for the 2019 financial year.

Boy Thohir explained that the COVID-19 pandemic will greatly affect the coal industry in 2020 and cause a significant decline in coal demand and prices. Nevertheless, said Erick Thohir's brother, Adaro has managed to achieve guidelines and maintain healthy margins, through a continuous focus on operating excellence and cost control.

He also predicted a more positive outlook in 2021. However, the company will continue to focus on increasing operational excellence. Cost control and efficiency in order to overcome industrial volatility are still the main focus of the company.