PT RMK Energy Tbk (RMKE) posted operating revenues of IDR 761.9 billion, an increase of 84.2 percent year on year (yoy) in the first quarter of 2023. In addition, the company also managed to record a net operating profit of IDR 129.1 billion, an increase of 234.2 percent yoy in the first quarter of 2023.
Company Finance Director Vincent Saputra said the increase in financial performance was supported by an increase in coal sales volume amid current price normalization.
"The average selling price of coal in the first quarter of this year was corrected by 20.8 percent yoy but the Company is still optimistic that this year's performance will grow very well because the volume of coal demand is still increasing to support economic recovery," he told the media, Friday, May 5.
Meanwhile, from the coal sales segment, the Company recorded operating revenues of IDR 545.7 billion, an increase of 76.1 percent yoy.
The increase in revenue was supported by an increase in coal sales volume which increased by 146.2 percent toy to 792,000 MT of coal.
The growth in coal sales volume was supported by the growth in in-house production, PT Truba Bara Banyu Enim (TBBE), which produces 303,600 MT coal, an increase of 110.3 percent YoY since operating in February last year.
This segment revenue contributed 71.6 percent to the Company's total revenue.
Gross profit originating from this segment amounted to Rp92.6 billion or an increase of 248.8 percent YoY and contributed 50 percent of the Company's total gross profit.
The gross profit margin from the coal segment is 17.0 percent.
From the coal service segment, the Company recorded operating revenues of IDR 216.2 billion, an increase of 108.5 percent YoY.
The increase in segment revenue was supported by an increase in the volume of train unloading and loading and coal barges, which increased by 28.5 percent YoY and 55.6 percent YoY, respectively. This segment revenue contributed 28.4 percent to the Company's total revenue. Gross profit derived from this segment amounted to Rp92.7 billion or an increase of 125.4 percent YoY and contributed 50 percent of the Company's total gross profit.
The gross profit margin from the coal segment is 42.9 percent.
The Company's Director of Operations, William Saputra, said that the Company's operational performance in the quarter of this year was still growing well amid the challenges of price normalization and unfavorable weather.
"However, the Company is trying to thicken the margin by implementing operational strategies that can reduce operational costs, so that the normalization of coal prices can still be accommodated by increasing volume and optimizing costs," he said.
In the first quarter of this year, the Company managed to accelerate the timeliness of train unloading which was 30 minutes faster to 03:22 hours per train, resulting in an improvement in the man-hour ratio to loading barrier which was 3:01 hours faster.
From the aspect of fuel use, the Company managed to reduce the fuel ratio to 0.85 liters/MT or more efficiently 0.16 liters/MT compared to last year's 1.02 liters/MT.
"This operational performance improvement can help the Company to increase its profit margin in the midst of current price normalization," added Wiliam.
He added that until the first quarter of the year, the Company's average had reached approximately 25 percent of its operational target by 2023 in the low season this year.
"In-house coal production this quarter is still below our expectations with the achievement of 14.5 percent of the target due to unfavorable weather. This is also a challenge in the completion of the 39km hauling road. But we are optimistic that with much better weather conditions in the next quarter, the Company can boost in-house coal production and complete the hauling road project," concluded William.
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