Indonesian Energy Companies in Focus: ABM Investama
Indonesia Investments updated the company profile of ABM Investama in the Indonesian companies section. ABM Investama, listed on the Indonesia Stock Exchange, is an Indonesia-based holding company that is primarily focused on energy-related sectors, covering coal production, mining contractor services, and power solutions. After two years of net losses the company posted net profit of USD $12.89 million in 2016 supported by cost efficiency improvements in all business lines and the surging coal price in the second half of 2016.
In a statement the board of ABM Investama said "stronger coal price has opened opportunities for the company (in various sectors) to seize through its business strategies, particularly in the mining sector, while the increased business aggressiveness in the logistics sector is also expected to create new opportunities. Meanwhile, in the electricity industry, ABM Investama's subsidiaries will make use of ample business opportunities made possible by the central government's power supply capacity development program."
Coal remains a key pillar of support for ABM Investama's corporate earnings. Indonesia's coal industry in 2016 experienced a significant increase, with coal production reaching 434 million tons, up 10.7 percent (y/y) from 392 million tons in the preceding year as many local mining companies started to recommence operations after temporarily discontinuing their business, while waiting for the coal price to rise.
Also in terms of coal export there was growth. Indonesia's coal export volume in 2016 grew 6 percent year-on-year, while domestic coal consumption rose 21 percent to 105 million tons in 2016.
Meanwhile, Indonesia's power generation industry continued to expand in 2016, supported by the government's program to deliver 35,000 MW of additional power in the 2014-2019 period. Coal remains the primary energy source in Indonesia's power industry although the government (through state-owned Perusahaan Listrik Negara, or PLN) is making efforts to boost the contribution of other energy sources, especially natural gas.
Through subsidiary Reswara, ABM Investama produces its coal at two mining sites in South Kalimantan and Aceh (Sumatra). Amid the volatile coal sector in 2016, Reswara successfully became more cost-efficient by lowering operational costs. In 2017 Reswara continues its search for new coal mining concession areas.
Stock Quote ABM Investama - ABMM:
In October 2016 ABM Investama obtained a syndicated loan facility from national and international banks (involving Oversea-Chinese Banking Corporation Ltd, DBS Bank Ltd, Bank OCBC NISP, Bank ANZ Indonesia and Bank Mandiri's Singapore branch) worth USD $358.1 million, with the due date on 22 January 2021, to restructure debts. Achmad Ananda Djajanegara, General Director of ABM Investama, said these loans shows foreign and domestic financial institutions' confidence in the business potential of ABM Investama.
Read more: Company Profile of ABM Investama
Financial Highlights ABM Investama:
| 2012 | 2013 | 2014 | 2015 | 2016 | |
| Sales and Services |
886.97 | 777.02 | 723.62 | 654.59 | 590.70 |
| Gross Profit | 154.43 | 154.27 | 145.90 | 127.16 | 127.91 |
| Net Income | 13.64 | 4.61 | (114.35) | (43.93) | 12.89 |
| Operational Income | 55.96 | 55.72 | (65.39) | 4.91 | 42.33 |
| Income before Tax | 23.07 | 3.76 | (100.14) | (31.81) | 13.46 |
| EBITDA | 181.87 | 149.38 | 107.49 | 134.77 | |
| Total Assets | 1,263.40 | 1,213.13 | 1,132.69 | 1,189.81 | 1,073.18 |
| Total Liabilities | 917.34 | 891.11 | 929.17 | 1,016.25 | 913.97 |
| Earnings per Share¹ | 0.00495 | 0.00167 | (0.04103) | (0.01382) | 0.00460 |
| Cash Dividend per Share¹ | 0.0012383 | 0.00042 | 0 | 0 |
in million US dollar unless stated otherwise
¹ in US dollar
Source: ABM Investama, Annual Report 2016