PRODUCTION OPERATION
The Company’s production volume of 1.2 million tons in 2Q17 was generated by all three subsidiaries of ABN, IM and TMU, contributing 0.84 million tons, 0.13 million tons, and 0.23 million tons respectively. ABN remained the
largest contributor to the Company’s overall production volume, accounting for 69.7 of total 2Q17 production followed by TMU and IM at 19.2 and 11.1 respectively. Th
e Company’s annual production guidance for 2017 is estimated at 5 - 6 million tons.
Production million tons and SR x
Such production number of 1.2 million tons came in slightly below the quarterly production guidance of 1.25 - 1.50 million tons and at higher than expected SR number. This was primarily due to the on-going heavy rainfall since
first quarter impacting the operational activity during the second quarter period.
NEWC Index Price vs ASP US per ton
ASP rose by 26.2 y-o-y from US 45.4 per ton in 1H16 to US 57.3 per ton in 1H17, while NEWC Index price rose higher by 58.3 y-o-y over the same period. T
he Company’s marketing initiative of securing 2017 sales volume contracts with customers mainly during the second semester of 2016 with majority at fixed price enabled
it to fetch relatively higher ASP in 1H17 compared to in 1H16 as the benchmark NEWC Index price rose significantly in second semester 2016 relative to the first semester 2016.
13.8x 12.8x
12.6x 13.7x
14.3x 12.0x - 13.0x
2Q16 3Q16
4Q16 1Q17
2Q17 2Q17 E
TMU IM
ABN SR Consolidated
1.4 M
il li
o n
T o
n s
1.4
G u
id a
n c
e
1.2 1.3
1.1 1.25 - 1.50
Financial and Operational Highlights
All figures are in million US unless otherwise stated
1H16 1H17
Changes Operation
Sales Volume mn ton
3.1 2.2 29.0
Production Volume mn ton
2.8 2.3 17.9
Stripping Ratio SR x
13.1 14.0 6.9
FOB Cash Cost
a
USton 34.9 38.8
11.2 NEWC Index Price
USton 50.9 80.6
58.3 Average Selling Price ASP
USton 45.4 57.3
26.2
Financial Performance Profit Loss
1H16 1H17
Changes
Sales US mn
139.0 127.9
8.0 Cost of Goods Sold
US mn 110.9
91.2 17.8
Gross Profit US mn
28.1 36.6
30.2 Operating Profit
US mn 16.0
23.5 46.9
EBITDA
b
US mn 22.0
28.4 29.1
Profit for the Period US mn
9.3 14.6
57.0 Profit for the Period after MI
US mn 2.6
8.0 206.9
EBITDAton USton
7.2 12.9
79.2 Operating Cash Flows
US mn 16.9
18.1 7.1
Capex US mn
7.3 5.3
27.4
Balance Sheet 31 Dec16
30 Jun17 Changes
Interest Bearing Debt US mn
51.3 61.3
19.5 Cash and Cash Equivalents
US mn 37.6
49.5 31.6
Net Debt
c
US mn 13.7
11.8 13.8
Total Assets US mn
261.6 276.3
5.6 Total Liabilities
US mn 113.8
120.8 6.1
Total Equity US mn
147.7 155.5
5.2
Financial Ratios
Gross Profit Margin 20.2
28.6 EBITDA Margin
15.8 22.2
Operating Profit Margin 11.5
18.4
Notes:
a
FOB Cash Cost = COGS including royalty and selling expense – depreciation and amortization
b
EBITDA = Gross profit – selling expenses – GA + depreciation and amortization
c
Net Debt = Interest bearing debt – cash and cash equivalents
FINANCIAL
PROFIT LOSS SALES
The Company recorded sales of US 127.9 million in 1H17, or 8.0 lower compared to that in 1H16 as a result of much lower sales volume despite rise in ASP. Nevertheless, the rise in ASP, in turn, directly boosted the much
stronger financial margins over the period. COST OF GOODS SOLD
Cost of goods sold slipped by 17.8 y-o-y, resulting from lower production volume. The lower production volume in 1H17 compared to 1H16 was due to heavier than expected rainfall.
EBITDA A 29.1 y-o-y increase in EBITDA to US 28.4 million in 1H17 from US 22.0 million in 1H16 significantly improved
EBITDA margin from 15.8 to 22.2 over the period. This mainly stemmed from the higher recorded ASP secured during the second semester 2016, which was commensurate to the higher international coal price over the period
as compared to that in the first semester 2016.
ASP vs FOB Cash Cost 2Q16
– 2Q17
PROFIT FOR THE PERIOD After taking into account finance cost of US 2.4 million and tax expense of US 7.3 million, the Company booked
total profit for the period of US 14.6 million in 1H17, up 57.0 y-o-y from the previous year. FINANCIAL RATIOS
Gross profit margin, EBITDA margin, and operating margin rose y-o-y from 20.2 in 1H16 to 28.6 in 1H17, from 15.8 in 1H16 to 22.2 in 1H17, and from 11.5 in 1H16 to 18.4 in 1H17 respectively. This was attributable
to the higher ASP.
35.0 35.1
34.2 36.9
