PT Indika Energy Tbk : News Release INDY Result 6M22

About this update from Pt Indika Energy Tbk

NEWS RELEASE FOR IMMEDIATE DISTRIBUTION 5 August 2022 INDIKA ENERGY RESULTS FOR THE PERIOD ENDED JUNE 30, 2022 Strong Net Profit of US$200.7 million and Interim Dividends of US$40 million Jakarta - PT Indika Energy Tbk. (IDX: INDY), an Indonesia's diversified investment company, reported its unaudited financial statements for the period ended June 30, 2022. Highlights Revenues grew by 66.5% YoY to US$1,939.0 million in 6M22 , driven by higher coal prices with average ICI-4 benchmark has increased to US$89.2/ton (+86.7% YoY). Gross profit rose 158.3% YoY to US$668.9 million in 6M22 and consolidated gross margin expanded to 34.5% from 22.2% in 6M21 , mainly led by higher coal prices. Operating income jumped 185.1% YoY to US$576.2 million in 6M22 and operating margin expanded to 29.7% from 17.4% in 6M21. The company recorded Profit attributable to owners of the company of US$200.7 million in 6M22 (+1,571.2% YoY) , a significant jump from US$12.0 million in 6M21. Core Profit* of US$240.8 million reported in 6M22 (+331.7% YoY) compared to US$55.8 million reported in 6M21. Adjusted EBITDA totalled US$631.9 million for the period ending June 30, 2022, compared to US$306.6 million in the same period previous year. Cash, Cash Equivalents and Other Financial Assets at end of June 2022 stood at US$1,072.5 million. Capex spending during 6M22 was US$19.3 million and the Company disbursed US$53.2 million for new investments. *) Core Profit (Loss) is defined as net profit (loss) attributable to Owners of the Company for the year excluding: 1) Provision for contingent liability related to acquisition of additional shares in Kideco; 2) amortization i ntangible assets of Kideco and MUTU; Note on Petrosea's transaction: Based on PSAK 58, since the signing of term sheet for the divestment of the entire 69.8% stake of Petrosea, profit and loss of Petrosea are no longer consolidated in financial statement of the Company for the period ended June 30, 2022. All of the assets and liabilities of Petrosea are classified as held for sale and are presented separately from asset and liabilities in the consolidated statement of financial position as of June 30, 2022. 1 NEWS RELEASE PT Indika Energy Tbk. Descriptions 6M22 6M21 YoY 2Q22 1Q22 QoQ (in USD mn) Total revenues 1,939.0 1,164.7 66.5% 1,108.2 830.8 33.4% Kideco 1,384.8 876.8 57.9% 820.1 564.6 45.2% Indika Resources 377.3 158.5 138.1% 204.5 172.7 18.4% Tripatra 134.1 96.3 39.3% 59.9 74.2 -19.3% Interport 16.8 14.5 15.6% 8.4 8.4 0.1% Others 37.2 29.7 25.4% 24.9 12.3 102.0% Elimination (11.1) (11.1) -0.1% (9.6) (1.5) 544.6% Cost of contracts and goods sold (1,270.1) (905.7) 40.2% (700.1) (570.0) 22.8% Gross profit 668.9 258.9 158.3% 408.1 260.8 56.5% Selling, general and administrative expenses (92.6) (56.8) 63.0% (52.6) (40.1) 31.2% Operating profit 576.2 202.1 185.1% 355.5 220.7 61.1% Equity in net profit of associates 10.4 16.7 -37.7% 4.4 6.0 -26.1% Investment income 3.2 1.3 146.3% 2.0 1.2 59.8% Finance cost (53.1) (52.1) 2.1% (26.6) (26.6) 0.0% Amortization of intangible assets (68.0) (67.8) 0.3% (34.0) (34.0) 0.0% Final tax (3.9) (2.9) 34.6% (1.4) (2.5) -41.8% Fair value changes on contingent consideration obligation (5.6) (9.5) -40.9% (2.9) (2.8) 3.3% Others- net (5.5) 0.1 -6178.9% 3.9 (9.4) -141.8% Profit (Loss) Income before tax 453.7 87.9 416.4% 298.2 155.5 91.8% Income tax expense (225.1) (71.2) 216.0% (154.6) (70.5) 119.2% Profit (Loss) after tax from continued operation 228.5 16.6 1276.0% 143.6 84.9 69.1% Profit (Loss) from discontinued operation 0.0 12.2 -100.0% 0.0 0.0 0.0% Profit (Loss) for the year/period : 228.5 28.9 691.9% 143.6 84.9 69.1% Profit (Loss) attributable to owners of the company 200.7 12.0 1571.2% 125.6 75.0 67.4% Profit (Loss) attributable to non-controlling Interest 27.9 16.9 65.5% 18.0 9.9 82.2% Core Profit (Loss) of the Company 240.8 55.8 331.7% 145.7 95.1 53.3% Adjusted EBITDA* 631.9 306.6 106.1% 398.0 233.8 70.2% LTM - Adjusted EBITDA* 1,302.8 405.4 221.4% 1,302.8 1,069.4 21.8% EPS (USD/share) 0.0385 0.0023 0.0241 0.0144 Core EPS (USD/share) 0.0462 0.0107 0.0280 0.0182 Gross margin 34.5% 22.2% 36.8% 31.4% Operating margin 29.7% 17.4% 32.1% 26.6% Net margin 10.3% 1.0% 11.3% 9.0% Core profit margin 12.4% 4.8% 13.1% 11.4% Adjusted EBITDA Margin 32.6% 26.3% 35.9% 28.1% * Includes dividends from associates (last twelve months period ended 30 June 2022) The consolidated revenues increased 66.5% YoY to US$1,939.0 million in 6M22 from US$1,164.7 million in 6M21 **) The higher YoY figures were attributed to higher contribution from Kideco and Indika Resources : **) All subsidiaries revenue figures are before eliminations 2 NEWS RELEASE Kideco's revenue grew by 57.9% YoY to US$1,384.8 million in 6M22, boosted by higher average selling price (+67.9% YoY to US$81.5/ton in 6M22). In 6M22, Kideco sold 17.0MT of coal volume (-5.9% YoY, still in line with 2022 production target of 34.0 MT), with 71% of volume to export and 29% to domestic market. Kideco's Sales Volume by Country Southeast Japan Others Asia 2% 0% 15% Taiwan China 4% 38% India 9% Korea 3% Indonesia 29% Indika Resources' revenue increased by 138.1% YoY to US$377.3 million in 6M22 from US$158.5 million in 6M21, driven by: 1) higher ASP (at both MUTU and coal trading) and 2) higher volume in coal trading. MUTU's revenue rose by 73.4% YoY to US$122.9 million in 6M22, led by 136.6% YoY increase in ASP to US$194.6/ton, on 0.6MT of coal volume (-26.7% YoY). Lower volume was resulted from export ban in Jan 2022 and some challenges experienced in hauling. Coal trading revenue in 6M22 jumped by 190.4% YoY to US$254.1 million, supported by 87.5% YoY increase in ASP to US$74.0/ton and 56.4% YoY increase in volume to 3.4 MT. Interport's revenue increased by 15.6% YoY to US$16.8 million in 6M22, of which US$13.0 million came from KGTE, mainly due to higher volume of 17.0 kbd compared with 14.6 kbd in 6M21. Tripatra's revenue increased by 39.3% to US$134.1 million in 6M22 compared to US$96.3 million in 6M21. The higher contribution, mainly due to: 1) BP Tangguh project which increased 38.5% YoY to US$119.6 million in 6M22; 2) new projects such as Star Energy Geothermal Salak and Cabott. Cost of Contracts and Goods Sold increased by 40.2% YoY to US$1,270.1 million in 6M22 from US$905.7 million in 6M21. Kideco's cash costs including royalties increased by 34.3% YoY to US$46.5/ton in 6M22 compared to US$34.7/ton in 6M21, mainly due to 1) higher royalty as a result of higher ASP, 2) higher fuel rate (US$0.83/lt in 6M22 vs US$0.44/lt in 6M21) and 3) higher strip ratio (5.3x in 6M22 vs 5.1x in 6M21). 3 NEWS RELEASE Gross profit rose 158.3% YoY to US$668.9 million in 6M22 from US$258.9 million reported in 6M21. The consolidated gross margin improved to 34.5% from 22.2% in 6M21 , supported by strong performances from Kideco (GP margin of 41.5% in 6M22 vs 27.4% in 6M21) and MUTU (GP margin of 51.2% in 6M22 vs 44.3% in 6M21). SG&A expenses increased by 63.0% YoY to US$92.6 million in 6M22 from US$56.8 million in 6M21, mainly driven by 1) higher marketing expenses in both Kideco and MUTU and 2) DMO expenses in MUTU. Equity in net profit of associates decreased by 37.7% to US$10.4 million in 6M22 from 16.7 million mainly due to lower contribution from CEP. CEP recorded loss of US$4.0m in 6M22 vs profit of US$25m in 6M21 (100% basis) due to unexpected stoppage in relation to damages in one of turbine blades in Feb 2022. In addition, planned major overhaul maintenance was conducted in mid-May to June 2022. Finance cost increased by +US$1.1m (+2.1%) to US$53.1m in 6M22 mainly due to unwind IRS cost (US$0.5m) in relation to refinancing Emily loan with new syndication loan at KGTE and higher interest rate in subsidiary. Others expenses (net) increased to US$5.5 million in 6M22 (vs. other income of US$0.1m in 6M21), predominantly due to demurrage cost at Kideco, resulted from export ban in Jan 2022, and realized & unrealized forex losses. The Company reported Profit Attributable to the Owners of the Company of US$200.7 million in 6M22 compared to profit of US$12.0 million in 6M21. The Company reported Core Profit of US$240.8 million in 6M22, a significant jump (+331.7% YoY) compared to Core Profit of US$55.8 million reported in 6M21. Capex spending during 6M22 was US$19.3 million, including for Kideco of US$3.7 million, Interport of US$1.3 million, Indika Resources US$1.4 million and Awakmas of US$7.2 million in relation to exploration activities. In addition to Capex, the company disbursed US$53.2 million for the new investment in 6M22 which majority was allocated for Awakmas of US$34 million, IMP of US$8.5 million, Ilectra Motor Group of US$4.6 million and EMITS of US$5.1 million. 4 NEWS RELEASE Kideco Financial and Operational Highlights Descriptions 2Q22 2Q21 YoY 1Q22 QoQ 6M22 6M21 YoY (USD mn) Sales 820.1 461.9 77.6% 564.6 45.2% 1,384.8 876.8 57.9% Gross profit 361.8 136.2 165.6% 212.1 70.6% 574.0 239.9 139.2% Operating profit 338.3 124.7 171.4% 191.2 76.9% 529.5 216.3 144.8% Net income 187.5 69.2 171.0% 102.9 82.2% 290.3 120.3 141.3% EBITDA 348.4 130.3 167.4% 201.4 73.0% 549.8 227.5 141.7% Gross margin 44.1% 29.5% 37.6% 41.4% 27.4% Operating margin 41.3% 27.0% 33.9% 38.2% 24.7% Net margin 22.9% 15.0% 18.2% 21.0% 13.7% EBITDA margin 42.5% 28.2% 35.7% 39.7% 25.9% Overburden (mn bcm) 44.7 44.8 -0.3% 42.6 4.9% 87.3 92.4 -5.5% Production volume (MT) 8.7 9.1 -3.8% 7.7 13.3% 16.4 18.2 -9.5% Sales volume (MT) 9.0 8.9 1.5% 8.0 12.9% 17.0 18.1 -5.9% Stripping ratio (X) 5.1 4.9 3.7% 5.5 -7.4% 5.3 5.1 4.4% Cash Cost excl royalty (US$/ton) 34.3 29.8 15.2% 32.8 4.6% 33.6 28.7 17.2% Cash Cost incl royalty (US$/ton) 49.8 36.1 38.0% 42.9 16.0% 46.6 34.7 34.3% Average selling price (US$/ton) 91.1 52.1 75.0% 70.8 28.7% 81.5 48.6 67.9% 5 This is an excerpt of the original content. 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