PT Indika Energy Tbk : News Release INDY Result 9M22

About this update from Pt Indika Energy Tbk

NEWS RELEASE FOR IMMEDIATE DISTRIBUTION 30 November 2022 INDIKA ENERGY RESULTS FOR THE PERIOD ENDED SEPTEMBER 30, 2022 Strong Net Profit of US$343.4 million and Core Profit of US$403.6 million Jakarta - PT Indika Energy Tbk. (IDX: INDY), an Indonesia's diversified investment company, reported its unaudited financial statements for the period ended September 30, 2022. Highlights Revenues grew by 57.2% YoY to US$3,133.4 million in 9M22 , driven by higher coal prices with average ICI-4 benchmark has increased to US$84.6/ton (+51.1% YoY). Gross profit rose 109.1% YoY to US$1,086.3 million in 9M22 and consolidated gross margin expanded to 34.7% from 26.1% in 9M21 , mainly led by higher coal prices. Operating income jumped 120.1% YoY to US$935.3 million in 9M22 and operating margin expanded to 29.8% from 21.3% in 9M21. The company recorded Profit attributable to owners of the company of US$338.4 million in 9M22 (+5,785.2% YoY) , a significant turnaround from net loss of US$6.0 million in 9M21. Core Profit* of US$398.6 million reported in 9M22 (+373.4% YoY) compared to US$84.2 million reported in 9M21. Adjusted EBITDA totalled US$1,013.9 million for the period ending September 30, 2022, compared to US$581.6 million in the same period previous year. Cash, Cash Equivalents and Other Financial Assets at end of September 2022 stood at US$1,233.5 million. The Company disbursed US$65.8 million for new investments during 9M22 and spent US$20.1 million for existing business. *) Core Profit (Loss) is defined as net profit (loss) attributable to Owners of the Company for the year excluding: Provision for contingent liability related to acquisition of additional shares in Kideco; 2) amortization intangible 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 2021 figures. All of the assets and liabilities of Petrosea are classified as held for sale and 1 NEWS RELEASE are presented separately from asset and liabilities in the consolidated statement of financial position as of Dec 31, 2021. PT Indika Energy Tbk. Income Statement Highlights 9M22 Descriptions 9M22 9M21 YoY 3Q22 QoQ (in USD mn) Total revenues 3,133.4 1,993.8 57.2% 1,194.4 7.8% Kideco 2,216.2 1,486.1 49.1% 831.4 1.4% Indika Resources 628.4 294.7 113.3% 251.1 22.8% Tripatra 219.4 155.1 41.5% 85.3 42.4% Interport 25.4 21.7 17.2% 8.6 2.4% Others 62.4 53.1 17.5% 25.2 1.5% Elimination (18.4) (16.9) 8.8% (7.3) -24.2% Cost of contracts and goods sold (2,047.1) (1,474.3) 38.9% (777.0) 11.0% Gross profit 1,086.3 519.5 109.1% 417.4 2.3% Selling, general and administrative expenses (151.0) (94.5) 59.8% (58.4) 11.1% Operating profit 935.3 425.0 120.1% 359.0 1.0% Equity in net profit of associates 21.2 23.4 -9.4% 10.8 144.3% Investment income 6.5 2.4 169.1% 3.3 64.2% Finance cost (80.2) (78.1) 2.7% (27.1) 1.8% Amortization of intangible assets (102.0) (101.7) 0.3% (34.0) 0.0% Final tax (6.0) (4.9) 21.9% (2.1) 45.0% Fair value changes on contingent consideration obligation (8.5) (38.4) -78.0% (2.9) 0.0% Others- net (5.0) 4.9 -202.5% 0.5 -87.7% Profit (Loss) Income before tax 761.2 232.4 227.5% 307.6 3.1% Income tax expense (374.8) (157.3) 138.3% (149.6) -3.2% Profit (Loss) after tax from continued operation 386.5 75.2 414.3% 158.0 10.0% Profit (Loss) from discontinued operation 0.0 (83.5) -100.0% 0.0 0.0% Profit (Loss) for the year/period : 386.5 (8.4) -4704.2% 158.0 10.0% Profit (Loss) attributable to owners of the company 338.4 (6.0) 5785.2% 137.7 9.7% Profit (Loss) attributable to non-controlling Interest 48.1 (2.4) -2069.4% 20.2 12.2% Core Profit (Loss) of the Company 398.6 84.2 373.4% 157.8 8.3% Adjusted EBITDA* 1,013.9 581.6 74.3% 382.0 -4.0% LTM - Adjusted EBITDA* 1,409.8 628.7 124.2% 107.0 -91.8% EPS (USD/share) 0.0649 (0.0011) 0.0264 Core EPS (USD/share) 0.0765 0.0162 0.0303 Gross margin 34.7% 26.1% 34.9% Operating margin 29.8% 21.3% 30.1% Net margin 10.8% -0.3% 11.5% Core profit margin 12.7% 4.2% 13.2% Adjusted EBITDA Margin 32.4% 29.2% 32.0% * Includes dividends from associates (last twelve months period ended 30 September 2022) The consolidated revenues increased 57.2% YoY to US$3,133.4 million in 9M22 from US$1,993.8 million in 9M21 . The higher YoY figures were attributed to higher contribution from Kideco and Indika Resources : 2 NEWS RELEASE Kideco's revenue grew by 49.1% YoY to US$2,216.2 million in 9M22, boosted by higher average selling price (+55.4% YoY to US$84.2/ton in 9M22). In 9M22, Kideco sold 26.3MT of coal volume (-4.1% YoY, still in line with 2022 production target of 34.0 MT), with 72% of volume to export and 28% to domestic market. Kideco's Sales Volume by Country 9M22 Japan Others 3% 1% Southeast Taiwan Asia China 14% 4% 37% India 9% Korea 4% Indonesia 28% Indika Resources' revenue increased by 113.3% YoY to US$628.4 million in 9M22 from US$294.7 million in 9M21, driven by: 1) higher ASP (at both MUTU and coal trading) and 2) higher volume in coal trading. MUTU's revenue rose by 119.0% YoY to US$231.1 million in 9M22, led by 129.9% YoY increase in ASP to US$193.3/ton, on 1.2MT of coal volume (-4.9% YoY). Lower volume was resulted from export ban in Jan 2022 and some challenges experienced in hauling. Coal trading revenue in 9M22 jumped by 110.0% YoY to US$397.3 million, supported by 58.5% YoY increase in ASP to US$75.3/ton and 32.4% YoY increase in volume to 5.2 MT. Interport's revenue increased by 17.2% YoY to US$25.4 million in 9M22, of which US$19.6 million came from KGTE, mainly due to higher volume of 17.3 kbd compared with 14.0 kbd in 9M21. Tripatra's revenue increased by 41.5% to US$219.4 million in 9M22 compared to US$155.1 million in 9M21. The higher contribution, mainly due to: 1) BP Tangguh project which increased 35.7% YoY to US$190.6 million in 9M22; 2) new projects such as Star Energy Geothermal Salak and Cabott. Cost of Contracts and Goods Sold increased by 38.9% YoY to US$2,047.1 million in 9M22 from US$1,474.3 million in 9M21. Kideco's cash costs including royalties increased by 30.6% 3 NEWS RELEASE YoY to US$48.0/ton in 9M22 compared to US$33.3/ton in 9M21, mainly due to 1) higher royalty as a result of higher ASP and 2) higher fuel rate (US$0.87/lt in 9M22 vs US$0.47/lt in 9M21). Gross profit rose 109.1% YoY to US$1,086.3 million in 9M22 from US$519.5 million reported in 9M21. The consolidated gross margin improved to 34.7% from 26.1% in 9M21 , supported by strong performances from Kideco (GP margin of 41.7% in 9M22 vs 32.3% in 9M21) and MUTU (GP margin of 48.0% in 9M22 vs 39.8% in 9M21). SG&A expenses increased by 59.8% YoY to US$151.0 million in 9M22 from US$94.5 million in 9M21, 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 9.4% to US$21.2 million in 9M22 from 23.4 million mainly due to lower contribution from CEP. CEP net profit declined of US$18.0m in 9M22 vs profit of US$31.3m in 9M21 (100% basis) due to unexpected stoppage in relation to damages in one of turbine blades in Feb 2022 and penalty to PLN . Finance cost increased by +US$2.2m (+2.7%) to US$80.2m in 9M22 mainly due to (1) unwind IRS cost (US$0.5m) in relation to refinancing Emily loan with new syndication loan at KGTE; (2) higher interest rate in subsidiaries, and (3) one-time cost related to bond tender-offer in July which include premium and acceleration of amortization on bond issuance cost (US$3.7m), offset with lower interest of more than US$4m on lower bond principal. Others expenses (net) was recorded at US$5.0 million in 9M22 (vs. other income of US$4.9m in 9M21), mainly due to (1) higher Kideco's demurrage cost of US$9.9m because of export ban in Jan 2022 and (2) higher forex loss of US$7.6m on Rupiah depreciation against USD (USD/IDR Jan - Sep 22 = 14.269 -15.335 vs Jan - Sep 21 = 14.084 - 14.322), mainly unrealized as of 9M22. Such loss was partially offset with higher gain on fuel hedging at Kideco. The Company reported Profit Attributable to the Owners of the Company of US$338.4 million in 9M22, a significant turn-around from net loss of US$6.0 million in 9M21. The Company reported Core Profit of US$398.6 million in 9M22, a significant jump (+373.4% YoY) compared to Core Profit of US$84.2 million reported in 9M21. The company disbursed US$65.8 million for the new investments in 9M22 which majority was allocated for Awakmas of US$34 million, Ilectra Motor Group of US$12.1 million, IMP of US$8.5 million and EMITS of US$5.1 million. The actual spending for capex for the same period is US$40.4 million, of which we spent US$20.4 million for existing business, including for Kideco of US$11.5 million, Indika Resources US$6.8 million and Interport of US$1.8 million. 4 NEWS RELEASE PT Indika Energy Tbk. Balance Sheet Hightlights 9M22 Descriptions 9M22 9M21 YoY FY21 Change % (in USD mn) 9M22 - FY21 Cash balance* 1,233.5 856.0 44.1% 986.5 25.0% Current assets 2,011.9 1,775.9 13.3% 2,092.0 -3.8% Non current asset held for sale 0.0 0.0 100.0% 448.2 -100.0% Total assets 3,684.4 3,681.8 0.1% 3,691.5 -0.2% Current liabilities 1,066.5 997.7 6.9% 1,135.8 -6.1% Total Debt** 1,171.1 1,607.4 -27.1% 1,581.8 -26.0% Liabilities directly related to Non current asset held for sale 0.0 0.0 100.0% 267.4 100.0% Shareholder equity 1,235.2 851.9 45.0% 899.6 37.3% Current ratio (X) 1.9 1.8 1.8 Debt to Ebitda (X) 1.1 2.6 1.6 Net Debt to Ebitda (X) 0.3 2.2 0.5 Debt to equity (X) 0.9 1.9 1.8 Net debt to equity (X)*** 0.3 0.9 0.7 * includes other financial assets and restricted cash ** total debt with interest bearing exclude accrued interest and issuance cost *** total debt minus total cash balance divided by shareholder equity Kideco Financial and Operational Highlights 9M22 Descriptions 3Q22 3Q21 YoY 2Q22 QoQ 9M22 9M21 YoY (USD mn) Sales 831.4 609.3 36.5% 820.1 1.4% 2,216.2 1,486.1 49.1% Gross profit 349.6 239.6 45.9% 361.9 -3.4% 923.6 479.6 92.6% Operating profit 326.7 223.6 46.1% 338.4 -3.5% 856.3 440.0 94.6% Net income 182.7 123.5 47.9% 187.5 -2.5% 473.1 243.8 94.0% EBITDA 335.7 229.2 46.5% 348.5 -3.7% 885.6 456.8 93.9% Gross margin 42.0% 39.3% 44.1% 41.7% 32.3% Operating margin 39.3% 36.7% 41.3% 38.6% 29.6% Net margin 22.0% 20.3% 22.9% 21.3% 16.4% EBITDA margin 40.4% 37.6% 42.5% 40.0% 30.7% Overburden (mn bcm) 44.9 44.3 1.5% 44.7 0.5% 132.2 136.6 -3.3% Production volume (MT) 9.7 8.7 10.9% 8.7 10.5% 26.1 26.9 -2.9% Sales volume (MT) 9.3 9.4 -0.4% 9.0 3.8% 26.3 27.4 8.5% Stripping ratio (X) 4.7 5.1 -8.5% 5.1 -9.1% 5.1 5.1 -0.4% Cash Cost incl royalty (US$/ton) 50.6 38.8 30.4% 49.8 1.6% 48.0 36.1 33.0% Cash Cost excl royalty (US$/ton) 32.2 29.5 9.3% 34.3 -6.0% 33.1 28.9 14.4% Average selling price (US$/ton) 88.9 64.9 37.0% 91.1 -2.4% 84.2 54.2 55.5% 5 This is an excerpt of the original content. 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