Indonesia's Adaro returns to net profit in Q1
JAKARTA, May 1 (Reuters) - Indonesia's largest coal producer by market value, PT Adaro Energy (ADRO.JK) said it turned to a first-quarter net profit of 1.145 trillion rupiah ($108 million) from a 12 billion rupiah loss a year ago on higher coal prices.
"The significant increase is attributed to higher average achieved selling prices of Envirocoal, which increased revenue 91 percent" to 6.533 trillion rupiah, Adaro said in a statement released late on Thursday night.
Adaro, which has a stock market value of $3.02 billion, said coal production rose 8 percent to 9.03 million tonnes in the first quarter of this year, up from 8.37 million tonnes a year ago despite wet weather earlier this year.
Despite higher production, coal sales fell 7 percent to 8.73 million tonnes.
In the January-March period, volume of coal shipped by PT Indonesian Bulk Terminal fell 72 percent to 790,350 tonnes of coal on 14 vessels, from 2.79 tonnes shipped in 44 vessels in 2008.
Adaro did not give a reason for the decrease in coal sales and shipments, but a global economic slump has reduced demand for the fuel as many industries slowed production.
Spot thermal coal prices have shed about 69 percent since striking a record high of $201 a tonne last July, pressured by slumping demand from the industrial sector and increased supplies. ($1 = 10,590 rupiah) (Reporting by Fitri Wulandari; Editing by Sara Webb)
