PT Indika Energy (INDY) Q2 2024 earnings summary

Executive summary

• Revenue for 6M24 declined 28.3% year-over-year to $1,196.7m, with gross profit down 43% to $199.5m and net profit plunging 76.6% to $21.0m, reflecting lower coal prices and divestment impacts.

• Coal remains the core business, but non-coal revenue share increased to 12% in 6M24, supported by diversification into renewables, EVs, minerals, health, and digital ventures.

• Ongoing transformation targets 50% non-coal revenue by 2028 and net-zero emissions by 2050, with significant ESG initiatives and improved ratings.

• Basic earnings per share fell to $0.0040 from $0.0172 year-over-year.

• Total assets stood at $3.13 billion as of June 30, 2024, slightly up from $3.11 billion at year-end 2023.

Financial highlights

• Gross margin fell to 16.7% from 20.9% in 6M23; net profit margin dropped to 1.8% from 5.4% year-over-year.

• Adjusted EBITDA for 6M24 was $134.3m, down 46.4% year-over-year.

• Cash and cash equivalents increased to $863m as of June 2024, supporting a sound balance sheet.

• Operating profit before tax was $68.5m, down from $160.0m year-over-year.

• Net profit for the period was $34.1m, with $21.0m attributable to owners.

Outlook and guidance

• 2024 production guidance for Kideco is 29.4MT, with 6M24 production at 14.9MT, in line with budget.

• Average selling price guidance for 2024 is $62.3/ton, closely matching 6M24 actuals.

• Total capex budget for 2024 is $267.7m, with 17.8% realized in 6M24.

• Management expects to maintain sufficient resources for ongoing operations and continues to adopt a going concern basis.

• The company is focusing on business diversification, including expansion into health, essential oils, and electric vehicle sectors.