PT Indika Energy (INDY) Q4 2023 earnings summary

Executive summary

• FY23 revenue fell 30.2% YoY to $3,026.8m as lower coal prices and volumes weighed on results; non-coal businesses contributed 13.3% of revenue, versus 11.3% in FY22.

• Diversification priorities include a 50% non-coal revenue target by 2025 and net-zero emissions by 2050; MUTU was divested.

Financial highlights

• FY23 revenue was $3,026.8m, down 30.2% YoY; gross profit was $552.0m, down 62.0%, and operating profit was $312.2m, down 74.2%.

• Adjusted EBITDA was $395.1m, down 69.6%; net profit attributable to owners was $119.7m, down 73.6%, and core profit was $145.8m, down 72.0%.

• FY23 total net income was $151.0m versus $510.8m; profit before tax was $238.4m versus $1.010bn.

• 4Q23 revenue was $728.1m, down 39.4% YoY; net profit was $25.8m, down 77.4%.

• Operating cash flow was a $199.1m outflow versus $926.1m inflow in FY22.

Outlook and guidance

• FY24 Kideco budget: production 29.4MT, average selling price $62.3/ton, cash cost including royalty $34.6/ton; coal-trading volume budget is 6.3MT.

• FY24 capex budget is $267.7m, versus FY23 actual spending of $142.8m and FY23 budget of $302.4m.

• Awak Mas construction is underway, targeting commercial operations in 2H25 and annual output of 100,000 ounces over a 15-year mine life; it secured a $250m loan.

• EMITS targets 500MW of solar installations over five years; a consortium signed an LOI for a 102MWp solar and 252MWh storage project, with construction expected to start in 2024.

• A $185m dividend from Kideco’s 2023 results was approved in March 2024, payable in four installments from April through October 2024.