PT Indika Energy (INDY) Q4 2024 earnings summary

Executive summary

• Revenue declined 19.2% year-over-year to US$2,446.7m in FY24, with net profit dropping 91.6% to US$10.1m.

• Coal remains the dominant revenue source (84.7%), but diversification into non-coal businesses continues, targeting 50% non-coal revenue by 2028.

• Major divestments in coal-related assets, including the sale of MUTU and Petrosea, support the transition strategy.

• Significant expansion in green business, digital ventures, and healthcare distribution, with new subsidiaries and acquisitions.

• Strong ESG commitment, with net-zero target by 2050 and progress in emissions reduction and community programs.

Financial highlights

• Gross profit fell 39.7% year-over-year to US$332.7m, with gross margin down to 13.6% from 18.2%.

• Adjusted EBITDA decreased 34.6% to US$258.3m.

• Operating profit dropped 49.4% to US$158.1m.

• Earnings per share: US$0.0019 in 2024, compared to US$0.0230 in 2023.

• Kideco's revenue fell 16.9% to US$1,848.1m, with net income down 35.4% to US$139.3m.

Outlook and guidance

• FY25 guidance: Kideco production expected at 30MT (-2%), average selling price projected to decline 8% to US$54.7/ton.

• Total capex budgeted at US$246.1m for 2025, with continued investment in diversification and renewables.

• Management expects continued expansion in non-coal sectors, including renewables, digital, and healthcare.

• Ongoing focus on cost control, capital discipline, and maintaining adequate liquidity.

• Coal market volatility and regulatory changes remain key external factors.