PT Petrindo Jaya Kreasi (CUAN) Q4 2024 earnings summary

Executive summary

• The consolidated financial statements for the year ended 31 December 2024 received an unqualified (clean) audit opinion, confirming fair presentation in accordance with Indonesian Financial Accounting Standards.

• Key audit matters included the purchase price allocation for major acquisitions (PT Multi Tambangjaya Utama and PT Petrosea Tbk) and the provision for mine reclamation and closure, both requiring significant management judgment and estimation.

• The auditor emphasized the restatement of prior year financial statements to reflect changes in accounting policy and corrections, as required by PSAK 208.

Significant events and developments

• Major acquisitions during the year included PT Multi Tambangjaya Utama (MUTU) for US$218 million and PT Petrosea Tbk (PTRO) for US$60 million, with significant audit focus on the fair value allocation of assets and liabilities acquired.

• The Group recognized a provision for mine reclamation and closure of US$10.73 million as of 31 December 2024, reflecting the inherent risks and uncertainties in estimating future obligations for site restoration.

• The financial statements for 2023 and 1 January 2023 were restated to align with the 2024 presentation and correct prior period errors, as disclosed in Note 43.

Risk factors and uncertainties

• The audit highlighted the complexity and uncertainty in estimating provisions for mine reclamation and closure, given the evolving regulatory, environmental, and operational landscape.

• The allocation of purchase price in business combinations required significant management judgment, particularly in determining the fair value of acquired assets, liabilities, and intangible assets.