08 Sep 2022

Skyrocketing Coal Prices Rockets IATA's Profits

Jakarta, 8 September 2022 – PT MNC Energy Investments Tbk (IATA or the Company) reported an increase in operating income in its June 2022 Financial Report. The comparison between H1-2022 and H1-2021 are using 2 methods. The first is using the actual number of IATA as of H1-2021, before consolidation of PT Bhakti Coal Resources (BCR) and the second is in accordance with PSAK 38 DK24 that requires the financial statements to be presented as a proforma after BCR is consolidated.

Actual Comparison using H1-2021 Before Consolidation of BCR

According to the actual results of H1-2021, the Company reported a 1,734.35% increase in operating revenue from USD 4.61 million in H1-2021 to USD 84.50 million in H1-2022. Similarly, the Company’s EBITDA grew from USD 545 thousand in H1-2021 to USD 44.72 million in H1-2022, or approximately 8,098.60%. Profits also grew significantly as the Company’s net income soar from negative USD 1.70 million to positive USD 32.19 million. This is mainly due to a higher demand and increasing prices for energy resources such as coal as a result of oil and gas dependent countries scrambling to look for alternatives after experiencing difficulties in securing supplies.

Comparison According to PSAK 38 DK24

Compared to the same semester in 2021, operating revenue jumped by 254.36% or USD 84.50 million in H1-2022 from USD 23.85 million in H1-2021. The increase can also be seen in comparison with the same quarter last year from USD 13.63 million in Q2-2021 to USD 44.11 million in Q2-2022 or 223.61%. The Company are committed to increasing coal production, which has now started to reap great results with a higher net profit of USD 32.19 million in H1-2022, an increase of 735.49% in comparison to USD 3.85 million in H1-2021. Net profit is up by 335.55% from USD 3.63 million in Q2-2021 to USD 15.80 million in Q2-2022.

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