PT Indika in talks to sell 4 million tonnes of coal
Monday, 12 Oct 2009
It is reported that Energy Company PT Indika Energy is in talks with Indian buyers to sell 4 million tonnes of coal next year.
Mr Retina Rosabai Indika investor relations vice president said the talks were still underway and no decision had been made but refused to name the companies involved in the negotiations or the value of the deal.
As per report, the deal is expected to bring the company sales output next year to more than the 24 million tons estimated for this year.
To meet the target, the company is aiming to increase its coal output to 28 million tonnes by next year a 12.68% increase on this year production target. However, Mr Azis Rahman Indika finance director said conditions would improve in the second half of 2009 as revenue from engineering and mining subsidiary PT Petrosea would be consolidated into the company's financial books. He did not give any figures.
He added that by acquiring Petrosea, Indika expects to begin receiving up to 850,000 tonnes of additional coal from Petrosea PT Santan Batubara unit this year. Santan output is expected to increase to 2 million tonnes in 2010.
Mr Azis also said Indika was open for another acquisition opportunity, and that it had relatively strong cashflow, currently estimated to be around USD 270 million.
Other than supporting a possible acquisition, Indika would use the money to develop its three core business interest’s power plants, resources and mining services.
