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Dok/PT United Tractors Tbk
United Tractors Reported A Net Profit Of Rp15.6 Trillion By The End Of The Third Quarter Of 2024
Thursday, 31 Oct 2024
United Tractors Tbk (the "Company") has just released its consolidated financial report for the third quarter of 2024. The Company reported a net revenue of IDR 99.6 trillion, which is a 2% increase from IDR 97.6 trillion during the same period in 2023. This growth is mainly attributed to better performance in the Mining Contractor and Gold & Other Minerals segments, which outweighed the decline in the Construction Machinery and Coal Mining segments. In the first nine months of 2024, the Company's net profit rose by 2% from IDR 15.3 trillion to IDR 15.6 trillion.
Construction Machinery Segment
The Construction Machinery segment saw a 24% drop in sales of Komatsu heavy equipment, totaling 3,321 units compared to 4,365 units last year. This decline was due to reduced demand from the mining, construction, and forestry sectors. According to internal market research, Komatsu holds a 27% market share in heavy equipment. Revenue from spare parts and maintenance services for heavy machinery fell by 6% to IDR 8.4 trillion. Sales of Scania trucks dropped from 605 units to 298 units, while UD Trucks sales decreased from 249 units to 156 units, primarily due to lower demand in the mining sector. Overall, net revenue from the Construction Machinery segment decreased by 8% to IDR 26.5 trillion compared to the same period last year.
Mining Contractor Segment
The Mining Contractor segment is operated by PT Pamapersada Nusantara (PAMA) and its subsidiary PT Kalimantan Prima Persada (KPP). PAMA and KPP (PAMA Group) provide mining services to concession owners, assisting them in coal and other mineral production, as well as overburden removal.
As of September 2024, PAMA Group reported a net revenue of IDR 43.6 trillion, marking an 11% increase from IDR 39.1 trillion. The company saw a 9% rise in earthmoving work volume, reaching 921 million bcm, and a 17% boost in coal production for its clients, totaling 111 million tons, with an average stripping ratio of 8.3x.
Coal Mining Business Segment
The coal mining operations are managed by PT Tuah Turangga Agung (TTA). By September 2024, TTA's coal mines recorded sales volume of 8.1 million tons, which includes 2.4 million tons of metallurgical coal. The total coal sales volume, including third-party coal, hit 10.2 million tons, up 19% compared to the same period last year. However, the revenue from the coal mining segment fell by 14% to IDR 20.6 trillion from IDR 24.0 trillion in the same period of 2023, mainly due to a drop in average coal selling prices.
Gold and Other Minerals Mining Business Segment
The gold and other minerals mining segment saw a revenue increase of 57%, reaching IDR 6.7 trillion, largely driven by a 21% rise in average gold selling prices (from US$1,933 per ounce to US$2,330 per ounce).
Gold Mining
The gold mining segment is operated by PT Agincourt Resources (PTAR) and PT Sumbawa Jutaraya (SJR). PTAR runs the Martabe gold mine in North Sumatra, which, as of September 2024, has sold a total of 165,000 ounces of gold, a 12% increase from last year.
SJR operates a gold mining concession on Sumbawa Island in West Nusa Tenggara, which began production in the second quarter of 2024 and is expected to start reporting gold sales in the fourth quarter of 2024.
Nickel Business
The company's nickel mining segment includes PT Stargate Pasific Resources (SPR), which was recently acquired with a majority stake in December 2023, and Nickel Industries Limited (NIC).
