1H19 Modest Performance
In 1H19, PTBA recorded total revenues of IDR10.6 trillion (+1.2% YoY). In details, its domestic sales reached IDR6 trillion (+18% YoY), but export sales amounted only IDR4.6 trillion (-115.6% YoY). However, PTBA posted EBITDA of IDR3 trillion (-18.4% YoY); it was a decrease due to operating costs increasing to IDR1 trillion (+9.1% YoY), slashing PTBA net profits of IDR2 trillion (-24.4% YoY). PTBA undergo decreasing margin, GPM to 34.4% (vs. 41.5% in 1H18), OPM to 24.4% (vs. 32.2% in 1H18), and NPM to 18.9% (vs. 25.3% in 1H19).

Positive Impacts of Upgraded Railway Capacity
PTBA continues to boost expansion, especially in the upgraded of railway capacity, the Tanjung Enim-Kertapati line will be increased to 5 Mtpa which will be completed in 4Q19. We are confident that the upgraded railway capacity will reduce operational costs; thus, its margins increase solidly only if it consistently manage cost-efficiency.


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