3Q18 Review: Buoyant Profitability
For 3Q18, DOID posted the revenue of USD254 million (+24.9% q-q, +27.9% y-y) and the net profit of USD31 million (+305.3% q-q, +37.8% y-y)—topping our estimate and consensus. Its EBITDA margin , OPM, and NPM was at 41.3% (vs. 33.7% in 2Q18), 16.2% (vs. 15.6% in 2Q18), and 12.5% (vs. 3.9% in 2Q18), respectively. The reduction in production costs and the increment in mining workers’ productivities are keys to the rosier profitability.

3Q18 Operational: Surprises from Overburden Removal
We overview that the 3Q18 excellent performance was driven by 1) Removal overburden volume hitting the highest ever for 3 consecutive months, 35.3 million bcm, 38.6 million bcm, and 40.8 million bcm (from July to September); 2) the increment of +30% in assets utilization and capacities since the early of 2018 as the potent driver for the increment in production; 3) Favorable weather in mining locations.


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