Garda Tujuh eyes $117m sales this year

With its projected 150 percent increase in production, PT Garda Tujuh Buana (GTBO), a publicly listed coal company in East Kalimantan, is upbeat that its total revenue will reach Rp 1.07 trillion (US$117 million) this year.

The company, which began commercial production in its mining area in Bulungan, East Kalimantan, in late 2009, booked a net profit of Rp 73.86 billion last year, a significant increase from the Rp 839.83 million in 2010, thanks to a sharp increase in production.

“We believe this year’s profit will equal or even surpass last year’s achievement,” said GTBO’s corporate secretary and legal head, Iwan Nurdiansyah, in a telephone interview on Saturday.

GTBO produced 1.2 million tons of coal in 2011, most of which (1.1 million tons) was exported to India and China.

This year, the company expects to increase production by 150 percent to 3 million tons, of which 2 million tons and 500,000 tons will be exported to India and China, respectively. The remaining 500,000 tons will be marketed to Southeast Asian countries, especially Singapore.

With the projected 150 percent increase in production, total revenue is expected to increase to Rp 1.07 trillion from Rp 319.70 billion in 2011.

“We are keeping the overseas market as our main target since our 4,750- to 5,000-calorie coal is fit for coal mixtures in India and China’s energy plants but is unsuitable for PLN, which requires higher-calorie coal,” he explained.  

The company estimates the 2012 coal-sale price will reach $39 per ton, up 25.80 percent from last year’s $31 per ton.  

This year, a 3-million-tons target is considered achievable since the company’s real production capacity is about 5 million tons per year.

 “We are interested in acquiring coal companies that are located near our existing mine in East Kalimantan. So far, though, we have not budgeted funds for any probable acquisition,” Iwan stated, citing the company had only allocated about $2.5 million for maintenance.

 In 2009, the company sold 43.39 percent of its enlarged shares, or 1.08 billion shares, to the public. Green River Pte Ltd and PT Garda Minerals hold a 30 percent and 26.61 percent share of the firm, respectively.

GTBO was last year’s top gainer among the second liner companies listed on the Indonesian Stock Exchange (IDX), with its share price increasing 806 percent to Rp 580 a piece on Dec. 30 from Rp 64 on Jan. 3.

On Friday, trading in GTBO shares on the IDX was suspended due to a surging 140-point hike from Rp 1,820 a piece, closing at Rp 1,940 a piece. (yps)