Management Discussion & Analysis
PT HARUM ENERGY Tbk
1Q 2022 Summary and Highlights
Important Note: The results provided below reflect the unaudited consolidated results of PT Harum Energy Tbk. (“the Company”) for the 3-month period ending 31 March 2022, which include the results of PT Mahakam Sumber Jaya (“MSJ”), PT Layar Lintas Jaya (“LLJ”), PT Santan Batubara (“SB”), PT Karya Usaha Pertiwi (“KUP”), PT Bumi Karunia Pertiwi (“BKP”), PT Tambang Batubara Harum (“TBH”), PT Tanito Harum Nickel (“THN”), Harum Energy Australia Ltd, Harum Energy Capital Ltd, and Harum Asia Capital Pte Ltd. The report below is prepared by the management and unaudited.
The seaborne thermal coal market continued its strong momentum into 1Q 2022 as global energy demand sustained its rise together with stronger economic growth. At the same time, supply from coal producing countries remained limited, especially from Indonesia partly due to bad weather and the temporary export ban in January 2022 which disrupted supply in the seaborne market. In addition, the Russian invasion of Ukraine which began in February 2022 also raised the threat of a potential energy crisis in Europe, which led to even higher energy prices globally, including coal.
The sharply higher average selling prices of coal in 1Q 2022 as well as the inaugural earning contribution from the Company’s nickel division propelled the Company’s consolidated quarterly earnings into an alltime record high:
Average Sales Price (ASP) achieved in 1Q 2022 was USD 168.4 per tonne, or 158.8% higher y-o-y than the ASP in 1Q 2021;
Revenues in 1Q 2022 rose to USD 152.2 million, or 166.6% higher y-o-y than the revenues achieved in 1Q 2021, and still 16.5% higher q-o-q;
Quarterly EBITDA in 1Q 2022 reached USD 89.5 million, or an improvement of 317.4% y-o-y, and 35.3% q-o-q;
Recorded initial profit contribution from the Company’s first nickel smelter in 1Q 2022 of USD 7.5million.