Alamtri Resources FY revenue $1.87B, -10% y/y
TL;DR
Alamtri Resources reported FY 2023 revenue of $1.87B, down 10% y/y, with earnings declining 38% due to lower coal prices. Despite this, sales volume hit a record high, and the company maintained a strong cash position while diversifying into green energy initiatives.
Alamtri Resources FY revenue $1.87B, -10% y/y
Alamtri Resources Indonesia Tbk (ADRO) reported core earnings of $1.87 billion for fiscal year 2023, reflecting a 38% year-over-year decline from prior periods. This reduction was driven by a 26% drop in average selling price (ASP) due to weakened coal market conditions, which also contributed to a 49% decline in operational EBITDA to $2.55 billion. Despite these challenges, the company achieved a historical high in sales volume, reaching 65.71 million metric tons in 2023, exceeding its target of 62–64 Mt by 7%. Production volume also rose by 5% year-over-year to 65.88 Mt, supported by improved operational efficiency, including a strip ratio of 4.35x, above guidance of 4.2x.
The company maintained a strong balance sheet, with $3.31 billion in cash and $1.94 billion in net cash as of year-end 2023. Shareholder returns included $1 billion in dividends and a share buyback program that repurchased 0.33% of outstanding shares for $18.4 million. Looking ahead, ADRO emphasized strategic diversification into metallurgical coal and green energy initiatives, including an aluminum smelter and hydropower projects, to align with Indonesia's green economy goals. The board reiterated its commitment to cost discipline and capital prudence, balancing short-term profitability with long-term sustainability amid cyclical industry dynamics.
