Jul 31, 2016 00:00:08
Resource Alam caps operating expenses in tough coal market

JAKARTA - PT Resource Alam Indonesia Tbk ($KKGI) was able to increase efficiency and push down operational costs during the first half 2016 according to the company’s financial statement submitted to Indonesia Stock Exchange.

Due to lower coal export, Alam’s net sales declined 10.5% to US$48.5 million while cost of goods sold deflated 8.2% to US$37.7 million. Gross profit by the end of June 2016 amounted US$10.7 million down 17.4% compared to June 2015.

The real saviour to the company financial results was the significant reduction to the total operating expenses which amounted US$5.13 million or 34% lower compared to the previous year over the same period. As so, income from operations amounted to US$5.59 million or 7% higher year-on-year.

By the end of the first semester 2016, Resource Alam noted net profits touching US$4.6 million which is 39% more than what was booked in the first semester 2015. (CH)