Oct 26, 2016 14:06:13

Resource Alam Indonesia posts higher profit, lower revenue

PT Resource Alam Indonesia Tbk ($KKGI) which pressed its selling expenses, posted a 77% profit increase in the third quarter despite lower revenue.

Resource Alam noted its revenue in 3Q2016 as much as US$72.44 million or 7.6% lower than the same period last year by US$78.40 million. For local sales, it was mostly contributed by sales of high pressure laminate and melamine laminated particle boards by US$262 thousand and coal export noted US$72.13 million.

The company managed to reach higher profit by pressing its selling expenses. Resource Alam cut down more than half of expenses for loading from US$2.68 million to US$1.06 million in 3Q2016. Cost for freight also reduced significantly from US$4.70 billion to US$836 thousand as of September 2016.

Resource Alam through its subsidiary PT Bias Petrasia Persada signed Offshore contract with Global Hydro Energy GmbH dated February 25, 2016 for the purchase major equipment components of two sets spiral Kaplan turbine and generator with CIF term to the port of Tanjung Priok Jakarta Indonesia. The purchase will be used for hydroelectric power plant located at Cicatih West Java, worth EURO 2,410,000. (LM)