United Tractors Reports Record Sales Growth for Komatsu Heavy Equipment in 2023

Eqqi Syahputra, CNBC Indonesia

Market

Wednesday, 23/08/2023 20:05 WIB

Foto: dok United Tractors

Jakarta, CNBC Indonesia – Mining contractor issuer PT United Tractors Tbk. (UNTR) managed to record sales growth for Komatsu heavy equipment by 4% on a monthly basis year-on-year (yoy) or reach 3,551 units until July 2023.

UNTR Investor Relations Head Ari Setiawan said, this increase was driven by sales in the mining sector which contributed 63% and forestry 14%.

According to Ari, Komatsu’s sales have actually been growing in recent years. Even though sales were affected by the pandemic in 2020 by only recording 1,564 units and being the lowest in a decade, in the end UNTR was able to rise along with the economic recovery of funds for activities in the heavy equipment sector.

“2021 Komatsu sales increased 97% to 3,100 units, 2022 increased 86% to 5,753 units. 2022 sales will be the third highest sales in history,” he said at the United Tractors 2023 Journalist Workshop, Wednesday (23/8/2023).

Management also hopes that Komatsu’s sales target in 2023 can be maintained or slightly higher, reaching 5,800 units to 6,000 units.

Meanwhile, sales of Scania units also showed a significant increase of 328% from 123 units last year to 526 units until July 2023. Unfortunately, UD Trucks sales fell 34% to 195 units in the same period.

Furthermore, in the mining contractor business unit, PAMA production recorded growth from 2020 to 2022. This year, Ari hopes that PAMA production can grow 5-6%. Growth until July 2023, PAMA’s production even exceeded the target by growing by 17% to 71 million tons from 61 million tons in the same period.

“The increase in PAMA production was driven by dry weather which was very conducive for PAMA production. Secondly, due to the availability of heavy equipment so that PAMA can pursue production targets,” explained Ari.

With production and opportunities like this, management has reviewed this year’s PAMA target which is expected to increase from the previous 5-6% to 10-12%.

Then the TTA coal mining business unit, as of July 2023, had sold 7.2 million tons. This is influenced by the condition of transporting coal through the river. Usually, during the dry season the river water is below normal so it cannot be transported.

“Most of TTA’s coal mining concessions are located in Central Kalimantan, so they are affected by weather conditions. In the future, if they go up or down, it will not be because of demand but because of the challenges of transporting coal,” said Ari.

This year, Ari hopes TTA’s coal sales can increase to 10.7 million tons from last year’s only 9.9 million tons.

Meanwhile, gold mining recorded a sales decline of 26% to 126 thousand ounces due to limited storage facilities, the process of which was a little late due to the pandemic.

“Currently in the infrastructure development process, the work can be completed by the end of the year. This year we estimate sales of the Martabe gold mine to drop to 175 thousand compared to last year’s 268 thousand ounces of gold,” he added.

For information, from a financial standpoint, UNTR successfully recorded a net income of IDR 68.67 trillion, up 14% as of 30 June 2023 compared to semester I 2022 of IDR 60.44 trillion. Accordingly, consolidated net profit increased by 8% yoy to IDR 11.21 trillion from IDR 10.35 trillion in the same period in 2022.

In terms of capital expenditure (capex), UNTR has absorbed capital expenditure of US$ 600 million or equivalent to Rp. 9.17 trillion in the first half of 2023. UNTR’s absorption of capex during the January-June 2023 period has been used around 50%. The company itself has budgeted a capex of US$ 1.2 billion or around Rp. 18 trillion by the end of 2023.

“Mining contractors spend US$ 700-800 million to buy new heavy equipment. US$ 10 million for the martabe gold business line. US$ 600 million for coal, and the rest for the heavy equipment business,” he concluded.

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