Delta Dunia Makmur Tbk (Delta Dunia Group) or (DOID), the parent company of PT Bukit Makmur Mandiri Utama (BUMA), BUMA Australia Pty Ltd (BUMA Australia), PT Bukit Teknologi Digital (B-TECH), and PT BISA Ruang Nuswantara (BIRU), reported strong volume and EBITDA growth, as well as the lowest Net Debt to EBITDA ratio in the First semester of 2023.
Dian Andyasuri, Director of Delta Dunia Group, said that until semester I - 2023, total revenue increased 19 percent on an annual basis to USD 0.86 billion (IDR 13.35 trillion).
Strong operational performance was demonstrated by producing 286 million bank cubic meters (BCM), an increase in overburden (OB) volume of 10% YoY, and 42 million metric tons (MT) of coal, an increase in coal production of 2% YoY.
EBITDA rose to USD 175 million (Rp2.71 trillion), an increase of 7% YoY, demonstrating the Group's operational strength.
Despite industry challenges, the Group maintained strong margins, with a slight decline of 3% YoY, primarily due to inflationary pressures in its Indonesian operations. In contrast, Australia managed to maintain its margins despite increased costs from new contracts.
Net profit decreased slightly to USD 5 million (IDR 77.63 billion), down 13% YoY, largely due to higher funding increases as a result of an increase in the London Inter-Bank Offered Rate (LIBOR).
Capital expenditure (Capex) amounted to USD 44 million (IDR 683.14 billion), a decrease of 47% YoY, the result of the successful completion of several projects in Indonesia.
Operational Cash Flow (OCF) increased to USD 143 million (IDR 2.22 trillion) due to an increase in EBITDA, resulting in positive Free Cash Flow (FCF) of USD 105 million (IDR 1.63 trillion).
Cash balance of USD 218 million (IDR 3.38 trillion) at the end of Semester I 2023
Strong financial health with a Net Debt to EBITDA ratio of 1.99x, the lowest in the last five years, reflects prudent and disciplined financial management in a capital-intensive industry.
Apart from that, in September 2023, BUMA recorded a significant achievement by receiving the first Sharia syndicated financing in the company's history. The total value of the financing facility is USD 60 million (IDR 931.56 billion), with PT. Bank Muamalat Indonesia Tbk. as Mandated Lead Arranger (MLA), facility agent, and guarantee agent with a financing value of USD 50 million (IDR 776.3 billion).
Dian Andyasuri, Director of Delta Dunia Group, said, "In the midst of tough challenges, we not only managed to weather the storm but also recorded revenue growth. Results in the first H of 2023 reflect the transformation of our core business, along with efforts to diversify revenue sources.
In the first half of the year, we achieved a significant change in the composition of our revenues, with Metallurgical and Infrastructure coal accounting for 18%, marking a significant step towards reducing the proportion of revenues derived from thermal coal production, which now stands at 82%.
"This progress is a continuation of Delta Dunia Group's results in 2022 (FY2022), when metallurgical coal revenues only reached 13%."
During the first semester of 2023, Delta Dunia Group achieved significant progress in environmental, social and corporate governance (ESG) initiatives. The Group succeeded in achieving an extraordinary ranking as the second best performing company in the global coal sub-industry, also achieving a position in the 15% of the best performing companies in the world oil and gas industry, based on the Sustainalytics ESG Risk Rating assessment.
Delta Dunia Group substantially improved its ESG Risk Rating score from 42.4 in 2022 to 32.7 in July 2023, marking an improvement of 10 points (or 25%). In line with its commitment to ESG, Delta Dunia Group inaugurated its social subsidiary, PT BISA Ruang Nuswantara (BIRU) in September 2023. In addition, BUMA Australia is actively developing its mine rehabilitation and closure services, working at four operational locations.
Dian emphasized that in Sustainalytics' assessment, Delta Dunia Group excels in various key areas, including carbon-related products and services such as carbon emission management in our operations, corporate governance practices, community engagement, and occupational health and safety measures, as well as emissions, waste, as well as waste handling.
Persistent efforts to effectively mitigate carbon emissions have changed our classification from high risk to a more moderate level of carbon management. We have diligently advanced mine rehabilitation and closure initiatives at our Australian operations, with successful rehabilitation and environmental project outcomes spanning more than two decades. In addition, by inaugurating BIRU, we aim to contribute further to the sustainable development agenda in Indonesia.
The scope is to improve the skills of local workers to be globally competitive through education tailored to industry needs and supporting social entrepreneurship. Everything is done while maintaining our firm commitment to environmental preservation, explained Dian.
At the same time, Delta Dunia Group continued its share buyback program and acquired 1,285 million shares purchased until August 4 2023, representing 14.9% of the Company's outstanding shares.
"Delta Dunia Group's performance in the first half underscores our commitment to sustainable growth, financial strength and dedication to environmental responsibility. The Group maintains its strong focus on delivering value to stakeholders while pioneering positive change in the industry, as we continue to grow and diversify our business," concluded Dian.