JAKARTA (Yosefardi) – Coal producer PT Garda Tujuh Buana Tbk (GTBO) opts to seek short term coal contracts, instead of long term contracts to prevent potential cancellation as initiated by Middle East-based Agrocom Ltd.
Pardeep Dhir, GTBO’s commissioner, told in press briefing on Monday (Sep 2) that the company has secured 5.1 million tons coal contracts this year, to cover the cancellation of 10 million tons of coal contracts with Agrocom.
Agrocom had in May 23, 2013 decided to terminate coal purchase contract worth US$250 million with GTBO due to unconducive coal market.
The end of a coal supply deal with Agrocom Ltd has forced GTBO to adjust its financial statement. GTBO restated its financial report for 2012 with profit before tax cut by Rp711.15 billion.
GTBO shares trading has been halted since May 22, 2013 following uncertainties surrounding the company’s account.
The company said it targets to produce 3-3.5 million tons of coal this year and sell 2.7-2.8 million tons. Ebitda is targeted to reach US$8 million this year.