KONTAN.CO.ID – JAKARTA. In the midst of the Covid-19 pandemic situation, PT Golden Eagle Energy Tbk (SMMT) has completed a debt restructuring with Bank Permata.
Golden Eagle Energy President Director Roza Permana Putra said that with the debt restructuring, the debt payment tenor will be extended by five years until 2026. In addition, the debt interest that must be paid has also decreased by more than 1%. As a result, the company’s cash flow becomes more flexible.
“Now that we are starting to enter the PLTU, we need more working capital,” he said in a press release received by Kontan.co.id, Monday (21/12) evening.
He added, for the first time too, in 2020, SMMT’s subsidiary, PT Triaryani, is making direct deliveries of coal supplies to several power plants in the country.
This increase in supply to the domestic market is one of SMMT’s strategies in balancing price fluctuations. “Exports mostly refer to the ICI (Indonesian Coal Index), but for PLTU, the reference is HBA (Reference Coal Price),” added Roza.
During the last three years until 2019, SMMT’s coal sales have consistently increased every year before finally stalling along with the Covid-19 pandemic.
Until September 2020, SMMT recorded a sales decline of 24% (yoy) to Rp 140 billion. However, the company’s EBITDA is still on a positive trend.
Last year, SMMT carried out additional drilling in the Triaryani concession area so that the amount of reserves in the mining concession was 316 million tons, an increase of 59 million tons from the previous 257 million tons. The reserves have been calculated according to JORC standards.
In the midst of the Covid-19 pandemic, SMMT is carrying out three main strategies, namely keeping the work environment safe by implementing health protocols and keeping mines operating.
Another strategy is to maintain adequate cash flow by restructuring debt, monitoring cash flow closely, and making changes to the marketing mix.
Even though the Covid-19 pandemic is still hitting, SMMT is still optimistic about future business prospects. This can be seen with the price of coal which has started to increase.
In addition, amid pressure to switch to environmentally friendly fuels, coal is still the main energy source in Asia, including Indonesia.
Roza said, going forward, SMMT will maintain its production capacity in order to achieve optimum economies of scale and mine planning to obtain the targeted Stripping Ratio (SR).
For logistical purposes, SMMT continues to increase the number of transport fleets as well as the productivity and cycle time of transport fleets.
From a marketing perspective, SMMT will integrate sales related to the HBA and the spot market and expand the market to end users while strengthening its base in the domestic market.
As for the financial sector, SMMT continues to carry out cost efficiency in a sustainable manner and monitors cash flow closely.