Delta Dunia Recorded USD 24 Million NET Profit For First Quarter of 2017

PT Delta Dunia Makmur Tbk. (the “Company”) is pleased to announce its financial results for the first quarter of 2017 (“Q1 2017”). The Company booked a net profit of USD24 million vs. USD 3 million in the first quarter of 2016 (“Q1 2016”). The Q1 2017 net profit is the highest quarterly net profit in the history of the Company and BUMA.

The Company delivered 83.2 million bcm of overburden removal and 10.2 million tons of coal, an increase of 36% and 31% respectively compared to the same period last year. Net revenue also increased by 43% from USD 127 million in Q1 2016 to USD 181 million in Q1 2017 as the results of higher volume and higher mining service rate due to recovery of coal price. EBITDA significantly improved from USD 39 million to USD 70 million, translating into an EBITDA margin of 40.3%, a reflection of the higher revenue as well as improved productivity and cost efficiencies. Cash flows remained very strong, allowing the Company to finance its capital expenditure of USD 20 million in Q1 2017 through internal cash, and continued reducing outstanding debt by USD13 million. As of March 31, 2017, net debt was USD 504 million, with net debt to EBITDA ratio of 2.0x.

With robust contracts on hand and the recovery of coal price, the Company will continue to focus on the execution of ramping up its production volume. Management believes that the Company is on track to deliver profitable growth and solid performance in 2017.