Delta Dunia Recorded USD 37 Million NET Profit For FY 2016

PT Delta Dunia Makmur Tbk. (the “Company”) is pleased to announce its financial results for the period ended December 31, 2016. Despite challenging market situation for most of 2016, the Company managed to turn around its operations and recorded net profit of USD37 million compared to net loss of USD 8 million in 2015.

The Company delivered overburden removal of 299.8 million bcm and coal of 35.1 million ton. Net revenue increased from USD566 million in 2015 to USD611 million in 2016. EBITDA also improved from USD186 million to USD217 million in 2016 as the result of improvement in volume, productivity and various cost efficiency measures. Cash flows generation continued to be very strong that the Company generated free cash flows of USD107 million after investment of USD126 million in capital expenditure. Outstanding debt was reduced by a net of USD73 million throughout 2016, resulting in net debt position of USD497 million and net debt to EBITDA ratio of 2.3x.

As announced previously, the Company has signed several contracts throughout 2016 consisting mostly of contract extensions to life of mine and some, with significant additional volume. Contracts signed were (i) contract extension with PT Tadjahan Antang Mineral valued at ~USD288 million, (ii) contract amendments with PT Berau Coal valued at ~USD3 billion, (iii) with PT UPS Sidrap Bayu Energy valued at ~USD4 million, (iv) contract extension with PT Adaro Indonesia valued at ~USD428 million, and (v) a new contract with PT Angsana Jaya Energi valued at ~USD66 million. Total contract on hand with customers is approximately USD5 billion.

With the turnaround of the operations, existing contract on hand, much improved balance sheets position and the recovery of coal price; the management believes that this is an exciting time and the Company looks forward to profitable growth in the future.