Indonesia: Semen Indonesia has blamed falling earnings in 2021 on increased competition, production overcapacity and mounting coal prices. Its revenue fell slightly to US$2.43bn. However, its earnings before interest, taxation, depreciation and amortisation (EBITDA) dropped by 9.3% year-on-year to US$572m in 2021 from US$630m in 2020. Its sales volumes were driven by international sales, with domestic sales remaining stable at 32.2Mt. Foreign sales grew by 7.7% to 8.3Mt. Overall sales volumes increased by 1.6% to 40.5Mt from 39.8Mt.
In order to tackle its fuel costs the company says it has increased its use of alternative fuels, both biomass and non-biomass, and is optimising its coal consumption index by maintaining stable coal quality. It has also integrated coal procurement into the group to help better secure competitive pricing, supply and quality.