Elizabeth Gloria Berahmana
Ancora Indonesia Resources has secured ammonium nitrate contracts from three coal miners valued at $200 million.
The Jakarta-based company won the contracts from three coal miners: Adaro Energy, Pamapersada Nusantara and Asmin Koalindo Tuhup.
“Additional contracts are expected to boost the performance of the company,” Dharma Hutama Djojonegoro, president director of Ancora, said on Thursday.
Dharma said that possible new contracts through the rest of the year will help the company to increase its revenue this year. The company expects its revenue to grow 10 percent to Rp 1.34 trillion ($140 million) this year from Rp 1.19 trillion last year.
Revenue at Ancora fell to $31 million in the first quarter this year from $32 million in the same period last year. It also posted a net loss of $1.4 million in the period this year compared to profits of $456 million last year.
The company has not published its financial results for the first half of this year.
Ancora has various business units including Multi Nitrotama Kimia, which produces ammonium nitrate, an ingredient used in mining explosives.
Ancora says it is building two new plants to boost MNK’s production to 140,000 tons per year from 37,000 tons now. The company intends to complete the construction of the first plant this year. Dharma was not specific about the cost of building a new plant. The plant is expected to be in operation next year.
Ancora also controls Bormindo Nusantara, an onshore drilling rig provider, with 11 rigs providing well drilling services to oil and gas operators in Indonesia.
Shares of Ancora rose 5 percent to Rp 220 on the Indonesian Stock Exchange on Friday. Ancora’s shares have fallen 12 percent so far this year, lagging behind the 11.1 percent gain of the main stock gauge.
Ancora Indonesia Resources is a diversified natural resources company focusing on Indonesia.