Indonesian coal miner Adaro Energy Q4 net profit falls 43 pct

Adaro Energy , Indonesia's No.2 coal miner, on Wednesday said its fourth quarter 2010 net profit fell 43 percent after heavy rainfall hurt production and as costs rose. 

The firm's fourth quarter net profit was 0.5 trillion rupiah ($57.3 million), compared with 0.87 trillion rupiah in the same period a year earlier, Reuters calculations based on published full-year and nine month results showed. 

Unprecedented heavy rainfall affected operations last year but the firm sees a better performance ahead as the outlook for coal remains robust, said Garibaldi Thohir, Adaro's chief executive officer, in a statement. 

Adaro, which has a market capitalisation of $8.4 billion, posted full year 2010 net profit of 2.2 trillion rupiah. 

That compared with a net profit of 4.4 trillion rupiah in the year-ago period, and analysts' forecasts for 2010 net profit of 2.6 trillion rupiah, according to Thomson Reuters' Starmine SmartEstimate. 

The coal miner's finance costs climbed 14 percent on interest expenses for its $800 million bonds issued in 2009. The firm's net debt nearly doubled to 8.9 trillion rupiah in 2010 from 4.48 trillion rupiah in 2009. 

Adaro shares fell 2.2 percent on Wednesday to 2,225 rupiah before the results, and have fallen 12.7 percent this year to underperform the Jakarta index's 1.7 percent drop. ($1 = 8722.5 Rupiah). Source: Reuters