Adaro Andalan Keeps Dividend Option Open as Coal Prices Stay Volatile

JAKARTA, Investortrust.id — PT Adaro Andalan Indonesia Tbk or AADI says it keeps the option of paying dividends next year on Monday, Dec 22, 2025 in Jakarta, while prioritizing operational needs and capital expenditure amid persistent volatility in global coal prices, a stance that signals cautious capital allocation for shareholders.

AADI director Lie Luckman said the company continued to focus on maintaining operational excellence to safeguard financial performance, but dividend certainty for the 2026 financial year remained unclear due to ongoing coal price fluctuations.

From a financial perspective, the company recorded revenue of $3.61 billion in the first nine months of 2025, down 11 percent from the same period a year earlier, reflecting lower coal prices in the global market.

Net profit over the same period fell 44 percent year on year to $655 million, underscoring the pressure faced by coal producers despite stable production volumes.

Luckman said the thermal coal market throughout 2025 remained under price pressure as ample supply from major producing countries coincided with softer seasonal demand.

“Nevertheless, coal is still expected to play a role in the global energy mix in line with rising long-term energy demand,” Luckman said.

By the third quarter of 2025, AADI’s coal sales volume reached 52.69 million tons with a stripping ratio of 4.2 times, in line with the company’s full-year sales guidance of 65 to 67 million tons and a target stripping ratio of 4.3 times.

The company’s largest sales market during the period was Indonesia, followed by Malaysia, India, and China, with most customers coming from coal-fired power plants and other end users.

Separately, AADI reported capital expenditure realization of $243 million by the third quarter of 2025, nearly reaching its full-year capex guidance of $250 million to $300 million.

Finance director Lie Lukman said the spending was mainly allocated to power plant investments supporting industrial activities in North Kalimantan, barge acquisitions, and logistics infrastructure to strengthen the supply chain.

AADI said it would continue to emphasize disciplined financial management, cost control, and productivity improvements as it navigates market volatility and balances growth investments with shareholder returns.