Company Profile
Adaro Energy is currently Indonesia's second largest thermal coal producer, operates the largest single coal mine in Indonesia, and is a significant supplier to the global seaborne thermal coal market.
In addition to large coal reserves, Adaro Energy has high quality assets to support the operation such as the 75 kilometer haul road connecting the mine location to the Crushing Facility in Kelanis and Coal Terminal in Pulau Laut. As well, through its subsidiaries, Adaro Energy has a full mining fleet including Drilling Machines, Bulldozers, Wheel Dozers, Excavators, Graders, Articulated Trucks, Dump Trucks, Wheel Loaders, Head Trucks, Vessels, Dollys, Crushers, etc.
Dividend Policy
Based on the provisions of Adaro Energy's Articles of Association, if the company books a net profit, than Adaro Energy may distribute dividends to its shareholders based on the Board of Directors' recommendation after obtaining approval from the General Meeting of Shareholders.
Adaro Energy will declare dividends with respect to:
1. operating income, cash flow, capital adequacy and the financial condition of Adaro Energy and its subsidiaries as regards reaching optimum growth in the future;
2. the required fulfillment of reserve funds;
3. Adaro Energy and its subsidiaries' obligations based on agreements with third parties (including creditors); and
4. Compliance to the prevailing laws and regulations and GMS approval.
Daily stock and market return Analysis
Adaro listed in Indonesia Stock Exchange (BEI) started on July 16, 2008.
PT Adaro Energy Tbk registered and traded with 11,139,331,000 shares with code: ADRO. The shares are offered at a price of Rp 1,000 per share or the cost Rp12, 253 trillion. From previous report, there are oversubscribed of ADRO stocks of 55,01 times from the number of shares that offered by company. This indicates that investors had high interest on coal mining stocks. In the bidding process, the portion of shares allocated to foreign investors reached 74.77% and the rest of local investors for 25.23%.
On January 28, 2010 ADRO return index increased up to 3,26%, this is related to the announcement that ADRO will supply the domestic coal demand of 11 million tons in 2010. Commissioner ADRO, Sandiaga S. Uno claims the company is a supplier of coal to the largest domestic market compared to PT Tambang Coal Bukit Asam Tbk (PTBA).
Average and Standard Deviation
| Ri | Rm IHSG | Rm LQ45 | |
| Average | 0.11% | 0.07% | 0.06% |
| Standard deviation | 4.01% | 2.10% | 2.49% |
Compared to market index return the company’s stock return on average has a greater value than other company in general. It shows that the company has better return ability than the other company in doing their business. Looking on the average return and standard deviation, it can be seen that the higher the standard deviation (risk), the higher the average return (profit).
Conclusion
From the calculation above and what shows in the graphic, company has a good performance on return its stocks. There were several problems faced because company loss (indicates that the stock return index is negative). The most significant loss was on October 2008 with value of stock return index -19%, which was caused by the buy back issues and its cancelation afterward. Even though company had a big loss, company able to improves its performance as time goes by, and most of the time, company gain profit. It can be proved by the average of return index that has positive amount of 1.1%. Other than that, the dividend payment done by ADRO also paid periodically based on their schedule, ADRO had no problem related to this dividend payment.
