PT Indo Tambangraya Megah Tbk (ITMG) recorded net profit of US$110 million in the first half of 2026, up 17 percent from US$94 million in the same period last year. The company's revenue also grew 9 percent to US$1 billion, driven by an increase in coal's average selling price to US$81 per tonne from US$78 per tonne.
ITMG management said the higher average selling price was in line with strengthening coal benchmark prices. Coal sales volume also increased 5 percent to 12.3 million tonnes from 11.7 million tonnes, although production volume fell 5 percent to 9.9 million tonnes in the same period.
Revenue growth was reflected in improved company profitability. Operating profit reached US$142 million, up 14 percent, while EBITDA rose 11 percent to US$181 million. Net profit margin also improved from 10 percent to 11 percent.
However, these results were overshadowed by pressure on operating cash flow. Net cash from operating activities reached only US$62 million in the first half of 2026, down 78 percent from US$281 million the year before. The company said the decline was mainly due to lower tax refund receipts of US$169 million and higher payments to suppliers in line with increased cost of goods sold.
ITMG's operating costs increased due to higher mining and coal transportation costs, including increased fuel costs in line with rising global oil prices. The company's cash and cash equivalents at the end of June 2026 stood at US$738 million, down 9 percent from US$808 million at the end of 2025.
