PT Darma Henwa Tbk ( DEWA) ) recorded a 3.8 percent quarterly (QoQ) decline in revenue in the second quarter of 2025. This decline was triggered by a decrease in the volume of material moved, along with increased rainfall which had an impact on mining operational activities.As of June 2025, DEWA recorded an overburden volume of 33.4 million bcm, a 4 percent decrease compared to the previous quarter. Meanwhile, coal production was recorded at 4.2 million tonnes, and overall, the total material moved reached 36.6 million bcm, a 4 percent decrease from the first quarter of 2025.DEWA management stated that the second batch of heavy equipment has arrived at the mine site and is currently in the assembly process. Three pairs of heavy equipment units are expected to begin operations in early September 2025, while the remainder will follow in October 2025. The presence of this new heavy equipment is expected to drive an increase in the company's EBITDA margin in the second half of this year.In terms of operational projections, DEWA management targets a sharp increase in internal overburden volume to 19.98 million bcm in the third quarter of 2025, or a 47.1 percent increase compared to the previous quarter's realization. For the fourth quarter of 2025, the target was again increased to 23.54 million bcm, or growth of 17.8 percent QoQ.However, the plan to impair fixed assets and inventory in the third quarter of 2025 has the potential to depress the company's net profit at the end of the year.DEWA plans to eliminate retained earnings deficitTo support the company's financial position, the company will write off negative retained earnings, which is done by adjusting the foreign currency translation account.The plan will be subject to shareholder approval at the General Meeting of Shareholders (GMS) to be held on September 10, 2025. Meanwhile, DEWA is also focusing on exploration activities, particularly at two of the eight mining pits owned by its subsidiary, Gayo Mineral Resources. Exploration results will be announced in stages until the JORC report is released in 2027.According to Stockbit in its research on Thursday (7/8/2025), DEWA still has the opportunity to meet this year's EBITDA target of IDR 1.7 trillion, even though the EBITDA achievement until the first half of 2025 was only around 47 percent.
Source https://djakarta-miningclub.com