Thermal Coal Business Remains the Main Earnings Driver, While Kestrel Divestment and Power Asset Leasing Strengthen the Company’s Financial Position.
ICN News – Strong Financial Performance in the First Nine Months of 2026
PT Adaro Andalan Indonesia Tbk (AADI), one of Indonesia’s major thermal coal producers, recorded solid financial growth throughout January–September 2026.
Based on its consolidated financial statements as of September 30, 2026, the company generated revenue of US$3.96 billion, increasing 9.7% from US$3.61 billion in the corresponding period of 2025.
Net profit attributable to owners of the parent entity reached US$683.34 million, up 16.3% from US$587.32 million in the same period of the previous year.
The company’s gross profit also increased to US$1.20 billion, compared with US$943.26 million in the first nine months of 2025. Meanwhile, operating profit reached US$1.07 billion, up from US$810.55 million.
These results demonstrate the company’s ability to maintain profitability amid changing coal market conditions, operational challenges, and adjustments to its business portfolio.
Thermal Coal Remains the Main Revenue Contributor
Thermal coal mining and trading remain the backbone of AADI’s business operations.
During January–September 2026, revenue from coal mining and trading reached US$3.72 billion, compared with US$3.45 billion in the corresponding period of the previous year, representing growth of approximately 8%.
The company’s coal sales were supported by both export and domestic markets.
According to its financial statements, third-party coal sales reached US$3.49 billion, comprising US$2.81 billion in export sales and US$679.22 million in domestic sales.
In addition, coal sales to related parties contributed US$235.64 million.
This revenue composition demonstrates AADI’s strong position in international coal trading while maintaining an important role in supporting Indonesia’s domestic energy requirements.
Revenue Composition and Business Segment Contributions
Although coal remains its principal business, AADI has also developed supporting activities in logistics, transportation, and power generation asset leasing.
The following table presents the company’s revenue composition during the first nine months of 2026:
Business Segment| 9M2026 Revenue
Coal Mining and Trading| US$3,723.40 million
Logistics Services| US$130.06 million
Power Asset Leasing and Supporting Services| US$87.80 million
Others| US$17.94 million
Total| US$3,959.19 million
Source: AADI Consolidated Financial Statements, September 30, 2026.
One of the additional contributions came from power generation asset leasing and related services, which generated revenue of US$87.80 million during the reporting period.
This business is associated with the company’s power generation assets in North Kalimantan, which support the electricity requirements of the aluminium industry.
This development provides an additional revenue stream beyond conventional coal sales.
Operational Challenges and Coal Sales Performance
Despite its strong financial growth, AADI also faced several operational and logistical challenges during the third quarter of 2026.
Coal sales volume during the quarter reached approximately 17.9 million tonnes, declining around 3% compared with the previous quarter.
The average selling price (ASP) also eased slightly to approximately US$75.2 per tonne, down around 1% quarter-on-quarter.
One of the challenges affecting coal transportation in Kalimantan was the decline in river water levels associated with El Niño-related dry conditions.
Low water levels in certain sections of the Barito River disrupted barge transportation and created additional logistical constraints for coal shipments.
Nevertheless, the company’s mining operations in South Kalimantan, supported by its transportation infrastructure, remain important competitive advantages.
Going forward, efficient transportation and reliable shipment schedules will be essential to maintaining sales volumes and profitability.
Kestrel Divestment Strengthens Financial Flexibility
One of the most significant corporate developments in 2026 was AADI’s divestment of its 47.99% ownership interest in Kestrel, an Australian metallurgical coal mining operation.
The transaction was completed on October 1, 2026, with gross proceeds of approximately US$814.12 million before tax and US$734.83 million after tax, subject to adjustments under the sale and purchase agreement.
The divestment represents an important portfolio adjustment. Through this transaction, AADI realized the value of its Australian investment while strengthening its financial flexibility.
The company indicated that the proceeds were intended to support dividend distribution, business development in Indonesia, and partial loan repayment.
However, the transaction should not automatically be interpreted as an announcement of a special dividend. The final allocation of the proceeds remains subject to the company’s decisions and capital requirements.
Cash Position and Financial Foundation Continue to Strengthen
AADI’s financial position also demonstrated positive developments.
As of September 30, 2026, the company’s total assets reached US$6.64 billion, increasing from US$5.71 billion at the end of 2025.
Cash and cash equivalents rose to US$2.28 billion, compared with US$925.45 million at the end of December 2025.
Total equity stood at US$4.17 billion, while total liabilities amounted to US$2.47 billion.
The company’s financial position is summarized below:
Financial Indicators| September 2026
Total Assets| US$6.64 billion
Total Liabilities| US$2.47 billion
Total Equity| US$4.17 billion
Cash and Cash Equivalents| US$2.28 billion
Gross Profit| US$1.20 billion
Operating Profit| US$1.07 billion
Net Profit Attributable to Owners| US$683.34 million
Source: AADI Consolidated Financial Statements, September 30, 2026.
Business Strategy and Growth Prospects
AADI’s business strategy continues to focus on strengthening its position in the thermal coal industry through improved operational efficiency, cost control, logistics integration, and market diversification.
The company also benefits from an integrated supporting business ecosystem encompassing mining services, coal transportation, port and terminal operations, and power generation assets.
The integration of these activities provides important support for the company’s coal production and distribution operations.
The Kestrel divestment also marks a strategic move towards concentrating capital and investment on business opportunities in Indonesia.
Meanwhile, growing electricity requirements from downstream industries create additional opportunities for the company’s power generation and asset leasing businesses.
Maintaining Its Position in Indonesia’s Coal Industry
The first nine months of 2026 demonstrate that Adaro Andalan Indonesia remains one of the major players in Indonesia’s thermal coal industry.
Revenue growth of 9.7% and net profit growth of 16.3% reflect the company’s ability to maintain strong financial performance amid operational and logistical challenges.
Nevertheless, future performance will continue to depend on coal price movements, sales volume recovery, transportation efficiency, and the company’s ability to manage operating costs.
With established mining operations, an integrated logistics network, a strong cash position, and additional revenue from power generation asset leasing, AADI has important foundations to support its long-term business development.
For Indonesia’s mining industry, Adaro Andalan Indonesia remains a major supplier of thermal coal to domestic and international energy markets.
Source: PT Adaro Andalan Indonesia Tbk, Interim Consolidated Financial Statements as of September 30, 2026, company disclosures, and relevant market research reports.
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