PT Dian Swastatika Sentosa Tbk (DSSA) has prepared several strategies to develop its four business pillars this year. Covering coal mining and trading business, electricity and steam supply, fertilizer and chemical trading, and technology business.

DSSA carries two strategies to strengthen its main pillars, namely the mining business and coal trading. DSSA will strengthen the performance of each asset owned, while expanding market share.

In the pillar of electricity and steam supply, DSSA plans to develop new and renewable energy businesses. In this business, DSSA will target development in the geothermal and solar segments.

In the fertilizer and chemicals trade pillar, DSSA will increase sales of various specialty chemical products for various industries. Then, in the technology business pillar, DSSA prepared three strategies.

Sinar Mas Group in the energy and infrastructure sectors will strengthen technology infrastructure, develop digital innovation, and maximize cooperation and investment in technology startups.

Just so you know, the coal mining and trading business is still the main pillar supporting DSSA's performance. Reflecting on the financial statements for the 2023 financial year, 93.21% of DSSA's operating revenue comes from these business pillars.

DSSA raised US$ 4.67 billion from the coal mining & trading business. When compared on an annual basis (Year-on-Year / YoY), this achievement fell 17.78% compared to 2022 which at that time was USD 5.68 billion.

The decline in the coal mining & trading business pillar dragged down DSSA's revenue and net profit. Over the past year, DSSA pocketed operating revenue of USD 5.01 billion, down 15.8% compared to 2022's revenue of USD 5.95 billion.

"The company recorded a decrease in revenue of 15.8% yoy in 2023, which was mainly caused by a decrease in revenue from the coal business due to a decrease in the average selling price of coal," said DSSA management in an information disclosure, Saturday (20/4).

In terms of the bottom line, DSSA achieved a net profit of USD 426.17 million in 2023. The decrease was 27.75% compared to the current year's profit attributable to the owners of DSSA's parent entity in 2022 which at that time reached USD 589.89 million.

Just to remind, DSSA's coal business rolls through the PT Golden Energy Mines Tbk (GEMS) Group and PT Bumi Kencana Eka Sejahtera. The main mining locations are in Central Kalimantan, South Kalimantan, South Sumatra and Jambi.

In terms of operational performance, over the past year, DSSA's coal production reached 56.3 million tons, up 12.1% compared to 50.3 million tons in 2022. Meanwhile, coal sales volume reached 56.8 million tons, an increase of 11.4% compared to 51 million tons in 2022.

The coal mining & trading pillar contributed the largest revenue to DSSA with a share of 93.2%. In DSSA's revenue distribution in 2023, the rest comes from fertilizer and chemical trading with a portion of 4.2%, multimedia as much as 1.8%, electricity and steam supply 0.8% and from other businesses.

In an effort to work on business development strategies on its business pillars, DSSA has been actively raising funding since the end of last year. Meanwhile, in 2024, DSSA has recently listed a Phase I Continuous Public Offering (PUB) on the Indonesia Stock Exchange.

The PUB Phase I consists of Shelf-Registration Bonds I Phase I Year 2024 of IDR 350 billion and Sustainable Sukuk Mudharabah I Phase I Year 2024 of IDR 150 billion.

After deducting costs, around 70% of the funds collected from PUB Phase I emissions will be allocated for the business development of providing internet and multimedia services through DSSA's subsidiary, PT Eka Mas Republik. While the rest will be used for working capital and other general corporate purposes.

"During the initial offering period, PUB Phase I received a very positive response from investors until it was oversubscribed 4.6 times," said DSSA management in an information disclosure, Friday (19/4).

Meanwhile, this PUB Phase I is part of a Sustainable Public Offering consisting of Shelf-Registration Bonds I and Sustainable Sukuk Mudharabah I with a total value of Rp 7 trillion, which received idAA (Double A) and idAA (sy) (Double A Syariah) ratings from PT Pemeringkat Efek Indonesia (Pefindo).

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