PT United Tractors Tbk (UNTR) posted an 80% year-on-year drop in net profit to IDR 643 billion in the first quarter of 2026.
Earnings were weighed down by a combination of a weaker mining industry and sanction payments to the Satuan Tugas Penertiban Kawasan Hutan (Satgas PKH) related to nickel mining operations in Konawe.
UNTR recorded consolidated revenue of IDR 28.55 trillion in Q1 2026, down 17%.
Management said the decline was primarily due to the absence of gold sales from the Martabe gold mine after its operating permit was temporarily suspended by the government earlier this year.
As a result, PT Agincourt Resources and PT Sumbawa Jutaraya sold only 4,000 ounces of gold in Q1 2026, plunging 93% from 57,000 ounces in the same period last year.
Revenue contribution from UNTR’s gold and mineral mining segment fell 76% to IDR 692 billion.
In addition, the reduction in Indonesia’s 2026 coal RKAB quotas slowed performance in the construction machinery and mining contractor segments, as client demand weakened.
Sales of Komatsu heavy equipment, while still leading market share at 18%, dropped 20% to 1,107 units in Q1 2026. Revenue contribution from this segment declined 31% to IDR 7.5 trillion.
Mining contractor operations also weakened, with overburden removal and coal production down 7% and 4%, respectively. This reduced the segment’s revenue contribution by 6% to IDR 11.9 trillion.
The only segment to post growth was coal mining. A 20% increase in sales volume, along with higher prices, lifted revenue in this segment by 13% to IDR 8 trillion.
Impact of non-recurring charges
Beyond weaker revenue, UNTR was burdened by non-recurring charges of IDR 1.2 trillion in Q1 2026.
Most of these one-off costs consisted of penalty payments related to nickel mining activities at Stargate in forest areas, as well as impairment provisions on its geothermal investment in PT Supreme Energy Rantau Dedap.
The company said that excluding these non-recurring charges, UNTR’s net profit would have declined “only” 43% to IDR 508 billion during the period.
On the balance sheet, as of end-March 2025, the company recorded total assets of IDR 182.5 trillion, mainly driven by a 9% increase in liabilities since the start of the year.
Cash and cash equivalents stood at IDR 20.6 trillion, down from IDR 26.6 trillion at end-2025, due to weaker operating cash flow and the acquisition of the Doup project via PT Arafura Surya Alam and PT Mulia Bumi Persada in Q1 2026.
“This change primarily reflects the acquisition of gold mining companies and the share buyback programme,” UNTR management said in a statement on Wednesday (28/4).
UNTR is currently conducting a share buyback worth IDR 2 trillion, running from 1 April to 30 June 2026. (ZH)
