Jakarta. PT Adaro Andalan Indonesia Tbk (AADI) said it is keeping the option open to distribute dividends in 2026, even as volatile coal prices and softer market conditions weigh on earnings.

Director Lie Luckman said the company is focusing on boosting coal production and sales volumes next year to support shareholder returns, though no dividend decision has been finalized for the 2026 financial year.

“The company will prioritize the use of retained earnings for operational needs and capital expenditure,” Lie said in Jakarta on Monday.

Thermal coal markets in 2025 remain under price pressure amid ample global supply, driven by higher output from major exporting countries and weaker seasonal demand, Lie said. Still, coal is expected to remain part of the global energy mix as long-term energy demand continues to rise.

As of the third quarter of 2025, AADI had recorded coal sales of 52.69 million tons, with a stripping ratio of 4.2 times. The performance is in line with the company’s full-year 2025 target of 65–67 million tons and a stripping ratio guidance of around 4.3 times.

Despite the challenging price environment, AADI has maintained its dividend track record. The company paid an interim dividend for the 2025 financial year amounting to $250 million, equivalent to about Rp 4.14 trillion. The dividend was paid on Nov. 27, 2025.

The interim payout represented 42.57% of AADI’s net profit for the first nine months of 2025, which stood at $587.32 million.

Indonesia remained AADI’s largest market during the period, followed by Malaysia, India and China. The company’s customer base is dominated by coal-fired power plants and other end users.

On the financial front, AADI posted revenue of $3.6 billion through the third quarter of 2025, down 11% from the same period a year earlier, largely due to lower coal prices. Net profit fell 44% year-on-year to $655 million.

“The company continues to strengthen good corporate governance, financial discipline, productivity improvements and cost controls amid market volatility,” Lie said.

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