Golden Energy Mines Faces Challenges as Coal Export Demand Declines

Financial Performance Analysis

Golden Energy Mines (GEMS), a prominent coal producer owned by Sinar Mas Group, reported a 13.43% year-on-year decline in revenue to US$1.74 billion by the end of Q3 2025. This decrease was primarily attributed to a significant drop in export sales, which plummeted 53.35% year-on-year to US$623.55 million. Conversely, the company's domestic sales experienced a substantial surge, rising 64.84% year-on-year to US$1.11 billion. As a result, GEMS witnessed a shift in its revenue composition, with domestic sales now playing a more dominant role compared to export sales.

Profitability Impact

The decline in export sales had a notable impact on GEMS' profitability. The company's net profit attributable to the parent entity decreased by 49.84% year-on-year to US$199.32 million. This reduction in profitability underscores the challenges faced by coal producers in maintaining their financial performance amid fluctuating global demand.

Analyst Outlook for 2026

Despite the current challenges, Muhammad Wafi, Head of Research at Korea Investment & Sekuritas Indonesia (KISI), remains cautiously optimistic about GEMS' prospects for 2026. Wafi noted that while the weakening trend in coal exports poses a significant threat, GEMS' strong presence in the domestic market could help mitigate this impact. The shift towards domestic sales has been a positive factor, and analysts believe that GEMS' ability to capitalize on this trend will be crucial in maintaining its performance in the coming year.