As financial woes in Europe push down the demand for coal, Adaro Energy, the second biggest coal producer in Indonesia, expects its net income to grow a conservative 5% to 7% this year on rising production.

Mr Garibaldi Thohir president director of Adaro said the company set a cautious target in light of the European debt crisis and the global economic slowdown. He said that “We will be conservative this year.”

Mr Garibaldi said that Adaro’s net income is forecast to grow by USD 577 million to USD 620 million this year from an estimated income of USD 550 million to USD 580 million in 2011.

He said the company expects to pay between USD 100 million and USD 150 million as dividends from its 2011 earnings. He added that “That will depend on the shareholders.”

Mr Garibaldi said the euro zone crisis and the slowing global economy will crimp coal demand, which will cut the coal price. He said that “The demand won’t be as huge as it was last year.”

Mr Garibaldi said that coal sales are forecast to grow by 50 million to 53 million tonnes this year. That would be an increase of as much as 8 percent from last year’s sale of 49 million tonnes.

(Sourced from www.thejakartaglobe.com)