Adaro Energy (ADRO.JK), Alert: Solid 4Q11 Results; Margins Firming Up, Citi

 What stood out in the numbers — Net earnings more than tripled Y-Y in 4Q11 (+64%
Q-Q) to US$175m on higher ASP. This brings 2011 net earnings to more than double YY
to US$550m – 5% above consensus estimate and 15% above Citi’s. While the surge
in net earnings was mainly due to the low base in 4Q10 (on heavy rainfall) and one-off
item in 3Q11, the operating results were robust in 4Q11. Gross and operating margins
firmed up sequentially in 4Q11 to 39.7% and 35.1% respectively, from 35.6% and
32.4% in 3Q11, thanks to a substantially higher ASP and good cost control.