ADRO – 9M22 beats on strong topline delivery

Adaro Energy (ADRO) booked 2.4% qoq revenue growth in 3Q22 to USD2.37 bn and brought the 9M22 topline at USD5.91 bn or surged by 130.2% yoy, beating ours and consensus’ estimates at 88% and 82%, respectively. Earnings in 3Q22 was slightly down by 15% qoq at USD691 mn, mainly dragged by the 15.5% increase in COGS during the quarter. This brought 9M22 earnings at USD1.9 bn, beating ours and consensus’ estimate at 98% and 82%, respectively. (Source: Company) Comment: We expect potential upward revision on ADRO earnings from consensus given the strong 3Q22. We are waiting for the analyst call today to gauge whether the cost pressure in 3Q22 will continue in forthcoming quarters.