AKR books 95% increase in core net profit on higher fuel sales volume

IDX-listed logistics and fuel distribution firm PT AKR Corporindo Tbk reported on Sunday that its first half 2011 core net profit increased by 95 percent to Rp.274 billion (US$=Rp.8,500) from Rp.141 billion in the previous year?s corresponding period.

The company booked a net profit of Rp1.958 trillion in the fisrt half of 2011 including extraordinary profit of Rp1.684 trillion from divestment of its unit PT Sorini Agro Asia Corporindo TBk which was completed in January 2011.

The company said the steep increase in net profit was contributed mainly by fuel distribution segment, which revenue increased by 138 percent to Rp.7.02 trillion during the first half of the year. The increase in fuel distribution, according to the company, was due to strong demand from the mining sector and market penetration in the eastern part of Indonesia .

The company also said that fuel sales volume increased by 81 percent during the period. The company did not give detail.

AKR said it would continue to expand distribution network by constructing a number of fuel storages in Java, Sumatra , Kalimantan and Sulawesi to tap increasing fuel demand in the region.(alex)