AKR reports 46% increase in net profit

IDX-listed petroleum products distributor PT AKR Corporindo Tbk said that consolidated net profit in the nine months of this year ending September increased by 46 percent to Rp 845 billion from Rp 579 billion in the corresponding period of last year.

The company reported on Thursday improved margins with gross margin of 10.9 percent, operating margin of 7.2 percent and net margin of 5.6 percent during the nine-month period of this year.

?Volumes of petroleum products sold in Indonesia continued to show good growth though selling prices declined due to lower petroleum prices,? AKR said in a statement.

Consolidated revenues, however, declined by 12 percent to Rp 15.03 trillion from Rp 16.99 trillion during the same period last year.

?This proves the robustness of our business model which has consistently delivered growth in profitability despite the volatility in fuel prices and exchange rate. Our strategy in this low oil price environment remains focused in increasing petroleum volumes while maintaining margins through operational efficiencies and cost control? said Haryanto Adikoesoemo, AKR President Director, in commenting the stronger profit performance.

?The extensive logistics network and infrastructure across major sea and river ports in Indonesia enables us to provide supply chain logistics and energy solutions for our customers. We continue to invest in expanding this network including the investment in Java Integrated Industrial Port Estate project which is also proceeding on schedule?.

Editing by Reiner Simanjuntak