AKR reports higher Q1 net profit

IDX-listed PT AKR Corporindo Tbk, a distributor of petroleum products and basic chemicals, and provider of logistics and supply chain services, reported net profit attributable to equity holders of parent entity at Rp 258 billion for the quarter ending March 31, 2017, a slight increase compared to Rp 255 billion in the same period of last year.

The company said in a statement Wednesday it achieved a 22 percent increase in revenue from Rp 3,572 billion during the first quarter (Q1) of 2016 to Rp 4,341 billion during Q1 2017 with increase in average selling price of petroleum and basic chemical products.

Average crude oil price increased from US$34.36 per barrel $/bbl during Q1 2016 to $54.12 during Q1 2017 and product prices also followed suit.

AKR also reported an increase in gross profit rose from Rp 443 billion in Q1 2016 to Rp 452 billion in Q1 2017.

AKR said petroleum revenues increased as a result of increase in petroleum prices. Chemical revenues increased due to higher demand for basic chemicals from industries and higher average selling prices.

?Stabilization of the petroleum prices during the past year and also improvement in the commodity prices such as coal are positive factors behind the improvement in the consolidated sales revenue of the company,? AKR said in the statement.

Demand for basic chemicals has risen with the improvement in the overall demand for industrial raw material and with increase in supplies from principals.

?AKR continues to focus on maintaining its margins and on effective cost control. To realize the vast opportunity in the retail petroleum sector with the increase in demand for non-subsidized gasoline in the country, AKR has joined hands with the global oil major, BP, to set up retail petrol station network in Indonesia to offer an improved customer offering. We are happy to report signing of Joint venture agreement with BP during the month of April 2017 to set up the joint venture company for retail petroleum distribution,? the company said.

Elsewhere, the company said industrial estate land sales recorded during Q 1 2017 was Rp 115 billion. ?We are also happy with the progress of the industrial estate land sales, utilities and port operations in Java Integrated Industrial Port and Estate (JIIPE). Switzerland-based specialty chemical producer, Clariant officially opened its manufacturing facility at JIIPE. Manyar Port facility operated by joint venture company PT Berkah Manyar Sejahtera (BMS) also handled large size vessels with increasing throughput,? the company said.

Editing by Reiner Simanjuntak