AKR reports lower net profit

IDX-listed logistics company PT AKR Corporindo Tbk, which is engaged in the distribution of fuel products, said that net profit in the first nine months of this year declined by 6.15 percent to Rp 793 billion compared to Rp 845 billion in the January-September period of last year.

?Sales revenue during 9M2016 were Rp10,952 billion lower than last year due to significant reduction in petroleum prices as a result of lower crude oil price. Selling price in Q3 (third quarter 2016) rebounded with improvement in petroleum prices,? the company said in a statement on Wednesday.

The company, however, said that margins improved during the period, thanks to various efficiency measures. It said that gross margin in the January-September period of this year (9M2016) improved to 13.5 percent compared to 10.9 percent for same period last year

AKR said 9M2016 net margin improved to 7.2 percent compared to 5.6 percent for same period last year

Total assets of company as per September 30, 2016 were Rp.15,650 billion increasing from Rp.15,203 billion as of end of last year.

The ROA(return on asset) and ROE(return on equity) were healthy at 6.76 percent and 16.7 percent, respectively for 9M2016, AKR said. The net gearing of the company was 0.39x as on September 30, 2016.

AKR said its chemical business principal supplier PT Asahimas Chemical expanded its capacity for caustic soda and PVC to cater to growing demand.

Editing by Reiner Simanjuntak