AKR reports lower net profit, revenue
Monday, March 6 2017 - 06:36 AM WIB
IDX-listed PT AKR Corporindo Tbk, a distributor of petroleum, basic chemicals and provider of logistic and supply chain services in Indonesia, reported Monday an audited net profit after tax of Rp 1,011 billion for the financial year ended December 31, 2016, which is slightly lower than Rp 1,034 billion in the previous year.
The company said that revenue last year reached Rp 15,213 billion, 23 percent lower than the previous year?s. ?Decline in oil prices lead to lower selling prices which impacted consolidated revenues,? AKR said in a statement.
The company reported improvement of margins with net margin improving to 6.6 percent during FY 2016 compared to 5.2 percent during FY 2015.
The company also reported higher gross margins of 12.3 percent during 2016 compared to 11.2 percent in 2015. The company also continued to maintain a strong balance sheet with a low leverage and adequate cash position.
?We are pleased to report another year of steady growth despite the severe fluctuations in petroleum and commodity prices. The company?s revenue was impacted by the selling prices of the petroleum but the company managed to improve its overall margins by adequate cost control measures,? AKR said
During the year AKR has initiated various strategic initiatives to sustain and grow its business; In addition to growth in industrial sector the company is planning to expand its business in retail and aviation petroleum by entering into strategic alliance with international oil major BP.
?We are pleased with the progress of the JIIPE project securing the interest of domestic and foreign companies who have signed up to set up industries in the industrial estate. The port subsidiary PT BMS commenced operations and now is handling medium to large sized vessels,? AKR said.
?With improvement in economic conditions, commodity prices and demand for basic raw materials and fuel the company will continue to focus on delivering value added solutions for our customers,? said AKR President Director Haryanto Adikoesoemo.
Editing by Reiner Simanjuntak