AKRA posts Rp202b net profit in Q1, little change from last year
Saturday, April 27 2019 - 02:13 AM WIB
By Romel S. Gurky
IDX-listed PT AKR Corporindo Tbk, a distributor of petroleum, basic chemicals, and provider of logistic and supply chain services, said it recorded net profit attributable to the equity holders of parent entity at Rp202 billion in the first quarter of 2019, little changed from Rp200 billion the same period last year.
In the quarter, the company posted revenues of Rp5.038 trillion, slightly lower than the same quarter last year due to lower selling price of its petroleum products in line with the declining of oil price in the first quarter of 2019.
Revenues in the first quarter was lower due to lower selling price for Petroleum Products in line with declining oil price in Q1 2019, also basic chemical prices declined but volume outlook remains good with improving economic growth.
The basic chemical prices declined, but volume outlook remains good with improved economic growth, the company said in a statement.
In the first quarter 2018, the company booked extraordinary gain from divestment, amounting to Rp729 billion.
On positive note, the company manages to improve its margins. Its gross profit margin improved in Q1 2019 to 8.6% from 7.1% in Q1 2018 and operating margin improved to 5.1% in Q1 2019 from 4.1% in Q1 2018.
The company said it exercised cost control with G&A and selling expenses were sustained at same level compared to the same period last year.
Balance sheet remains strong as of 31 March 2019, as net gearing stood at low 0.27x.
"In 2018, AKR focused on the transformation process that has been carrying out since 2017. A range of improvements related to work process, human capital and information technology are continuously made and enhanced," President Director of AKRA Haryanto Adikoesoemo, stated.
Moreover, since 2017, the Company has focused on developing business potential within the country. AKR claimed it has achieved "outstanding performance" in 2018 by implementing portfolio re-consolidation, logistic infrastructure expansion, strategic partnership with BP, and developing recurring income from JIIPE.
Adikoesomo said in the company's 2018 Annual Report that the company is optimistic to enter 2019, considering the positive economy outlook for Indonesia. Additional terminal capacity and retail network expansion for AKR and BP-AKR petrol stations will become factors in supporting sales growth of trading distribution segment.
"Positive outlook for industrial sector in Indonesia will also lead to improvement in JIIPE Industrial Estate sales. It is expected that with completion of facilities and utilities, JIIPE will become one of the top choice for companies in industrial sector,” he added.
Editing by Roffie Kurniawan