Chandra Asri delivers strong Q1 2016 performance

By Romel S. Gurky

IDX-listed PT Chandra Asri Petrochemical Tbk (CAP), the largest integrated petrochemical company in Indonesia, announced on Wednesday it delivered strong performance in the first quarter of 2016 benefiting from the uptick in chemical margins and higher capacity from its recently expanded ethylene cracker.

As of March 31, 2016, CAP recorded a net profit of US$35.4 million, up $32.6 million from the previous year of $2.8 million. While net revenues were slightly higher at $358.9 million or 0.3 percent compared to $357.9 million, gross profit increased by 273 percent to $62.5 million from $16.7 million in the first quarter of 2015.

As a result, gross profit margin almost quadrupled from 4.7 percent to 17.4 percent reflecting strong chemical margins aided by supply/demand dynamics and lower feedstock costs, primarily naphtha which tracked lower crude oil prices, coupled with higher sales volume by about 24 percent y-o-y from 364 kiloton (kt) to 451 kt.

This strong performance is a further manifestation of the company's ability to deliver positive growth momentum despite challenging business and operating conditions amid a slowing domestic economy.

CAP's strategy of expansion to meet Indonesia's growing demand and vertical integration remains robust but, for 2016, CAP will focus on further improving its operational and financial performance to deliver higher value to stakeholders and contribute to the growth of Indonesia's petrochemical industry.

Editing by Johannes Simbolon