Chandra Asri records 29.3% lower revenues in 9 months

By Romel S. Gurky

IDX-listed petrochemical producer PT Chandra Asri Petrochemical Tbk recorded net revenues of US$1.39 billion in the nine months to September, 29.3 percent lower compared to U$1.96 billion in the same period 2018 due to lower sales volume.

The company said lower sales volume was due to reduced operating activities as a result of turnaround maintenance (TAM) in August-September 2019. In the nine months period, sales volume reached 1,394 KT (9M2019), lower compared to 1,619 KT (9M2018).

Secondly, lower sales was due to lower realized average sales prices this year, primarily for Ethylene and Polyethylene, in which the average sales prices stood at US$996 compared to US$1,212 in the same period last year.

Its cost of revenues decreased by US$397 million, 24.5 percent lower from US$1.62 billion in nine months 2018 to U$1.22 billion in January-September this year, mainly due to lower feed-stock costs, primarily Naphtha, which declined by some 16 percent from US$646/ton to US$543/ton in 9M2019 on the back of lower Brent crude oil prices by 11% percent year-on-year.

Read also: Chandra Asri net profit plunges by 77.2% in 1H

As a result of the above, Gross Profit for the first 9 months of 2019 stood at US$167.3 million, 51.5 percent lower than 9M2018.

As a result, the company recorded US$32.1 million of net profit after Tax in 9M2019, compared to US$169.7 million in same period last year.

The US$138 million reduction in net profit after tax is largely attributable to lower gross profit (-US$178 million), offset by lower income tax expenses (-US$45 million).

The company added its total liabilities as of end September stood at US$1.398 billion, slightly lower from US$1.403 billion in the same period last year.

Editing by Roffie Kurniawan