Chandra Asri significantly cuts 2016 capex to $20m
Tuesday, January 26 2016 - 01:12 AM WIB
IDX-listed petrochemical company PT Chandra Asri Tbk has allocated US$20 million for capital expenditure this year, a significant drop compared to $380 million spent last year.
Chandra Asri Director and Corporate Secretary, Suryandi said on Monday that the significant drop in the 2016 capex was because the company has completed the expansion project of its naphtha cracker facility in Banten in November of last year, the capex is only needed for maintenance of plant?s equipment.
He said that the company would finance the capex through internal funds. As per September 2015, the company holds US$129.93 million worth of cash.
Suryandi said that following the completion of the expansion of the project, naphtha cracker production capacity increases by some 43 percent, uplifting the annual production of ethylene from 600 kilo tons per annum (kta) to 860 kta, propylene from 320 kta to 470 kta, py-Gas from 280 kta to 400 kta, and mixed C4 from 220 kta to 315 kta.
Regarding its plans to develop a condensate splitter refinery in Banten, feasibility study is expected to be carried out this year, although it would also depend on oil price development.
Chandra Asri is teaming up BP Singapore in the project, which Suryandi will require investment of about $740 million. He added, however, it has yet to decide when to start construction of the project.
The company has previously said it hopes to complete the project, which would halve its naphtha import, in 2019.
Editing by Reiner Simanjuntak