Pefindo: PT Sumber Global Energy Tbk (SGER) rated idA- with stable outlook

(April 25, 2024)--The rating reflects SGER’s conservative financial policy as well as its conservative capital structure and strong cash flow protection. The rating is constrained by limited product diversity and moderate financial flexibility.

The rating may be raised if SGER strengthens its business profile by diversifying its products to reduce its exposure to coal while maintaining its stable profit margins, which will positively impact its financial profile and its financial flexibility. On the other hand, the rating may be lowered if the Company’s revenue or EBITDA falls significantly below from the targets or if it incurs more debt than projected to finance its new projects, which may aggravate its financial profile.

Established in 2008, SGER engages in commodity trading, particularly coal and nickel. It operates in both local and regional markets, such as Vietnam, Singapore, China, and India. The Company is also in the process to diversify its business by developing nickel, wood pellet, and biomass product and build joint venture to produce hydrogen peroxide. As of December 31, 2023, its shareholders were PT Sumbermas Inti Energi (50.08%), Vivi Ramalyati Hutama (17.35%), Welly Thomas (2.19%), and public (30.38%). (ends)