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Chandra Asri's net profit fell by 42.9% due to decline in production

29 March 2019 08:52 AM  Company: PT. Chandra Asri Petrochemical Tbk[TPIA]
Rp. 5,075  +85 (1.7%)

JAKARTA. Throughout 2018, PT Chandra Asri Tbk (TPIA)'s net profit fell by 42.9% to US$ 181.65 million from the previous year's realization at US$ 318.62 million. Meanwhile, TPIA's net income only grew by 5.16% in 2018 to US$ 2.54 billion.

President Director of PT Chandra Asri Petrochemical Tbk Erwin Ciputra said that 2018 was a challenging year amid global economic uncertainty due to rising interest rates, the US-China trade war, geopolitical tensions and unstable prices of crude oil and raw materials, which reduced the margin of the petrochemical business.

However, Erwin said that the company's revenue still showed some growth, due to higher average selling prices of its products, especially ethylene, polyethylene, and polypropylene.

TPIA's revenue was supported by the polyolefins segment, which grew by 25.6% YoY to US$ 1.18 billion. The butadiene segment also rose by 18.4% YoY to US$ 205.7 million. The tank and dock rental segments also rose by 16.7% YoY to US$ 8.6 million.

Meanwhile, the olefins segment was down by 6.3% YoY to US$ 733.7 million at the end of 2018. The styrene Monomer segment also fell 5% yoy to US $ 411 million.

According to Erwin, the decline in TPIA sales volume was mainly due to the planned shutdown of the Butadiene plant (90 days for TAM and tie-in work for debottlenecking, the increase of plant capacity by 37% to 137 KTA. Then scheduled operational activities for revamp furnace (capacity creeps, 2 furnaces ) and the TAM of styrene monomer plants.

"As a result, cracker operating rates reached 96%, lower than 2017 at 99%, the butadiene plants operate at a rate of 79%, compared to 2017 when it reached 117% and styrene monomer plants operating at 89% compared to 2017 when it reached 105%. Meanwhile, polyolefins plants are operated at the maximum level, "he added on Thursday (28/3). (AM/AR)

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PT. Chandra Asri Petrochemical Tbk [TPIA]   Rp. 5,075   +85 (1.7%)