JAKARTA - Net revenues of PT Chandra Asri Petrochemical Tbk (TPIA) declined 13.7% US$ 476.8 million in the first quarter of this year from US$ 552.2 million in Q1 2019. The decline was a result of lower average sales product prices particularly for Olefins and Polyolefins with relatively stable sales volume.
“Our first quarter 2020 performance was largely shaped by the challenging macro environment, tight petrochemical margins, and softening demand especially in the China domestic market due to the Covid- 19 pandemic. We recorded Q1 2020 Revenues of US$ 477 million, EBITDA of -US$ 13.5 million, and a Net Loss of US$ 17 million. To manage and navigate the unprecedented uncertainty, Chandra Asri is focused on three key strategic imperatives, which are (1) Business Continuity, (2) Operational Excellence, and (3) Financial Resilience,” said Suryandi, Director of Chandra Asri Petrochemical in a release.
Chandra Asri’s cost of revenues remains stable at US$ 493.4 million from US$ 490.3 million in Q1 2019 largely due to higher feedstock volume as a result of increased production capacity and offset by decreased in Naphtha price to an average of US$ 521/MT from US$ 533/MT in Q1 2019.
As a result of declining revenue in this quarter, Chandra Asri suffered net loss of US$ 17.5 million compared to the net profit in the same period last year amounting to US$ 17.6 million. The US$ 35 million reduction is largely attributable to compressed margins (-US$ 78 million), offset by income tax benefit (US$ 33 million). (LM)