Astra International to Spend $163M to Pay for Interim Dividend

PT Astra International Tbk (ASII) will distribute interim dividends Rp57 a share end of October, said the company today (09/30) - Photo by TheInsiderStories

JAKARTA (TheInsiderStories) – PT Astra International Tbk (ASII), one of Indonesia’s largest diversified companies, plans to pay an interim dividend on Oct. 30, the Central Securities Depository (KSEI) said on its website.

According to KSEI’s website, Astra plans to pay Rp 57 for each of the company’s share. With the company’s total outstanding shares stood at 40.48 billion, the company will have to spend a total of Rp 2.30 trillion (US$163.66 million) to pay its interim dividend.

Background:

Astra saw its net income declined by 5.59 percent in the first half of this year on weaker automotive sales and falling commodity prices. The company’s  net income declined to RP 9.8 trillion in January-June from Rp 10.39 trillion in the corresponding period last year.

The company’s revenue increased 3.32 percent to Rp116.18 trillion, with its heavy equipment, mining, construction and energy and financial services divisions posted healthy business growth.

A company executive had said the company remains optimistic its profit and revenue to grow within the high-single-digit area this year.

In a statement the company regarding its first half financial performance, Astra’s president director Prijono Sugiarto said that the company’s performance was affected by sluggish domestic consumption and the declining trend in commodity prices. However, the listed company enjoyed higher earning from its financial services business and higher revenue contributed by newly acquired gold mines.

In details, Astra’s profits from its automotive, agribusiness, information technology and property declined by 18 percent, 94 percent, 35 percent, and 33 percent respectively. On the other hand, profits from the heavy equipment, mining, construction and energy businesses increased by 2 percent. The financial service arm also performed well, posting a 32 percent profit jump, while its infrastructure and logistic business also saw a rapid growth.

Astra’s car sales fell by 6 percent to 253,000 units, as nation-wide car sales were also down by 13 percent to 482,000 units. The biggest automotive distributor in Indonesia managed to boost its market share to 53 percent from 48 percent.

Eight new models and two revamped models were launched in this period, helping the company boost its market share.

A zoom into Astra’s agribusiness division will show that its palm oil producer subsidiary, PT Astra Agro Lestari Tbk (AALI), which is 79.7 percent owned by the company, posted a decline in net profit by 94 percent to Rp44 billion, mainly due to lower palm oil prices.

The average price of palm oil price in January-June fell by 18 percent to Rp6,441 per kilogram compared to same period in the previous year. Indonesia actually saw sales volume of palm oil and its derivative products increased 19 percent to 1.2 million tons.

US$1: Rp14,100

Written by Staff Editor, Email: theinsiderstories@gmail.com