JAKARTA (TheInsiderStories) – A petrochemical producer, PT Chandra Asri Petrochemical Tbk (IDX: TPIA) decided to sliced the 2020′ capital expenditures (capex) to US$135 million due to the COVID-19 pandemic, said the issuer today. Initially, the company targeted to spend $430 million in this year.
The director, Suryandi, revealed even his company cut the spending, mega projects like Chandra Asri Perkasa 2is still running, even though its projected to back off from the initial commitment. If it goes well, he said, the final investment decision process will be continued in 2022.
The projects is targeting to be completed in 2026. Apart forming a joint venture with Dutch’ Royal Vopak N.V., the company is still open for synergy options with other companies to realize the project. Both parties had signed a letter of intent in this month aimed to explore storage business opportunities in the country and lay the groundwork for industrial cluster expansion in Cilegon, Banten.
Currently, Vopak jointly owns and operates one oil terminal in Jakarta (49 percent) and one chemical terminal in Merak, Banten (95 percent). President director of Chandra Asri, Erwin Saputra, stated the company aimed to develop a new jetty and tank farm business to serve new third party customers.
Second, to prepare an investment and infrastructure development to support their second petrochemical complex. In August, Ciputra has mentioned, seeking a strategic partner to build a mega project, new polyethylene plant Chandra Asri Perkasa. The projects is estimating need an investments up to US$5 billion.
Suryandi adds, a final investment decision is scheduled for 2022. As a planned, the projects to be built on an area of 200 hectares in Cilegon. To meet the investment needs, the issuer belonging to tycoon, Prajogo Pangestu, have raised $69 million from the bond issuance.
He explained, the company aimed to increase the production capacity of a Methyl Tert-Butyl Ether to 127,000 tons per year and a Butene-1 with a capacity of 43,000 tons per year. Both factories its expecting done in the third quarter of this year. The producer has disbursed around $70 million for the projects, he adds.
Last year, President Joko Widodo has inaugurated the new polyethylene plant owned by Chandra Asri. The producer spent $380 million to build the factory with total capacity production 400,000 tons per annum. With the addition of the new plant, the capacity production of the company increases to 736 thousand tons a year.
The unit of PT Barito Pacific Tbk (IDX: BRPT) reported the company experienced loss $29.9 million until June 30, a 189.7 percent lower than last year booked a profit $33.3 million. The reduction of naphtha prices and crude oil price had become the triggered, said Suryandi.
Even loss, he assured assured that the balance sheet position of Chandra Asri remains strong with an increase in liquidity of $931 million as of June 30, including $649 million in cash and cash equivalents.
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