Two unit of PT Barito Pacific Tbk (IDX: BRPT), PT Chandra Asri Petrochemical Tbk (IDX: TPIA) and PT Styrindo Mono Indonesia plans to merge - Photo by the Company
JAKARTA (TheInsiderStories)PT Chandra Asia Petrochemical Tbk (IDX: TPIA), petrochemical producer from Indonesia, budgeted US$465 million for capital expenditure (capex) this year. The value higher compared to 2018, which reached $354 million.
The director Suryandi explained, this capex will come from internal cash and loans from The Japan Bank For International Corp. Its planned that the funds will be used to facilitate the preparation of Petrochemical factory complex and the construction of a new polyethylene plant with a capacity of 400 KTA with costs $380 million.
Suryandy said, the final investment decision for the development of the plant will be determined in 2020. He stated: “Hopefully the financial closing in 2020 and if it runs smoothly the new plant will be completed in 2024 or six years from now,” he said in Jakarta today (03/28).
He considered that Chandra Asri must have a bigger factory, because 25 percent to 30 percent of Indonesia’ petrochemical product needs around 40 percent to 50 percent of imports. The company plans to build the new factory since two years ago.
The factory will have an installed capacity of 2,100 KTA. In details, this plant is capable to produce ethylene products with a capacity of 1,100 KTA, propylene with a capacity of 600 KTA, mixed C4 with a capacity of 400 KTA.
When the plant is completed, Chandra Asri’ production capacity will reach 3,000 KTA. While the first factory has a capacity of 900 KTA.
In 2018, TPIA booked a 5.16 percent increase in net income to $2.54 billion. However, the current year’ profit reduced to $181.65 million, from the previous year amounting to $318.62 million .
Based on the financial statements of the producer, cost of revenue amounted to $2.15 billion, up 14.9 percent from $1.87 billion a year earlier. While, sales expenses decreased by 8.55 percent to $38.75 million and general and administrative expenses amounted to $36.98 million.
Unit of PT Barito Pacific Tbk (IDX: BRPT) recorded a financial burden of 42.31 percent, from $36.04 million in 2017 to $51.28 million in 2018. Losses from derivative financial instruments amounted to $4.79 million, from the previous a$1.21 million in 2017.
The issuer with the TPIA stock code posted a foreign exchange loss of $8.05 million, up significantly from the previous year of $2.57 million. Thus the current year’s profit amounted to $181.65 million in 2018, lower by 42.99 percent compared to the previous year of $318.62 million.
The company’ total assets as of December 31, 2018 amounted to $3.17 billion, up 6.23 percent compared to the previous year of $2.99 billion. Total liabilities and equity amounted to $1.40 billion and $1.77 billion, respectively.
Written by Staff Editor, Email: