PT Krakatau Tirta Industri, the unit of PT Krakatau Steel (IDX: KRAS), plans to list its shares in this year - Photo by the Company

JAKARTA (TheInsiderStories) – PT Krakatau Tirta Industri (KTI), the unit of steel-maker, PT Krakatau Steel Tbk (IDX: KRAS), plans to list its shares in this year, said the CEO in virtual conference. The company also announced has booked a net profit around US$50 million from the a year ago loss of $503.65 million.

The CEO, Silmy Karim, said beside KTI, the Cigading port manager, PT Krakatau Bandar Samudera (KBS), also has potential to run an initial public offering (IPO) in this year. KTI engaged in the clean water businesses which is produced and used for industrial needs and the community around Cilegon, Banten and KBS managed one of the largest dry bulk ports in Indonesia.

The series of IPOs will add to the corporate actions undertaken by Krakatau, included spin-off of a blast furnace to an experienced strategic partner. The manufacturer had stopped operating its blast furnaces since Dec. 5, 2019 because unable to produce steel with a competitive prices.

Commenting on the financial resulted, Karim explained, during last year, total profit of the subsidiaries amounted to $36.55 million, reversing the loss of $169.32 million in 2019. The other unit, PT KH Pipe Industries, which recorded a loss of $34.03 million in 2019, returned to profit of $7.55 million in 2020.

Last year, PT Krakatau Wajatama, a steel producer under the group, made a net profit of $1.76 million after experienced loss of $28.85 million a year ago. Then, five other units that lost $141.67 million in 2019 were able to book a net profit of $1.2 million in 2020.

On a consolidated basis, the company’ revenues is projected to fall 4.4 percent to $1.35 billion compared to the 2019 of $1.42 billion. However, the company able to cut the operating costs by 41 percent to $200.8 million in 2020 compared to the same period last year of $337.4 million. The reduction was achieved after the issuer implemented a transformation and restructuring program.

This year, the company is optimistic that it will continue to make a profit. This can be seen from the increasing demand for steel from foreign markets such as Europe. During the pandemic, Krakatau sales volume increased 20 percent in tonnage.

“This year we hope it can be even higher increases by 40 percent,” concluded by Karim.

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