JAKARTA (TheInsiderStories) – Unit of Indonesian energy producer, PT Surya Esa Perkasa Tbk (IDX: ESSA) considered to releases global bonds up to US$350 million, said the company on June 3. The subsidiary, PT Panca Amara Utama also looked bank loans worth of $100 million.
The fundraising is an effort to refinance all company’ debts to the International Finance Corporation with an outstanding value of $444.22 million and working capital. The company lead by Garibaldi Thohir estimates that the global bond coupon is a maximum of 7.5 per year with maturity period maximum seven years. The producer will ask the shareholder permission on June 5.
In this year, Surya Esa targets the production of ammonia and LPG to remain stable with production of 15 percent above installed capacity, although the commodity prices are projected to remain low in this year. On a consolidated basis, ammonia products from subsidiaries will be a revenue contributor that can significantly improve the company’s performance.
In the first quarter (1Q) of 2020, the producer posted revenues $62.93 million, an increased of 8.4 percent compared to the same period in 2019, which amounted to $58.05 million. But, the net profit dropped 78.47 percent to $1.03 million from from 1Q of 2019 $4.8 million.
According to management, global economic conditions in 2019 also affected commodity demand and bring the commodity prices tended to fluctuate and decline, including ammonia. In addition, lower selling prices and an increase in the financial burden of subsidiaries contributed to the decline in the company’ profit.
Surya Esa Perkasa Tbk owns and operates the second largest privately-owned domestic liquefied petroleum gas (LPG) refinery in Indonesia. Its main business is the refining and processing of natural gas to produce LPG (mixture of Propane and Butane) and Condensate with a capacity of 190 ton per day LPG and 500 barrels per day Condensate.
Its facilities are located near Palembang, South Sumatera. Recently, Panca Amara Utama has successfully commissioned its 2,000 tons per day ammonia facility deploying latest energy efficient technology.
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