Exceeding Target, SUNI Earns IDR 100.9 Billion Net Profit Throughout 2023

Photo: (Maria Trisnawati/VOI)

PT Sunindo Pratama Tbk (SUNI) posted a net profit until the end of 2023 of IDR 100.9 billion.

The net profit achievement reached 112.3 percent of the Company's 2023 target.

President Director of PT Sunindo Pratama Tbk, Willy Johan Chandra, said that the net profit growth was supported by an increase in operating income of 72.0 percent yoy in the fourth quarter of 2023 so that the company managed to record operating income until the end of 2023 of IDR 762.4 billion, or grew by 41.1 percent yoy.

"This growth in operating income was supported by a sharp increase in sales segment in the fourth quarter of 2023 by 84.5 percent yoy," Willy said at a press conference in Jakarta, Monday, April 1.

Until the end of 2023, the Company managed to record operating income from the sales segment of IDR 759.1 billion, an increase of 46.7 percent yoy. Meanwhile, operating income increased significantly in line with the volume growth of OCTG tubing and casing sellers, which grew by 10.5 percent yoy and 304.7 percent yoy, respectively.

Along with net profit growth, the Company also managed to increase equity by 54.5 percent yoy to IDR 588.3 billion and maintain financial ratios based on credit provisions.

One of them, the Company maintains the debt-to-capital ratio or Debt to Equity Ratio (DER) at the level of 0.3 times or far below credit provisions, which is a maximum of 2.5 times.

Total liabilities also increased by 32.9 percent yoy due to an increase in financial debt to Rp73.4 billion compared to last year's debt of Rp6.2 billion for investment credit and the Company's working capital.

"This increase in financial debt is still in a reasonable composition because SUNI still maintains the current ratio at the level of 3.9 times and has a much larger cash than financial debt," he continued.

Willy also emphasized that with this very strong balance sheet condition, SUNI still has the ability to pay off its obligations and fund future investments.

Along with increased liabilities, which are mostly used for expansion, the Company's assets also increased by 48.4 percent yoy, especially for building assets, machinery and Company supplies.

SUNI also managed to keep cash flow positive at IDR 84.5 billion, or an increase of 166.4 percent yoy in the fourth quarter of 2023. Cash flow from funding activities increased significantly by 57.9 times by the end of 2023 to IDR 174.1 billion, mostly from the IPO carried out by the Company.

Cash flow from investment activities also increased by 26.7 times to Rp121.3 billion due to the acquisition of strategic assets of PT Rainbow Tubulars Manufacture (RTM) in Batam which is a vital asset for SUNI in producing in-house seamless pipes/OCTG and ensuring the availability of the Company's products.

In addition to increasing ownership in RTM, SUNI will also increase its production capacity by double the construction of the 2 RTM plant in Batam in 2024.